The following article appeared in UK's Master Investor - DGR has 207.4mil shares in SolGold, so explains the DGR sp rise of 27% today......
SolGold plc | LSE: SOLG – DGR 16.97% ‐ 207.4m Shares -
Why I’m buying into SolGold’s spectacular ascent
By John Cornford 27 September 2016
My taking a profit on a small proportion of my stake in SolGold after its spurt to 12p following Newcrest International’s offer to buy 10% at 6p per share is looking silly now that the shares are touching 18p – after what looks like a mini-buying stampede today. And after dithering when to get back in, at what price, I still haven’t put it all back in.
Since my last comment on 9th September, I’ve also been dithering over a necessary update for Master Investor – to catch a fast-moving situation.
The week up to 22nd September was providing a clue that, following Newcrest’s recent offer to match mining financier Maxit Capital’s proposed investment (on behalf of its clients – the key one of whom has been revealed as TSX listed Guyana Goldfields Inc., whose CEO is to join SolGold’s board) by offering to invest $10.8m at 6.1p per share, something more was brewing. A steady but uninterrupted rise in the shares from 11.4p to 13.2p indicated that someone else was building a stake and was paying up to 13p.
But no one could tell whether it was Newcrest protecting its position, or a ‘superior investment proposal’ – perhaps from another mining industry player – which SolGold had indicated would supplant Newcrest’s offer if it came along.
Now, with SolGold’s announcement on 22nd September that it is Newcrest upping its offer to 12p per share, as well as Maxit, we can surmise that one of the Maxit clients who were being approached to support a further funding at the doubled share price was buying beforehand – in other words on inside knowledge.
So now, holders at the 13th October shareholder meeting have an even more glittering set of proposals to rubber stamp (unless yet another ‘superior investment proposal’ comes along!).
The new proposals will see SolGold receiving $10.14m from Maxit for a 4.4% stake, and Newcrest stumping up $22.9m for 10%. With its existing cash, SolGold will have $48m – enough for more than a year’s further exploration of Cascabel using seven drilling rigs (instead of only one up until a few months ago) on the further seven promising targets so far unexplored at what SolGold is now, for the first time, describing as one of only five ‘Tier One’ copper-gold discoveries in the last ten years.
And that is unless another superior proposal comes along from the many industry participants who SolGold says have been showing ‘intense interest’.
So, even though I’ve dithered, and provided I act quickly, I may yet be able to profitably reinvest the remainder of what I shortsightedly skimmed off my SolGold stake a few weeks ago. I think readers, as well as I, ought to act quickly because SolGold also says that it is now more urgently pursuing its aim of an additional listing on the Toronto Stock Exchange, to tap the ‘intense interest from North American investors’.
SolGold is now rapidly drawing in more and more interest. It is ‘in play’ in an industry which, although copper is at a ten year low, is looking to fill the gap in copper supply looming in 5-10 years time – just when Cascabel could be coming into production. For them, a rising content of gold at Cascabel (about half the resource by value) will be the icing on the cake – getting thicker with a gold price that more and more investors believe has nowhere to go but up.
nick mather magic cheap as chips
still cheap SOLgold massive
30 target by end 3017
DGR in a bull weekly flag points north..
good update cheap as chips..
DGR looks ready to explode fundamentals and chart wise
back to 12 support compelling story
in play just a matter of when
sol gold 40 pence..last night go DGR
ASX Market Update
SolGold outlines a new Olympic Dam in Ecuador
Peter KerResources reporter
May 21, 2019 — 3.02pm
The Brisbane company pursued by BHP and Newcrest Mining expects its Ecuadorian mine to rival Australia's Olympic Dam for annual copper production.
New studies into SolGold's Alpala project envisage a mine costing between $US2.4 billion ($3.5 billion) and $US2.8 billion to build, and closer to $US10 billion over a lifespan of between 49 and 66 years.
Annual copper production is expected to be 207,000 tonnes in the first 25 years and 150,000 tonnes over the project life; production volumes that roughly match Olympic Dam's current potential and recent performance respectively.
While that would make Alpala a significant copper producer, it will not be big by global standards, with Chile's Escondida mine producing more than 1 million tonnes of copper a year, while Rio Tinto's $US5.3 billion Oyu Tolgoi expansion in Mongolia will produce more than 600,000 tonnes of copper in some years.
Like Olympic Dam, Alpala will produce gold and silver byproducts, but that is where the similarities end; Alpala will produce a concentrate rather than metal on site, will not produce uranium and will use a caving technique more akin to that used at Newcrest's Cadia mine.
SolGold expects a return of between 24 per cent and 27 per cent on the project, based on the assumption that copper prices will average $US3.30 per pound.
Copper was fetching $US2.71 per pound on Tuesday.
The study was eagerly awaited by Newcrest and BHP, which own 15.2 per cent and 11.1 per cent of SolGold respectively.
Both companies made overtures to SolGold in October 2016, with the Brisbane-based junior preferring Newcrest's offer to buy SolGold shares rather than BHP's offer to buy its 85 per cent stake in the Alpala project.
Newcrest was also preferred at the time because of its experience with caving at Cadia.
But BHP hit back in 2018, buying SolGold shares in two tranches, while companies owned by Gina Rinehart have secured exploration ground on three sides of Alpala.
ASX-listed minnow DGR Global also owns 11 per cent of London-listed SolGold, which had a market capitalisation this week of £692 million ($1.27 billion).
Canadian junior Cornerstone Capital, which recently struck some exploration joint ventures with Newcrest, owns the remaining 15 per cent of Alpala.
SolGold owns just over 10 per cent of Cornerstone, meaning its economic interest in Alpala is closer to 86.6 per cent.
