Solgold Share Discussion Threads

[lefrene] 26/10/2018 09:26

The 'gap' beckons by the look of it.

[pob69] 26/10/2018 08:24

Comments from the Fool $SOLG.L $CGP $SOLG #ECUADOR



More glitter
Gold miners tend not to excite me too much, but I can’t help but notice a recent share price spike at SolGold (LSE: SOLG). After a big slump in 2017, the price has soared by nearly 90% in less than two months.

Part of the boost comes from confidence in the firm shown by BHP Billiton which, this month, subscribed for 100 million new shares in SolGold at 45p apiece, to raise £45m for the company.

There are a number of conditions attached to protect BHP’s interest, including the right to appoint a director to the SolGold board. To me, it all adds up to a step forward in governance and a lowering of the risk for private investors.

[yufff] 26/10/2018 08:20

Mirabeau

Great stuff!

Good find well done.

[pob69] 26/10/2018 08:18

More concering the Newcrest comments $SOLG.L $CGP $SOLG #ECUADOR

Newcrest open to partnering with BHP at Cascabel

NEWCREST Mining is not “upset” by BHP’s recent arrival as a major shareholder of Ecuador explorer SolGold.

BHP acquired a 6% stake in SolGold last month for US$59.2 million and increased it last week to 11.2% for a further $59.2 million.

Newcrest is the company's largest shareholder with a 14.5% stake.

Newcrest managing director Sandeep Biswas said BHP's move was no surprise, given it tried to enter a joint venture at SolGold's Cascabel project in 2016.

"If Cascabel develops to the extent we'd all like it to - we'll have to see whether it's going to get there - it's going to be a big mine with a lot of investing capex, so in relation to developing a mine in the future, there's no question there can be more than one company accommodated in terms of those developments," he told reporters today.

"To see BHP - a company of that quality - seeing what we see and choosing to invest, for us is a bit of a justification of what we saw back then.

"Our technology advantage in that area in terms of block caving and what we can bring to them will certainly help with whatever happens in the long-term development of that orebody."

Biswas would not be drawn on whether Newcrest preferred to operate any joint venture, given the early stage of the project.

"It's very, very early days to be talking about anything in relation to SolGold - we don't even have a PEA yet," he said.

"We have the belief that the logical company that has the requisite skills should be operating, but whether that's us or someone else varies depending on the circumstance.

"We're just a shareholder and BHP is just a shareholder and the management is SolGold."

Cascabel has an indicated and inferred resource of 1.08 billion tonnes at 0.68% copper equivalent, using a 0.3% copper equivalent cut-off, for 5.2 million tonnes of contained copper and 12.3 million ounces of gold - which SolGold is aiming to double in its next update, due in December.

Newcrest also paid $250 million earlier this year for a 26% stake in Toronto-listed Lundin Gold, developer of the Fruta del Norte gold project in Ecuador.

Newcrest chief development officer Michael Nossal said the company was "very, very comfortable" with what it paid for the Lundin stake, and would have been willing to acquire Lundin outright.

"We sort of took what was offered to us," he told the company's investor day, adding that the Lundin family was a "strong and vibrant partner".

Newcrest is aiming to have five tier one orebodies by 2020, which Biswas said was an "aspirational target".

"We're not going to die in a ditch or do something stupid at the end of 2019," he said.

The company already has Cadia, Lihir and Wafi-Golpu, and is hopeful Fruta del Norte and Cascabel are possible fourth and fifth tier one projects.

"We think the potential is there [at Cascabel] for a tier one and that's why we're there and we'll see how that transforms over time," Biswas said.

Meanwhile, Wafi-Golpu, is on track to complete permitting by the end of June 2019, after which it will go to the boards of Newcrest and 50% partner Harmony Gold for a final investment decision.

The Papua New Guinea government has the right to acquire a 30% stake, which Newcrest would welcome.

"Owning 35% of a tier one asset is better than 100% of a lemon," Biswas said.

Meanwhile, in the past the smaller Harmony hasn't ruled out selling down its Wafi-Golpu stake. Newcrest has a right of first refusal and confirmed it was something that would be considered.

"At the right price, we're always interested in increasing our stake in Wafi-Golpu," Biswas said.

[mirabeau] 26/10/2018 06:27

'BHP has a strong preference for being the operator of assets it invests in'...BHP won't accept a minority position at Cascabel. It wants BHP capital, BHP employees, BHP machinery, BHP trucks on the ground in Ecuador. It also wants the sales revenue form the sale of gold-copper from Cascabel flowing into the BHP bank account. It wants Cascabel profits and it wants Cascabel reserves on its balance sheet. Newcrest can't compete with the financial might of BHP

This article is the first time (I believe, though I could be wrong) that someone from Newcrest as made reference to the arrival of BHP on SOLG's register.

