Solgold Share Discussion Threads

[dozyduck] 18/5/2020 16:26

LT - "Only" 25% !!
Drilling ? I can't see any solution other than 1) restructuring/hiving off into sepafrate/separately funded companies
2) Inviting someone to 'farm in" by carrying out the drilling in return for an initial share in the particular project (like CGP and Ensa)
Why not someone ask tomorrow !
PS everyone forgets that 1) bank project loans are always the most cost effective for shareholders but 2) too much chipping away of the NPV also chips away at the vital measure for lenders which is the irr (ie the cover for their loan repayments) It is already not particularly brilliant, which is why ideas for more streaming or off-take deals are misguided.

[mknight] 18/5/2020 16:22

Here we go ..

[arcadian] 18/5/2020 15:37

I knew my cost benefit analysis was on the ball and went further and in greater detail than DD`s minor reductions of NPV. It showed that at the end of 50yrs with all debts paid and the gold, copper and silver sold, the shareholders of Solg owed each Ecuadorian citizen $2000 for despoilation of their natural surroundings and destruction of their wildlife. Big companies such as BHP and Newcrest would be mad to show an interest in such a future.

Perhaps tomorrow will throw more light on the future and confound us all.

[lowtrawler] 18/5/2020 15:35

Thanks DD, that's not as bad as I feared. Suggests that if we could do a deal for a total of 1bn on the same basis, we would only lose around 25% of NPV. How do you think we will fund drilling our other prospects?

[mknight] 18/5/2020 15:31

Golden cross will be upon us soon .

[dozyduck] 18/5/2020 15:13

LT - a quick answer. The NPV sensitivity table in the PEA page 411 shows that a 5% fall in copper price (same as giving up 5% of copper revenue) would reduce the 8% NPV from 4349 to 3970.

Ditto a 5% fall in the gold revenue reduces from 4349 to 4198

Adding the two reductions (ie 5% overall shortfall in Cu and Au (neglecting silver) reduces NPV from 4349 to 3819, which is a 12.2% drop. So pro-rata for a 1% combined revenue shortfall, the NPV reduces by 2.4%

LT- by the way. Its no good debating with someone like Mckn. He doesn't think or reply logically. Its what I first noticed about him.

[mknight] 18/5/2020 14:50

Tmx up 16% 32.5p 124k

Now thats interesting ..

Lowtrawler .. No idea maybe Barrick or Rio with 10% equity at 45p minimum .

Cant forget Canada because sooner or later it will translate here .. wait it might even be today .

[lowtrawler] 18/5/2020 14:49

Last time I'll say it. Forget Canada. It has 2 problems. It is very thinly traded and trades are matched through brokers rather than market makers which means market prices are very blocky. They will never provide any indication of future UK prices.

[lowtrawler] 18/5/2020 14:44

Mk, the eventual financial structure is really a decision for next year. More pressing is how to fund drilling at our other interests. Any views on where they will get that funding?

[rougepierre] 18/5/2020 14:43

Opened at 56 cents in Canada...that's 32.77...what's going on...?

[mknight] 18/5/2020 14:36

Lowtrawler

Most understand there are costs after building the mine but most also understand that raising 100 or 150m through equity at 26p means a disaster and loss of the company so lets see how we go .. i am sure it will be up up and up a bit more .

[lowtrawler] 18/5/2020 14:28

DD, I don't think he's alone which is why I asked if you could do some worked examples for NSR effect on NPV. It's beyond my capability.I'm sure a lot of private investors look at a 1% NSR and assume that means 1% NPV. Simplistically, they then say, we need 3bn, we get 100m for 1% and so we give up 30% of returns for 100% of the financing. We're left owning 70% for no outlay. If only life were that simple.

[mknight] 18/5/2020 14:19

Yep another 3 trillion on the way soon .

[lefrene] 18/5/2020 14:11

mknight, the FED is propping up the entire market by being buyer of last resort for all manner of dodgy paper 'assets', thus institutions dump their junk onto the Fed at a falsely high value, and spend the new money on yet more over valued 'investments'.

But you still have the same idiots behind the wheel that brought about this latest 'hidden' vast banking crash. So how big will the new bubble get before it becomes obvious that there is little value in the stuff that is being bid up?

I would be selling into the rally, Main St America is going down the tubes while the merchant banks seem to think it's business as usual. But of course they all use computer programmes and Apps. To me it's the financial equivalent of blindly following a sat-nav, even if it does direct you into a lake.

[dozyduck] 18/5/2020 14:02

Mkn seems unable to hoist in facts derived from numbers.

[mknight] 18/5/2020 13:51

Dow futures now up 646

Vacine hopes .

[mknight] 18/5/2020 12:41

No i think they will take 10 royalty payment for a billion which is 10%

The rest banks and equity .

They will still have 75% of the project and with royalties not kicking in until 2028 they should pay off the banks by 2028 .

I try not to confuse myself with NPV etc

If the buy cornerstone they will have another 15%

[lowtrawler] 18/5/2020 12:32

Mk, if you really think they'll take 1.5bn from Franco, it will remove around 60% of the NPV. Take 1bn from banks and 0.5bn equity. The banks will take around 25 - 30% of the NPV. Only leaves 10-15% for equity holders to be split between current shareholders and the new equity investors. Best case on a 50:50 basis. Can't think of a worse outcome for us.Taking money from Franco to see us through to BFS is a good deal and makes sense. Once the BFS is produced, many more attractive ways to finance will be available to us. Streaming might play a small part but I doubt it will be anywhere near the 1bn that the RNS touted. Now we have the BFS money, we don't need to worry about this until next year.My immediate concern is how we intend to fund drilling our other prospects. Let's have some views....

[phattrader1] 18/5/2020 12:18

Copper, Gold and Silver are all UP.
The only missing piece from the jigsaw are the licenses. Once these are received and palms greased sufficiently, it is really GAME ON.
BHP and Newcrest will want to take us out cheaply but it ain’t happening. £1 takeover is MINIMUM given our other licenses and prospects all which could be Alpala’s!

Stay Strong, stay Long.

[mknight] 18/5/2020 11:53

Sure is but not sure how long these prices will last .

Time will tell .

As well as tomorrows news .

[lefrene] 18/5/2020 11:42

Cheap skates eh? :¬)

[mknight] 18/5/2020 11:35

I think they will multiply Franco x 10 and then bank and equity . Equity last .

[mknight] 18/5/2020 11:33

Lefrene

I heard it was 1.37

[lowtrawler] 18/5/2020 11:33

Agreed Lefrene, the clearer picture and funding through to BFS is why we are in our new trading range. Funding to drill our other prospects is the next step forward.I'm still scratching my head on how they intend to fund the other projects. Will they split Cascabel out to enable equity funding for the rest? Will they issue convertibles? Appreciate views....