Solgold Share Discussion Threads

[shakester2] 26/1/2018 16:50

and virtually halved the drilling costs and therefore cash burn

[trev1223] 26/1/2018 15:55

Bought another tranche this afternoon, we must have bottomed out now. Looking to break
through 25p next week.

[charlieeee] 26/1/2018 14:52

Other than the Canadian component, those shares which were to have been sold on have long since been washed through the market: a lot would have been pre sold.

It was a greedy deal for the boys, who expect to make a killing on this and it was the only way they could get a decent stake without moving the market.

The current sellers, at sub 25p are clearly nothing to do with the placement: for the most part, they will be PIs, who enjoyed the ride up and are preserving profits from the 4p level, driven by irrational fear and an inability to value the resource.

Cash in the bank is always a protection from predators. What NM has ensured is that someone else does not benefit from his drilling campaign: he still has cash at the end of the 120,000 meters.

[5070481] 26/1/2018 14:02

The fundraise had little to do with potential takeovers. It was done puely to fund an increased drilling campaign. Money will still run out. I'm a big fan unfortunately but we will continue to see downward pressure until the investor sthat took part in teh placing have got ride of tehir extra shares to a level they are happy with. WHen they look like having cleared then is the time to fill your boots. Same thing happened over at HUR. PLenty of time to get in on a 50% move.

[lefrene] 26/1/2018 13:32

I suspect those bankers will have done off market deals with those shares, for instance selling options for April execution. They could then trade in the market to drive the price to suit their book, or other parties having entered those contracts might then engage in the market to their future advantage. I guess a takeover attempt early in April might give a clue as to whether my suspicions are correct? But what is at odds is that every bit of good news see's the price driven lower. Having seen it driven below 4p in the past (smaller share base) and bounce to 46p, it would be fun to see a repeat of it being driven down to say 20p and then a bounce to £2 :¬)

[charlieeee] 26/1/2018 13:04

It has to be accepted that the 25p fundraising caused disappointment and will have destabilized a fairly solid shareholder base, but ultimately, it was the best way of protecting the company from predators making low ball bids.

There is a certain amount of concern about what happens when the 4 months lock-in (where it applies)is up, but the reasonable expectation has to be that the mindset is is more that of an investor than 10% trader, otherwise they would not have accepted the 4 month period. Obviously, they expect decent upside on their 25p entry and so their interests are largely aligned with ours.

The current share price trend is simply driven by irrational fear.

[lefrene] 26/1/2018 12:40

It is difficult to watch capital being destroyed ODR but at the same time it's evident that Cascabel is a massive resource with very favourable attributes that make it comparatively cheap to begin extraction. Plainly it will be wanted by somebody given that the scale of the site means it will be a producer for many decades. I wouldn't be at all surprised to learn in due course over the next couple of years that the whole of Cascabel contains circa 20 million tons of cu ev, which at circa £5000 a ton amounts to quite a few bob.

I know I'm repeating myself, but if this is being gamed to try to get it on the cheap, then they had better hurry up as every month ever increasing amounts of metal will be revealed, which will bring ever more numbers of interested would-be miners. Where else are you going to find a prospect that will likely be earning money within less than three years of turning a spade? An earner that will grow and make big profits for a century or more, paying for itself a hundred fold even if you paid $5 billion for it.

[pecker1] 26/1/2018 12:37

Mrpiggy,

Lol! Yes, as lefrene and others have pointed out something strange has been going on ever since Solg did the fundraising. Drilling news re Aguinaga has now removed a mental block I had about buying more.

Would be good to see a new video interview with NM in which he points out how his fast-track regional exploration programme is already yielding results which will be followed up speedily. As well as offering opportunities for organic growth, these could also create potential funding options much sooner than many expect. The RNS also says they are soon going to drill one of their Oz projects too.

[onedayrodders] 26/1/2018 12:16

yes its crazy Lefrene. I hope in a few months you can pat yourself on your back.
Seems a long while when we were all saying we would be disappointed with £1 !

[lefrene] 26/1/2018 12:06

I picked up a few more purely on the basis that NM is walking the talk, he is delivering as promised. I think the bloke is about as sound as you're going to get in this line of business. That rns demonstrating the high level of activity, good metal grades and halved drilling costs, would under normal circumstances see a rise in value. Whatever is going on at least allows one to get in at ever cheaper prices.