The IMARC get together next week could prove a source of good news-flow

[mirabeau] 26/10/2018 06:21

Ecuadorian acreage may prove good enough to satisfy'. Note the reference is to SOLG's entire acreage in Ecuador not just Cascabel. The term 'good enough' does suggest Biswas may be cognisant of SOLG's prospectivity and embedded value across all its licences. And indeed good enough (commercial) to keep 2 of the world's largest miners very busy - SOLG is a monster

[mirabeau] 26/10/2018 06:14

Biswas @ Newcrest
Today 06:12
Oct 26 2018 at 3:53 PM
Updated 9 mins ago

Newcrest CEO Sandeep Biswas hopes SolGold 'big enough for both of us'

Copper explorer SolGold's Ecuadorian acreage may prove good enough to satisfy both Newcrest Mining and BHP, according to Newcrest chief executive Sandeep Biswas.

The two big miners rank as SolGold's biggest and third biggest shareholders respectively, and BHP's swoop on 11 per cent of SolGold in recent weeks has sparked speculation that Newcrest and BHP could be headed for a bidding war over the explorer.

Mr Biswas said BHP's swoop justified Newcrest's move onto the SolGold register in 2016, and it was possible for the two companies to cooperate on SolGold's Cascabel asset.

"If Cascabel develops to the extent we would all like it to, it is going to be a big mine which [requires] a lot of investment capex and what have you, so in relation to developing a mine in the future, there is no question that there can be more than one company accommodated in terms of that development," he said on Friday.

BHP has a strong preference for being the operator of assets it invests in, while SolGold invited Newcrest onto its register in 2016 because it considered Newcrest's skills in block caving would perfectly suit the type of geology present at Cascabel.

Those competing dynamics loom as a potential source of conflict should Newcrest and BHP jointly develop a mine at Cascabel one day, but Mr Biswas said it was way too early for such considerations.

"Our technological advantage in that area in terms of block caving and what we can bring will certainly help in whatever happens in the long term development of that ore body," he said.

"We have a belief that the logical company that has the requisite skills should be operating and should be a first class operator, but whether that is us or someone else varies depending on the circumstance."

[pob69] 25/10/2018 21:32

Excellent interview by ex-CEO and founder Glen McKay $CGP SOLGOLD $SOLG.L #ecuador

The Cascabel mining project in Ecuador has been in the news of late with major commodities players expressing interest in the project, which could host the world’s largest undeveloped copper mine, as well as significant gold resources. Cascabel has a Canadian connection, as it is partially owned by Newfoundland’s Cornerstone Capital. Former president and CEO Glen McKay expanded Cornerstone’s interests beyond Newfoundland, acquiring Santa Barbara Copper and Gold, the former owner of Cascabel, in 2011.

Cornerstone currently has a 23% aggregate interest in Cascabel, consisting of a 15% direct interest in the project (which is being financed by joint venture partner SolGold PLC until a feasibility study has been completed), as well as approximately 10% of the shares of SolGold. Exploraciones Novomining S.A. (ENSA), an Ecuadorian company owned by SolGold and Cornerstone, holds 100% of the Cascabel concession. SolGold, which is funding the exploration at Cascabel and is the operator of the project, owns 85% of ENSA.

In September of this year, BHP Billiton acquired Guyana Goldfields’ 6.1% interest in SolGold’s shares for about US$35 million. The buyout doesn’t give BHP Billiton control over Cascabel (Australia’s Newcrest Mining owns 14.5% of SolGold) but some analysts believe this is only the company’s first move. “It looks like BHP and Newcrest will battle it out for control of SolGold (and perhaps Cornerstone), with Cascabel being the real prize,” Glen McKay said in a recent blog. “I don’t know who’s going to win, and other parties hopefully may join the fight, but I do know this will be good for Cornerstone shareholders.”

Glen McKay is a well-known Newfoundland entrepreneur and the founder of Newfoundland Hard-Rok, an explosives manufacturer providing drilling and blasting services to the mining industry. McKay is the chair of Newfoundland Hard-Rok’s board of directors and on a day-to-day basis, manages the firm’s finances. Although he no longer works at Cornerstone, McKay is still a major shareholder.

“As a Cornerstone Capital shareholder, I’m hoping that company executives are thinking about ways to build and extract value,” McKay said in an interview. “If that means selling the Cascabel discovery to a larger player in the mining industry, then I would support that decision. The mining industry is expensive and requires large amounts of cash to bring any mine to the production phase.”