SolGold boss wants to end the brawl with BHP and Newcrest
Peter KerResources reporter
Jan 6, 2021 – 12.01am
SolGold managing director Nicholas Mather wants to repair his fractured relationship with BHP and Newcrest Mining after an acrimonious year that culminated in a massive protest vote against his re-election to the board of the high-profile copper explorer.
BHP and Newcrest both own more than 13 per cent of SolGold and last year made public their respective concerns about Mr Mather's approach to governance and funding of the Brisbane-based company, which has discovered several prospective copper and gold targets in Ecuador.
BHP and Newcrest were not the only SolGold shareholders with concerns about Mr Mather, with 44.7 per cent of the company's register voting against his re-election to the SolGold board shortly before Christmas.
Mr Mather said it was no secret that BHP and Newcrest had felt ''upset'' and ''disenfranchised'' with the direction of SolGold and he vowed to work to build a more collaborative and constructive relationship with the mining giants in 2021.
''You can conclude who voted against me and who didn't vote against me, but I can assure all sectors of the market, stakeholders and all shareholders that it is our intention to deliver the best value outcome and commercial upside for all shareholders whether they be big or small,'' he said, in an interview with The Australian Financial Review on December 18.
''We have taken steps to improve board independence and augment management teams and we will be continuing to do that and we would like to have a more constructive dialogue with Newcrest and BHP''.
Updated: Jan 6, 2021 – 1.00pm. Data is 20 mins delayed.
View BHP related articles
DGRDGR Global Limited
The biggest disagreement between the mining giants and Mr Mather's management team was over ways to fund the Alpala project on SolGold's flagship Cascabel tenement, with BHP and Newcrest keen for the pre-revenue company to conduct a share issuance to existing owners.
Mr Mather opted instead to borrow $US15 million ($19.5 million) from Franco Nevada at interest rates of 12 per cent, which was repaid in September when the same lender provided $US85 million in exchange for a perpetual 1 per cent "net smelter return" royalty over SolGold's future revenues from the Cascabel tenement.
Franco said in its 2019 annual report that net smelter return royalties generally offered ''the highest margins and most downside protection'' compared to the other financial instruments it sells.
Those comments appear to support former BHP finance boss Peter Beaven's suggestion that royalties and streaming deals tended to be expensive sources of funding in the long run.
SolGold has the option to borrow a further $US50 million from Franco before January 11, under a deal that would give the lender a 1.5 per cent royalty over SolGold's net revenues from Cascabel.
Mr Mather defended the loan decision in July on the basis he did not want big shareholders to creep toward control of the company without paying a takeover premium by gradually diluting those with less financial firepower.
The 44.7 per cent vote against Mr Mather on December 17 highlights how close BHP, Newcrest and other disenfranchised SolGold shareholders came to seizing a kind of unofficial, collective control of the company.
SolGold lists Mr Mather's stake in SolGold at 5.35 per cent, but he is also managing director and a substantial shareholder of ASX-listed DGR Global, which owns 9.8 per cent of SolGold.
While Mr Mather prevailed, the SolGold board had to make concessions, withdrawing two resolutions from the December meeting that sought to give the board power to issue new shares without offering existing shareholders the right to purchase their pro-rata allotment.
Reflecting on the funding stoush, Mr Mather said it was clear that taking on the Franco debt had annoyed BHP and Newcrest and he wanted to avoid such tensions in future.
''Obviously it upset BHP and Newcrest and we regret that and we will be taking steps to ensure that upset does not happen again,'' he said.
''It is not good and we recognise we have two major shareholders as disenfranchised as BHP and Newcrest felt they were, and we don't want them to feel that way and we will be taking steps to try and make sure that situation does not perpetuate''.
Mr Mather declined to go into precise detail as to how he planned to repair the relationship with BHP and Newcrest, but pointed to several recent initiatives, including ''the steps we have taken to make the board much, much more independent and populated with individuals with a lot more expertise and experience in mine building''.
The comments appear to be a reference to the elevation to the SolGold board of former BHP mining engineer Kevin O'Kane, former Rio Tinto mining engineer Keith Marshall and former BP social performance executive Elodie Grant Goodey.
SolGold boss lashes Newcrest's 'dog in the manger' act
"I don't want to get drawn on debates about what was in whose interests and who is right and who is wrong, suffice to say that a more consultative, collaborative approach to designing outcomes will probably result in fewer differences of opinion going forward," said Mr Mather.
"There is no point spending your life blueing when the task is to raise several billion dollars to build a mine. Yes, we have to look after the ultimate commercial outcomes for all shareholders, and that means exploring openly what various alternatives might be''.
SolGold's London-listed shares have performed well over the past nine months, surging from less than £0.12 in March 2020 to be more than £0.34 this week, giving the company a market capitalisation of £721 million ($1.27 billion).
Aside from a 70 per cent rally in copper prices, the surge in SolGold shares was helped by encouraging drilling results at SolGold's Porvenir prospect about 600 kilometres south of Cascabel.
''It is way better to find one of these things than to go and buy it and SolGold's massive tenement position provides the company with the ability to do that," said Mr Mather.
Gina Rinehart's Hancock Prospecting shares a fence with Ecuador's hottest copper exploration ground.
Rinehart has Solgold surrounded on three sides
Mr Mather said the company would continue to study its multiple prospects in different parts of Ecuador in 2021, but the big focus would be the release of a pre-feasibility study into the Alpala project that attracted BHP and Newcrest in the first place.
Mr Mather said he could not say when the final feasibility study for Alpala would be published, but he had not ruled out completion within 12 months.
''We are working as hard as we can to deliver it as quickly as possible and we are aiming to be in a position to deliver it in 2021, but I am not going to guarantee it,'' he said.
Peter Ker covers resource companies, based in Melbourne. Connect with Peter on Twitter. Email Peter at firstname.lastname@example.org