Solgold Share Discussion Threads

[lowtrawler] 08/10/2020 14:52

cbeadle, I reckon it would take us to around 70p.

[lowtrawler] 08/10/2020 14:51

Mk, nothing to stop DGR buying in the open market.

[cbeadle] 08/10/2020 14:50

BHP taking that level would doubtless boost the share price

[bogotatrader] 08/10/2020 14:47

Picked up some more T+20, slight premium was required for this

[lowtrawler] 08/10/2020 14:45

My favoured BHP scenario for next week is that they raise their holding to 29%. They then get the best of both worlds. A chunk bought cheaply and a platform for future acquisition having effectively blocked an acquisition path for anyone else.

[mirabeau] 08/10/2020 14:41

Well, she (the price of the stock) hasn't sold off and so far she's holding her own so all good. I was expecting some profit-taking but most know there's so much news to come that such an act of selling at this juncture would be pointless unless you need the cash or de-risking somewhat

[lowtrawler] 08/10/2020 14:40

Mk, if the articles allowed him and gave him control, he might go up to 29% but he wouldn't get control at that level and the anti dilution clauses for BHP and Newcrest don't allow it. As a consequence, all he'd achieve is joining all the major shareholders against him.

[mknight] 08/10/2020 14:22

Goldrush .

You and lowtrawler are probably right .

Just raised my eyebrows that DGR are raising money .

I put that together with the trading today and smelt something .Probably just a large seller holding us back .That and if i was NM i would be doing it 😃

When it comes to business sometimes you dont have enough friends .

[goldrush] 08/10/2020 14:12

mk

As Lowtrawler says I don't think your suggestion will fly. BHP,NCM and CGP would put up 1 hell of a fight....as Rougepierre said earlier. I think NM is keeping all options opengetting ready for the fight next week....IMHO

[mknight] 08/10/2020 13:57

Yes timing is important . I think if he left it until some more drilling results the price would be alot higher but he may have a problem with the likes of Cornersrone, Newcrest and maybe BHP voting him off the board . This way he can delute their shareholding and use Dgr and friends to up his supporters to fight against those that will sell it off cheap .

He does not know exactly whats in the ground but within experiance and techs he will have a good idea . Could be worth many billions .

[jlondon] 08/10/2020 13:42

Liberum was commenting today about another co and as is norm they look for a
example ie Cascabel.

This co that Liberum was on about today, Thur 8 Oct 2020 is going to gain a separate listing abroad at US$500m for the copper asset. Then the potential Cascabel [not drilled to depth yet ] was just said in an interview today to be 3 x bigger than the separate listing.

So, in order words, US$1.5 billion [US$500m x 3] or £1.16 billion. In the past, a potential Tier 1 would get a re-rate to US$1bn per Nick Mather & T. Manini which is standard and widely known . Perhaps, it has gone up a bit more due to the rising gold price and depends on the all-in-costs as well in different jurisdictions.

That is the market price from a valuation report for the overseas listing at US$500m.

--
That*s open market listing valuation - just for conversation.
Thur, 8 Oct 2020.

[charlieeee] 08/10/2020 13:39

This is an extraordinary flurry of "lastminute.com" activity and would seem, as others have said, a real attempt to get value for the LTHs and ward off a low ball offer for the whole from a major (assisted by the perfidious and stupid Cornerstone).

What remains to be seen is whether a major will decide to settle for Alpala and leave Mather with the exploration (regardless of the tax consequences of such a sale)or if there is to be a bid for Solg.

At least a sensible premium from these levels will offer some upside for the patient LTHs.

The problem in all these situations is that PIs generally do not vote and so the outcome of voting on any bid is determined by the major holders and we can already see the line up there: Cornerstone voting for the "opposition" is quite critical in this mix.

Pre the Franco Nevada deal, the majors would would have waited until it was financially strangled, but that deal and these latest capers, makes it much trickier: the longer game could be extremely costly.