While BHP Billiton and Newcrest Mining fight for control over Cascabel, analysts are wondering if either company will increase their stake in the mine’s owners (SolGold and Cornerstone) or if another player will step in. Weak copper and gold prices could scare off potential new suitors, Glen McKay believes. “Gold prices have been range-bound for the past couple of years and it may require a sharp uptick to build a fire under the gold mining industry,” McKay says. “When prices drop for an extended period, exploration and development decreases and this eventually results in lower production. When the markets pick up, then demand exceeds supply and prices rise.”

No matter the outcome, Cornerstone shareholders will likely end up happy. The stock price nearly doubled following the BHP Billiton deal. That trend is set to continue as Cascabel’s ownership gets sorted out and the cyclical prices of gold and copper rebound.

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[mam fach] 25/10/2018 11:09

You know what I always say. ( sorry to repeat myself)
Still time to buy. It's not too late.

[onedayrodders] 25/10/2018 11:04

Not that they (MM's) ever need a licence but I think the global stock market wobble is giving them a free reign to do whatever currently

[mikalan] 25/10/2018 10:45

MMs taking the proverbial this morning

[zeusfurla] 24/10/2018 21:44

Noccer From the earlier comms from SOLG I'd suggest that we have a high chance of getting MRE2 in early/mid-Dec followed by PEA early in the New Year. It seems to be a firm part of the company's strategy. Unless overtaken by events of course. Whatever happens though it looks likely to me that there will be an MRE3 to follow. However, by this time events may well have taken their course...

[mirabeau] 24/10/2018 18:49

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SOLG at 21mins and 45 secs

[mirabeau] 24/10/2018 18:22

A merger between Goldcorp and Newcrest? This rumour-speculation keeps popping in AFR articles. I wonder how this would affect Newcrest's position in Solgold and in Ecuador?

Either way with M & A in the hard metals sector a prominent theme we could see values start to rise as capital is attracted into this sector. Bodes well for SOLG and its dominant position in copper's final frontier that is Ecuador.

Keep a tight hold of those SOLG shares

Updated Oct 24 2018 at 11:00 PM

Gold sector must consolidate says GoldCorp boss

Gold prices have been strong of late for mining companies with Australian dollar cost bases, such as Newcrest.

by Peter Ker

One of the world's biggest gold miners says further consolidation beyond Barrick's $US19.4 billion ($27.3 billion) merger with Randgold is required if the gold sector is to win back generalist investors.

Speaking ahead of his visit to Melbourne's International Mining and Resources Conference (IMARC) next week, GoldCorp chief executive David Garofalo said there was an unhealthily large number of gold miners competing for capital.

"I do think there are far too many companies in the sector, even after this merger. Assuming Barrick and Randgold hold onto all the assets they each bring to the table they will only control 6 per cent to 7 per cent of the global mine supply market, and they are the biggest guys on the block, so that tells you it is a highly fragmented sector that is in need of rationalisation," Mr Garofalo told The Australian Financial Review.

"I don't think it is terribly healthy to have so many players in the space trying to attract capital. Generalist investors, who have been elusive up until now, they come to an industry and they are looking for scale and companies that have growth, not just in production but in value.

"If we hope to attract the generalist investor back, we need to create some critical mass. I expect there will be some more (mergers and acquisitions) in that regard."

GoldCorp has in recent years been the world's third biggest gold miner by reserve life, market capitalisation and earnings. But it has recently been pushed to fourth place on some of those metrics on the back of improved performance by Australia's Newcrest Mining.

The very similar scale of the two companies has prompted some to consider them ideal partners in a merger of equals, should the Barrick and Randgold deal trigger a wave of similar deals.

When asked about the prospect of a merger with Newcrest, Mr Garofalo said: "It is always flattering to be in the same conversation with well run companies like Newcrest, but anything else I would say would just be pure speculation, and we don't comment on speculation like that."

Mr Garofalo said GoldCorp had a sustainable scale, but was always looking to improve the quality of its portfolio, which is focused on North America, Central America and South America.

"Right now most of our opportunities seem to be (in North and South America), we haven't seen anything to compel us to go outside of the Americas," he said.

"The way you create value for shareholders is either by constantly upgrading the quality of your portfolio, either through the drill-bit or through portfolio optimisation."

Meanwhile Newcrest has made a slow start to fiscal 2019, with gold production in the three months to September behind the pace required to achieve its full year gold production target of between 2.35 million ounces and 2.6 million ounces.

The slow start (Newcrest produced 548,351 ounces in the period) was not entirely unexpected, with Newcrest telling investors in August to expect stronger production in the second half of the financial year.

But some aspects of the slow start were unexpected, with an unplanned disruption crimping output at the struggling Telfer mine in Western Australia.

