Solgold Share Discussion Threads

[tippow] 01/10/2017 23:38

the above research is in relation to the same analyst that brought SOLG to our attention!!!

[tippow] 01/10/2017 23:37

With Copper set to explode i have Put together some info on #GEO which is well worth researching over the weekend. GEO has £4.5m in cash (enough to take them to production) and BOD have bought £100k's of shares in the open market previously so they are aligned with share holders.

"Our twin objectives for 2017 are to report a 3 to 5 Mt copper and gold resource and to commence low cost production to be processed at our JV partner's neighbouring operations. We are on course to meet both objectives..."

GEO are looking at proving up 50mt and it looks like that may well be blown out of the water as the resource looks much bigger then originally thought.
50mT at 1% gives 500,000 tonnes of copper. Copper at $3/lb = $6.62/kg=$6,620/tonne

6,620x500,000= $3.31 billion

50% ownership so that become $1.655 billion

$=0.75£

$1.655billlion=£1.24 billion

Lets assume a modest 50% recovery and a 25% profit margin.

1.24x0.5x0.25=£;155m

Even with my ludicrously conservative assumptions and excluding the gold cap, this company is sitting on an asset at 5 x the current share price and production is likely to commenceg in the coming months.

John Meyer,twice winner of the UK Smaller Mining Analyst of the Year. He picks Georgian as his top copper pick and describes GEO as "the next SOLG" SOLG market cap is £500m!!

John Meyer, analyst at share price Angel, looks at his picks including Glencore, Rio Tinto, Georgian Mining and SolGold.

4.45mins in

hxxps://www.ig.com/uk/market-insight-videos?CHID=9&SM=TW&REF=IGTV&bctid=5567278253001&bclid=3671160850001 … … … … … …

Also previous videos on GEO worth watching

hxxps://audioboom.com/posts/5996550-john-meyer-covers-georgian-mining-corp-geo-ortac-resources-otc … … … … … … …

hxxps://audioboom.com/posts/6041037-john-meyer-on-solgold-solg-georgian-mining-corporation-geo-21st-june-2017 … … … … … … …

hxxps://player.fm/series/the-vox-markets-podcast-with-justin-waite/824-georgian-mining-corporation-geo-and-bonnie-hughes-on-botswana-diamonds-bod … … … … … … …

hxxps://audioboom.com/posts/6149837-greg-kuenzel-managing-director-and-martyn-churchouse-technical-director-of-georgian-mining-corporation-geo-27th-july-2017 … … … … … … …

… … … … … … …

This is what is being indicated by the BOD.
"Although work to date has focused on three zones as separate areas,
recent results suggest that they coalesce to form a large epithermal
copper-gold system"

Now that would be HUGE!!! "A large epithermal
copper-gold system"

GEO with its vast resources,no capex outlay for a mine,plenty of cash in hand Leading to a more or less debt free flying start to a rolling income equating to a minimum price target of 60pps+ based on available information with a million ton throughput for copper followed almost at the same time by gold?
Is 60pps too conservative in view of the increasing copper and gold prices?

we are awaiting in a strong news rich transformational period for the company and await results of the 28 assay results, JV production agreement, production starting date.

The project is derisked now. It is going to be mined and no capex needed!!
Remember the company have previously described their find as a "world class discovery"

John Meyer also said in one of these interviews that " this will be in hundreds of millions if not more"

Multibagger in the making here and all very close

All thoughts are mine and helped by others posters snipets.

[mrpiggy] 01/10/2017 10:26

It sounds from the 25th September podcast that they are indeed going to mine it, I'm not convinced that they are going to bring another major on board though!Solgold and Newcrest may go it alone and finance Alpala by a surface discovery, I seem to think they were making noises about a surface discovery at Aguinaga at some point (apologies if I spelt that wrong). :@)

[lefrene] 30/9/2017 22:27

If there are big miners stomping over the site, then it makes sense to put all the effort into proving up Alpala, and explains why NM is doing this. A JV for Alpala would be transformational, the money generated would accelerate all the other prospects. Could be a good Christmas this year :¬)

[mam fach] 30/9/2017 11:27

Unfortunately you are preaching to the converted.
We believe but no one else does.
It's a case of everyone requires 'proof'.
When we get proof of resources or JV deal
It will be too late to buy @ current price.
Time will tell whose right.

