Solgold Share Discussion Threads

[lefrene] 12/10/2020 11:01

LT< I guess the eventual value here is circa 2% of whatever lies within 76 prospects, 14 of which including Alpala, seem likely to contain circa $60 billions worth of metals, $840 billions, which at 2%, is $16.8 billion, with another 62 prospects to come. Some outfit paying $10 billion today, would not be making a mistake.

[lowtrawler] 12/10/2020 09:37

DD, every share requires investors to take a view on value. It's impossible to invest successfully without doing so. Naturally, we don't have access to enough information to make any view accurate but it shouldn't so it's trying.

[jlondon] 12/10/2020 09:36

DD

Just to put this Value-In-The-Ground to an amicable conclusion. It was a back-check.

Now that you mention NPV which is what John Cronford wrote on in his last article via Master Investors, he used NPV and he cut it to the BONE which gave a price of 50p. That*s exactly what he said about needing to pay the price, cost etc. [price of gold-copper he used]

Liberum*s thoughts was that it would be at 55p take-out by the said suitor in Q2, 2021.

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The share price of Solgold currently is 42.55p to Sell & 42.85p to Buy. However, live price is 42.595p to Sell and 42.79p to buy +1.83%.

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On the LSE Solgold forum, "macaumike" at 8:58am posted: "I think the FIRST OFFER will be circa £1.00 and have to be raised to £1.50 to have any chance of success....I would ACCEPT £1.50 if NOT happy to wait LONG TERM."

Strategy:

So, that is the thoughts of 1 poster and his strategy. That means that macaumike*s expectations are almost 100%+ at £1 and that he will take £1.50 OR else he will WAIT LONG TERM.

As a matter of quick check for myself, I used Allenby*s $35/oz to balance the other NPV view and got £1.09.

So, for everyone, it is basically up to one*s own expectations. Hannan & Partners used the NPV method and is a Tier 1 broker and they gave a target price of £1.28. So, come and go, it hovers around that. So, this is a peaceful discussion and if one does not want to use M & A deal dynamics like Cornerstone used for copper, then feel free to express a view so that we can share as fellow investors on the SAME ROAD. Unfortunately, the market is now pricing the shares at 43.73p live to buy 43.45p to sell as investors buy-sell and like macaumike, they wont sell unless it is X price. Certainly, those buying at 43.73p live may not expect 50p from a suitor based on bare-bones NPV. So, that is what is actually happening. Mon, 12 Oct 2020

MATHER:
He is aware of the Cronford 50p price and Liberum*s 55p price but he has said in the Mining Journal interview @2020 that everyone has a price - we are not banking on it - we carry on. So, the suitor is not taking me on with any of the cals but Mather to a proxy fight and with it the institutions that hold the cards especially Blackrock with 5%+ stake as it will be down to the wire possibly depending on share count.

SHAREHOLDERS:
On the LSE Solgold forum, they are also using 1% as a benchmark and it will be up to the general consensus and they are generally NOT willing to sell at 50p [Cronford*s price] or 55p [Liberum*s thoughts], so everyone is discussing it from the various benchmarkS so I am NOT in the way - everyone has that right to think for themselves.

[bogotatrader] 12/10/2020 09:29

Up she goes - clear run to 50p

[arcadian] 12/10/2020 09:10

DD

It`s simply the difference between a cup half full or a cup half empty until more information is available about assets, value and costs but currently evidence of greater value from rising prices and drilling is emerging.

[dozyduck] 12/10/2020 08:47

'fraid this discussion of value in the round is a complete waste of time, let alone prone to sky-high wishful thinking. Brokers want to flog you the shares - they're going to clutch at any 'valuation' straw to persuade you they're cheap. Industry deals are overwhelmingly influenced by the facts I set out earlier. The proof of all the puddings is the NPV worked out at vast cost by experienced professionals and taking account (as most comment here doesn't) of the capital cost. - AND, if in a sale, the extra cost of buying the thing ! - which reduces the NPV in the hands of the buyer by the price he pays.

[mirabeau] 12/10/2020 08:44

Go on my son. Moving now

[swanvesta] 12/10/2020 08:42

How many Havierons though?

[greenelf] 12/10/2020 08:40

And GGP is over hyped.

[p@] 12/10/2020 08:39

When comparing ggp,s Havieron value to Alpala, the country its jurisdiction is in is a big factor.

