Solgold Share Discussion Threads

[moormoney] 14/11/2016 13:25

Thanks yuff...very encouraging. Holding tight here!

[onedayrodders] 14/11/2016 13:13

Very impressive share price action here .. my portfolio is getting battered after last weeks PM smash but thankfully SOLG showing excellent resilience.

Hope I don't now jinx !

[yufff] 11/11/2016 19:52

Delay in resource estimate is because Alpala has shown more potential than originally thought according to NM

[smoothtrader] 11/11/2016 19:09

I'd rather be up sitting on a 10+ bagger whilst looking back what I did 2 years ago and wished I had bought more.

[hazl] 11/11/2016 19:04

yes but you would be two years older.......enjoy it while you can!

[smoothtrader] 11/11/2016 16:24

Wish i could just fast forward to 2 years to see which big miners(s) have managed to acquire this prize asset.

[jlondon] 11/11/2016 15:17

1)AmberMining@AmberMining on Twitter,23 hrs ago. Tweet: "Chilean experts say copper to recover fully 2019, reaching $3/lb due to a shortfall in global supply." [Embedded an article in a South American language].

2)"Copper price surges after Trump win." @DTGWorldwide, 26 mins ago on Twitter

3)"Price of copper reached a 30 year high on hopes for US construction boom-Economic Wire" 52 mins ago on Twitter by @spetrovsvads

4)"RIO TINTO*s COPPER Conundrum"- Financial Times, 27.3.2016
Extract: "Global miner*s new chief faces tough decisions on whether and where to invest. Copper is viewed IN and OUTSIDE Rio as a KEY to its GROWTH. By contrast, copper is an area Rio is convinced that DECLINING global production will support a PRICE RECOVERY in TWO OR THREE YEAR*S time. We have indicated that we would like to EXPAND our COPPER BUSINESS." [Google the title to read]

[mam fach] 11/11/2016 15:05

You are giving me an education. Had to look up fat finger.( I thought you were bring rude.) My apologies . It's all down to typing on my iphone & not on laptop.Sorry.

[lefrene] 11/11/2016 14:52

mam fach, you are the famous 'fat finger guy' I claim my £5 reward! :¬)

[mam fach] 11/11/2016 14:48

Very true. Potential is figured into price- that's why it's holding up do well. Would noy expect much more upward movement in shate price until further news announced.

[lefrene] 11/11/2016 14:33

spacedust, as far as the big boys are concerned it's already in the price. To move the price more news is needed to confirm the size and richness and feasibility of the site. BHP will try to get it cheap, other miners might prefer that BHP doesn't get such a prize and fight them for it, which is what I'm hoping for.

[onedayrodders] 11/11/2016 14:08

hazl ... DOW party over ? if not today then pretty soon

The DOW is going through short term hysteria ... they are saying it's being buoyed by Trumps infrastructure spending plans.

The markets reacted similar (and then dived when the dust settled) when Reagan was elected and he did something similar by selling government debt at attractive rates to private investors however that was when rates were in DOUBLE figures .... who is going to privately fund such huge debt for a measily 1 or 2 %

Check out this excellent Peter Schiff broadcast ..



all IMHO

[spacedust] 11/11/2016 14:06

Still don't understand why this isn't screaming up on that news alone

[jlondon] 11/11/2016 14:00

TAKEOVER OF SOLGOLD?
Ref:"Solgold not ruling out potential takeover by BHP."-Market Intelligence share price Global.com. Wed 9 Nov 2016 [Billthebank of Advfn posted the full article which was by Padmaster, post 9309 dated 10 Nov 2016

The said article said that "Solgold is expecting BHP Billiton to make another play. Nicholas Mather stated:"Solgold would consider a takeover from BHP Billiton if the price was right." [Mather did qualify that he could not speculate]

"Ecuadorian Mining Minister Javier Cordova told SNL, Nov 8, 2016 that BHP was still looing at Cascabel and he was certain that the mining heavyweight would have another go at trying to acquire a stake in the project."

"BHP offered $30m for a 10% stake in Solgold & US$275m to acquire the co*s 85% interest in ENSA."

Observation: It appears due process that BHP would have to sound the Mining Minister re:Cascabel for obvious reasons.

{In my previous post no: 8804, 30 Sep 2016 I cited the takeover of Orbis Gold [DGR Global, parent to Orbis Gold, Solgold etc]. Semafao, the Canadian miner made a takeover offer on Oct 12 2014 but rejected. Later,Semafao made another bid and accepted on 10 Feb 2015.It was stated that "Semafao*s proposal was made prematurely ahead of the co*s release of the update with knowledge that the update was imminent." Re:Updating scoping study following estimated resource estimate in Aug 2014.} #Gold

Solgold*s RNS of 10 Oct 2016 [8:29am]:"Investment proposal from BHP." However, this original RNS states that it is to acquire 70% out of Solgold*s 85% interest in ENSA.
So, there may have been an error in the said article ie it is 70% not 85%. [12 Oct 2016 -"Analyst expects MORE NEGOTIATIONS between Solgold & BHP Billington"-Proactive Investors -Video Interview with share price Angel"]

So, BHP did NOT want to take over Solgold but rather Solgold*s 70% of ENSA out of 85% which owns Cascabel, Ecuador license? The reason is obvious.