Gold prices hit a three-month high on Wednesday on the back of growing sovereign risk surrounding US President Donald Trump's foreign policy.

The yellow metal was fetching $US1230 per ounce on Wednesday, which equates to $1732 per ounce in Australian dollar terms.

Gold miners including Regis and Saracen were among the biggest improvers in ASX trading on Wednesday, while Newcrest shares closed 2.9 per cent higher at $21.30; the stock's highest price since August.

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[lefrene] 24/10/2018 14:09

Very well put rougepierre.

I feel quite fortunate Noccer, I have only had money sunk here for two and a half years, so now't but a boy compared to some holders!

I also favour the idea of a consortium to take Cascabel or even just Alpala, with hopefully enough paid for a divi to shareholders and then there is cash available to have a go at the other sites. I wouldn't want the whole of Solg taken out on the cheap,and I doubt that NM would either.

[rougepierre] 24/10/2018 13:15

Here's my take...

BLT bids for NCM... (comparative MCaps 90Bn AUD cf 16Bn AUD)... thereby reaches 28% of SOLG...DGR Global holds 11%... (easily bought at the right price?)

Launches hostile bid for SOLG...settles for Cascabel as a consolation prize...

Pundits expecting more consolidation in the Mining space...

Barrick ($16Bn) bought RIO ($6Bn)... Speculation that they would move on to Newmont ($17Bn)....



So why not?

Freeport see more deals to acquire copper assets...not just BLT...Shandong, Zijin, Citic in China...



So rising copper prices could become a sell-fulfilling prophesy...Mining acquisitions add zest to copper speculation... rationalisation enables the big players to manipulate prices higher...

Meanwhile, the two most prospecting regions are still massively undervalued (Ecuador and Mongolia) and it can take up to 10 years to bring a mine to full production in virgin territory...

Hence why I have a massive stake in SOLG; have been in and out of ATYM; hold KCC, XAM and ARS, having made a chunk out of AAZ...

Frankly, after the PEA, £1 would be selling this company cheap, which is why I subscribe to the 'sell one of the gems, distribute the cash and move on' school of thought...

SOLG could be earning me a big and steady return for the rest of my days...

AIMHO as usual and GLA...

[noccer] 24/10/2018 12:53

Yeah, I know Mirabeau, but been in this 7 years already. Even for a LTH there comes a time when you want to see things move along (and the share price a bit more healthy), like drills into some of the other prospects, etc. No complaints about NM and team though - I am sure they are moving it along as fast as they can, and NM has a lot of skin in the game. All good !

[mam fach] 24/10/2018 11:12

Probably everything is factored in to price pending next update.
Just have to hang on in just a little bit longer.
GLA

[mirabeau] 24/10/2018 11:07

'I am a bit concerned that they keep finding unexpected high grade core'........I'm speechless!!! LOL. You're hard to please

Mate, the market will price it in anyway...

[noccer] 24/10/2018 11:04

Must be due for an exploration update soon, and hopefully an updated corporate presentation as we seem to get one a month. I am a bit concerned that they keep finding unexpected high grade core. From last exploration RNS:

"The Company is also excited about notable drill hole results outside the previous resource area, such as Hole 64, which last week intersected primary bornite mineralisation deep at Alpala NW."

"Hole 66 extended the high grade core of the deposit towards the southeast at depth..." - with 168m of 2.45% CuEq, and 300m of 1.88% CuEq. Those are chunky grades.

It is great to have more resource, but my concern was that the December MRE date could slip, or the MRE need to be updated again. Right now they have all 12 rigs at Alpala, and if just one of them turns up an unexpected high grade extension then they haven't finished the job of defining the core and it pushes the project timescales out.

[pecker1] 24/10/2018 10:19

There seems to be no big supply coming onto the market from the staff/contractor 28p option holders. If they hang on to their shares, it will be a big vote of confidence in Solg - after all, many of them will know what is coming down the line! Expiry on 29 October and an exploration update or two could take the breaks off the share price next week.

[mam fach] 24/10/2018 10:12

Smart move letting BHP buy slice of the cake.
Uncertainty of placement avoided.
Killed two birds with one stone.
Sooner or later price will rocket.
What more can you say.

[goldrush] 24/10/2018 10:04

lefrene

Re “mates rates” ....as the guys have said above it really is a smart move....puts a far higher figure on the share price as the starting point for the future.....raises $60m with little cost as opposed to a placing and all the ups and downs(trading ranges) that implies, costs, options etc

And of course BHP are now in play and let’s see what Newcrest does.

Gives NM time to keep drilling.....get the MRE Upgrade out, then PEA....

Gives NM time to get drilling done in some of the other exciting projects.....

What’s not to like.....IMHO