Solgold Share Discussion Threads

[mad foetus] 20/10/2018 10:49

One other possibility is a sale of one field or part thereof to fund exploitation of the rest. SOLG has enough land to give lots of options

[zeusfurla] 20/10/2018 10:46

Mirabeau

For sure Nick has a plan and he is still too young to retire! He would be a good poker player IMHO.

[mirabeau] 20/10/2018 10:25

zeus

Yes, it is intriguing and incredibly frustrating as I want to see inside the head of Mather and find out exactly what he's thinking and how he sees this panning out - grrrrr

[zeusfurla] 20/10/2018 10:09

Just going back to earlier comments on BHP and looking at this from Newcrest perspective. They've had a seat on the Board for a while now and haven't increased their stake. There will be relationships built up. Nick will have an idea of where they are coming from. So another consequence of limiting BHP's potential stake without Board approval is to flush out Newcrest. They may not be able to afford to buy SOLG but what is their endgame? SOLG must be looking a lot bigger than it did when they bought in. I'd suspect they are looking at either some joint involvement in Alpala or maximising shareholder value and getting out. Looking more likely that this is for the big boys now.

[arcadian] 19/10/2018 15:09

Can`t understand the price. Even BHP were willing to pay 45p. Perhaps some hope to jump back in when the MRE is published or bid rumours appear but in either case the price will be far north of 45p when the deal/upgrade is announced..

[yufff] 19/10/2018 14:05

Mirabeau

Great find

Nick once said Chinese interest is there.

Can’t remember when.

Where do you find the time to come up with gems like this?

[lefrene] 19/10/2018 14:02

It would have to be a large offer to prise BHP and Newcrest away from the glittering prize. They know this is a multi generational resource in a favourable location, they will know the true value of what they would be giving up and would want the compensation to recognise the value of the opportunity forgone. I do agree, not one to be out of over a weekend.

[mam fach] 19/10/2018 13:58

Just what I was thinking.
Don't care that I don't know what is going on behind the scenes.
As long as no one else does.
As you said NM runs a very tight ship.
That's how it should be and one reason we have held on to our shares.
Still time to buy for anyone not holding. IMHO.

[lefrene] 19/10/2018 13:53

Thanks Mirabeau, the Chinese wading in adds another interesting dimension to the great Ecuador mining rush :¬) I do hope some of that new money gets a few more drills in the ground asap.

[shakester2] 19/10/2018 12:50

And holes 64 and 66 assays due

[alwaysevolving] 19/10/2018 12:49

That’s also my thinking mikalan. They (BHP) can’t increase their stake past 13% (without permission) for the next two years however they ARE permitted to make an outright offer in that time. Personally I think that’s exactly what they will do once the updated MRE is published.

Why sit back for two years watching SOLG grow and the share price increase with the potential of Newcrest or anyone else for that matter taking bigger and bigger chunks of the pie because they can while BHP are not permitted to? It’s make a full offer or be forced to sit on their hands and watch from the sidelines for two years. I just can’t picture that happening?

Just my own opinion.

[shakester2] 19/10/2018 12:48

Don't forget they have 70 plus concessions plus applications for another 100. The geology of the place and their first mover advantage means they are extremely likely to find other deposits IMO

[mam fach] 19/10/2018 12:37

It was a disguised placement.Kept share price steady.
I will be forever grateful for opportunity to buy in placement @ 3p.
Now that was a gamble.
Still time to get in here .
Been saying that from 20p.

[mikalan] 19/10/2018 12:32

Do we all assume that BHP want to take over SOLG at some point? or are they just getting their feet under the table so that they can maybe buy one or more assets? Why would BHP buy 11% and just sit on it for 2 years?

[lefrene] 19/10/2018 12:17

That is worth mentioning jb5001. As for BHP they will have taken this course as the best value way to work towards what they want. It would have cost more to buy their 11% in the market because word would have leaked and the price would have shot up, and then Nick Mather would have used the price surge to raise cash by issuing shares to another party at a higher price.

[jb5001] 19/10/2018 12:06

Worth mentioning that Nick Mather was a non-executive director at Orbis Gold. Orbis gold got taken out in a hostile move by Semafo in 2014, and from reading some news reports from the time there appears to be have been some disgruntlement about the sale price (taken out at a premium to actual share price, but not deemed to be close to what the asset would eventually be worth). I think the recent deal with BHP has been designed to prevent a similar scenario happening with SOLG. I find it quite ironic that we are going to use BHPs money to try and increase the value of the asset that they obviously are interested in!

[brahmsnliszt] 19/10/2018 11:59

the majors are starting to spend......

[mirabeau] 19/10/2018 11:17

Yes, but Newcrest simply couldn't afford to buy SOLG or indeed outspend or out-bid BHP. Financially, they are miles apart

Newcrest as around $1.1bn net debt ($1.4bn debt)

BHP is on another level financially. Yes, they have debt of around $10bn but their ability source finance is beyond question

They are two very different beasts

[lefrene] 19/10/2018 11:08

I'm thankful that the company has someone of the calibre of Nick Mather at the helm, because I suspect that no trick will go untried as the big boys try to muscle in. Where's a good old fashioned commodity price squeeze when you need one? :¬)