Solgold Share Discussion Threads

[lefrene] 06/9/2018 08:46

jerryspaniel, yes it would and would be unhelpful, my "I would like to know" was just that, I didn't mean that he should go public, although as I said he mentioned 10 to 15 times greater than current price. So one supposes 200p to 300p, either of which I would be happy to sell for, and the buyer would still have good value for a very long term asset.

[pob69] 06/9/2018 08:37

Here's the latest official updated shareholding list from $SOLG $CGP #ecuador after yesterday's activity;

[mam fach] 06/9/2018 08:36

Exactly what we would expect N M to say.
Not in my nature to sell things under value.
Very fair comment.Can't fault his strategy.
Big miners are positioning themselves.
Expecting more developments this week.

[jerryspaniel] 06/9/2018 08:36

Not sure why BHP wouldn't just sit there and buy everything offered to them at 25.5p. Would get a bit more and reinforce yesterdays purchase. Lefrene: If NM publicly gave an idea of value, wouldn't that effectively put a for sale sign over the company?

[lefrene] 06/9/2018 08:31

I would like to know Nick Mathers idea of the value of Solg, although he did say 10 to 15 times the current price a few weeks ago. Cornerstone doing an about turn suggests that they may already be talking to a potential buyer.

[mam fach] 06/9/2018 08:05

Too much of coincidence that this news is released within hours of BHP holding RNS.
Cornerstone hinting their shares for sale?
Maybe it's a done deal.
Let's see how the market reacts.
Up another 20% today? All interested parties may have to show their hands.

[brahmsnliszt] 06/9/2018 07:49

BHP Grabs Stake in Ecuador Miner to Expand in Copper Hot Spot2018-09-05 09:38:03.734 GMTBy Thomas Biesheuvel(Bloomberg) -- BHP Billiton Ltd. has snapped up a stake inthe world's biggest undeveloped copper mine as it expands itspresence in Ecuador, a nation that's becoming the sector'sexploration hot spot.The acquisition of 6.1 percent in SolGold Plc comes justtwo years after the Brisbane-based company rejected a takeoverapproach from the mining giant. BHP is buying the stake fromGuyana Goldfields Inc. for $35 million, a 20 percent premiumover the share price. SolGold jumped as much as 23 percent inLondon.The world's biggest miners are bullish on copper right now.They expect ever-growing demand as cities expand in emergingmarkets and electric vehicles become prevalent, while new supplylooks constrained. Anglo American Plc gave the green light for a$5 billion copper mine in Peru in July, while Rio Tinto Group'schief executive officer has spoken publicly of his ambitions toadd more exposure to the metal.See also: World's biggest miners want more copper butnobody's sellingSolGold controls the Cascabel project, which could becomeone of the world's major copper mines. It also has explorationrights across Ecuador, among the most prospective countries forthe metal. BHP opened an office in the capital, Quito, last yearand began advertising for staff.BHP is not the first company to show an interest inSolGold. Gold miner Newcrest Mining Ltd. owns about 15 percent,having previously beaten BHP to an investment. In 2016 SolGoldrejected a proposal from BHP that would have seen it buy 10percent for $30 million as well spending $275 million on theCascabel project to earn a 70 percent stake.The industry has plenty of money for acquisitions rightnow. BHP and Glencore Plc are churning out massive profits, andRio Tinto may end the year having raised $8.5 billion from assetsales.(This is the best bit)"BHP are not in it for a minority stake," said RichardKnights, an analyst at Liberum Capital Markets in London. "Younow have a competitive bid situation,' he said, adding: "Thereare no large deposits of this size sitting in a standaloneequity. The register is open."

