Solgold Share Discussion Threads

[lowtrawler] 18/4/2024 10:32

As I see it, the main problems for Cascabel are the scale and the IRR. In terms of scale, there are not may miners who can take on a $3bn build project without being stretched. There are many smaller scale mining projects that provide more than double the IRR of Cascabel for much less risk.

SOLG need a large miner with resources to develop Cascabel / Porvenir and still be able to pursue the other projects with higher IRR's. Gina Rinehart is one possibility as are BHP, Newmont and possibly a handful of others.

[mknight] 18/4/2024 10:30

So you believe she is , but wants to buy as much as she can around cascabel before making an offer . Land prices no doubt would rise if she did it the other way round .

[lowtrawler] 18/4/2024 10:21

who says she isn't?

[mknight] 18/4/2024 10:20

So , why do you think she is not interested in Cascabel or Porvenir.

[lowtrawler] 18/4/2024 10:11

MK, the reason they have not explored their high priority license targets is they have failed to get the local exploration approvals. SOLG only managed to obtain approvals for a handful of their licenses. The constitutional court made this more difficult a few years ago when they made it clear that central government could not provide the licenses needed for exploration. Everything has to be done locally although it did not apply retrospectively to Cascabel and Porvenir.

[mknight] 18/4/2024 10:11

It certainly the Cornerstone way of working .

[lowtrawler] 18/4/2024 10:08

Perhaps there are a few interesting aspects of the deal for SOLG to consider:

1. Could they do a deal with the government for them to take majority ownership of their unexplored licenses and leave them to clear the local obstacles so that the licenses are capable of exploration? If so, they should then be able to bring in exploration partners in return for a free carry. Potentially a way to make the licenses valuable rather than a millstone?
2. Could they agree a free carry of 20% on Porvenir / Cascabel, effectively turning SOLG into a financial holding company with free carry stakes across Ecuador?

[mknight] 18/4/2024 10:03

Cascabel has not really had any problems so not sure i follow .

[lowtrawler] 18/4/2024 10:00

Partially answering my own question on why Gina would purchase exploration licenses near Cascabel rather than entering a similar deal with SOLG on their high priority licenses.

The licenses she has purchased near Cascabel are majority owned by the Government and so red-tape and obstacles to exploration can be left for them to resolve. The SOLG licenses have always proven difficult to get the local approvals to perform exploration.

[original fastjet] 18/4/2024 09:51

The market now knows Gina is not interested in Solg hence buying elsewhere.
Just like Sxx she will maybe buy up the failed Solg project for a pittance.
Watch the share price drop here now 📉

[lowtrawler] 18/4/2024 09:45

MK, the licenses near Cascabel will either get good early drilling results and move to full development or they will be shut-down quickly i.e. if nothing is found on initial exploration, she will probably have spent a few million and walk away. The question you should be asking is why she was interested in purchasing exploration licenses near Cascabel rather than, say, doing a deal with SOLG for a 49% stake in their high priority exploration licenses?

In terms of Linderos v Porvenir, she is again starting low and will only spend if she keeps getting good results. I think development of Porvenir is likely to cost a lot more than $120m although SOLG might be happy retaining 20% on a free carry. Unfortunately, with limited up front proceeds to help their financial position.

[lurker5] 18/4/2024 09:41

The stockmarket is efficient as a market. It reflects what buyers and sellers are experiencing and the price they are prepared to deal at . 'Value' is only in the eyes of a buyer and will differ bewteen buyers (and sellers) Kindly tell us your definition.

[original fastjet] 18/4/2024 09:38

Knight,
Well said,this Francois character is a nasty piece of work.
No wonder his wife is playing the field 😡😡🙄🙄

[mknight] 18/4/2024 09:34

I.would.prefer to pay 200m for Porvenir rather than take a chance but she is a billionaire and i am not .

[lowtrawler] 18/4/2024 09:22

MK

The outlay is not as large as the headlines suggest but could be significant for SOLG. In February, she agreed to spend $120m exploring 6 exploration licenses close to Cascabel in a JV with the Ecuador government that would give her 49%.

Yesterday, she put in $2m for a 5% stake in the Linderos project which has had some good drilling results. She will spend up to $120m developing Linderos which will give her an 80% stake.

Obviously, Gina and Nick have a good working relationship and she has long been considered someone likely to bid for SOLG. With the package of exploration licenses around Cascabel, it could create a lot of synergy.

[francoismyname] 18/4/2024 09:13

McKnight we know you have no shares. Can you crawl back under your rock. Thanks in advance.

[mknight] 18/4/2024 09:06

What has she bought land or a project which has been drilled ?

Just read up on the project and has only 8 holes drilled with 6 out of 8 fi ding mi eral up to 0.5 cu . Copper found near the surface up to 500m . So simular to PORVENIR but with alot less work done .

If she wanted something quicker she could have bought porvenir for probably 200m

[lowtrawler] 18/4/2024 09:02

francois

SOLG are already listed in Canada.

Do you think Ecuador calling an energy emergency might be having a negative impact?

Are you able to compare the IRR Gina Rinehart expects to get on her Ecuador investments to that available from SOLG? As you know, it's not the volume of resource that matters but the IRR on your investment.

[hazl] 18/4/2024 08:59

There are always undervalued shares.
Response to further up.


The market is sometimes an ass.
As when sometimes the herd buy an already over valued share.



8-)

[francoismyname] 18/4/2024 08:44

So just to be clear today.

Gina invests £150m in Ecuador copper play which is a fraction of our assets - tick

Puts to bed the notion it’s too dangerous to invest in Ecuador - tick

Copper up 2% today - tick

Gold up 1% today - tick

PFS becomes more valuable - tick


Solgold opens up down.


Now call me old fashioned but if the market is efficient and not corrupt then it’s not rocket science to think we should be blue today.

And we are valued at £280m when Gina bought an asset for £150m which is no where near a TIER 1 asset and minuscule in comparison.

Once we get a bit of funding can we list somewhere else instead of London as it’s a cesspit.

[francoismyname] 18/4/2024 08:04

And Solgold true to form opens up down.

London is a cesspit