Solgold Share Discussion Threads

[mknight] 11/5/2020 12:34

DD 2% is nothing .

[dozyduck] 11/5/2020 12:32

Up-front deals for project construction are effectively 'poison pills' against anyone else trying to buy. Why would they when 2% of profits for eternity have been 'hocked' at a high cost ? Any further such deals will increase the dose.

[phattrader1] 11/5/2020 12:28

NM will buy shares soon (if he is allowed), then this will Motor.
If he doesn’t it indicates more material news in the offing, then this will Motor.

I have a gut feeling of a 90p offer from BHP in the next week.

[mknight] 11/5/2020 12:22

I think the funds are there but are the permits in place?

We believe they are but we all forgot to ask ..

If not NM will be bought out by BHP imho

[dozyduck] 11/5/2020 12:16

Who says the funds are now there to drill RA and Blanca ? Its not in the announcement ? (You read everything with blinkered, rose-tinted, glasses RP !)

[husbod] 11/5/2020 12:10

Hi rougeStill here and not selling but not buying either.I have a decent holding as a hedge against a bid but although things are progressing my experience with our other mutual share suggests that no real growth in the share price will take place unless and until actual production is much nearer unless of course one of the big boys takes us out earlier.

[rougepierre] 11/5/2020 11:59

That would be great phattrader...

While the projected short term funding period is 8 months, the fact that SOLG only plan to take up to $100m ATMO (the other $50m is an 'option'); the immediate drawing of only $15m; the initial period being for only four months (with an option for a further four months); the fact that 8 months would take us beyond the BHP lock-in period; and the very strong off take financing interest all add to the optimism about the major financing, even implying that it could be completed earlier than previously projected...

Furthermore, Nick now has the funds to start drilling Rio Amarillo and Blanca...any hint that either could be similar scale to Alpala and the share price could rocket and the financing become a whole lot easier...

Anyone who is out and wanting to get in is playing a very cagey game at the present...

AIMHO as usual...

[pob69] 11/5/2020 11:56

No worries - and it is always nice to be attributed on other boards so thanks Orchard (as I do look as part of my DD and note many others who just copy and paste - I know you they are too LOL!!!)

[rougepierre] 11/5/2020 11:49

I read an interesting and apposite post of yours on the STA BB nasdaq...

"well at least I won’t read his bs as he is filtered best place fir him to be honest although I have thoroughly enjoyed you replies to his filtered waffle.....
The troll that keeps on giving..."

Apply to self...

[phattrader1] 11/5/2020 11:46

I’ve worked for Hedge funds (research analyst and accountant) and certain Listed Investment Trusts / funds are valued at 20% discount to NAV and some are valued 4-5% premium to NAV dependent on quality and trust of Investment Managers.

NM is saying we are valued at 20% of NAV of Alpala. If that is correct, we should be atleast double what we are based on where we are with the project. I fully expect a slow rerating over coming weeks to 50p.

[rougepierre] 11/5/2020 11:45

From my own researches I would agree 12% is a very competitive rate at the moment with a vast surfeit of debt and credit risk especially in the US markets...

Well done pob...

This is also key from Ingo...

"In SolGold's opinion, a 1-1.5% NSR will not constrain the debt capacity of the project; on the contrary, we believe this financing increases the confidence in SolGold's ability to fund the development, further affirming the overall quality of the Alpala deposit."

[arcadian] 11/5/2020 11:39

Pob

Thank you for your vigilance and sharing your findings.

[goldrush] 11/5/2020 11:35

Good name to be associated with ....Franco Nevada Market Cap US $ 27 billion

[pob69] 11/5/2020 11:34

Liberum have a new note out Solgold SOLG $SOLG.L $CGP #cascabel #ecuador (corporate client)

Royalty financing removes dilution risks BUY but reduced TP 63p (prev 69p)

"...The financing removes both near term liquidity concerns and the risk of equity dilution risk, that should allow the shares to re-rate. The agreement ....at very competitive rates, c.12%"

Their TP is based on the price BHP should be willing to pay up to, in order to
achieve a 12.5% IRR.

[lowtrawler] 11/5/2020 11:33

Let's cut to the chase here. This is good news for SOLG but only confirms what was expected a few weeks ago. We have funding for Alpala through to the BFS. There are no commitments given in today's announcement for future funding. The BOD indicate in the announcement that they think 1bn of the amount needed for Alpala could be raised from similar arrangements but no commitments are given regarding this.

