Solgold Share Discussion Threads

[ntbb] 01/4/2020 14:25

China has recovered from the virus no doubt rest of the world will follow

[ntbb] 01/4/2020 14:00

I know mk it's just frustrating to see this down, it's looking good now hopefully a blue day

[mknight] 01/4/2020 13:08

Ntbb

Dont worry its a down day ..buy if you can hold if you cannot .

Nothings changed since yesterday .

[ntbb] 01/4/2020 12:59

All these years of progress and even though gold is around 1600 with view of going up our share price keeps going down

[lefrene] 01/4/2020 12:40

DozyDuck, I suppose for would be miners they can just sit back and wait to see if there is going to be an economic recovery, or whether we are all headed for something much worse?

I am in a similar position to yourself, time is not on my side.

Although right now things look very gloomy, the world population continues to grow apace, demand for commodities will follow that rise, but of course it's the time lag. If one is clever enough the time to have your mine up and running is when the cycle turns, too late and you are behind the curve, too early and there may not be enough demand to keep viable. So safer to wait, less chance of things going awry.

I suppose watching China as it re-opens is some sort of guide, but they will have to stimulate their own consumer markets as the West is at least a couple of months away from properly re-opening, and of course this will be in the wake of huge wealth destruction and bankruptcies.

[ntbb] 01/4/2020 12:35

Theres more buy then sell check the trades out and we are down 10% takes the biscuit

[ntbb] 01/4/2020 12:30

Dozyduck I would of thought when the price is low you have more companies looking to buy

[dozyduck] 01/4/2020 12:25

No Lefrene. The PEA takes account of all spending year by year and the profit it comes up with in the later years is the actual cash income (which become nearly zero). (Chart on PEA page 410) Buyers will of course be expecting copper to have recovered by then. But how long will it take for the world economy to fully recover from covid ? I think its unlikely anyone will be rushing to buy Alpala at the moment. A pity because I have a big holding in my SIPP and was expecting it to come good in a few years. but it might be more than a few years - and longer than I've got - even if Covid doesn't get me meanwhile !!

[ntbb] 01/4/2020 12:17

Led, that does make sense now look at that buy 100k

[lefrene] 01/4/2020 12:10

The merchant Banks that have now twice created a crash through over leveraged derivatives, are the very same Banks that actually OWN THE FED!!

They blow the world up and then print more money to bail themselves out! You literally couldn't make this sort of lunacy up.

In 2008 the money remained in the banking system sloshing $ trillions around as the bets played out and were settled, except of course they kept taking more bets out once the books more or less balanced. This time it looks as if $2 trillion will get into the real world, so one would expect to start to see inflation. Against that then logically real things like commodities will rise against debauched fiat currencies. I believe this hysterical flu-bug scare is tactics to cope with the inevitable financial fall out of the latest derivatives debacle, by creating an economic crash, 'not our fault blame the bug'! Already we are virtually imprisoned in our own homes for our own 'good', I expect quite a few other impositions also for 'own good', to follow fairly soon.

[ntbb] 01/4/2020 11:50

How do all these western countries get away with printing trillion of dollars money, the way I see it is, when usa need money they ask the fed to print some notes, simple as that imo

[ntbb] 01/4/2020 11:44

Lefrene agree with you and what about all those war torn countries that need rebuilding such as Syria, iraq, Libya etc war will stop it cant continue forever

[lowtrawler] 01/4/2020 11:44

A much bigger point is that the huge QE currently taking place is inevitably going to devalue currencies and make commodities more valuable. The only place to currently have your money is commodities - whether in the ground or in production.

[lefrene] 01/4/2020 11:39

I'm none too sold on the electric car as a source for a wave of demand, I look more to Africa and Asia and those populations which are growing hugely demanding electricity grids, wired houses and washing machines, and other white goods. The electric car helps, but so does many millions of electric bikes. A billion more people being able to buy white goods, I feel is a bigger factor in copper demand.

[goodgrief] 01/4/2020 11:35

It's not just copper for the cars but all the charge points as well! For fast chargers, you're pretty much go to replace all existing wiring.

[ntbb] 01/4/2020 11:34

If copper mines dont make any profit would any company be operating mines only to make loss? I certainly wouldn't so theres even stronger case for copper price to go up, current price is a short term blip

[lowtrawler] 01/4/2020 11:28

Well, at current gold and copper prices, the NPV would only be around USD 1Bn but the fact it hasn't been wiped out completely shows how robust the business case is. As lefrene rightly says, all the potential buyers will have their own models about what the long-term price of copper / gold will be and it is unlikely they expect copper prices to remain this depressed.

[ntbb] 01/4/2020 11:24

Copper demand will be going up, all these electric cars they require about 4 x more copper then a petrol or diesel car, and what about replenishing some of the mines

[lefrene] 01/4/2020 11:10

But I would guess those later years require comparatively little capital expenditure as the expensive infrastructure will all have been paid for. The area is large and rich, thus starting with Alpala a business could move into other parts of Cascabel but utilising roads and power created for Alpala. As you say I'm quite sure the big mining companies take a careful look at the total expected life of a mine. As for the price of copper it would appear to be depressed by current events, but these events and low prices might well see marginal mines throw in the towel, leaving the field for fresh producers. No doubt clever persons in the industry will have their projections, and recognise that current copper prices are a short term phenomenon.

Thank goodness that Solg has no debt to service, and that it looks as if gold is going to strengthen in the face of $ trillions being created.

[dozyduck] 01/4/2020 10:58

And, unfortunately, that PEA NPV has probably completely disappeared at current copper prices (maybe why NM has gone quiet on it) Also bear in mind that almost the whole of that original NPV is earned in the first 13 years, For the remaining 40 odd years profit falls off dramatically and those would be a consideration for any major looking to buy. All goes to show that bare NPV figures for any mining project can seriously mislead unwary investors. Major miners will view them very differently. So always READ THE FULL PEA/DFS/BFS whatever !

[ntbb] 01/4/2020 09:57

And his got millions of shares excercisable at 60p so his confident this will be heading over 60p

[ntbb] 01/4/2020 09:47

I have to admit nm is a good negotiator, when the share price was 15p or so he made bhp paid 22p and when it was 25p he made them pay 45p and no one saw that was coming

[lowtrawler] 01/4/2020 09:32

The principle is that any buyer is likely to want a significant part of the NPV or, as said, they will not make any return.

[lowtrawler] 01/4/2020 09:30

And I reduced mine by 80%

[mknight] 01/4/2020 09:23

DD

If i remember correctly RGP reduced it by 50%