"Lottohopes" on 8 Nov 2016 at 13:39 posted:" 10% of Solgold gives BHP 8.5% of ENSA. Add in Solg owns 11% of Cornerstone Resources which in turn owns 15% of ENSA. That*s 1.5% appox. And the cash ..it is to outright own 70% of ENSA which would give BHP 70%+8.5%+1.5%=80% of ENSA. So IMHO would have been a buyout of the project." [Qualified that this is not my calculations but interesting]



MERGERS & ACQUISITIONS
Recent M & A appears to be "Zijin*s $412m Kamoa investment boosts Ivanhoe*s coffers." www.miningweekly.com 9 Dec 2015 [Google title to read]. Ivanhoe sold its 49.5% stake in Kamoa for $412m. So 100% would equate to US$832m [simple school maths of reverse proportions]. #Copper [£660m at today exchange rate of £1=US$1.26]

So just to see what the M & A was last although size also has to be looked at.

BHP TOTAL OFFER for Solgold -10 Oct 2016 Solg RNS
A/c to the said RNS, the total package was for about US$305m [$30m+$275m-see details].

Today, Fri, 11 Nov 2016, Solgold*s share price is around 27 pence, market capitalisation £385million. [1,428m shares in issue approx]

Rate of exchange today is £1=US$1.26

So, how much would Nicholas Mather consider to be the right price?

J. London Fri, 11 Nov 2016 [Please check as there can be errors]

On Twitter, the said article was first tweeted by AmberMining@AmberMining on 8 Nov 2016 via the tweet: "Rumours that BHP Billington could have another go at securing a stake in Solgold*s Cascabel #copper-gold project in Ecuador ow.ly/3cH0305YnKZ." The timeline on AmerMining*s Twitter:"Strategic Mining Analyst at EY with an interest in copper, coal..." However, the link given by AmberMining is a gateway to sign in at SNL Platform, S & P Global, Market Intelligence].

S & P Global on Twitter has a blue "VERIFIED" symbol. Padmaster*s link gave the subject title to the same said article and details of last night, Thur 10 Nov 2016.

[P.S On Twitter, the takeover offer by BHP was not well understood, hence post is rather long to give a historical overview]

[hazl] 11/11/2016 13:18

Gold turning again.... it seems

wait and see mode

[hazl] 11/11/2016 13:17

Dow futures look negative....enthusiasm waning?

[lefrene] 11/11/2016 13:14

It could just be that they are waiting for the froth around the American election to die down? Releasing important information while that circus was still in town has the risk of it being lost in the noise. Better to wait a few days until normal service in the markets has resumed.

If Cascabel is the stuff dreams are made of, then we might see some sort of joint deal, where the miner pays up a hefty lump sum, but Solg keeps a decent percentage of gross profit when production starts. As this seems likely to be a 30 to 50 year producer, then it would pay a good income stream for a long time. As the prospectors themselves have invested heavily in the company, they will be motivated to get the best deal possible for share holders.

[billthebank] 11/11/2016 12:46

I dont really care re the numbers anymore I know that BHP are interested so good enough for me. The only thing I do not get is why a resource statement hasnt been produced I e mailed the company but no response. Will try again I think. Somebody mentioned that we were in a closed period on LSE. Really?

[lefrene] 11/11/2016 12:36

If there is 10 billion tons or more of ore at 2% copper equivalent, that's 4.4lbs of copper per tonne. Copper is firming up at $2.68c a lb today, but for simplicity say it's $2.50c that's $11 a tonne x 10 billion tonnes, a staggering $110 billions worth of copper equiv. Even if it cost $100 billion to extract etc, that leaves $10 billion profit. It seems the stuff of fantasy, such that I don't believe my own numbers, (no doubt someone will soon correct me), but it does make the current market cap look very short of the full value here.

[billthebank] 11/11/2016 11:03

Chines couldnt afford us!!! There are oters interested as Nick told us so and as soon as someone reveals their hand then BOOM!!! Rosseau Asset management are happy with their investment so all the signs are good Mind you we now only have $44M to mine with LOL!!!! I am so very looking forward to a resource statement oh and if BHP come in with an even more attractive offer then we will be very happy investors.

[lefrene] 11/11/2016 10:57

Excellent article, thank you. Solg just has to be worth a great deal more than the current price, there's literally billions and billions of tons of mineable grade ore there, and infrastructure nearby to ship it. I look forward to seeing more drilling results and hopefully a feasibility study. Nick Mather will know what this is worth, he won't be giving it away. Perhaps we need a Chinese miner to show up at the party? :¬)

[effiert] 11/11/2016 10:13

thats me fully out. Money gone into YOLO and COPL

gl those still in

[cool hand kev] 11/11/2016 09:04

You are untitled to it IMO

[spacedust] 11/11/2016 09:03

30m for 10% so even if they offer
300m for 100%
Our market is already 320m.

So what share price at 300m cash offer? Anyone know how to work these things out?

[spacedust] 11/11/2016 08:50

I would have expected the share price to rise to the stratosphere at this news.

Yes I am bitter having had a shed load of air companies that I invested in either going bust or dong consolidation which made my investment shrink to the oblivion. But lately in the past year I only invest in FTSE 100 and 250 companies and they have given me a much better investment doubling on my investment. Recent profits I've enjoined were with evraz, Anglo American and some smaller gains at BDEV abd barclays.

Solg is the only aim share this year I've invested in......so hope you understand my bitterness with aim shares