[pob69] 06/9/2018 07:49

Redcloud broker update on $SOLG $CGP #ecuador
The Sharks are Circling, is a Bidding War About to Begin?
Impact: Very Positive
BHP Billiton (LON:BLT, ASX:BHP), the world’s biggest miner, has entered into a $35M deal for a 6.1% stake in SolGold Plc (TSX:SOLG) that it has acquired from Guyana Goldfields Inc (TSX:GUY), which adds a second major miner (Newcrest currently owns 14.54%) to the race to acquire the Cascabel Cu-Au project in Ecuador.
• Share purchase by BHP reminds the market that the Alpala deposits and wider Cascabel project are among the world’s largest undeveloped copper projects and are likely to be multi-generation mines. This is the type of asset that is highly coveted by major miners, like BHP and Newcrest, who have been actively searching for large scale copper projects.
• In our view, significant upside exists if a bidding war breaks out. Historically, copper projects sell for ~US$0.07/lb CuEq, this implies a share price of C$0.83 for SolGold.
• Since the maiden mineral resource estimate of 16.18Blb CuEq (1.08Bt grading 0.68% CuEq) at Cascabel, a total of 80,538m of additional drilling has been completed by the company, which continues to outline a higher-grade core at Alpala and point to significant resource growth expected in a revised resource estimate.
In our view, the SolGold's current valuation (C$0.041/lb vs. peers at C$0.026/lb CuEq) does not reflect the exceptional nature of the existing Cascabel project, its the meaningful exploration upside or the fact the multiple majors have now demonstrated interest in acquiring the company

[jerryspaniel] 06/9/2018 07:48

I read it that they have cancelled the disinvestment of their non cascabel assets. But they have certainly stopped the separation of the two. Seems a bit of a coincidence. Would be a nice chunk for someone to get hold of, and if they bought the company (CGP) instead of just the holding in SOLG, they would effectively add 23% of Cascabel. Adds to the intrigue.....

[robizm] 06/9/2018 06:02

Cornerstone have cancelled their dis investment of cascabel assets as announced last night. have they been approached?

[onedayrodders] 05/9/2018 18:45

Nice to see some life breathed into this gem .. we should be a different "animal" from hereODR

[mam fach] 05/9/2018 18:18

If they are after CGP holding they eon't be getting it @ 25p. The cat is now out of the bag. No predictions for tomorrow. Interesting times.

[lefrene] 05/9/2018 17:45

jerryspaniel, it's a bit late in the afternoon, CGP hold a tad over 10% and DGR hold a tad over 12% and as far as I recall DGR hold 4% of CGP? I could be wrong, and Nick Mather also has an interest in DGR, so it's all a bit convoluted, plus I believe CGP are going to divest their holding quite soon? Sorry to be so vague, but perhaps CGP might also be talking to BHP? Although I would expect NM to know if they were. BHP being one of the big hitters, then if they want Solg it's only a matter of time and price, they might see now as an optimum time before commodity prices rise against inflated fiat currencies?

[mam fach] 05/9/2018 16:54

Answer is YES to all your suppositions. Done well to hold price down to 25p ish. Where do we go from here? Only way is up.Only IMHO.

[jerryspaniel] 05/9/2018 16:51

Hi lefrene. Who are CGP and how much do they hold?
If my memory serves me, some of the larger corp s/holders are linked to Mather and the directors. Obviously they wont be selling.

[smoothtrader] 05/9/2018 16:51

@prog66

Great post. It seems like we are heading for some existing times now BHP have committed to buy a small stake.

What's interesting from my interpretation is

1) "We are less inclined now than we were back in 2016. The project has come so far. We were not interested at all in the beginning [in a farm-out] and we are now less interested, if that could be possible. They know we are not going to farm it out and they have started by buying 6 per cent."

we can assume one thing from here, is that NM is "less" interested in "Farm out", implying that only ONE way BHP can grab this monster of a discovery is via cash sale. At what price this remains to be seen.

We know BHP are desperate to expand their portfolio (for many years to come) and SOLGOLD would seem perfect for their project vision.

We also know their failed attempt to buy SOLGOLD many months ago....and now this news just reconfirms their long term interest. Even Blind Freddie could see this as NM states. Lol

Now BHP have bought, I wonder what "other" players in the market will do? Seriously this is such a big news of where we are heading.

Total BUY OUT would be nice but at correct price tho.

Thoughts????

