Solgold Share Discussion Threads

[mknight] 17/11/2020 12:07

Zoros not sure BHP will allow that to happen as their future depends on supplying China . As there are very few tier 1 projects cannot see them letting Solgold go .

BHP will take us sooner or later but the price should be acceptable to the shareholders .

[rougepierre] 17/11/2020 12:02

Hi lefrene

Even allowing for the parentage of Valuestone, there is no way an investment fund could dictate to a company the size of SOLG ($1bn plus), how they have to use an investment of $5 million...

Yes the RNS contains the following statement but I am in no doubt that this is Nick's decision, both as to how to use the funds but more specifically to announce such...that way he keeps the excitement going on Porvenir...

"The proceeds of the subscription will be used by the Corporation to advance the Company's 100% owned Porvenir Project located in southern Ecuador."

The facts below have been sourced from Valuestone's own website. Putting them together it seems clear that they see SOLG as a very attractive investment; I expect Valuestone would have liked an even bigger investment (their usual range is $10-40 million) and they will now have to gain that through the market. That is also a smart move by Nick because it puts steady upward pressure on the share price (see the last couple of days).

"As a financial investor, Valuestone generally does not participate in the operation of the investee companies."

My conclusion from the extracts below is very bullish:

1 The earliest they normally invest is BFS
2 Their minimum target deal size gives much more scope for investment
3 They see an early increase in value ("High intrinsic value with appreciation potential")
4 The clear possibility for Jiangxi and/or CCB to participate in the Funding package.

"Stage:
-Bankable Feasibility Study Stage
-Construction Stage
-Operational stage"

"Targets
- Deal size US$10-40 million
- Companies with high potential, short time-line to cash flow generation
- Listed or Private companies
- Well-defined reserve potential
- High intrinsic value with appreciation potential"

Jiangxi Copper Corporation

- Fund support: M&A, takeovers, comprehensive operational support to investee companies

CCB International Asset Management Ltd

- Fund Support: providing structural financing support and investment banking services."

AIMO as usual....

[swanvesta] 17/11/2020 11:47

Dartboard, it's called the "sovereign adjustment" and is a constitutional requirement for the state of Ecuador to benefit at least 50/50 on all mining concessions. The issue is that it may apply if ENSA monetizes its asset, though it seems there ought to be workarounds that avoid ENSA doing that.

[zoros1] 17/11/2020 11:38

It is interesting to read up on the chinese influence in Ecuador. The chinese own Ecuador! The debt started in 2006 and even to this day, the chinese are still lending them finance.
Basically - 95% of all petrodollars goes back to China and as their oil diminishes, then PM's will take over and find its way back to china.
If china wants solg....it WILL have it.
Z

[swanvesta] 17/11/2020 11:38

I agree with zoros concerning the PFS, and with DD about all the valuation assumptions based on the PEA. It could be transformational to have the PEA validated.

[lefrene] 17/11/2020 11:33

The Chinese have been working on a gold backed trading Yuan for several years, so access to gold to back that up would be useful, plus of course copper to continue their industrial progress. When the Chinese want something they really go after it, and don't seem to bother about who's toes they tread on either.

[tibszol1] 17/11/2020 11:22

If the Chinese come in big for Solgold, and my suspicion is that they will,then BHP and any other interested major will get blow away in a blizzard of yuan, finance no problem!

[dartboard1] 17/11/2020 11:07

Hi all, I keep hearing that the company is subject to a sovereign wealth tax in the event Alpala is sold separately. I can't find any reference to this online, are we talking about a capital gains tax? Looks like cap gains tax in Equador for corporates is 10%Any links to the sovereign wealth tax appreciated...

[lefrene] 17/11/2020 11:07

I wonder what the Chinese gentlemen know, that they were happy to stump up $5 million specifically to drill Porvenir?

[zoros1] 17/11/2020 10:47

Arcadian - I agree..Por should (in theory) be phenomenal news. We are due:
1. Assays on PDH-20-001.
2. Update on PDH-20-002 below 650m.
Word of caution (and he did mention this in yesterdays MD and A report), the bore hole @ PDH-20-002 has picked up mineralisation below 650m which is less than about 60% of that found above 650m. This is not because there is a tailing off, it is because the main core of mineralisation in this particular area deflects away from the sub vertical by 89 to 90 degrees. NM earlier stated that a new drill hole will be necessary.
Z

[zoros1] 17/11/2020 10:41

Lowtrawler - I think you have the wrong end of the stick!
Your comments on funding? Solg arten't going to disclose anything earth shattering when it comes to the CFP....it is ...simply that: a Conditional Funding Package...on how Solg expects to structure funding to pay for its plans. No-one is going to declare at this stage that there is "X" amount of money coming from "Y" company to pay for "Z" development. Not now and not soon.
Assuming NM gets his way, we won't know the cost of developing Alpala until the completion of the FS at the earliest, possibly the DS. Then and only then does he expect a company to seriously offer Nick cash to fund his dream.
However - in reality, many of us expect this to be taken over or a JV. In this particular outcome, I would suggest no-one in their right mind will bid for or JV until the FS is completed.
When the PFS arrives in the next several weeks, it may or may not be accompanied by the CFP. I suspect the jewel in the crown will be the PFS and not the CFP.
Z

[arcadian] 17/11/2020 10:24

I am just waiting like the rest of us for some up to date facts about POR

Enthusiasm is fine but facts are more important : at least for my money.

[mknight] 17/11/2020 09:46

Low

I think NM has a pretty good idea of what he has at porvenir .

