Solgold Share Discussion Threads

[pob69] 21/9/2020 12:34

Interesting to see Cornerstone exhibiting at the New Orleans Investment Conference 14-17 October. Don't recall this being the case in previous years? SolGold’s offer expires on 13 October SOLG $SOLG $SOLG.L $CGP #cascabel #ecuador

[mknight] 21/9/2020 12:16

Looks like the PFS will be on time . If we get some nice drilling results from Porvenir and La Hueca as well then the skys the limit .

They do seem very confident that Porvenir will be a cracker so fingers crossed for a great end to September .

[lowtrawler] 21/9/2020 11:59

MF, well put. Ecuador needs to get a few large scale mining operations up and running to demonstrate the support they have for that activity. Until then, mining operations will always be undervalued compared to more mature regions. Even when up and running, there will be an Ecuador discount applied to Alpala. In my view, it is the required Ecuador discount which creates such divergent views between investors on whether SOLG is undervalued or fair valued. If you believe a 75% discount is currently warranted, SOLG is about fair value. If, like me, you believe the discount should be around 50%, the price should be 50p - 55p and higher once we make progress on the PFS / financing.

[mam fach] 21/9/2020 11:09

Biggest drawback is that we're not exploring in Australia.
Glad we are all in agreement here.
GLA our day will come.

[lowtrawler] 21/9/2020 09:42

Mirabeau, we know all of our priority sites contain ore bodies. The questions are, how much? and are they economic to extract?

[lowtrawler] 21/9/2020 09:38

Mirabeau, generally, I don't think SOLG has been unexplainable to fundamentals. They operate in Ecuador which has an uncertain political environment for mining. Our current pricing is around 75% lower than it would be for a similar project in Canada or Australia. Our regional development projects are priced in at pennies, partly for the same reason but also due to lack of track record.I believe the risk discounts being applied to SOLG are too large and the regional development projects should command a higher price. In particular, I believe we are now so advanced in feasibility and financing that the 75% discount should be 50% or less. That would double our price. I expect the PFS, financing announcements and exploration results to reduce the discount over the next few months.

[mirabeau] 21/9/2020 09:36

'almost certain discovery of more ore bodies'

Is this normal practice? I don't know what to make of a public statement like that. It's either irresponsible or a statement of fact.

If Ward's so confident and drilling results fail to corroborate his public statement he's gonna look like a right nob and damage corporate reputation

Let's hope it all comes good

Monday morning blues.

[lefrene] 21/9/2020 09:25

Mirabeau, the talk has gone on for so long that the market has Solg in the 'liar stood by a hole in the ground' category. One would think that the FNV commitment might have improved sentiment, but I suppose it's now waiting for BHP to come out of purdah?

The general direction of gold and copper has much improved, thus one would expect a move towards commodities to bring interest to the likes of Solg.

[greenelf] 21/9/2020 08:58

Maybe the market is not functioning? Fairly easy to arrange with deep pockets..

[mirabeau] 21/9/2020 08:55

At present the market remains unconvinced though the reasons for that are varied. I suppose time will unravel the mystery as to why the market refuses to revalue SOLG based on fundamentals

[pob69] 21/9/2020 08:46

Jason Ward and Nick Mather offering lots of colour in this 25 minute discussion at Precious Metals Colorado over the weekend Solgold SOLG $SOLG $SOLG.L $CGP #cascabel #ecuador

JW "I dont think any other company has a potential pipeline of opportunities that we do" and "Porvenir particularly exciting - as good a grassroots project as you will ever find"

JW "Alpala PFS almost complete"

NM "4 drilling rigs at Alpala collecting large diameter cores for geotechnical information for block caving and we are going for overkill on that" "Ingo is very busy working on the conditional finance package around US$2.7-3B", "...beefing up management and board to become a multi project explorer and developer of Alpala", "no reason why Solgold cannot emerge as a copper gold producer"

NM "almost certain discovery of more ore bodies will certainly help to propel that"

[greenelf] 21/9/2020 07:44

Something is wrong in valuations somewhere...if GGP is correctly priced then Solg would be worth £6bn plus..

[swanvesta] 20/9/2020 21:24

mam fach, I'm sure it has potential, but at some point you have to try to value it rationally. Given that GGP will end up with 25%, and present value has to be discounted for time and other risk, the share price is behaving as if Havieron will deliver more value than the entire current Newcrest business. That might be possible I guess, but then why is Newcrest itself down 15% over the last month or so?

[bogotatrader] 20/9/2020 20:07

SOLG Presentation from earlier today at Gold Forum of the Americas -

[mam fach] 20/9/2020 16:26

GGP got far more potential than SOLG?

[swanvesta] 20/9/2020 12:33

We've already had the mania GGP is now going through. SOLG was up at 45p in 2017, a few months before the maiden MRE, then mcap £600m with lower copper and much lower gold price. The GGP board will no doubt class this as deramping.

[mknight] 19/9/2020 09:04

One of the main reasons why Solg is not taking off is i that it is funding some of the GGP bubble .

