Solgold Share Discussion Threads

[pecker1] 08/1/2018 10:22

lefrene,

re the new shares, I'd like to see Solg announce that they will start drilling Aguinaga in late March. That should give sellers/shorters pause for thought!

[lefrene] 08/1/2018 10:07

It begins to look like a case of, come back in April, when those newly created shares can hit the market. Of course if you were planning to grab Solg then you might be in conversation with the Banks that are holding them? In the meantime we should get a few drill updates etc.

[gilotron] 06/1/2018 15:32

yea makes a pretty simple case. I just can't decide on solg, i have £10k at 40p £10k at 28p. Just can't decide to pile in more or go elsewhere.

[onedayrodders] 06/1/2018 15:18

cheers gilotron

Different gravy !

[gilotron] 06/1/2018 14:28

solg on here:- hxxp://incakolanews.blogspot.co.uk/

[onedayrodders] 05/1/2018 16:35

yep not a good day, still Rome ....

[ddubzy] 05/1/2018 14:52

Wish they'd release some negative upgrades! New market has made no difference, why move from AIM?

[mam fach] 05/1/2018 12:23

It's a very pleasant dilemma and as we know potential is enormous.
So enormous we can't go it alone. (unfortunate but true)
But market hates uncertainty and we need confirmation.
Personally I would prefer we sell something off and continue to become a miner.

[lefrene] 05/1/2018 11:25

That's why they needed that MRE to come in line with expectations, which it just about has. Now they have to grow the Alpala site as quickly as possible, and get a preliminary extraction costing up together. The elephant in the room here, is that Solg needs to have something they can sell before they burn their way through the cash.

A tantalising decision for a predator. Do they buy a proved up site from Solg and thus provide Solg with enough capital to become a miner? Or do they do a JV, and keep Solg on the leash? Or stump up £5 billion to buy the whole shooting match because they know NM is sat on over 100 million tons of copper?

[lefrene] 04/1/2018 15:58

Perhaps not the share price action NM was expecting after the MRE, but then there are a mere 180 million shares overhanging the market, which cannot be officially traded until 1st April, then add Cannacord-Genuity to the mix and you're into the dark arts. I can't help but think that 180 million shares in a block offers opportunities to big players.

[onedayrodders] 04/1/2018 13:54

yes today's apparantly

[compnews1] 04/1/2018 13:36

It's nice to see a few posters estimate the value $25-$35BN BUT if this is a exploration find then the industry normally have a probability of success of say 15%-30% of commercial success then the share of the finding between mining companies and the government, and all the capital expenditures. It's too early to put a value. The geological, volume risks and price risks are huge. Ok copper prices are forecasted to be on the up in the next 2-3 yrs. However, it takes donkey years for an exploration find to producing. Take a step back potential investors don't rush in yet

[alwaysevolving] 04/1/2018 11:22

Nice write up ODR, thanks for posting. Was that in today's Telegraph? The market seems to be asleep on this one as we're still drifting about sub 30p with the chart looking a little precarious?

Come on BHP. Let's have a £1 plus offer for starters! That should put a rocket under us 😉

[onedayrodders] 04/1/2018 10:27

Telegraph write-up


Mining explorer SolGold is “elated” by confirmation of a large new copper deposit in Ecuador that could be “the tip of the iceberg”.

The company, which moved to the main board of the London Stock Exchange last year and is also listed in Toronto, has confirmed a mineral resource estimate (MRE) of more than one billion tons of copper equivalent at its Alpala site in northern Ecuador. At least 120 million tons of this are high-grade copper ore, the company said.

Nick Mather, chief executive of the Brisbane-based miner, said: “For years we’ve been saying this system is very big and very rich and today’s estimate is independent verification of that.”

The deposit also contains 12.3m ounces of gold, which is commonly found close to copper.

“The gold is nice, but we are elated about the copper content,” Mr Mather said. “The world is increasingly short of copper and mining companies have been remiss in not keeping up development capital to their operations.

“Nearly every commentator believes the copper price is going to rise very aggressively over the next year or two. This project is completely unhedged so we have all the upside of the copper price before us.”

Copper - used in electrical wiring - enjoyed a rally at the end of last month to hit a four-year high of $7,200 a ton.

SolGold claims it has “first mover” advantage in Ecuador, a prospective mining jurisdiction where it has been exploring for a number of years. BHP Billiton and Fortescue Metals are among the big-name mining firms to have begun surveying the South American country, which sits on the Andean copper belt.