[lefrene] 30/9/2017 10:42

If you like charts, the one here looks like it's on the turn. I notice in the other place where people kindly post links, that there is excitement speculating that major mining companies have been going over Cascabel and there might be an offer or JV not too far away. Certainly not letting go of any of my holding, I feel there's a lot more here on top of the huge Cascabel find. Thus I hope any deal is just for Alapala, failing that for Cascabel as a whole, but hang on to that 2,550 sq km please.

[lefrene] 29/9/2017 20:49

bookvan I sympathise. The only good house sale I had, was where I didn't use an agent and the buyers were first time buyers with a mortgage already in place (they were both nurses). I owned the thing outright with the deeds in my hand. I door knocked several law firms, wanting a fixed price conveyance knowing there was probably less than an hours work involved. Even then with no chain, no agent, and money to hand, it took about four weeks for the wheels of officialdom to grind. I have a daughter in NZ, she bought an old house, had no pre-arranged mortgage, and it took just 4 days to get the keys in her hand! Apparently that's fairly normal over there. It's just an industry here that keeps the unskilled off the dole queue.

Good to see the price nudge up a tad.

[bookvan] 29/9/2017 15:02

Looking in after most of day doing running around/phoning up stuff.

Mam fach - it's CAD not USD because it's on the TSX.

Lefrene - I'm at a stage where I have a deep need to go to something like an AA meeting where you can stand up and say 'My name's so-and-so and I hate estate agents' and making up bad customer reviews in my head. But at the same time making myself be polite to get it all done OK and get them out of my life.

[lefrene] 29/9/2017 11:39

Also over here it's AiM, the well known corkscrew market place! In the shorter term it's down to what investors will risk, in the longer term it's down to what a miner thinks they can earn from it. Cascabel seems to have just about everything going for it, commercially viable ore grades, ready and waiting infrastructure nearby, plenty of water, all of which will greatly reduce mining start-up costs.

[mam fach] 29/9/2017 09:50

47p seems to be nearer true value @ the moment.
But then price is only worth what investors are prepared to pay.
As we get more news ( assuming it is good news)
47p may look cheap .

[lefrene] 29/9/2017 09:27

There just seems to be a disconnect because the two markets are not directly linked, and there seems a shortage of stock in Canada. I suppose Canadians find it difficult to buy on the UK AiM market? Perhaps it will balance when Solg gets onto the main market? I can't see the discrepancy lasting too long.

[mam fach] 29/9/2017 09:09

Or is it .79 canadian $ which equates to 47p.
If so any ideas why UK price is so far behind?

[mam fach] 29/9/2017 09:02

Can anyone confirm that price of SOLG is equivalent 79p on TXS ?

[temmujin] 29/9/2017 06:42

off topic..get yourself another 50 bagger

RKBeekeeper Investment Case: Zanaga Iron Ore Company (ZIOC)
Wednesday, Sep 06 2017 by Ash Deans 0 comments
3
Every now and then I come across a share that I was not expecting to find and that I’ve never heard anything about before, this is a classic example of one of those shares.

Yesterday Zanaga Iron Ore Company popped up on my radar due to a very strange action in the share price and some very large trades moving through a stock that typically sees very few trades per day.

This much un-loved stock may actually prove to be one of AIMs biggest movers this year!

Let’s start with the fundementals

Shares in issue: 279m
Free Float: Approx: 75m (27%)
Current MCap: £17m
52 Week High: 212p
52 Week Low: 4.6p
All-time High: 212p (No dilution since this high!)
All-time Low: 1.35p
Cash in Bank: Approx $4.5m

Zanaga Project Details

The bare fact is that the company sits with a mineral resource situated in the Republic of Congo that is one of the world’s largest with up to 6.9bn tonnes and of which 2.1bn is iron ore at a 66% fe. These figures have been produced in compliance with the key JORC code and the iron ore NPV (after financing and net of production and transportation) has been valued at anywhere up to $966m net to ZIOC based upon the current iron price of approx $55/tonne. (If the price of Iron Ore moves back closer to the $80 range then this puts the value up to $1.4bn!!)