[lowtrawler] 08/10/2020 13:30

Timing of the split is important. You'd want to do it no earlier than having created a PEA and preferably at DFS.

[dartboard1] 08/10/2020 13:27

I like the idea of splitting it up, but is it then more expensive to raise equity in the entity without Alpala?

[mknight] 08/10/2020 13:27

Maybe

He does not know whats in the ground

A good time Imho

[lowtrawler] 08/10/2020 13:25

MK, daft to raise money now, just before you confirm some major finds. If he plans a placing with DGR, he'll be crucified for corporate governance.

[mknight] 08/10/2020 13:13

Level 2 update

Seems to me that we have a large seller
Or NM is going to raise monies.

Please dont give me a hard time. Its my opinion nothing more .

Might be part of citi groups defence to delute BHP etc

[lowtrawler] 08/10/2020 13:03

JL, have you got autocorrect changing Amarillo to armadillo?

[jlondon] 08/10/2020 13:00

SOLGOLD - Flagship Alpala
Per Liberum today: "Cascabel has been much FOUGHT over by major mining companieS and has secured a VALUATION for Solgold of UPWARDS of £750m." [See post above]
--
BHP*s last investment into Solgold shares were at 45p.
John Cronford of Master Investor*s has a take-out price of 50p some time ago.
Liberum said ealier that the suitor may offer 55p in Q2, 2021.

Solgold is currently 38.07p, Mkt Cap £788 million.
--
P R O V E N IR -1st hole 664m visual-visible min. 50,000m drill.
R I O A R M A D I L L O - rig mobilised, drill, 8,000m.
LA H U E C A - drilling result due, nearer Provenir, S. Ecuador
B L A N C A -drilling recommenced , nearer Alpala, N. Ecuador.

[All the above are 100% owned by Solgold]

--
Per Nick Mather: Provenir - very large porphyry and Rio Armadillo - another Alpala?

In Solgold RNS of 1 Oct 2020 and another days later on Provenir:

Nick Mather: "Well done team. The Cacharposa discovery at Provenir demonstrates the critical importance of REGIONAL EXPLORATION to Solgold*s CORPORATE STRATEGY & TO ITS SHAREHOLDERS. It justifies Solgold*s o b j e c t i ve to deliver FURTHER T I E R 1 DISCOVERIES S E V E R A L T I M E S O V E R ."

www.solgold.com.au
J.London Thur, 8 Oct 2020.

[lowtrawler] 08/10/2020 12:41

I ran some modelling yesterday for my own interest in what IPO spin-offs would do to the SOLG share price if they retained a 25% interest in each. Assuming 3 tier 1's, I got to 350p value which would likely be reflected as a 200p share price.

[pecker1] 08/10/2020 12:39

LT,

From memory the tax issue arose from something else. In the case I'm suggesting there is no capital gains tax as we now have two separate entities. Companies do this all the time and I doubt there are punitive tax implications. That said I'm not a corporate tax expert and may be proved wrong.

[mirabeau] 08/10/2020 12:29

SolGold* (LON:SOLG) – Plans for drilling possible Alpala “look-alike” at Rio Amarillo in northern Ecuador

SolGold* (LON:SOLG) 38.8p, Mkt Cap £793m – Plans for drilling possible Alpala “look-alike” at Rio Amarillo in northern Ecuador

Solgold provides further news on its wide-ranging multi-project exploration campaign in Ecuador with news this morning that, following regulatory approvals and the establishment of an exploration camp, it is mobilising a drilling rig for an initial 8,000m programme at its wholly owned Amarillo project in northern Ecuador.

The company explains that its geophysical work “reveals a highly magnetic NE/SW trending corridor, spatially coincident with porphyry style surface mineralisation covering a vertical extent of up to 1500m over a 12km long and 3km wide northeast trending porphyry belt” which it will investigate further with this initial drilling programme.