[greenelf] 12/10/2020 08:14

Over a million trades in first 15 mins. May get hot this week..

[wapping67] 12/10/2020 06:47

Jlondon ...good work, thank you

[mam fach] 12/10/2020 00:36

Unfortunately the highly speculative views are below my expectations.
IMHO. Time will tell. Agree still time to fill your boots.
Good luck to the budding golfer.Well done on driving 250 yards.
Hubbies favourite putter is Ping.
Another early start tomorrow. 7am RNS?

[gowlane] 12/10/2020 00:30

Well investment is usually meant to be boring but this has been very exciting lately.

It would be freakishly good luck if SOLG makes a second tier one discovery in its licence area, but that seems to be a distinct possibility at Porvenir.

Fingers crossed for another good update at 7AM.

[lowtrawler] 11/10/2020 23:34

There's a lot of highly speculative views on value flying around just now, myself included. Suffice to say, our current share price is nowhere near the lower bounds of any of these just now. Once we reach 70p, we will start to need more information. Until then, fill your boots.

[mknight] 11/10/2020 23:08

Jlondon

Afraid i am not Smart enough to follow what you are saying . But i would guess it means we are undervalued. Out of interest by how much .

[mknight] 11/10/2020 23:03

Arcadian . I will do Thats very kind of you .

[jlondon] 11/10/2020 22:47

MK
Mather says that Solgold has 23 Million Ounces of Gold which is EQUIVALENT to
8 5 Million ounces of Gold [Mining Journal Interview @2018]

So, today*s Solgold share price is 42.25p - Mkt Cap £868 million or US$1.128 bn.

So, it means that if one divides £868 million mkt cap into 85 Moz equivalent, that equals to US$13.2 per ounce.

Re: 24 years of historical take-out prices at per ounce of gold, nevertheless, it is being used as a quick check. Eric Sprott in his recent Fri, Sprott Money audio mentioned this. There is no denying that what Eric said is true, that profitability for some gold miners are now around US$1,000 per ounce when gold hit the US$2,000+ high recently.

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I cite Allenby*s broker report on Rockfire Resources: Allenby uses "VALUATION RATIONALE: US$35/oz VALUATION QUOTIENT" & 1.5 million ounces of gold. Allenby adds: "At a price anywhere near current levels producing gold is a very lucrative for most mines given cash costs typically in the US$650-750/oz range and FULLY ACCOUNTED COST OF US$1,000."

"AFTER APPLYING US$35/OZ TO ASSUMED RESERVES OF 1.5M, the lighthouse VALUATION WOULD BE US$52.5 Million."

"There is a VERY RELEVANT BENCH-MARK in the form of RESOLUTE Mining*s DISPOSAL of its Ravenswood operations at the beginning of 2020. The consideration for disposal was US$202 Million O R US$ 4 2 /OZ AU GOLD & U S$ 6 1 /OZ GOLD FOR TOTAL RESOURCES Indicated plus Measured respectively. Ravenswood is an established mine and processing facility, so in principle the VALUATION has to be discounted for this factor in a Rockfire context at a hypothethical PRE-feasibility stage."

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So, the value in the ground method is BEING used by Allenby in their 2 July 2020 broker note on Rockfire as an example.

Link: www.allenbycapital.com/research/research_rock8_3298818842.pdf

[mknight] 11/10/2020 22:25

It maybe now NM has Porvenir he may well be interested in selling Alpala if the price was right .But first he needs to make sure it is 3 to 12 times larger .

[mknight] 11/10/2020 22:12

Bogotatrader .

Well Gold rose on Friday back over 19⁰0 so i guess it will try to push through 2000 again soon . If and when that happens it wont hurt Solgold . Solgold think Porvenir will be 1 to 1 cooper/ Gold . If its an open pit production could be before Alpala and cheaper to fund as well .

[bogotatrader] 11/10/2020 21:36

MK - You have reason with your previous comment that BHP may acquire Cornerstone...the price action at Cornerstone indicating SOLG bid will not be accepted but holding up well indicating some possible other action...we will find out shortly

[mknight] 11/10/2020 21:29

😃

I have a feeling that Cornerstone are not as stupid as we all think but time will tell . Dont think it will be much longer as BHP cannot allow the price to get too high. NM doing what he can in the meantime to make sure we get a decent return .i expect a nice rise tomorrow if Porvenir does the business .