[lefrene] 05/9/2018 16:42

What will BHP do next? Are they after the CGP holding or at least a part of it?
Have they made this initial play now because they know the upcoming MRE and preliminary financial assessment will be good? Certainly stuff is coming together in the near future, a time to be buying, not selling in my view.

[lefrene] 05/9/2018 16:07

Thanks for that pob69. As NM say's, BHP are not in the minority holding way of business. I do like" dangerously undervalued on Alpala alone", bearing mind of course the other 10 projects on the go.

[pob69] 05/9/2018 15:02

Must read review $SOLG $CGP #ecuador (behind paywall and Blind Freddy is back)



Highlights;

"They [BHP and Guyana] didn't tell us they were going to do this," Mather told The Australian Financial Review on Wednesday. "Blind Freddie can see that unless they have decided to go with a minority interest, which is not really in their DNA ... You can only speculate as to what they might do from here.

"It is not my job to speculate about what BHP might want to do. But it is a great asset and it is dangerously undervalued based on Apalapa alone and it is only one of 11 different projects that SolGold has.

"We are less inclined now than we were back in 2016. The project has come so far. We were not interested at all in the beginning [in a farm-out] and we are now less interested, if that could be possible. They know we are not going to farm it out and they have started by buying 6 per cent."

"Well, everybody's perception on what might happen will be different, obviously," Mather said. "What you can say is that they [BHP] think the project is great, the country is great and we are running it well.

"Naturally we have defence and corporate advisers appointed for these sorts of moments. We have our business to get on with, though. We are exploring and appraising the world's largest slab of unexplored terrain on the Andean copper belt on the spine of Ecuador. We have got the rails run on that. We pegged the best stuff we could four years ahead of anyone else."..

[lefrene] 05/9/2018 12:46

I'm guessing that Guyana Gold needed a cash injection? Last year they had $62.5 million cash but also debts of $50 million. So has BHP been sitting around waiting for GG to have to sell the family silver?

[pob69] 05/9/2018 12:35

SP Angel house broker to $SOLG 25.3p, Mkt Cap £429m –
BHP pays a premium for Guyana Goldfields stake in Solgold - BUY #ecuador

BHP Biliton has announced that it has acquired Guyana Goldfields’ 6.1% interest in Solgold at a price of 26.592p/share representing a 20% premium to the 20-day volume weighted average price. The acquisition of 103.1m shares represents an investment of approximately £27.4m by BHP Billiton. Commenting on the investment, BHP Billiton’s CEO, Andrew Mackenzie said that it was “Consistent with our positive long-term outlook, copper is a key exploration focus for BHP as we seek to replenish our resource base and grow this important business.” Disclosure in Solgold’s 2017 Annual Information Form shows Newcrest holding a 14.54% interest in the company.

Conclusion: The Billiton investment in Solgold endorses the quality of Solgold’s 85% owned Cascabel project and its portfolio of wholly owned exploration projects in Ecuador.

[pob69] 05/9/2018 12:03

Positive comments via FT from brokers Berenberg for $SOLG $CGP #ecuador

“Having another major mining company invested in the business speaks to the potential scale of SolGold’s exploration and development portfolio,” analysts at Berenberg said. “The fact that BHP has transacted at a premium valuation is likely to be a significant positive for the shares.”

[jerryspaniel] 05/9/2018 11:32

£2 is £3.5byn and that's assuming no further equity issuance or large debt. I cant see anyone thinking that is a good price to pay for stuff in the ground that hasn't got to market. Why not take a stake (maybe a big stake) and see what they can do on their own or with some help from a large stakeholder. Limits the downside risk for BHP/Newcrest et al, and they can move when they have to.
Lots of options for the major miners, but also for SOLG too. They could sell Cascabel and use funds to properly develop all their other assets, for example. But my money would say they will try and stay independent for as long as they can, then sell out to a big boy, but I would doubt they would get much more than £1. Also I don't think SOLG will be around in (say) 5 years time. Things will move (relatively) quickly from now on.
I am curious that they used VWAP to agree a price. Usually that is done in takeovers, not small stakes. Clever to do it in August when prices depressed.
All IMHO of course!