Solgold Share Discussion Threads

[ntbb] 05/9/2019 09:21

Global share markets were lifted overnight after China confirmed formal trade talks with Washington would resume next month, a day after Hong Kong’s Hang Seng staged a near 4% rally on signs the HK authority was killing the controversial extradition bill that’;s triggered months of violent street protests.

Stock benchmarks in Shanghai, Tokyo and Seoul all jumped between 1%-2%, with MSCI’s all-country index up about 0.45% so far on Thursday.

U.S. and European stock futures were both up almost 1%, after a 1% rally in the S&P500 on Wednesday. China’s offshore yuan strengthened back to its best levels since Aug. 23, with the dollar steadying more broadly after a sharp retreat on Wednesday.

Ten-year U.S. Treasury yields popped back higher and tried to regain 1.5%, with the 2-10-year yield curve flipping back positive to the turn of couple of basis points (even though the curve from 3-months to 10 years remains deeply inverted).

[mknight] 05/9/2019 08:31

Pob69

Thanks for that article .

Seems to make sense with interest rates at nearly zero . Throw in a cheap pound and a 37 percent drop in Solgold share price . Whats not to like about opening the Door for a full takeover .

[pob69] 05/9/2019 07:53

Interesting corporate broker BUY comment on $SOLG $SOLG.L $CGP #cascabel #ecuador SolGold (Target Price 72p)

BHP dropping its hurdle rate is bullish

...SolGold has fallen 37% from its May 2019 peak as copper prices continue to drift lower on weak Chinese demand and USD strength.

On Monday, the AFR published an article highlighting a shift in attitude at BHP around the traditional 15% IRR hurdle rate for new projects. As SolGold's largest shareholder and most obvious suitor, the comments should have valuation implications - we estimate every 1% reduction in the hurdle rate would add add an incremental 11.8p to the price BHP would be willing to pay for SolGold (@$3/lb Cu).

[master rsi] 04/9/2019 23:34

GOLD keeps moving higher

now $1551.10 +4.40 after earlier reaching $1557

[lefrene] 04/9/2019 17:51

Comment from Deutsche Bank on BHP. None too sure what they mean by "lacks structural growth drivers", but if it implies they need new big resource projects, then I wonder where those will come from? Of course it could just be this seasons intake of new graduates just learning on the job.

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

Deutsche upped its stance on BHP Group to 'hold' from 'sell', cutting the price target to 1,750p from 1,900p following the recent share price correction.

"Our view that BHP lacks structural growth drivers is unchanged, however, capital discipline is holding and dividend levels should remain robust through the cycle," it said.

[master rsi] 04/9/2019 15:47

Mining stocks set for rebound, says Deutsche Bank
Deutsche Bank revised its ratings on London-listed miners on Wednesday as it said stocks were due a rebound after the summer selloff.

"Like most cyclical sectors, mining corrected sharply through the summer months," it said. "Risk appetite has collapsed and global growth fears are back at the forefront. While uncertainty and macro risks are high, we see scope for a tactical rebound on a six month horizon."

DB added that iron ore prices have reset to more realistic levels and valuations are now someway below its mid-cycle targets.

"Our mining valuation composite is now sending a clear buy signal; buying at current valuation levels has yielded an average six-month return of 23% and the sector has moved up in relative and absolute terms on every occasion," it said.

"The pervasive fear in the market is that we enter a 2015 type slowdown which saw negative China and global steel demand for several quarters. While we expect a deceleration in China steel demand in the year ahead (2% in 2020 from 5% in 2019) we think a 2015 style slowdown is an overly pessimistic scenario."

The bank said Anglo American remains its top pick. "The business is well diversified, valuation compelling and, at the current share price, the market is getting the 30% growth by 2022E almost for free."

Deutsche upped its stance on BHP Group to 'hold' from 'sell', cutting the price target to 1,750p from 1,900p following the recent share price correction.

"Our view that BHP lacks structural growth drivers is unchanged, however, capital discipline is holding and dividend levels should remain robust through the cycle," it said.

It downgraded its rating on shares of Chilean miner Antofagasta to 'sell' from 'hold', reducing the price target to 820p from 930p.

"While we realise that ANTO is one of the few large scale, low risk copper producers globally - and we expect the company to maintain its premium valuation - the shares have materially outperformed this year," DB said.

It added that 2019 represents a peak year from a volume and cost perspective. From next year, it expects lower volumes, lower margins and higher capex.

[master rsi] 04/9/2019 15:31

Gold price is on the rise $1546
SOLG wants to bounce 25.40p
and
Deutsche Bank says Mining stocks set for rebound,

[ntbb] 04/9/2019 14:25

No trades for about 2 hours! That NM is upto somthing good otherwise why does he also wants to take 15% of cornerstone and not only does he have 4.87% holding, heres hoping

[ntbb] 04/9/2019 12:15

That trade of 117,674k shares just gone at 25.35 looks to me a buy, I'm off for couple of hours, it's doing my head watching

[ntbb] 04/9/2019 12:04

That greedy bas NM holds a whopping 4.87%

[ntbb] 04/9/2019 12:01

top share holders

newcrest 14.79%

dgr global 11.06%

bhp billiton 11.14%

cornerstone cap 9.22%

tenstar trading 6.43%

Samuel holdin grp (nick mather) 4.87%

[ntbb] 04/9/2019 11:57

analyst coverage

hannam and partners target price 80p

liberum 69p

jp morgan 90p

red cloud c$1.30p

carmark c$1.20p

national bank of Canada c$1.15

[1garythomas] 04/9/2019 11:41

Bhp paid 26p for 6percent of thr company and 45p for another 5% of thd company, there average is about 33 or 34p a share, they can still buy on the open market according to thd agreement with solgold, i think without checking anither 3 or 4 percent to take them to tge same level as newcrest, about 14%, that would with cornerstone take them all, nearly 40%, no need to make an offer for solgold, placement due very soon, if offered to BHP or newcrest can take them upto 45%, just keep buying on the placements, and will have a majority in a few years.

