Solgold Share Discussion Threads

[husbod] 02/12/2020 13:53

I'm not surprised there's been no sign of a bid. The big boys are taking the very sensible course of taking a position to protect themselves and then sitting back to await the actual proof of the extent of the resource.Those of us who are expecting or are here in anticipation of an early bid are likely to be disappointed imo.Today's copper price is also irrelevant to a large degree to a company that won't be going into production for a number of years.Yes, everything looks promising but but that's about it and yes we do now have a Board that are capable of exploiting the resource. If they nick someone like Alberto from ATYM When they are ready to go then this will be a big time winner. He speaks the lingo too.

[goldrush] 02/12/2020 13:12

mk

Have you been watching Level 2 closely...

Did you see there was an offer of 100,000 which was there for an hour.....someone took it out just now @36.597....is it that them not wanting to show their hand....not too many on the offer now.....is this going to move up....

[lowtrawler] 02/12/2020 12:20

Nick has many skills but communication and managing expectations are not among them. It is incumbent on the Board to ensure those tasks are adequately performed by others.I suspect that Nick has directed almost all activity to date and it is only through strengthening the governance structure that it is changing. If I were on the Board, I would not want to release early views on the outcome of drilling. Better to wait for assay results or there is a danger of disappointing. Could this be why we haven't had a Porvenir update?

[arcadian] 02/12/2020 12:02

Rouge

He, like you, me and the rest of us makes mistakes, but it`s the discoveries he makes and deals he does that matter.

[mknight] 02/12/2020 11:39

Rougepierre.

NM does like to release news in bursts . Last time it was about getting the share price high enough to take out Cornestone where he failed . This time its about saving the Directors from being dismissed .

I suspect he will bomb us with RNS,s from next week onwards . Not the way todo it but its my guess that it will happen .

[rougepierre] 02/12/2020 11:29

He might be a seasoned miner Arcadian but he keeps making the classic management error of overpromising and underdelivering...

E.g. he could have managed the whole PFS debacle a lot better...

Maintaining the optimum share price is all about managing expectations and, despite "exciting regional updates to come" we haven't had a RNS for almost a month...

The RIO rigs were mobilising in October...and Blanca and La Hueca seem to have disappeared off the face of the earth...

Copper price up 25% since 2 October...SOLG up 3% DESPITE Porvenir....

[arcadian] 02/12/2020 11:22

Agreed Lef

Fortunately companies can have a longer time horizon than small investors and I am sure that we can all agree that mining companies need long term plans for discovery,production and financing the same although sometimes the scale, immediacy and frequency of discoveries can disrupt and change such plans and require a rethink.

DD
Your option (one of many) makes sense and has support here but you write as though NM is a novice ( and not a sensible investor like you)) whereas in fact he is a knowledgeable and seasoned miner with a track record of discovering, selling for the benefit of his shareholders and moving on.

Perhaps you think that this time he is gripped by the prospect of immortality with some major long term retirement project but for my money your fears are unfounded given the realities of the rapidity and scale of the Ecuadorian discoveries, the need for a new approach to long term finance and the realities of the world of the big boys given the world shortage ( i.e. rivalry) of gold and copper in the years ahead.

Moreover he loves the chase and the thrill of discovery and I imagine that Alpala for him could be yesterday so you may yet get you way. Like Low I`m sure that the expanded BOD will inject a more long term and balanced approach to financing and managing the assets but it is for them looking at the bigger , long term interests of the company to determine not us with our short term horizons.

[mam fach] 02/12/2020 11:21

True. With all this 'talk' of major buying us out, or making a 'bid'
no one 'seems' to have shown their hand 'yet'.
Neither is it reflected in share price.
Find it worrying. GLA solgers. Hopefully Onward and Upward.

[lefrene] 02/12/2020 11:12

NM demonstrating that he can raise finance from third parties for take off deals, shows that he does have options, which of course keeps predators on their toes. We now seem to have a background rise in the value of metals, although more than likely we are seeing a weakening dollar as money creation goes off the scale.

The resources remain massive, any large miner that acquired all of Solg, would likely have a couple of hundred years worth of stock in the cupboard.

[mam fach] 02/12/2020 11:01

We've explored all possibilities Ad Infinitum.
Hope path company is going to take will be confirmed soon,
As I see it we might only have weeks to wait.

[michaelfenton] 02/12/2020 09:42

DD I think we are pretty much in agreement in reality.

[dozyduck] 02/12/2020 09:06

Rio, MF etc. You fail to note that it will take some eight years for any cash to be generated from Alpala. That means its discounted value today will be less than half , and meanwhile substantial cash is needed to explore - which must mostly come from shareholders. The market doesn't like waiting so long for any return from an investment, no matter how good, and neither does it like ploughing cash into exploration for an unknown return. Who knows what the environment will be for gold or copper in the future. Sensible investors/managers will limit their exposure to any enterprise by taking at least some cash out when available. For Solg that means selling off at least some of the value it generates along the way in order to invest in its future. To do otherwise, as NM indicates he wants to do, is reckless, especially as its shareholders' money at stake and only to a small extent his.

[michaelfenton] 02/12/2020 05:49

The big question for me is what is a fair price to take SOLG out? Bids starting at 100p and see where it takes us? SOLG is far too small and cannot get its huge resources into production quickly let alone find finance. What am I bid? Or sell of the parts worth much more than the whole? The current share price is low in my opinion because SOLG is between a rock and a hard place and people are worried we might get a low ball offer of say 50p? We do not have the management or the skills or the cash to go on our own? It is years to production.