SolGold, which has $100m (£73m) in the bank and the backing of Australian major Newcrest Mining as its biggest shareholder, plans to finish an economic analysis this year that would determine the cost of building a mine at Alpala.

“Alpala is just one of many targets we have,” Mr Mather added. “The project is going to get bigger. This MRE for Alpala is the tip of the iceberg.”

Michael Stoner, analyst at Berenberg, said the high-grade core of the deposit compared favourably to Escondida, the world's largest copper mine in Chile, which is jointly owned by BHP and Rio Tinto.

“With a further 120km of drilling planned for 2018 this is likely to be a dynamic resource with many updates to follow,” he said. “It is positive to see the group lay down a sizable first marker for the resource and we are most interested in the high-grade core, which, if expanded, will greatly ease the route to first production.”

SolGold shares climbed 3.5pc to 29.35p in morning trade, taking its market capitalisation to just shy of £500m.

[lefrene] 04/1/2018 10:09

Nice to see copper firming up, even if Solg isn't.

[pecker1] 03/1/2018 18:32

507....,

I'd put it the other way round. I think the big buyers, majors like BHP and RTZ, will already have an idea of what it might cost them to mine Alpala, based on block-caving comparables from existing mines and assumptions on metallurgy/processing, and so would argue that their very likely low-ball bids are fair and justified.

What Solg has to do, with the help of Newcrest, is to come up with a PEA followed by a PFS that says we can do this far cheaper than the majors would have us believe by coming up with a credible, doable and convincingly costed plan for mining and processing, using all the advantages of location (hydro power/plentiful water/proximity to ports etc)that NM has pointed out.

Think that is why Aguinaga was highlighted in the RNS because the suggested decline would go underneath it to Alpala, assuming of course they find economic mineralisation closer to surface at Aguinaga.In short, the race is on between would be buyers and Solg to prove up the real value of Cascabel, so that us shareholders do not get screwed.

My money is literally on NM to see we win out.

[5070481] 03/1/2018 17:14

Its great having the resource statemtn but for valuation purposes we need an idea of mining costs. Otherwise its just finger in the wind guesswork. Still quite a bit of information needed I suspect to get the big buyers knocking on the door.

[lefrene] 03/1/2018 16:39

ODR, my guess is that the big decision makers won't be back for another week or two, the ski slopes and Caribbean beaches are more fun than computer screens. At least this MRE confirms what NM has claimed, and as time goes by more areas will be proved up and the spectacular metal volumes/values buried in Cascabel will exert their magnetic pull on acquisitors.

[pecker1] 03/1/2018 13:14

ODR,

Yes, I think it will take some time for analysts to get to grips with the numbers and the geological model. The latter is crucial because independent consultants SRK agreed to indicated at quite wide drill spacing, seemingly because of the consistency/continuity of the mineralisation.

I was expecting an inferred resource, so was really pleased to see 45% indicated as this category of resource is usually accorded a much higher in-ground value than inferred resources.

Would have liked Steve Garwin to have mentioned again the possibility of finding the higher grade feeder zones but maybe he thought it better to let the drills do the talking!

[onedayrodders] 03/1/2018 12:50

I guess it will take some time for the news to filter out into institutional email inboxes. Give it a few weeks and hopefully the 20 handle will be long gone.

[pecker1] 03/1/2018 11:58

Impressed with the MRE, particularly with the fact that 45% of the contained metal - 5.2 Mt of copper and 12.3 Moz of gold - is in the indicated category. At $1,300 gold, my BOE calculation gives a contained metal value of over $50 billion for starters.

So we now have a fundamental underpinning for the market cap of Solg with regular updates promised. Obviously NM wants to get to the PFS stage as soon as possible. Also interested to see the prominence given under the heading "Further Information" to the financial obligations of Cornerstone to repay Solgold for its 15% share of all the expenses or effectively forfeit its share of the equity in ENSA.

NM is going into the new year in a very determined frame of mind which is good news for us shareholders.

[lefrene] 03/1/2018 11:55

ODR, I'm just going to lie back and think of Ecuador :¬) This is just the start, now we have to worry that we don't get taken out too cheaply. I seriously want £2,50p a share (£5 billion?) as a starting offer for the whole of Solg.

[5070481] 03/1/2018 11:43

NOt a lot in the MRE then to get overly excited about.As management have said since july it will all be about the upgrades this year