[lefrene] 04/9/2019 11:15

I guess it perhaps depends on what the relationship between BHP and Newcrest is like? But in the meantime the big boys can sit it out while the little guy does all the hard work, and then choose their moment to make a grab.

[alwaysevolving] 04/9/2019 11:08

Yes, that’s right ntbb. Personally I believe the block was put in place as an attempt by SOLG to pressurise BHB/Newcrest into making a full offer for the company (as that was a clause stating that although they couldn’t increase their holding past a certain % without permission, they could make a full offer) but thus far that hasn’t been forthcoming.

Just my opinion. I might be well off the mark?

[ntbb] 04/9/2019 10:45

Thanks guys, here is summary of the agreement, it says they cant acquire without consent, so if they want to buy more they just need to get permission first I believ

15/10/2018 11:46pmDow Jones News

   By Rhiannon Hoyle 

SYDNEY--BHP Billiton Ltd. (BHP.AU) said it will almost double its stake in copper explorer SolGold PLC (SOLG.LN) as the world's largest mining company seeks to boost its exposure to a metal used in everything from smartphones and electric vehicles to air conditioners.

BHP, which last month bought a roughly 6% interest in the company that runs the Cascabel copper and gold project in Ecuador, said on Tuesday it will raise its stake to a little over 11% via a private placement under which SolGold will issue 100 million shares to BHP.

"Ecuador is a highly prospective region for the next generation of copper supply," BHP President Minerals Americas Danny Malchuk said in a statement.

BHP and other global miners have been racing to increase bets on copper amid expectations demand for electric vehicles and consumer products in China will spark a boom in demand and prices for the metal.

BHP said it will pay 45 pence per share--or 45 million pounds (US$59 million) for the stake--which is a 32% premium to the 20-day volume-weighted average on London's stock exchange. It is also pricier than the 26.592 a share BHP spent last month to buy its initial 103-million-share interest from Guyana Goldfields Inc.

Under the latest agreement, BHP has the right to nominate one director to SolGold's board although has agreed not to acquire further shares for two years without the company's consent.

"This additional investment in SolGold strengthens our strategic position in the Cascabel copper exploration project, and is consistent with BHP's strategy to replenish our copper resource base and grow the business," said Mr. Malchuk.

SolGold in 2016 rejected an offer from BHP to invest in the company and develop its flagship Cascabel project, instead picking a competing investment by Australia-based Newcrest Mining Ltd. (NCM.AU) and Maxit Capital LP.

[lefrene] 04/9/2019 10:07

ntbb, their deal at 45p included a clause that they cannot increase their stake for a fixed period which is still in force, Newcrest are in the same boat, I believe Newcrest can buy more after mid October, which is ahead of BHP. It's my belief that these two very large companies will do some sort of joint venture, but in the meantime Solg has to demonstrate that it can go it alone, hence getting the new finance expert on board. It's only by demonstrating they can go it alone that Solg can get a proper value if they choose to sell. Just like Brexit, at some point something eventually will actually happen, even though it feels like it never will!

[alwaysevolving] 04/9/2019 10:01

Ntbb, per the agreement BHP are currently locked out of buying “hundreds of millions “ of shares.

[ntbb] 04/9/2019 09:49

What really makes me annoyed is bhp paid upto 45p a share for 10% of the company and were on their knees for the stake so why cant they simply say we are not having none of this and put buy order of few hundred millions shares say at 50p that way they get much of shares as possible in the cheap, sometimes these big baffoons dont know how to bargain shop

[mam fach] 04/9/2019 09:40

Agree completely.

[lefrene] 04/9/2019 09:35

Trump will need a deal with China, something to underpin his run up to the next election. A move towards more electric cars is also helpful, plus we seem to have Central Banks searching for a new reserve currency as they realise that the global debt mountain is never going to be repaid. Commodity cycles eventually turn, it could all come together in a timely manner for Solg. The seemingly deliberate lack of news here suggests there is something going on that investors cannot see. The assets in the ground are unlikely to be shrinking.

[ntbb] 04/9/2019 09:17

Iv read somewhere electric car uses 4 times more copper then a pet/diesel car so futures bright Nd as for global recession it will get sorted, most of the chaos in the world is caused by fake news creating fears into people

[mam fach] 04/9/2019 09:13

As soon as Brexit is agreed SOLG will gain momentum.
Ha! Ha! Scintillating stuff - wonder where we go next.
Comedy of errors. Not so with SOLG,their modus operandi been exemplary.
IMHO

[onedayrodders] 04/9/2019 08:58

You have not included a global recession which all the bond yields are screaming has started and US data continues to confirm,

[ntbb] 04/9/2019 08:50

Dow in positive, futures up 250 plus point, Hong Kong withdrawing the extradition bill, Italy government forming, Brexit getting sorted, USA election comming up so a deal is in trump interest, Indonesia building new capital. So alot of coppers will be needed to build... coppers bull run will start again, futures looking bright for solg and it's best for majors to go for bid at these low price, hxxps://reut.rs/2LvWVFU