Solgold Share Discussion Threads

[arcadian] 26/10/2020 18:52

LT

Rouge has a point in that investors do not like the idea of dilution and it makes them jittery.

In this case particularly your assertion that

"Their only alternative is to monetize Alpala." is premature and does not allow for the creativity and ingenuity of our seasoned management. Given the riches in POR and RIO who knows what deals can be struck? We just need to be patient and keep our darker worries to ourselves until the mist clears.

[mknight] 26/10/2020 18:20

At the end of the day what will drive the share price will be the drilling results . If all goes to plan the share price will multiply from the 37.15p of today .

100k left on the book today at 37p so plenty there for another rise tomorrow morning with or without news . With a bit of luck we can close the week in the mid 40,s .

[rougepierre] 26/10/2020 18:06

LT...you have mentioned the need for a further fund raise ten times in the last six trading days...

E.g. "The need for an equity raise will be partially what is holding the price back."

Do you really think that helps?

Whether you are correct or not, people buy on hope and sell on fear...

Almost every time you mention the exciting news events pending you then talk about a 'necessary' fund raise.

We get the point so do you think you could just focus on the positives for now please?

[lowtrawler] 26/10/2020 17:46

RP, SOLG have already announced plans for 50k metres of drilling at Porvenir. That will cost at least $40m. I fully expect the same to be announced at Rio over the next few weeks. I expect SOLG to get their blockbuster news items out with an associated price increase. At that point, they need to do an equity raise. Nothing wrong with that, they will have made discoveries that now need to be exploited.

Their only alternative is to monetize Alpala. That is my preferred route but I am erring on the side of caution. If Porvenir and Rio are as big as I hope, it's going to cost somewhere around $800m to take them to BFS. If they can be complexes, maybe add another $200m to that. This is why monetizing Alpala will become important. For sure, they could spend $300m taking them to PEA and then enter a streaming agreement with FNV to see them through to BFS but Alpala would be a neater solution.

[rougepierre] 26/10/2020 17:38

Meanwhile...

Copper down almost 2%

Dow down 3.1%, both on no Stimulus pre Election

I wonder if PONGO will replace the FOMO that has characterised US markets since Trump was elected...(Panic of Not Getting Out...)

Meanwhile it looks like FOMO (Fear of Missing Out) is beginning to establish itself in SOLG...

But SOLG up 5.54%...

Onwards and upwards!

AIMO as usual...

[rougepierre] 26/10/2020 17:36

Yes but mentioning placings gets people jittery, even though it should happen at a higher price than this...

Remember we got one out of the blue at 21.5p on 4 June when the price was already down from 26.7 to 24...

It killed the price for over a month and it took 8 weeks just to recover to the pre issue close...

We don't need it right now.

Of course it would be opportune after a raft of good news, but personally `i would rather it came in the form of a further issue to BHP and NCM at say 60p at least, with a further lock in...

AIMO as usual...

[mwv1] 26/10/2020 17:36

LT
I think you are overdoing it in your aims by Xmas.
1 Porvenir will have at best 4 holes completed by Xmas with results available from only 3. Plus another 4 in progress. At this point we will have an idea regards grades and depth across one plane of the deposit. But no way of saying it is bigger than Alpala other than a bigger anomaly size which could just be because it is not as deep.
2 The first drill target at Rio has almost exactly the same size of chemical anomaly size as Alpala so with data from 1 hole and another in progress no way of saying bigger and would be really lucky to have hit high grades in first hole.
3 After this few holes saying that we can open pit would be pure guesswork.
4 I agree the provisional finance agreement will increase the share applicable to Solgold but it generally takes final sign off (end 2021) for the market to price the change in.
All of your targets could be achieved with more drilling on the additional targets and more time but more like Xmas 2021 than Xmas 2020.

[mknight] 26/10/2020 17:21

Rougepierre at some stage it will happen and at some stage BHP or an other will bid for the company . Lowtrawler is as honest as you can get on a BB he is saying the price will get to a pound . H

[rougepierre] 26/10/2020 17:11

I don't think its helpful LT to keep talking of an equity placing...

[rougepierre] 26/10/2020 16:53

UT is 195,175 at 37.15...!

Right on the money and up 5.54%v on the day...

Excellent!

[mknight] 26/10/2020 16:50

Porvenir earlier imo

Rio may take longer as the drilling could be really deep .