The announcement which has been made supports the share price at it's current level and replaces the support that was previously provided by the expected announcement (i.e. certainty v uncertainty). This is good.

The 30p price reached last week included an element of expecting more from today's announcement than it was ever going to provide. Once the dust settles, we will be in our new 27p - 34p trading range supported by a factual announcement rather than speculation. Again, this is good for long term holders rather than short term speculators. For once, I think the price may actually move higher in the next few days as the speculators exit and the long-term holders consolidate.

I don't believe we will move higher than 34p without one of:

1. Takeover rumours / speculation / eventuality
2. Longer term funding announcement
3. A new discovery at one of our other prospects
4. Funding for our other prospects being placed at a higher share price than 34p

[rougepierre] 11/5/2020 11:28

This certainly validates the potential for the major financing...

"Paul Brink, President and CEO of Franco-Nevada commented: "Alpala is an exceptional orebody and one of the most attractive block cave development projects globally. We would welcome the opportunity to provide a gold stream financing as part of the construction financing of the project".

[rougepierre] 11/5/2020 11:24

Hi pazzy...although I'm a former stockbroker, I'm not an expert on MMs...

However, they largely make their money by either selling shares they don't have and buying them back cheaper or...if there is a rush to buy shares, as soon as they can they will seek to execute a pullback to persuade holders to sell...

If you have access to an online broker you can always get a 'Quote' on the market price so for example at the moment the "quote" on II is 26.55/28...that is 26.55 to sell and 28 to buy, but...

When I do a test live transaction to sell 50,000 shares the price is 27.2 and the price to sell is 27.45...

This is because there are several Market Makers prepared to do business in this stock...my live transactions show that there is at least one MM prepared to buy my shares at 27.2 and at least one to sell them at 27.45...

There will be other Market Makers prepared to sell or buy at prices outside that range, hence the Market Quote of 26.55 to 28...

I hope that helps...

[pob69] 11/5/2020 11:21

Nick Mather interview after the deal Solgold SOLG $SOLG.L $CGP #cascabel #ecuador

"great deal for Solgold shareholders"

"endorses the NPV at spot prices...and project and country"

"MC less than $3B so this deal should help get people to see the real value of Alpala is closer to $3B rather than $600m"

"we would have had to raise 16-20 % of company if went through equity route"

"deal not onerous at all and we beleive it will assist the generation of $2.7B we need making very seriouos headway on "

[pparekh20] 11/5/2020 11:04

@rougepierre - hello mate. Pretty new to investing and I am going long on Solgold - so mind my lack of knowledge on the following question:

"I don't see how the MMs can hold this down...vast majority of bargains being done between 27.35 and 28, despite quote of 26.55/28"
What do you mean by this? I am still trying to understand the impact Market Makers can have on this share.

Cheers,
Pazzy

[rougepierre] 11/5/2020 10:57

OK cleverdaq...show me one post where I've ramped the shares...?

Meanwhile, reread all your posts aimed at trashing the shares...(I think that counts as deramping...)

And you haven't even got an interest...

[rougepierre] 11/5/2020 10:52

My God, what world class logic...

Having implied that a placing would trash the price, by what logic does he work out that 12% on $100 million for 8 months maximum (and we're only drawing $15 million immediately) is a worse bet than a placing...

The current projected cost would be c£3.7 million

Absolute MAXIMUM cost of facility assuming $150 million for 8 months is under £10 million...

A ONE PENNY fall in the share price wipes £20 million off the SP

He just twists himself into tighter and tighter knots because he cannot accept gracefully that he got it wrong...

And yet on the STA BB he's talking about trolls...

He's giving me more laughs a day than Trump...(talking of which, 'narcissistic personality disorder' comes to mind...)

[greenelf] 11/5/2020 10:47

But FSAwatcher has correctly pointed out that you are the emporor with no clothes, ToiletDuck.All bluster.

[nas_daq] 11/5/2020 10:45

I suspect the clock is ticking to an election, Ecuador is in lockdown and bhp will be out of their restricted period....all in all a combination the rampers are desperately trying to avoid.....I wonder why......I'm sure mkrampyknight is predicting 40p by now....

[dozyduck] 11/5/2020 10:43

FSA watcher - another child. Arrived on here, hasn't contributed anything. But like the thicko at the back of the class can't do anything else but barrack anyone trying to knock sense into his thick skull.