The project is a 50/50 collaboration with Glencore ($40bn Mcap), with Glencore hold 1 share more than Zanaga to give them control of the project.

Zanaga management have been playing the long game this last two years, steadily progressing the project through, in the most important instance, the ratification of its Mining Convention and the lodging of the Environmental Permit that is now VERY OVERDUE and that will be another potential major milestone in the progress towards exploitation of this world class ore resource.

Next Catalyst

This project is waiting on the Environmental Permit to be obtained, this was expected at the end of the 2016 fiscal year which means it is now several months overdue and can land any day now!

Once the permit has been agreed this could spark a chain of events that will send this share price on a crazy journey.

With the permit in place I would expect ZIOC to look at selling their stake in the project and due to Glencore’s huge success over the past couple of years they are now in a cash rich position and according to their chairman they are looking to buy out projects that they already have a stake in.

“We are looking for opportunities around,” he said, adding Glencore was particularly interested in assets where it already had stakes or partnerships.

This would put ZIOC firmly on their radar, the only outstanding issue being the Environmental Permit which should land very soon.

My View: What happens next

Based on my research I strongly believe that once the Environmental Permit has been obtained ZIOC will look to sell their half of the project, either to their partner Glencore or to another party, potentially a Chinese interest as there have been rumours of interest from China in the past.

This is backed up by the share transfer announced on the 3rd April 2017, which I believe was to get everything ready for the sale of the asset.

I also see the directors holding a huge percentage of the shares in issue here which is a sign of confidence in my mind that they know what is coming.

It would not surprise me if the deal is already in place and the permit being obtained is the catalyst to finalise it.

In regards to the price for the sale of the asset, based on it being one of the world’s leading iron ore assets I would be surprised if it were to sell for less than $100m (fire sale price), with my estimate being somewhere between $200m-$300m.

When you compare this to the current Mcap of £17m you can see the huge value here!

The Mcap appears to only be this low as it is so far off people’s radars at the moment and the overdue nature of the Environmental Permit.

Downsides?

Are there any risks here? Of course, as with all shares there is a potential risk here that there will be further delay in the Environmental Permit, or that it might not be granted. However, given that all other permits and licenses have been obtained I see this as extremely unlikely.

The risk to reward here is huge in my mind. Very low risk, massive reward.

Targets

The movement in the share price here is going to be driven by the Environmental Permit being obtained… On that news I would expect the share price to move to around 50p per share (600%+ Rise)

I would then expect the share price to continue to rise up to the point of the asset sale, which would likely be over £1 per share (1300%+ Rise)

Due to the Very Low free float in this share it moves incredibly quickly which will make it very difficult to by once the RNS lands so this is one you want to be in before the news lands.

If you wish to check the figures here in this post then I suggest you take a look at the most recent investor presentation here to get an understanding of the size of this asset:

hxxp://www.zanagairon.com/pdfs/ZIOC-Investor-Presentation_21-Sept-2016.pdf

The share price at the time of writing this post was 6.125p

Note: I have emailed the company to obtain answers to a couple of outstanding questions. I will update this post once I get a reply.

[lefrene] 28/9/2017 23:44

Well done bookvan, I hope you enjoy the new gaff. The house buying/selling thing seems to be a nightmare for everybody, now it's just the removal men wrecking/losing your favourite things that you have to worry about! :¬)

[bookvan] 28/9/2017 17:40

Hi lefrene - we exchanged contracts today at the very last moment just as were thinking it was never going to happen. My backside isn't going to touch the ground for at least two weeks so I'll say so long for the time being. I'll try to keep up with the board but might not have time to post. Moving from a rough part of Kent to a maybe somewhere nicer in Worcestershire. Hope so.

[lefrene] 28/9/2017 12:25

Only thing that makes sense to me is that if CGP do well with their game, then it ought to be good news for Solg. But other than that, by sitting and waiting Solg should do better than money sat in an account at 0.5%. Three months to Christmas, something should have moved by then.

