Solgold Share Discussion Threads

[phattrader1] 22/4/2020 16:23

SolGold just liked my tweet on Twitter haha

I said “Thanks for the webcast, I will definitely be buying more and hoping for a £2bn takeover 😉”.

The amount of times takeover or Cotibwere mentioned, it’s not even hidden news anymore. They’re being bought out in t+3 months or less. As soon as the funding is agreed for $2.85bn... mark my words

[mknight] 22/4/2020 16:03

Lowtrawler

I do t think it will fall back to 18p but you never know .

[lowtrawler] 22/4/2020 15:51

Mk, it's impossible to know where they may fall back to. I do think that the 22.15p BHP fund raise is acting as a ceiling until we get important news. Ultimately, I'm sure that we will get to 50p and more but we may well fall back to 18p or even less depending on how the market moves.

[ntbb] 22/4/2020 15:44

Who ever is holding us back know this ur days are numbered

[ntbb] 22/4/2020 15:43

Finnance at project level! I like that

[mknight] 22/4/2020 15:42

Mam

I cant see them going back to say 18p and would think 40p by Christmas .

[mam fach] 22/4/2020 15:39

Do you remember how bullish NM was while back.
PEA would be far higher than estimated etc.
I don't want to dampen anyone's expectations but it didn't follow through last time.
Still holdin on to my shares though.

[mknight] 22/4/2020 15:35

He said 4 years pob69

I agree with all thats been said .

He want to build the mine as it is the best way to fund the other sites .

Once the finace comes through we should rerate

[pob69] 22/4/2020 15:31

Thanks to phattrader1 for the live commentary, much of which I agree with!

It was interesting to hear how much Nick Mather delegated answers to the rest of his team, present at the seminar and also that Nick (as in previous webinars) wanted to carry on but the host didn't!

In addition to phattrader's comments, I would add...

Other elements with Cascabel (I guess Aguinaga?) are not critical to the success of project.

It is clear that any company wanting Alpala will have to pay huge prices (which Nick doesn't expect) due to the major tax implications for Solgold in doing so. "Highly unlikely we will sell Alpala" inferring the company will go it alone... unless there is a takeout of the whole company and I felt said he cannot "begin to answer that or predict what the majors will do but they need copper". "There are no projects as big or financiable as Alpala publically available". He stated a "4 year payback" - I had 5 years in my mind - will need to check?

Looking at getting quicker drilling authorisation for Rio Amarillo and Chical due to its closeness to Cascabel. (Also namechecked Cisne Loja as fantastic and porveneir as very exciting. He mentioned Blanca but not able to get any drilling done but still bonanza grade and La Hueca)

Cornerstone is still an oddity. They "still intend to make an offer" though there are "problems with getting possession of information which needs to be included". Nick states "Solgold is trapped by more that we know about which isn't in the public domain". What can he mean?

In terms of buying more shares "he wishes he was able to" but he couldn't get board clearance and there is materially senstive information which is not in the public domain.

I expect plenty of news to keep shareholders interested in the near term - maybe imminently...

[lowtrawler] 22/4/2020 15:29

If SOLG successfully deliver their plans, of course the price is heading upwards. It's just not heading upwards today and it's going to take proven delivery of their plans for that to change. At least there is a clear roadmap. Next step is offtake financing, then conditional long-term financing, then PFS, BFS and full scale delivery. Over-arching this whole roadmap is the potential for takeover action and new Alpala's being announced.

You certainly want to remain invested as there is no telling when breakthrough information will be made available.

[orchestralis] 22/4/2020 15:27

This is lowest risk investment in the market

[ntbb] 22/4/2020 15:20

This is going north pretty soon!

[ntbb] 22/4/2020 15:19

- The finance packages are in line with the value of the resource not the undervalued share price
- Expects a re-rate of the company value (SP) 

[lowtrawler] 22/4/2020 15:15

I don't think phat will be far away with the $7bn NPV for Alpala. Before you get excited, do bear in mind that the incoming money to finance Alpala will be taking around 80% - 90% of the NPV as their share of the returns. That only leaves $1.5bn - $3bn as our share. Let's say £1bn - £2bn or 45p - 90p per share.

[goldrush] 22/4/2020 15:15

phattrader1

I confirm your summaries of the content and thanks a million for doing so.

To me the professionalism of Hoffmaier came through.....I think we have someone who can get the job done and the financing is going to make the share price move higher IMHO.

Please note a copy of the Webinar will be made available in due course.

[phattrader1] 22/4/2020 15:10

My opinion and summary: news within 2 weeks on the full $2.85bn financing package. I reckon it'll be full debt with some convertible notes, and an offtake of gold during production stage, and will all be conditional on the PFS and DFS.

But by then we will be taken over for £1/share+.

As NM said " TOO MUCH MATERIALLY SENSITIVE THINGS HAPPENING FOR THE BOARD TO APPROVE ME BUYING SHARES. I'D HAVE LOVED TO SCOFF THEM UP AT 11P OR 13P WHATEVER IT WAS".

BUY BUY BUY

[ntbb] 22/4/2020 15:08

Time will tell, management is super confident

[goodgrief] 22/4/2020 15:03

"There are no other projects in the world as big AND as financeable as Alpala. There are other bigger but not as financeable."

[phattrader1] 22/4/2020 15:02

Final post on the webinar:

nm: "Current PEA NPV mean is $4.3bn but the PFS and DFS will have higher gold prices, higher gold recoverability and the discount rate will be lower than 8%, so the mean value will rise substantially. I'm not prepared to give a FV. But during PFS the Net Asset Value is 20-30% of NPV and post-feasibility is 40% on NPV."

FV will rise.

I suspect to $7bn. That is £2-2.50 a share within 11 months. That is Alpala only.

[lowtrawler] 22/4/2020 15:01

I agree with phat on the prospective takeover. Trouble is, you can't depend on these things happening. In terms of not raising equity at the current price, again this is good but the non-equity financing is not free and eats into the value available for shareholders.

I don't think we have learnt anything new today and so we will need to wait for the financing details over the next few weeks.

[lefrene] 22/4/2020 15:00

Interesting that Citi has been taken on to defend against low ball offers. Lets hope they are really working for Solg and not working for a predator!

[ntbb] 22/4/2020 14:54

That is the main point I think

"No new equity raising at such a low price.

[ntbb] 22/4/2020 14:54

That is the main point I think

"No new equity raising at such a low price.

[phattrader1] 22/4/2020 14:51

I suspect the conditional financing package in the next 2-3 weeks will re-rate this share price to 40-60p before August is over.
Then I think BHP will bid.
Eventual takeover maybe 80-90p? Anyone's guess.

The financing packaage will be "conditional on PFS and DFS" but I think its just a tool to get a takeover at higher price.


There are high grade gold values at Blanca and we want to crack on with work.


NM has not had board approval to buy any shares since 11th March as there is too much material things going on behind the scenes. This definitely smells of takeover bids being batted off.


The current PFS schedule is end of Q3 this year.


Will you sell Alpala to BHP/Newcrest? "Price and structure - from a tax perspective selling the project is a disaster. I don't think a major would buy one project. The fantastic cashflow profile from the project means we will be able to develop other projects in Ecuador".....FOR ME THIS MEANS FULL TAKEOVER WHENEVER THAT MAY BE.

[lowtrawler] 22/4/2020 14:48

None of what we are hearing is new, it's already reflected in the price. That may change when the details for the offtake arrangements are released and, more importantly, when the details on the long-term conditional financing are released.

The story reinforces our view on the prospects for SOLG but is absent of any breakthrough information that will propel us through the ceiling of 22.15p created at the last BHP fund raising.