Solgold Share Discussion Threads

[lefrene] 14/8/2019 09:06

Despite apparently being sat on hundreds of $ billions of metals, the Solg management seems currently unable to progress anything until Cornerstone Group are accommodated, they get drill permits (still waiting why?), and sort out finance to begin the first mine. Thus holding the shares is a bet on that sequence of events unfolding before too long.

[lunus1] 13/8/2019 23:54

Should be interesting.

hxxps://imarcmelbourne.com/speakers/jason-ward/

[lunus1] 13/8/2019 20:53

Thx mkknight. Should be fun.

[mknight] 13/8/2019 19:34

Lunus1

Nice to have you on board . We all feel the same .

BHP are probably paying garythomas to try and keep the PI,s under control and rumour has it that NM refused a one to one with him not so long ago so we get the odd post from him that most ignore .

Other than tat we are a happy lot with most agreeing that come MR3 we will be in the top 3 largest Gold..SIlver and Copper mine i the world .

[lunus1] 13/8/2019 18:01

Hi guys. I’ve recently invested and despise the recent fall I remain positive for the future. My view is that in six months I expect the share price
to double and by eighteen months I expect it to be triple what it is today, as I expect only positive announcements between now and then. Also, with the majors fighting for market share I think it’s probable that a takeover offer may be made in 18-24 months time. However, I’m quite happy to to hold these shares for 3-5 years as whatever happens I only see growth. So am I missing something lol?

[lefrene] 13/8/2019 15:35

Perhaps Mr Trump has blinked? Gold might have a hiccup, but copper is wanted.

[ntbb] 13/8/2019 14:45

I agree he is a greedy b8stard, I'm sure bhp will be happy to pay 100p a share

[1garythomas] 13/8/2019 13:59

With no news now until march next year, MRE3, NM is allowing the share price to drift lower and lower, looking like 18-19p now, NM needs to step down and step down NOW, the guy is one greedy fat bast---, and will never see his 60p options.lol

[mknight] 13/8/2019 13:29

They wont be against mining when they recieve their weekly cheque .

[shakester2] 13/8/2019 11:52

cut, paste, re post, repeat

[1garythomas] 13/8/2019 11:46

Gold prices will not have any effect on solgold share price, why would it, its at least 7or 8 years away from production, what price will gold be then, and of course will it ever go to production, with a general election around the corner, and a opposition party in waiting who are totally against mining, and the vast majority of people living in equador also against mining, it all could come crashing down, at the moment maybe 50-50 chance of ever going to production.

[mknight] 13/8/2019 11:41

Lefrene

Yes indeed could end up over 2000 at this rate .

Certainly will not hurt .

Need to start drilling blanca y Nieve asap .would be great to have some concrete drilling to push the share price up .

[lefrene] 13/8/2019 11:19

The rate gold is tearing up I presume will make it a little easier to raise funds for a mine.

[lurker5] 12/8/2019 14:58

NM hsn't said 'debt rather than equity'. He's obviously expecting someone to 'earn in', with their own equity. Alpala's irr isn't the best, but would nevertheless support some debt to lever up the returns to the expanded equity. But no debt provider would ever 100% finance any mining project. Nor would he take on a 'lion's share' of the returns. All he wants is a fair rate of interest for the risk, leaving the majority risk to be shouldered by the equity. That's what it's there for. Lets hope he doesn't go for an upfront 'streaming' deal - They're usually much more expensive for the equity holders in the long run than any straightforward debt.

[lowtrawler] 12/8/2019 14:44

I’ve been having some thought on possible funding models based on the little information available to us. The information we know about is quite limited:

1.They need at least $2bn to successfully go into production at Alpala
2.They have a large number of exploration sites which will also need to be put into production
3.They wish to raise funds using debt rather than equity

As I see it, any debt provider will want to get the lions share of returns from Alpala as they will be taking on more risk than even equity holders because they will not have voting rights. SOLG may concede this position to enable funding of their other targets on a 100% ownership, zero debt basis e.g. raise $4bn from Alpala but give all returns to the debt providers and use the excess funds to develop other locations. There would be various clauses required to ensure Alpala is brought into production on schedule and ahead of other sites.