[pecker1] 26/1/2018 10:18

Mrpiggy,

As there is usually so much information to absorb, I have to read each RNS at least twice, think about it and then read it again later on - perhaps that's what oldies like me do!

We have one more excellent drill result and I'm looking forward to others, particularly hole 26 D3 in Alpala NW which should be coming soon.

Good news too about Aguinaga. Shareholder comments on BBs etc are probably about as aggravating as having a back seat driver second guessing you, but occasionally I'm grateful when my youngest daughter points out a signpost I've missed! But it does seem they are responding to shareholder concerns. Aguinaga is a large area so they may need a number of holes before they zero in on mineralisation.

Interesting too that the RNS also mentions Trivino, Carmen and Parambas - to me, the greater Alpala deposit is no longer looking like an elephant, it's more like a bl...y mammoth!

Mention of Shallow epithermal veins is also intriguing and if the grades are promising this will no doubt be investigated further.

Think we'll get another RNS very soon.

[charlieeee] 26/1/2018 10:17

Agreed, Lefrene.

At $530 per meter, they will be able to complete the 120,000 and have cash for the PEA' without further capital raising.

Aguinaga may well add more excitement than extending Alpala: it makes the prospect of a multi bagger from this point more realistic, not least, because it opens up the opportunity to sell one, thus funding the second through to production.

[lefrene] 26/1/2018 09:25

That's an excellent rns, and particularly good to read the huge reduction in drilling costs, one gets the impression that everyone is concentrating on doing a good job. We have a close time frame for work to begin on Aguinaga. I'm convinced this is being gamed, no doubt all will be revealed in due course, but if somebody is trying to steal it they had better move fast, as more metal is being found by the day, and stuff found so far is "just the tip of the iceberg" to quote NM.

[mrpiggy] 26/1/2018 08:00

Damned good entry point I recon Charlieeeee ( have you been popping Es Charlie?)You may well have got in at the bottom, I think we'll know by the end of play!Damned cheap entry price either way!!

[master rsi] 25/1/2018 16:03

a very large buy just now 223k paying premium offer 24p

15:57:48
24.0109p
223,774

[charlieeee] 25/1/2018 14:03

Well, quite a collection of the old lags from ATYM here now.

Rightly or wrongly, I bought back in to this again this morning.

Nowadays, I generally only do undervalued producers, but the cash on hand raised to really move on with the exploration, makes it attractive, as does the obvious exit route to a major.

[lefrene] 25/1/2018 13:44

That's a point Mr Piggy, the lower we get the more likely stop losses will be tripped. Anyone still holding who got it below 10p is likely to sell if they haven't already. I guess that's what the game is about, to get weaker holders to capitulate. Interesting that this is happening now rather than closer to the April open market release of the 180 million shares controlled by the bankers. Is someone trying to humiliate NM for the AGM?

Will there be a surprise end where NM does a joint venture with the Chinese? That would put a different face on things.

[mrpiggy] 25/1/2018 13:11

Closely watching this today because if stop losses are triggered it's possible we may see it today!

[mrpiggy] 25/1/2018 13:03

Inclined to agree ODR sadly!

[onedayrodders] 25/1/2018 13:01

well the odds currently look heavily stacked for hitting 20p before we hit 25p again

[lefrene] 25/1/2018 12:49

I just wonder to whom those 180 million shares have been promised?

I see someone bought at 22.5p, will I soon be kicking myself because it wasn't me?

[lefrene] 25/1/2018 11:26

ODR it does, but you never know what might happen if a potential smash and grab happens. This must be on the watch list of most major miners, the infrastructure is such that Cascabel would likely be the cheapest and fastest new mine to get to production than anything else around, plus the resource is so large that the sunk capital will have an earn out measured in decades. So I would expect one cheeky grab to be met with offers from other parties. NM will know the true worth of Cascabel (let alone all the rest of Solg), he didn't give it away to BHP, so he won't give it away just because the share price is being driven down.

----------------------------

I know the advfn trades are none too reliable, but they suggest sells are 4 to 1 against buys. Of course it has to balance by the end of the day, but it might be that firmer hands are scooping up the sells.

If you were trying to get this on the cheap would you take it now, or wait until yet more metal is proved up and a preliminary feasibility study done? My guess is that those in the industry have a very good idea of the costs involved, and if not they only have to look at Fruta del Norte and know that Cascabel will be cheaper because of the nearby infrastructure.