Solgold Share Discussion Threads

[lowtrawler] 18/9/2020 12:43

No, it's 14x the 5p not our total share price. I'm suggesting our share price not only fails to fully reflect value for Alpala but it also undervalues our regional sites.

[mknight] 18/9/2020 12:25

Two big strikes could see us with the largest mining deposits in the world given that we already own 10% of the worlds gold found in the last 10 years .it makes our 500m market cap look rather silly .

Lowtrawler 14 times the share price would be over 360 for one site and 720 for two.

Some large buys coming in now .

[lowtrawler] 18/9/2020 12:24

If you think logically about our exploration programme: The regional sites are collectively valued at less than 5p in our current share price; if one of the sites is another Tier 1, it will add at least 70p onto our price. That's a return of 14:1. I'm not willing to estimate the odds for Porvenir or Rio Amarillo, nor any of our other priority sites. However, odds of 14:1 against any of them seems like a bet worth taking.

[lefrene] 18/9/2020 12:15

Add to that, it seems the long predicted but slow to appear copper shortage is finally heaving into view, judging by how the price has steadily firmed up over the past weeks.

[lowtrawler] 18/9/2020 12:08

The underlying excitement that sometimes bubbles to the surface when management talk about Rio Amarillo and Porvenir gives the game away. They expect both sites to be bigger than Alpala. Hard to believe when Alpala accounts for 10% of all the gold discovered in the last decade.Both sites are bigger than Alpala.Both sites have better non drill results than Alpala.Both sites have better metallurgy than Alpala.What Alpala has going for it is the discovery of a high quality core and it's proximity to good infrastructure. We also have to bear in mind that excitement over prospects does not always translate into reality. We need to keep hold of our own excitement and anticipation for another few months.

[mknight] 18/9/2020 11:01

I get the feeling that Porvenir is going to knock our socks off and some already know this .

[mknight] 18/9/2020 09:38

Jb5001

I think it fair to say they would prefer to own Cornestone before drilling the solgold/cornerstone part of Blanca .

[jb5001] 18/9/2020 09:12

The comments under Blanca were interesting..."Rock chips from the Cielito vein average over 80 g/t Au with the highest-grade sample returning 617 g/t Au. The eastern part of this vein system lies within the area of mutual interest with Cornerstone, but there has been no significantwork on the extension into the area of mutual interest."Seem to point to current exploration strategy being focused on areas with less complicated ownership structure. Incidentally, I also wonder if this is why we here little chat of a "mining district" at Cascabel now a days.

[dozyduck] 18/9/2020 08:44

GG It separate on Solg's web site

[goodgrief] 18/9/2020 08:37

Dammed if I could find the MD&A!

[mknight] 18/9/2020 08:23

Pob69

You know 90% plus have not read it .

Anything good or bad ?

[dozyduck] 18/9/2020 08:22

Yes indeed Its you. We discussed this inevitability some time ago - but has been forgotten !

[goldrush] 18/9/2020 08:12

pob69

Just a quick scan and saw your comments.....looks good....I will be reading in full over the weekend to see if I can find any other loud and clear messages 😀😀

Meanwhile Copper back over $3.10 per lb.....

[pob69] 18/9/2020 07:58

Anyone else read the Annual Report/MDA care to share?

[phattrader1] 18/9/2020 07:50

Hi Mknight - without takeover yes, but any takeover would be at 50%. Without a bid we should be at 76p+ regionals so if Porvenir and Hueca come then £1+.

[arcadian] 18/9/2020 07:31

MK

Gird your loins and join us.

And gentlemen in England now a-bed
Shall think themselves accurs'd they were not here,
And hold their manhoods cheap whiles any speaks
That fought with us upon Saint Nick`s day.

[mknight] 18/9/2020 07:22

Phat should that not be 30% at PFS and 40% at Dfs .

[arcadian] 18/9/2020 07:12

Phat

I like that. I`m on your team. Much better than all the "question Time " posts

pondering on the known unknowns. All we need is patience.

[phattrader1] 18/9/2020 00:03

Based on copper price 3.30, gold 1900 and silver 27, the NPV of Alpala is $8.5-9bn using a 5-6% discount rate.
50% of 85% of that is £2.86bn = £1.26/share....excluding our other licenses which are bigger than Alpala.
I expect Nick won’t accept a takeover unless it’s £2/share.

[mirabeau] 17/9/2020 21:19

itsyou

excellent contribution

[mknight] 17/9/2020 20:27

Itsyou

Welcome to the club .

Its difficult to answer any of your questions as probably even NM cannot answer them .

Will Alpala be sold off ? Or will Solgold fund it themselves .

will a buyer want just Alpala or all the other sites ?

Will a deal be done on Alpala and allow Solgold to explore the other 72 sites .

What will happen if Porvenir show signs of being a second Tier 1 or even bigger .

Whatever happens a 500 million pound market cap is too low so as you say money to be made .

[itsyou] 17/9/2020 19:42

I'm now a holder, dipped my toe with 100k yesterday.

Whilst I ponder getting a larger holding, these thoughts come to my mind :

- An NPV of US$4.1Bn - US$4.5Bn for Alpala is very impressive for a company of $715m MCAP atm. I normally deduct 50% of NPV for a takeover price, but with such large Capex and lower IRR, i'm probably inclined to reduce by 75%. Still very good money to be made on just one deposit.

- Cascabel is a company maker on it's own. I'm not normally interested in lower IRR projects, so have always bypassed this as an investment here. The PFS will no doubt be better than the PEA, with a larger resource and higher Au/slightly lower Cu base case price.

- So on Alpala itself, easy money to be made here. BUT, why bother spending more more on exploration on other project unless they are cheaper Capex/AISC open pit projects?

- A 49 year(case 3) - 69 year(case 1) LoM is just nuts. Will Cu still be needed in 50 years? Maybe increase nameplate production pa, although that increases Capex?


So the thoughts going through my mind atm are who is going to takeout SOLG? It's going to have many potential Tier 1 assets, but the costs to develop multiple projects, large capex and very long LoM for each means IMO that it would be better sell off individual deposits, to fund exploration and development of others.

SOLG is an exploration company, not a developer and IMO will be out of it's depth post DFS.

It's also a victim of it's own success, being in the right place at the right time and having a vast area of licences and prospects. But there's too many prospects and potential tier 1 assets for it to deal with, with no revenue stream atm to fund exploration and feasibility studies. The market knows that too.

IT WILL BE SPLIT UP, allowing many companies to also fund and have Tier 1 assets! Private equity?

Thoughts please?

[mknight] 17/9/2020 16:52

Strange drop from 27.85 to 26.85 on what ? Looks like a few sold and the sheep followed .

Thanks pob 10% of the gold found in the last 10 years says it all .

[lowtrawler] 17/9/2020 16:05

I want a cup of Cascabel, is it in Tesco?