Solgold Share Discussion Threads

[lefrene] 25/11/2019 14:22

I was referring with a somewhat broad brush to the 72 other properties that Solg now controls 12 of which they have selected for early exploration. This dates back about 18 months or so and I recall looking at the figures at the time and estimating that there was over $500 billions worth of metals in those combined properties, but they will of course first go for those with the most economic promise. As for your 35p, the company estimates that the current proven value of Alapala at 2.5% of the metal value, is $2.1 to $2.4 billion (about £2 billion) rather more like 100p a share than your 35p, and that's just Alpala.

Today's capital raise being quite small given the scale of the mining industry, suggests to me that NM is expecting something in the not too distant future that will lift the value of the business. There's a lot more to Solg than Alpala.

[lurker5] 25/11/2019 13:59

Lefrene - "The current market cap reflects less than 0.25% of the value of the total in ground metal that Solg controls, BHP knows it's stunningly cheap."
The 'value' in the ground has already been worked out (to a certain accuracy) in the PEA. It might be doubled with more drilling and info . But no more than that. It equates to a current share price around 35p. - assuming no more dilution.

[pob69] 25/11/2019 12:43

Contrasting views make a market... #ecuador Solgold $SOLG $SOLG.L $CGP #cascabel

Clearly a sell in fruity langauge - IKN

Long - Willem Middelkoop

[telbap] 25/11/2019 11:50

@loganair......I agree, 12 m just on payroll.....22m is a tiny amount given the cash they are going thru now.

[loganair] 25/11/2019 11:17

SolGold shares have been under pressure over the past six months due to difficult economics in Ecuador, lower copper prices and the need for more financing for the study at Alpala, which house broker Liberum said should now be causing less concern.

“Ecuador also remains one of the most prospective mining jurisdictions globally and assays from the Blanca gold prospect could confirm a new commercial discovery just to the north of Alpala,” analysts said in a note at the end of last week.

[loganair] 25/11/2019 11:09

The company said BHP has agreed not to acquire further shares in, or make an offer for, SolGold for a period of two years. However it said BHP has a right to acquire up to 246.6 million SolGold shares--not counting shares acquired by way of certain permitted acquisitions--and it also has a right to make an offer for SolGold provided it has first been approved by the company's shareholders - that's not difficult considering BHP & Newcrest now own 30% of Solgold.

[lefrene] 25/11/2019 11:07

Now he's let his Aussie mates get a cheap slice of the cake will we start to hear more about drilling licences and bonanza gold grades from Blanca y Nieve? Not that I'm a cynic or anything..........

Where did that $60 million go that they were boasting of in the last accounts? Ok a $1 million a month for salaries, but the rest of it?

[loganair] 25/11/2019 11:06

Currently 80% of Soldgolds expenditure is exploration costs.

This $22mln will not last them long.

[pecker1] 25/11/2019 11:05

lefrene,

Breathing space as well to get drill results from Blanca, hopefully before the end of the year, and from Rio Amarillo and Porvenir in Q1, 2020, and maybe from a couple of other regional prospects too.

A major new discovery would vindicate NM's strategy to "bootstrap" development. Delay in getting permits affected other explorers in Ecuador too, so a lot of ground to make up. Must have been very frustrating for NM and team but they kept the faith and their cool.

[mknight] 25/11/2019 10:57

Loganair

Plan was to prove up Blanca y Nieve quickly as gold mines are easier to fund then use that production for ALPALA.

[loganair] 25/11/2019 10:55

As Solgold is struggling for cash, I wish they would stop their exploration of the other 4 mines and just concentrate on Alpala to get the mine up and running, bringing in revenue then can look at exploring other areas.

[lefrene] 25/11/2019 10:42

I notice in that RNS that Solg are looking to bring in third parties to speed up the BFS, why wasn't this done before to bring things forward as it's apparent that no careerist banker is going to consider any finance until they see proofs of ore and accurate studies of costs of extraction. I notice oddities in the dates mentioned, talking about 2 years but then stating a date in late 2020 barely a year away? I get the impression of an RNS issued in haste in response to news leaking.

[mikalan] 25/11/2019 10:38

Or maybe BHP did not want any more at the moment. Guesswork either way. I'm less and less convinced by NM.

[mknight] 25/11/2019 10:33

It Would seem NM left the funding too late but I am sure he will not make the same mistake again .

Looks to me like he has given BHP the mínimum possible to allow us to continúe to prove up ALPALA and work on some of the regionals. In the meantime he has breathing space and control of the company .

[boris cobaka] 25/11/2019 10:28

I'm inclined to agree. At least it was at abit of a premium but I wouldn't be surprised if they'd been behind a short attack to drive the so lower.

[shabadi] 25/11/2019 10:28

Sure - but it leaked.

[shabadi] 25/11/2019 10:21

Well BHP will likely have their own people working on the Alpala Feasibility Study now so if they are thinking of a takeover then it will have to be after the results of that are published. (Insider trading and all that)

[loganair] 25/11/2019 10:19

BHP is prioritizing future growth in copper and oil, and sees Ecuador as a key focus for new mining projects. Dwindling supply from aging copper mines and rising demand from renewable energy and the electric vehicle sector will combine to boost the metal’s outlook, the miner said in August.

Exploration will be “the most cost effective way” of adding to the company’s growth pipeline, outgoing CEO Andrew Mackenzie said last month in a webcast. “We have positions in some very prospective parts of the world where we think we can add significantly to our resource base.”

[andysand] 25/11/2019 10:16

Having read the RNS carefully, I think it is a prelude to a takeover. Despite the RNS saying that it isn't. The exceptions that they list make it very clear that a takeover is very possible. And in my opinion, very likely.

[mam fach] 25/11/2019 10:13

You know what I always say.Still time for a top up.
Must say I am disappointed.
Think BHP price should have been higher.
Gut feeling things haven't been going as NM had anticipated.
My last top up was @ 19p, now expect a swift re-rate from here.

[mikalan] 25/11/2019 10:12

One of the reasons the share price has struggled of late is the question over financing. I was hoping that once that was resolved we'd be off and running. Unfortunately I feel this is just kicking the can down the road. The uncertainty over financing remains.

[shabadi] 25/11/2019 10:10

Will Newcrest react to this? A few weeks ago they were happy to wait it out but perhaps now is the time to make a move.

[andysand] 25/11/2019 09:58

This looks a very good entry point to me. BHP's involvement is a major plus. Not sure what everyone is so negative about. Presumably, those that bought in a few weeks ago and are in loss are not happy. But should be upwards from here.