The first drilling target, at Varela, “exhibits a well-preserved metalliferous lithocap and hydrothermal alteration system with a full complement of porphyry plume chemical elements, the classic signature of a large scale strongly mineralised Porphyry Copper-Gold(-Molybdenum) system … [and the drilling will] … test underneath outcropping porphyry style vein stockworks which returned surface rock-saw channel sample results of 99m @ 0.34% CuEq including 25.1m @ 0.58% CuEq”.

Describing the Varela target as “highly visible from the air, as are a number of large porphyry deposits along the Andean Copper Belt which have now been developed into mines”, Regional Exploration Manager, Chris Connell, said that the “Varela metalliferous lithocap is the most classical example of a fully preserved, whole column porphyry system that we have encountered in our exploration activities in Ecuador to date”.

Discussing the wider potential of the Amarillo licence area, Technical Services Manager, Benn Whistler, described “SolGold's 'Sleeping Giant' at Rio Amarillo including its two high-quality large-scale porphyry targets at Varela and Palomar … [as] … two of the Company's highest priority targets”, while CEO, Nick Mather, said that the “gross geological architecture of Ecuador endorses the presence of very large mineralised systems where the Andean Copper belt bends. We can see that in both southern Ecuador where the Porvenir project is revealing a large copper porphyry in the first drill hole. Similarly, northern Ecuador shows the same characteristics and we're confident that the tier 1 Alpala project at Cascabel will be followed by Rio Amarillo in this highly prospective emerging province.”

Maps accompanying today’s announcement show Rio Amarillo located around 25-30km SSE of Solgold’s Alpala project with Varela towards the south-eastern part of the licence area.

The intersection of a major, north-east trending magnetic high by “a secondary northwesterly-trending magnetic feature, likely to represent the intersection of deep-seated crustal-scale fracture zones filled by intrusive bodies. This structural regime has strong similarities to that encountered at the Alpala Project, some 30km to the northwest”

Conclusion: In the scale of the major crustal forces responsible for the mineralisation of Alpala, Rio Amarillo, at only around 30km away, is likely to be subject to the same macro-geological influences. Similarities in the scale, local geology, alteration suites, geophysical and geochemical signatures to those observed at Alpala reinforce the rationale to give Rio Amarillo a high priority for exploration and, while recognising that it is still at an early stage of exploration, we await the first results of the drilling with interest.

*SP Angel act as financial advisor and broker to SolGold

[pecker1] 08/10/2020 12:26

LT, the problem of being attributed a realistic value by the "market" is a common one for many exploration companies that have multiple potential deposits that are, as yet, unproven, apart from one which is fairly advanced. The risk of course is of a hostile bid that seriously undervalues the sum of the parts.

An obvious solution is to separate the projects into separate companies and float them individually. Several US/Canadian exploration companies are doing this at the moment. There is nothing to stop Solg from taking the initiative (rather then waiting for an unwanted bid) and floating off its 100% owned exploration companies into a separate venture. Existing shareholders would be offered shares in both existing Solg and NewSolg (with a better name than this!).

NewSolg incorporating Porvenir, Rio et al, would also be a vehicle that could advance NMs aim of becoming another BHP in Ecuador, and possibly quicker too, particularly if Blanca or another gold project offers near surface gold that could be developed quickly and spin off cash for development.

IMHO, I'd rather NM seized the initiative than be on the receiving end of an unwanted bid.

[jlondon] 08/10/2020 12:19

LIBERUM - Thur, 8 Oct 2020
was talking about another co and mentioned Cascabel:

"Cascabel has subsequently been MUCH FOUGHT over by MAJOR MINING COMPANIES & has SECURED A V A L U A T I O N for Solgold of UPWARDS OF £750 MILLION."

14 mins ago, 12.20 noon, Thur, 8 Oct 2020.
------
Google Finance shows Solgold at 34.44p - Mkt Cap £796 million.