The money has to come from somewhere and many Solgold holders have sold approx 100m shares to join the Craze .

Reading the Lse Solgold BB i had to check twice that it was not the GGP BB .

For the moment those that have gone over have done very well i do however hope that they keep taking some profits just in case the bubble bursts.

SOLGOLD will make us alot of money and no doubt has had its bubble reaching 47p a couple of years ago
Today as it moves to PFS ( possibly in 2 WEEKS )its worth a great deal more than 27p so it feels safe to own which makes me happy .

[mirabeau] 18/9/2020 19:44

BHP Group, Newcrest Mining, SolGold: Getting bogged down or putting all your eggs in one basket

When it comes to investing in commodity companies, the BHP Group (NYSE: BHP) is a household name. The British company is active worldwide, mining coal, iron ore, copper and other commodities and has long been considered a solid dividend earner. But recently the company has disappointed: Special effects put pressure on profits, unrest in Chile made life difficult for BHP and the Corona pandemic also left its mark: the bottom line at the end of the financial year at the end of June was a profit of no less than EUR 6.75 billion. While the mood among investors was not particularly good, BHP cut its dividend by around ten percent, thus spoiling shareholders’ sentiment even further. On a year-on-year basis, the share price fell by around 1.4%. In view of the good performance of copper following the outbreak of the pandemic, this is too little for many investors.


Is the BHP Group buying into price fantasies?

Nevertheless, there are also positive things to report about BHP. The company already successfully implemented cost-cutting measures during the past fiscal year and thus became even more profitable. It can also be assumed that the recent positive development of many raw material prices will not be felt until the current fiscal year. Even though BHP itself has a cautiously positive outlook for the future and expects economic activity to vary greatly from region to region, investors see no potential for surprises in the share price. It is possible that, as in the past, acquisitions will help BHP to get off to a good start.


Newcrest profits from the gold bull market only to a limited extent

When it comes to mergers and acquisitions, the name Newcrest Mining (OTC PINK: NCMGY) is always mentioned in the resource industry. The company is Australia's largest gold producer and increased its profits to USD 647 million in the past fiscal year. In recent months, it has been repeatedly rumoured that the company is on the radar of North American resource companies as a potential takeover target. Around 85% of Newcrest Mining’s production is gold, with copper being another important raw material. Although the dividend at Newcrest is traditionally lower than at BHP, the Australian company recently increased its dividend by 14%.

Despite this positive signal to the market, the share price remains at a low level - on a twelve-month horizon, the share price even lost 4.6%. Tragic detail: Newcrest has sold forward parts of the production of its Telfer mine in Australia until 2022/23 and is not benefiting from rising gold prices there.


SolGold: Net asset value of flagship project significantly exceeds market value

In contrast, the SolGold (TSX: SOLG) share has profited from the development since March. The share has a price yield of more than twenty percent on a one-year horizon. In this context, it is interesting to note that both BHP Group and Newcrest Mining are involved in SolGold. The former company holds 13.5% and the latter 9.9%. The company is focused on the exploration for gold and copper in the Ecuadorian Andean Belt. SolGold has been active in this region since 2012 and has secured numerous mining concessions in recent years. The idea behind SolGold's strategy is that the geological characteristics are similar to those in Chile, where many international resource companies are already active.

SolGold pursues a very concentrated strategy in Ecuador: While other companies focus on different locations, SolGold prefers to use the known characteristics of a region to its advantage and to develop projects quickly. In addition to the flagship Alpala project, for which a feasibility study is scheduled to be completed by mid 2021, the company has 13 other projects that are being explored with high priority. As Nick Mather, CEO of SolGold recently stated in an interview, the net present value of Alpala already amounts to USD 4.4 billion and clearly exceeds the market capitalization of SolGold - the company is currently valued at market cap at around EUR 600 million. Initial studies on the flagship project, which were prepared before the gold boom, envisage a possible mine life of more than fifty years and a payback period of four years.


Investors have the choice: stability or growth

Although SolGold is an exploration company and therefore speculative, the extensive portfolio in Ecuador offers promising opportunities for investors. The company regularly reports drilling results and keeps investors informed about new developments. The existing holdings of large companies in the industry, such as Newcrest or the BHP Group, also speak for themselves. Although the shares of the established companies offer stability and indirectly also a participation in the success of SolGold, speculative investors may well be interested in the emerging company.

[greenelf] 18/9/2020 19:05

Keep lurking sunshine, you will be none the wiser. Keep it that way.

[lurker5] 18/9/2020 18:11

Who are 'they', please, who are 'desperately holding this down' ?
Awaiting your brilliant insight.

[greenelf] 18/9/2020 16:42

They are desperately holding this down.Gives me great hope for upcoming events :)

[arcadian] 18/9/2020 16:03

Low

For post 24906 I think that you deserve the fullest of cups of Cascabel Coffee.

[lowtrawler] 18/9/2020 13:58

Still want a Cascabel coffee but looks like I'll have to visit the site.