Alternatively, SOLG could retain a minority stake in Alpala and use that as a cash generator and as security for borrowing in order to develop the other locations.

If my thoughts are along the right lines, we will end up operating Alpala but with little economic interest in it. Our economic interest will come from the dozens of other exploration locations being brought into production.

Personally, I see this as a highly attractive proposition which should appeal to all parties. However, it pushes back returns for shareholders into later years and none of the other sites are likely to be as large or lucrative as Alpala.

How does this help to determine whether to remain invested in SOLG?

1.I’m fairly confident that funding will be available to develop Alpala and, by inference, some of the other sites. This takes away much of the funding risk.
2.I’m confident that, given the size of Alpala, it will avoid any political obstacles and go into production. This takes away much of the political risk
3.SOLG can prove their producer credentials at Alpala taking away much of the execution risk from the other locations.
4.We are no longer sitting on the huge cash income from Alpala – we will need to prove the worth of some of the other exploration targets. This increases exploration risk and, as those sites are unlikely to be as economically important, political risk.
5.Shareholder returns are pushed back by at least 2 and probably more years.

Factoring everything in, I believe:

1.Risk is significantly reduced
2.Bringing even one other site into production is likely to have a NPV which is a multiple of the current price.
3.The main controllable driver for the SOLG share price will not be Alpala – it will be results at other exploration sites.
4.Unless we are targeted for a takeover, there will be no quick returns, just a hard slog to the finish line.

[mknight] 08/8/2019 11:17

Thanks lowtrawler

[ntbb] 08/8/2019 10:44

"From late bb, anyone got the link to the interview plse


interview at diggers and dealersToday 10:00

NM just informed us financing will debt and stakeholder finances vs equity. Massively bullish as I guess many think there will equity raise. Buy

[lefrene] 08/8/2019 10:16

It's possible that CGP are the sticking point, none of the big players know where they are until CGP is taken care of, then perhaps we will see how the debt is going to be structured. I agree that those putting up the debt are likely to be greedy, but nothing can happen until circa $3 billion is available to get Alpala to production.

[lowtrawler] 08/8/2019 10:10

It's much too easy to speculate on how Alpala gets into production. What's clear is that a lot of money needs to be found in order to exploit the resource and whoever comes up with this funding will make the biggest return. Note - as existing shareholders, we are not the ones who have provided the funds, we are only the gatekeepers on how this unfolds.

[lefrene] 08/8/2019 09:54

I suspect Alpala will end up as a joint venture with Newcrest and BHP, with perhaps the bigboys underwriting the debt. That would certainly underpin the whole future of the company, to get it to production and in turn finance the rest of the prospects to production.

[lowtrawler] 08/8/2019 09:48

It implies that their preferred method of financing will be debt where the debt holders will get a return based on the cash flows generated.

[ntbb] 08/8/2019 08:51

Longer this remains at low price the more chance of cheap takeover and by the way bhp 10 or 11 per cent wont get diluted, and that was at 45p, any idea how that works out

[mknight] 08/8/2019 08:44

Whats byproject economic ?

[lefrene] 08/8/2019 08:06

telbap, no I haven't held either of those. My other gold holding is AAZ a virtually debt free producer, well run, in my view undervalued, and currently coining it.

[pob69] 08/8/2019 07:58

Nick Mather interview at Diggers and Dealers earlier this week Solgold $SOLG $SOLG.L $CGP #cascabel #ecuador

"...short payback period and fantastic economics.... working on conditional total finance package backed by project economics rather than corporate equity"

PFS by end of Q1 2020 and MRE3 "by then" - a quarter later than the presentation slide