[mirabeau] 01/12/2020 18:27

Canaccord's take

Ecuador-focused miner SolGold (LON, TSX:SOLG) said on Tuesday it won’t be able to complete the pre-feasibility study (PFS) for its Alpala copper-gold project this year as planned.

The Australian miner had already flagged delays with the pre-feasibility study as covid 19-related restrictions meant “critical geotechnical data” was not available on time.
Sign Up for the Copper Digest

SolGold noted that the data, now in its hands, has prompted a redesign of certain underground infrastructure to a location outside of the cave footprint. The company also said it was introducing changes to the mine design, development and production.

SolGold said the work was “nearing completion” and that preliminary financial modelling would take place this month.

The project team is simultaneously looking at other ways of optimizing the financial performance of the proposed mine development, the company said.

Sam Catalano, analyst at Canaccord Genuity, believes there is a risk some investors could over-estimate the severity of SolGold’s announcement and equate it to Rio Tinto’s issues at the Oyu Tolgoi mine in Mongolia.

“Our read of the release suggests the company is detailing normal course PFS optimization work, [but] we do flag there is a risk that some investors may read the company comment and immediately believe this is similar to recent delays in the construction of Oyu Tolgoi, where key infrastructure had to be moved out of the cave footprint due to new geotech information,” Catalano wrote in a note.

The two situations are very different, the analysts noted, as SolGold is becoming aware of changes needed during the PFS study, whereas Rio Tinto saw the issues when it was halfway through construction of the mine.
Largest copper-gold potential

SolGold considers Alpala to be among the world’s best undeveloped deposits, with an estimated mine life of 55 years. The project is located on the northern section of the Andean Copper Belt, known for producing nearly half of the world’s copper.

Ecuador has lately attracted a flurry of interest from big miners looking to increase their exposure to the red metal. The highly conductive material is in high demand for use in renewable energy and electric vehicles, but big, new deposits are rare.

Diversified majors particularly favour large-scale, long-life projects. BHP, for one, upped its stake in the company last year to 14.7% from 11.1%, becoming the Ecuador-focused miner’s top shareholder.

[husbod] 01/12/2020 17:44

Been out all day but a couple of points on matters arising:I suspect the sober nature of this mornings RNS reflects the input of the highly professional and experienced three new board members. They will certainly curb any tendency by NM to be over enthusiastic.Secondly I support the proposal to have the ability to increase our equity both because it gives the option to actually develop one or more of our resources but more importantly it tells the big boys that we could do it. It might prompt them to act. Anyway any dilution should in theory be no greater than the effect of borrowing money to fund the development and would also enable us to partake directly if its a rights issue or indirectly when the share price falls to the placement price or below.Again those resolutions would have been prepared and approved by the new board members.

[kop202] 01/12/2020 16:57

Rio Tintos subsidiary(Turquoise Hill ) will not see any production until 2022 at its flagship Mongolian mine Oyu Tolgoi
Mean while the Mongolian Government have launched an inquiry into the delays and massive cost overruns.......should help the copper price

[swanvesta] 01/12/2020 16:56

DD, yes but the % of cashflow depends on operating margins. What if Newcrest had come to the conclusion costs were significantly underestimated in the PEA and a lot more work needed doing (which is only just now being addressed.) And then NM gives away cashflow with an NPV of $300m for just $100m. It made perfect sense for Solgold, but Newcrest might have felt NM was being reckless. They make their point on both counts by taking away their block-caving expert, but only one count is public.

[lefrene] 01/12/2020 15:30

Finally copper looks like it's going to meet the forecasts of some 5 years ago, and of course the big boys are going to want to secure their slice of the action going forward. But will we have to wait another 5 years, or will the expected increase in demand drive up copper prices much sooner? Could we see a flip to much higher prices given that it's known there is not much sight of new volume production coming along very soon.

[mknight] 01/12/2020 15:03

Level 2

150k 5 x30k at 36p

Should go if news tomorrow.

[wapping67] 01/12/2020 14:24

Goldman’s on copper today. Apologies if already posted but GS have declared a new bull market for Copper. “The current strength is not an irrational aberration, rather we view it as the first leg of a structural bull market in Copper” Tight conditions exists and demand projected to exceed supply by 327k tonnes next year. “ we believe it highly probable that by the second half of 2022, copper will test the existing record highs set in 2011 ($10,162).

[mknight] 01/12/2020 14:23

Rougepierre

But they were not for 2 billion plus .

If i recall BHP offered to buy solgold but not at 2 billion plus .

Anyway by holding back the PFS they are buying time to confirm 2 possible tier1
Projects .imho .

I hope you are right and Someone makes a sensible offer before the PFS comes out .I have said all along BHP will take us out .

[rougepierre] 01/12/2020 14:08

Your last sentence makes the point MK...

£2 billion for at least THREE Tier 1 prospects, in a world where the major miners only have 9 years of gold left and all forecasters are predicting large and growing copper deficits as the global economy kickstarts on the back of major Green projects...

They daren't wait for a PRE on Porvenir or Rio, because they'll probably blow the doors off...

Newcrest bought up to 75% of Havieron based on "significant visible mineralisation"...

Shaangsi bid for Altura before they completed their PFS and while they only had an off take agreement lined up...Altura beat them off...

Four years later they were in receivership...

[mknight] 01/12/2020 13:43

Rougepierre.

Can you name me one that paid over 2 billion for a mine that didnot have the PFS .

The regional updates will come thick and fast before the AGM imho