Solgold Plc

0.40 (2.41%)
Share Name Share Symbol Market Type Share ISIN Share Description
Solgold Plc LSE:SOLG London Ordinary Share GB00B0WD0R35 ORD 1P
  Price Change % Change Share Price Shares Traded Last Trade
  0.40 2.41% 17.00 873,188 15:26:33
Bid Price Offer Price High Price Low Price Open Price
16.98 17.00 17.00 16.60 17.00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Gold Ores 0.45 -1.59 -0.10 - 420.93
Last Trade Time Trade Type Trade Size Trade Price Currency
15:26:34 AT 6,707 17.00 GBX

Solgold (SOLG) Latest News

Solgold (SOLG) Discussions and Chat

Solgold (SOLG) Most Recent Trades

Trade Time Trade Price Trade Size Trade Value Trade Type

Solgold (SOLG) Top Chat Posts

Top Posts
Posted at 30/5/2023 13:15 by lowtrawler
greenelf, I have no inside knowledge and am purely basing my assumption on the share price Prior to bid discussion rumours, SOLG were sitting around 13p and so my assumption is based on the share price sitting above the 13p level and discussions having taken place over some months. IMV, if there were no constructive discussions underway, the share price would revert to the previous level.

For PI's, it's impossible to know what's really going on and only the share price will give a clue. When it advanced over 22p, I thought a bid was imminent and was looking forward to the details. Another false dawn.

Posted at 29/5/2023 11:48 by lowtrawler
zoros / LFH, my base assumption is that SOLG are in advanced discussions with at least one party to buy the business. I don't believe the current political turmoil will upset those discussions. Anyone looking to buy SOLG will understand the Ecuador risks and political environment. It might be used as a bargaining chip regarding price.

The key risk for SOLG is that bid discussions do not result in a bid. That would leave SOLG in a position of continuing to incur costs but not developing any of the assets. With their current capital position and reduced expenditure, they could likely keep that going for a couple of years. However, unless metal prices improve, they are no more likely to sell the business in 2 years time than they are now. Extracting a bid over the coming weeks is essential for shareholders.

Posted at 19/5/2023 14:53 by lowtrawler
DTH, it still looks like games are being played to me. I suspect the price will bounce back to 17p next week. At the end of the day, the share price will reflect the likelihood of a bid and things like the political turmoil are just an excuse for games to be played.

If the likelihood of a bid had really gone down, the share price would have dropped further and faster.

Posted at 18/5/2023 11:01 by cymrurhydd
Lol at the munterApparently at 22p, having bought at 13.5p he was 70 percent up, however it seems he top sliced and de-risked on the way.So he had 50 percent of the shares he bought at 13.5p but he was 70 percent up when the share price was 22p...hmmmm Obviously maths isn't munters strongest suit but lying seems to be right up there, even if he had held on to all of his shares the best he could have been up was just over 60 percent, but as a typical ramper the truth sometimes eludes the munter boyseanhunter - 14 Apr 2023 - 21:05:38 - 35609 of 35717 SOLOMON GOLD: EXPLORING 100% OWNED SITES FOR 40M+ OZ AU; JV WITH NEWMONT MINING - SOLGPoor old cym. On the sidelines watching me laugh all the way to the bank.70% up since I went all in at 13.4p.You bitter, twisted little loser.seanhunter - 13 Apr 2023 - 16:35:53 - 35593 of 35717 SOLOMON GOLD: EXPLORING 100% OWNED SITES FOR 40M+ OZ AU; JV WITH NEWMONT MINING - SOLGCym you sound very angry and very pathetic at the same time. Great rise from 13p to 22p here for those of us who had the balls to jump in when Warren Irwin gave the signal.Losers like you will always be on the outside looking in, ranting and jealous.Cym you are the guy holding the kickers at a gang bang.Lolseanhunter - 12 Apr 2023 - 11:47:52 - 35572 of 35717 SOLOMON GOLD: EXPLORING 100% OWNED SITES FOR 40M+ OZ AU; JV WITH NEWMONT MINING - SOLGFrom 13p to 22p in a few short weeks.Poor old lowtrawler. Poor old Cym. Poor old Plentyoffish.Stood on the outside with your faces pressed up against the window. You spent so much time posting negative rubbish on this board it never occurred to you to buy some when we were at 13p.LOLseanhunter - 12 Apr 2023 - 09:21:57 - 35565 of 35717 SOLOMON GOLD: EXPLORING 100% OWNED SITES FOR 40M+ OZ AU; JV WITH NEWMONT MINING - SOLG22p soon.Cym... Lowtrawler... Plentyoffish?Anything to say?It's all gone quiet over there.Exactly as I predicted it would.seanhunter - 12 Apr 2023 - 08:26:39 - 35564 of 35717 SOLOMON GOLD: EXPLORING 100% OWNED SITES FOR 40M+ OZ AU; JV WITH NEWMONT MINING - SOLGUp! Up! Up! Ka-ching!Laughing all the way to the bank at the moment. 100% de-risked, banking profits, and the 20s and 30s still lie ahead.Poor old trolls on this board just have to watch now. They had a laugh down at 13p.But it all comes down to who has the last laugh doesn't it?HA HA HA HA HA
Posted at 17/5/2023 11:43 by lowtrawler
LF, that's the risk. SOLG have opened the door to bidders but nothing, driven by the company, is happening that will increase the price over time, only reduce it. Only external factors such as the copper price will alter that.