With the focus on the CGP games and Alpala + rest of Cascabel and it's huge riches it's easy to forget all the other things Solg has going on and dismiss any potential value in them. They have recently acquired 2,500 sq kms of prospects, that's a size that compares to half of Norfolk. Solg is an explorer/prospector, it has developed great expertise and bespoke equipment that greatly speeds up the searching process, and yet at the moment there seems no value attached to this fresh 2,500km at all.

Once they are on the main market I'm expecting a steady flow of positive updates, there is more going on than the CGP game plan.

[rougepierre] 28/9/2017 12:01

Having reviewed SOLG and CGP in depth I've just more than doubled my holding in SOLG...

GLA

[lefrene] 26/9/2017 13:53

Keep moving nothing to see here today. I can't believe that they are not getting assay reports, but are perhaps asking those that do these things to delay? Do we get a surge of positive news on the 6th or do they wait until the following Monday or Tuesday? I'm of course presuming that they would like to launch on the main market with a raft of positive updates.

[lefrene] 25/9/2017 22:34

Sorry you are having a stressful time of it bookvan. Back in the late 80's just before the bubble burst I knew a builder very keen to shift his expensive new build, the chain had run into trouble. He checked all the way down the chain and discovered the problem was right with the 1st person in the chain. A first time buyer who had an unexpected extra demand for £3000 from his vendor. The builder I knew gave the first time buyer the £3k, thus unlocked the 5 property chain and the deals went through. That was June 1988, and the wheels came off the market in August 88.

I hope you work out what suits your best interests.

[bookvan] 25/9/2017 18:36

The house buying situation is a shambles. It may be it's enough is enough for us. I'm going to go quiet for a bit - maybe not even turn on the computer - while we have a think about what to do. Speak again in a few days.

[lefrene] 25/9/2017 16:03

It rather begins to look as if I shall be able to harvest a few more of these under 30p later this week.

[lefrene] 25/9/2017 12:33

You mean that Newcrest would expect Solg to issue new shares at the then current market price to maintain their percentage holding? I admit I don't know the precise nature of Newcrest's arrangement with Solg, I wouldn't be happy to see more dilution just to square Newcrest, unless perhaps the money raised was used to buy in and cancel as many shares on the market as possible.

Solg do have money but it is being used for exploration, but at least they have sufficient that they are not under duress and thus cannot be bullied into taking too low a price if they do choose to sell something, such as Alpala. Nick Mather does look a dry old stick, I suspect he's seen and heard it all in the mining game. A classic Mexican stand off, keep your powder dry, be prepared to act instantly, but wear the other guy down into showing his hand.

You have my sympathies with the house move reverting to the norm of lies and incompetence, I do hope it all clicks into place very soon, it must be very stressful.

The only real estate purchase I made where everything went like clockwork was in France, but you do have to be very aware of the traps that lie in wait over there. Such as any unpaid taxes relating to the property like rates and unpaid very high holiday lettings tax, you as the new owner are liable for all unpaid back taxes from the year dot. You can also suddenly find that the totally neglected potholed lane outside your door, must now be swiftly rebuilt at your expense ! This has not happened to me, but I know of people utterly ruined by not knowing these things.

[bookvan] 25/9/2017 11:58

Lefrene - the last three lines of your post are uncomfortably close to our recent experience. The latest this morning is some of us were told on Friday the whole chain was ready but it turns out it isn't and there's some kind of hold up.

I was thinking of 'parity' for Newcrest coming as the result of a friendly arrangement with SOLG not being obliged to buy on the open market. It would be in SOLG's interest to keep Newcrest and A N Other in balance and maybe the precursor to a 50/50 split with a royalty for SOLG.

As mam fach says SOLG haven't got the money. They've got to sell something.

[mam fach] 25/9/2017 11:32

It's just a waiting game now.
Common sense tells us they are going to have to sell or
lease out some of the developments.
Great pity is the enormity of the discovery-
in that it's much to big for in house.
Share of a lifetime ?
Certainly- no doubt about it.