[lowtrawler] 26/10/2020 16:46

Beyond the immediate horizon, we have previously touched on the potential for Porvenir and Rio Amarillo to be multi-mine complexes. I believe the equity raise following Rio drill results will aim to develop that opportunity. I expect drilling around the main Porvenir and Rio targets will commence in January and we will have an indication by end Q1.

[mknight] 26/10/2020 16:39

UT 37.15

strong finish with the Dow down over 800

[lowtrawler] 26/10/2020 16:11

I'm all in MK. Can only wait for the hand to play out.

[mknight] 26/10/2020 15:57

Well better get buying lowtrawler 😃

[lowtrawler] 26/10/2020 15:47

My hope (and expectation) is that, by Xmas, we have:

1. Porvenir confirmed as higher grade than Alpala with at least twice the volume of mineable mineralisation. (40p)
2. Rio Amarillo confirmed as higher grade than Alpala or Porvenir and at least three times the volume of mineable mineralisation. (60p)
3. At least one of Porvenir or Rio confirmed as potentially open pit. (20p)
4. The PFS and preliminary funding for Alpala confirming shareholders retain 50% of the asset value. (40p)

As you can tell, I'm setting my sights high at around 160p (needs scaled back slightly due to needed equity raising). Yes, I'm still dreaming. More realistically, the market will likely take 50% away from items 1, 2 and 3 due to the stage of development. Even so, it would still equate to 100p (less equity raise adjustment).

[lowtrawler] 26/10/2020 15:14

Still on the subject of Rio. Hopefully you have all seen the collapsed cliff at Rio showing visible mineralisation from surface to the foot of the cliff? It doesn't give dimensions but probably at least 50m. The photo has been around a while and used in various presentations. More revealing than the first 50m of any drill hole.

[lowtrawler] 26/10/2020 15:07

I'm still keeping my excitement suppressed while I wait for Rio Amarillo. It is truly massive. From what I can tell, about twice the size of Porvenir which is already 3x the size of Alpala. The groundwork samples at Rio indicate superior grades to Porvenir. Even the aerial photos suggest a classical find.Hopefully, drilling will commence this week and we will get a first report in 2 weeks. Will we have another historic moment for SOLG?

[mam fach] 26/10/2020 15:07

Glad you said well above 50p.
I wouldn't want to be accused of ramping!!!

[mknight] 26/10/2020 15:01

If its bigger and open pit then we should rise well above the 50p but you never know with the market .

[lowtrawler] 26/10/2020 14:54

MF, hole 1 completed on 9 October and assay results are said to take 3 weeks. It means that Nick has pretty much all of the assay results but probably doesn't have the last few days drilling. They have said they will publish together and so end of this week is possible but more likely next week.I'll be interested to see the share price response to what should be better grades than Alpala. I think we also have a strong view that mineable volume will be a multiple of Alpala. Taken together, even at this stage of development, it should mean that Porvenir matches or exceeds the value of Alpala to SOLG. We were all fairly disappointed that Alpala only got priced around 23p plus 3p for our other licenses. Even applying that weak price level, we are close to 50p if the announcement doesn't disappoint. I expect the market will take a few days to fully reflect that in the price.

[rougepierre] 26/10/2020 14:19

Agreed...but its moving up steadily today and I've been bid firmly for 300,000 shares at lower levels...now bid for 100,000...

[mam fach] 26/10/2020 13:46

Someone has done a very good job of keeping price down (IMHO_ I know people say this is not possible). Not a single penny of takeover expectation in price.
NM knows exactly what assays show. RNS's can be held back legitimately
by saying running tests again.Sooner or later this will fly.
So there goes, my latest opinion.

[lowtrawler] 26/10/2020 13:37

RP, frankly, we don't need CGP. I expect provisional funding to be announced alongside the PFS. It will set the clock ticking on CGP because there is virtually no chance they can fund their share of build costs post BFS. From memory, I believe CGP will need to stump up a large chunk within 90 days of the BFS being published? Assuming we get the BFS out in Q4 next year, CGP will likely start handing over their ENSA shares in early 2022. Why pay for something which is going to be given to you?

Also, my reading of the agreement is that even if CGP pay the initial chunk - say $50m, they would not get a refund of that $50m if they couldn't find the rest of the money later. Hence, they are likely to default at first payment.