When SOLG were developing the assets, a new discovery could be just around the corner and development of their known discoveries was constantly being de-risked as they gained more knowledge. Hence, potential bidders needed to keep alert for SOLG adding value.

Essentially, why bid today when the company will be weaker in the future and so command a lower price?

IMV, SOLG need to find a way that someone opens the bidding. Only then is it likely other interested parties will be willing to bid. I also believe they will need multiple bidders to extract the sort of value shareholder's believe to be present. They will not be short of interested parties but they need one of them to open the bidding.

If SOLG fail to get the bids underway, they may find a JV exploration partner or two for a small number of their licenses. For the remaining licenses, they will likely have a protracted legal process to avoid having to fund the required exploration. They will need to restart the Porvenir PEA and Cascabel DFS. They will need to rebuild their exploration and development capability. Alternatively, the Director's can sit claiming their salaries and free shares while the company does nothing.

Posted at 16/5/2023 09:58 by lowtrawler
MK, I agree they don't plan to develop any of the assets and are purely looking to sell. This appears to have been their strategy for the past 6 months and so discussions with any interested buyers must be well advanced. I have said previously, I would expect any announcement to be made by the end of June and that still looks realistic. The share price is the best indicator of how well discussions are going.

The danger is an acceptable offer is not forthcoming. If so, only further development of the assets is likely to alter that position.

It was surprising to find CGP continue to hold SOLG shares. Under s136 of the Companies Act, subsidiaries are not allowed to hold shares in their parent unless as trustee (e.g. pension scheme assets) or if they are an authorised dealer in securities. Perhaps Canadian rules are different.

Posted at 24/3/2023 11:28 by lowtrawler
LF, I have no doubt Cascabel will be bought and built by a major. Timing and price are the 2 unknowns. IMV, the PFS is the greatest obstacle. Any career manager in a major will be reluctant to take a bid proposal for SOLG to their Board when SOLG themselves say it will barely have a positive NPV at 18%. A maverick billionaire may be willing to take a long-term view and assess the transformational capability of Cascabel but there aren't many of them about. If any form of bid is made, perhaps FOMO will cause a number of competing bids.

Fundamentally, my interest is to understand:

1. What eventually results in a bid being made.
2. What price is bid.
3. How SOLG respond to the bid(s)
4. Whether SOLG are forced to develop their assets before a bid arrives and how this dilutes shareholders.

My weakness is I like hard factual analyses and so will always be drawn back to feasibility studies. My feeling is that Major's will also wish to act on similar factual analysis. SOLG need to find someone who will see beyond the hard facts to the underlying strategic level resource and be willing to set the bids in motion.

Posted at 23/3/2023 09:34 by lowtrawler
There are 3 key questions that every investor needs to have a view on:

1. What price would a major pay for Cascabel.
2. If a bid appears, what are the chances it will be contested.
3. What are the chances of a bid appearing in the near term.

Every investor will have a different view on each of these components and those views are likely to change as rumours come and go. I expect the SOLG share price to be highly volatile until events lead to more clarity on these components. Unless you are an insider, each component view will be a guess. Using available information, experience and instinct, some guesses may have more substance than others but they are still a guess.

We know from some of the heated discussions that there are wide variations in expected pricing of Cascabel. Yet, this is the area where there is most available information to analyse. The PFS is highly detailed and provides sufficient information to flex valuations based on different metal prices, discount rates, production profiles and capital costs. However, a great many investors appear to dismiss the PFS and prefer to look at Cascabel as a strategic resource to be fought over by the major players with a consequently higher price. Personally, I tend to analyse the hard numbers but I can understand the strategic argument.

Posted at 21/3/2023 00:06 by lowtrawler
zoros1, I think you mistake executive incentives with insider trading.

I believe the share price increase from sub 14p to current levels has been fuelled by rumours a bid is imminent. I have previously expressed concern that the source of the rumours, WI, planted the rumour at the best time for CGP shareholders. However, The market will always know more than me and appears content to accept a bid process is advancing.

If the rumour has any substance and advances, it should be known before the end of June. IMV, if a bid does not transpire by the end of June, the share price will retrace to below 14p.

The messaging from SOLG appears to be swinging from one week to the next. They removed most of the staff who would be key to further exploration which logically led to a view they were for sale and would stop exploration. They then announced they would be expanding exploration, presumably they would need to buy in external expertise. In effect, I don't know whether to believe the rumours, what SOLG actually say or my own gut. At the moment, I would say follow the market and accept there are bid discussions underway.

Posted at 14/2/2023 10:26 by lowtrawler
DTH, what is this "everything" you speak off?

If I were to take the PFS and apply a realistic 18% discount rate (to cover the risks in Ecuador), Alpala has zero value and the wider Cascabel drilling results are unlikely to alter that by much. Porvenir is on the edge of a National Forest and is too early stage to have significant value. SOLG are contracted to spend somewhere around $150m exploring the other licenses with no guarantee of a return. Using the published information, SOLG looks considerably overvalued. As per my post of the other week, the NSR deals suggest a low value for Cascabel to other investors.

IMV, Cascabel is large enough for a major to purchase and park until metal prices allow a better return. A major can also take a punt on Porvenir. For these reasons, I believe SOLG can be sold at a premium to the current share price but it's not the bargain you seem to think.

With CGP now running the sales process, one interesting question is at what price would CGP shareholders consider they break-even with SOLG? My calculations suggest they would see anything over 16p as a win.

Solgold share price data is direct from the London Stock Exchange
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