Solgold Share Discussion Threads

[francoismyname] 17/4/2024 17:15

Another day I can sleep easy as the schools have closed and Fastjet can’t be scouring the school playing grounds now.

You keep posting here Fastjet. Makes all feel a lot safer and we know where you are.

Once a kiddyfiddler always a kiddyfiddler.

[lowtrawler] 17/4/2024 16:21

MK, I believe he is referring to the NSR deals. RP appears to believe NSR deals are great rather than the value destroyers they are in reality.

Let's take the best deal SOLG have done, a 1% NSR with FNV for $100m.

In return for the $100m, FNV don't need to put in any more money to build the mine and they don't need to worry about how much it costs to extract the metal, they are simply entitled to 1% of the entire sales revenue for life.

If you take a $3bn build cost, $2000 pog and $1500 total costs per ounce, after 5m ounces are sold, FNV recover their outlay but SOLG are still over $500m down before recovering their costs. It is an exceptionally expensive form of finance.

When you work the numbers through, a 1% NSR deal will reduce the price any bidder will be willing to pay by around 4%. SOLG have done 2 recent NSR deals totalling (I think) 1.5% but they already had an arrangement in place when gaining the license for (I think) another 1%. It means, there are already NSR deals in place that will reduce the potential bid price for Cascabel by around 10%.

If we take it to an extreme. Apparently we have NSR deals on the table sufficient to pay for the Cascabel build. Lets say they can get away with $2.5bn for a build. The 1% for $100m deals are no longer available and so to get $2.5bn, they will likely need to give away 40%. Together with the existing NSR delas, they can build Cascabel but 42.5% of the sales revenue would not belong to SOLG although 100% of the costs would. Hence, they would need to cover all the costs of mining but make a return on just 57.5% of the production.

[mknight] 17/4/2024 16:14

If they cqn come up with a proper answer i am more than happy to hear it .

Lets wait for rougepierres reply . I hope its not the 10 offers in the half year report . And if its is he can suggest as to why the company has not taken them . Then advise why the Directors have come out of a blackout period deciding not to take any of them .

[original fastjet] 17/4/2024 16:05

Exactly McKnight,
Glad your picking up on the incessant ramping nonsense spouted by red and hazl.

[mknight] 17/4/2024 16:00

What offers in the bag have they ?

[hazl] 17/4/2024 15:51

I am happy in this market that we are hovering at this price.
Fairly even movement at the moment.
Prices have softened everywhere because the US. opened unconvincingly.

[rougepierre] 17/4/2024 15:46

They've already got offers in the bag so you might be right...waiting for a bid...?

But they won't be selling the CGP shares

[mknight] 17/4/2024 15:29

Obviously not enough to attract a bid yet.

What are you thoughts on not raising funds until the last minute ?

[rougepierre] 17/4/2024 14:56

Our PFS already looks wonderful...

Gold has added $25 billion and copper has added $28 billion in the ground since it was published...

Even at 1% thats $0.53 billion or £424 million...

Current MCap £290 million...

OK?

[mknight] 17/4/2024 14:10

HAZL

Its the same thing , if GOLD goes to 3000 and copper goes to 4.75 then our PFS is going to look wonderful . Less risk for those that maybe sitting on the fence today . However if it goes the other way then its not so good so finance is key as it gives us breathing space currently we are funded up to the next few months .

[original fastjet] 17/4/2024 14:09

Feel sorry for those who got sucked in by the mass ramping here and lse
Those spivs need to pack it in

[original fastjet] 17/4/2024 14:07

No bid today then guys n hazl 🔚🔜
Another day closer to the cheap placing 🤔🤔

[hazl] 17/4/2024 13:53

Sorry but tell us something we don't know!


However I disagree with the order you have put things in.

Your post....

'Returning to 10p suggests investors are more optimistic on bid prospects'

no, I suggest it's more about metal prices gaining strength...
or the other shares in the same sector wouldn't have risen.

A bid would be a bonus.

[lowtrawler] 17/4/2024 13:43

hazl, after SOLG were put up for sale in late 2022, it stabilised the price and in 2023, the price was mostly above 14p in expectation a bid was incoming. It was only after bid prospects disappeared, the price fell below 10p. I think the price fall was overdone but these things often over-shoot.

Returning to 10p suggests investors are more optimistic on bid prospects (metal prices have also helped). As with 2023, if a bid does not appear, the price will fall. Conversely, if you get prominent bid rumours, the price will move sharply higher. It is the prospects for a bid which drive the main price movements of SOLG.

[mknight] 17/4/2024 13:28

It would also be nice to have enough money to put some holes in Blanca/ FLorida . Positive results would have also put us up .
So all we can do is wait and see if they sell something .

If Florida was really good with Gold found near the surface they could have mined that and with the money taken Cascabel into production . Its what NM wanted years ago .

The reason they didnt stick some holes in it was because at that time Cornerstone were entitled to 15 percent of anything within 8km of Cascabel if memory serves me right .

[hazl] 17/4/2024 13:22

It's back up to the price it was in October last year!

If that's not the sign of a share price rise off the lows and change of sentiment I don't know what is.



IMO

[mknight] 17/4/2024 13:21

Franco ,yesterday gold and copper were down and solgold up .

We needed fund raising and we still havent got it . With it i am pretty sure the share price would be higher today . Maybe its all sorted and they dont need to raise funds as they know a bid is coming , but if it doesnt come then what ? I would have done a deal so the market can see we are ok for cash for the next couple of years . What happens if gold and copper drop put of bed ?

Makes it hard to trust Scott when he buys 5k worth of shares and the blackout period has gone .i wrongly thought the blackout period was because they were agreeing terms .

[lowtrawler] 17/4/2024 12:50

hazl, at sub-8p, I suggested the price would head to 10p. I was positive on the PFS and many of the initiatives put in place to encourage a sale. I don't just turn up to rubbish what SOLG are doing. As with anyone posting, it is always going to be my personal opinion and not everyone will agree with it and nor will I get everything right. I am currently optimistic a bid will arrive soon. I said the same last year but was proven wrong - hence the fall below 10p. If I am proven wrong again and a bid does not arrive in the next few months, the share price will likely move to below 7p. On a long-term price basis, SOLG is a binary proposition. Either a bid arrives and the price goes up or a bid doesn't and the price falls.

[hazl] 17/4/2024 12:43

CUSN Rising is another example , metals prices are affecting copper and metals shares prices positively at present.

IMO

[hazl] 17/4/2024 12:01

Look how Africa is growing.

[mknight] 17/4/2024 12:00

Lowtrawler is correct , i have good money still invested but without a bid the only way in can go up is .

Getting the permits signed and finished .

Having 2 years money in hand so that they dont need to go the market and can finish getting the permits sorted .



Gold/silver and copper prices staying strong or getting stronger .

[hazl] 17/4/2024 11:58

Plenty of articles to suggest that metal prices are now on the rise again and just because you are not prepared to buy in now, some of us are, and I enjoy supporting the company that has been down trodden for sometime.

Some of my various stocks in this category are rising.
ADT1 for example.