We shall see soon if they have mineralisation down to 1500m

[lowtrawler] 17/11/2020 09:44

MK, I think selling Alpala is the least likely option due to the sovereign wealth tax but also because SOLG will want exposure to future income. We need to wait for the provisional financing announcement as all options are open at the moment.

[mknight] 17/11/2020 09:27

Low

If they sell off Alpala they wont need the finance .

[lowtrawler] 17/11/2020 07:48

MK, bid, JV and financing news has always been possible at any time with SOLG. It's why I'm on a buy and hold strategy.As previously discussed, SOLG will want BHP and Newcrest support for any provisional financing package. I suspect they will need to be part of the package for that to happen. Whether it goes down the route of a JV remains to be seen. Since discovery of Porvenir, it has made sense for SOLG to monetize Alpala. This is one of the reasons why publishing provisional financing is so important.

[mknight] 17/11/2020 05:51

Lowtrawler .

BHP may buy or atleast JV ALpala .Its hinted on page 35 not in name but its there. News could break at anytime and probably before the AGM .

My guess is NM and DIrectors were under so much pressure from Cornerstone .BHP and Newcrest they had to make a deal or face a vote of no confidence. The board has now been improved and the right Directors put into place before the takeover or JV takes place .

NM gets to drill Porvenir and Amarillo and the rest of the projects with a pocket load of cash .

No need for funding if you are selling the place and a bit more drilling just to make sure you have not missed anything before you sell it on .

If i am right and he now has 1.5 billion or there abouts sitting there it makes Porvenir easy to fast track to production .

Who knows it may well get to production before Alpala .
.

[mam fach] 17/11/2020 02:27

Excellent summary. But i think your thoughts and conclusions may be overly pessimistic. May be sticking my neck out . Time will tell. All of us want ti see Solg succeed. Hoping for little light in these dark times we all face. Stay safe solgers.

[lowtrawler] 17/11/2020 01:03

The MDA provides answers to a few of my earlier questions:

1. Rio Amarillo drilling to commence in December. No explanation as to the delay
2. La Hueca drilling has not been paused but as no "significant results" have been communicated to the market, they must not have found anything significant yet.
3. They still have a lot of work ongoing relating to PFS. Based on the narrative, I think it is fairly clear that it won't be published in November. No commitments are made in the MDA regarding publication of outline financing alongside the PFS.
4. In terms of identifying satellite mines for Alpala, they make the following statement: "Aside from Alpala and Aguinaga, the Cascabel concession has defined several other untested targets, namely: Trivinio, Moran, Cristal, Tandayama-America and Chinambicito. It is anticipated that some of these will be drill tested in due course." No timeline indicated or priority.

It's good to hear that Blanca drilling has started although this will be the third hole after a hiatus and so I'm not anticipating ground-breaking news. A lot of useful information relating to status for each of our development sites. They appear keen to move each of the sites forward over the coming year. I am slightly concerned they may spread themselves too thin and may be better focusing activity on Alpala, Porvenir and Rio together with potential satellite mines (I include Blanca as a satellite given its proximity to Cascabel).

From a personal perspective. There are 2 blockbuster announcements I have been waiting for: Rio Amarillo and PFS / Funding.

I had expected first drill results for Rio Amarillo next week. They are now unlikely until 2021.

I had expected PFS / Funding to be published by the end of next week. The PFS is now likely to be timed around the AGM. I remain hopeful that they will publish the funding alongside the PFS but that hope could be quashed. It is the funding which would be the key value driver and so publication of the PFS alone is not a blockbuster announcement.

Overall, a lot of good new information in the announcement but delays to the 2 key announcements and uncertainty over publication of outline financing means that I am left disappointed. Near term price appreciation will be left to Porvenir drilling / assays. Our potential blockbuster news has been moved into a mid December - mid January window and we need to keep our fingers crossed that it includes provisional financing. I expect our share price performance for the next few weeks will be treading water and may even drift slightly lower.

[zoros1] 16/11/2020 22:44

Did you all spot this at the bottom of page 35:

"...SolGold’s possible future revenues will probably be derived mainly from Gold and Copper and/or from royalties gained from potential joint ventures or from mineral projects sold...."
Z

[arcadian] 16/11/2020 20:11

MK Low and DD

Better not too difficult in that they might be more demanding of Solg`s releases in terms of drill results assays etc but "fair" is much more difficult being in the eye of the beholder coloured perhaps by one`s expectations and previous encounters.

[rougepierre] 16/11/2020 20:11

220k CGP shares bought at 14.30 Toronto time...

[dozyduck] 16/11/2020 20:06

I break my silence only for 'significant' developments.
One of which in relation to La Hueca in the just released MD&A is the statement
"A six-hole drilling program was commenced on the 10th of August 2020. Two holes have been completed for 1,149m. The program is continuing, and significant results will be announced to market."
'Will be' ?
Does that mean 'If there are significant results they will be announced ---'
Or does it mean 'there are significant results pending which will be announced ---'
Or does it display NM's Aussie lack of precise English Grammar ?
I plump for the first interpretation, although it could be the third.

[mknight] 16/11/2020 19:07

Low probably DD no way jose .

JL will give us a serious update and fair .

[arcadian] 16/11/2020 18:37

POB on first reading it sounded very good and certainly confident. Capitals made good PR

BUT while "Panned gold, magnetite and outcropping mineralisation are testament to the world class potential of all the SolGold project areas." is a good start we will surely eagerly await the detailed quantified data in the in depth drilling reports and the assays especially for POR

I`m sure that DD or Low could have given a better response and probably will.