Solgold Share Discussion Threads

[lefrene] 13/11/2017 12:42

There seem to be a lot of 'O' sells but the price seems to be holding steady, I wonder if this is small holders giving up and institutional hands mopping up? I see that 25p deal as setting a floor, but of course could be completely wrong.

That 'magnet' is likely to persist until the deal finalises on the 30th, once it is out of the way it will be of interest as to see the position of major holders. Newcrest will want to maintain their percentage and will have to be accommodated, will other holders also top up to maintain their % ?

[onedayrodders] 13/11/2017 12:22

seems the inevitable placing price magnet cannot be avoided.

[lefrene] 12/11/2017 21:44

jec, the company might be sitting on a diamond as big as The Ritz, but it will take huge amounts of money to begin digging it out, that money will likely need to be borrowed. Thus all this drilling is to establish industry recognised 'proofs'. With those 'proofs' some careerist in a Bank or investment house will feel safer authorising large sums of money at usurious rates to begin extraction. Without 'proofs' to point to he won't release money as he might get sacked. The old adage of "A miner is a liar stood next to a hole in the ground" applies even more so when it's a prospector, essentialy 'a liar with not even a hole to stand next to'.

If we are lucky Aguinaga might be a commercial possibility, which then throws off cash to fund other prospects, but even an open pit takes time, since one has to build infrastructure to move the won ore, and also to house a workforce.

A few years from now technical information from ground reading devices might become accepted as 'proofs' of ore bodies of quality, but not yet, only seeing and testing drill cores is good enough.

Plainly NM is expecting to find other ore bodies to match Alpala, I believe he is also expecting approaches from large miners once they are convinced that the metal is there. Everybody hates being diluted, but the idea is to speed things up so that a larger prize can be more swiftly uncovered, and perhaps sell some of it.

[ianpuddifoot] 12/11/2017 18:57

lurker not sure there may be an opportunity to mine one of the surface mines quite cheaply and I am thinking that's why he raised the money for on the last placing, may be wrong but in this for the long term

[lurker5] 12/11/2017 16:28

jec - knowledge zero ! agreed. (but we were all like that originally)It will take a minimum of $5bn (and possibly $10bn) before an ounce of copper or gold is extracted !

[jec] 12/11/2017 15:02

Can someone pls enlighten me? As an in profit LTH why are we digging more holes to prove a point that must have already been proven, that we are sitting on a mountain of gold and copper? What is against the idea of mining some of this stuff and using that cash to dig more holes, and then repeat the process as often as is necessary.

This would halt the dilution of our equity, prove the case again and again and help find the right buyer.

My knowledge of mining is zero but the above approach makes sense at least to me.

Good luck to all.

[lefrene] 10/11/2017 17:50

The deal doesn't complete until the end of the month, so I'm guessing no news that might drive the price upwards will be released before then. Perhaps the price will stay down here at least until the end of the month, an opportunity for those to tuck away as many as they can get at these prices. The thing is, just how long do those Banks intend to hang onto those new shares? Will they keep dripping them into the market at the least bit of profit?

This looks like a classic long game, unless a hungry predator in the industry decides they want all of it! Certainly looking a tasty morsel now, price on the floor and working capital in hand, never mind that huge inventory of tenements to be checked out.

[onedayrodders] 10/11/2017 17:36

to early to call the bottom but encouraging afternoon trading

good weekend all

[lefrene] 10/11/2017 13:17

26.5p seems to have somebody soaking up all those sells?

[lefrene] 10/11/2017 11:47

Somebody must be taking the other side. These Banks wouldn't just throw £45 million away, these are 'jobsworth' types, career and pension will be everything to them. They got a deal at mates rates, and quite likely their peers will have taken note and possibly will mop up loose stock?

It seems that NM prefers large holders, presumably to reduce the 'gaming' of the stock. NM now has to deliver whatever it is that he has promised to these bankers, he will at least have spelt out his strategy to them. They won't have bet that £45 million without knowing which way the table is tilted.

[onedayrodders] 10/11/2017 10:43

relentless selling this morning ... the banks might have a brief red position at this rate

[alphapig] 10/11/2017 09:02

They may as well do a block sell and get it over and done with, whatever they drop it to will see some buying.

[ragewarrior] 10/11/2017 08:30

L2 looking bad today, for some reason this is being forced down again, maybe by those who bought at 25p wanting to sell at 27p to 28p.Anyway some 3 large 300,000 sells lined up between 27.25 & 27.75

[mrpiggy] 10/11/2017 07:13

Penrith, they haven't done enough drilling at Aguinaga to prove to the market that it is a feasible open cast mine but the seismic 3D gismo they use probably tells them all they need to know. Now how low can this go?Even the thieves on the main market recognise value and you can't get away from the fact that we are sat on one of the biggest ore bodies ever discovered so the lowest has to be low twenties IMHO.

[alwaysevolving] 09/11/2017 23:15

11362 - Yes, 25p.

[penrith] 09/11/2017 21:11

If Solgold had sufficient information to indicate that Aguinaga is very likely to be open pit would they have to disclose that immediately via a SRN?

[penrith] 09/11/2017 21:04

Thanks Lefrene,With all the info we have now received and the reactions we have received today is anyone prepared to speculate where the share price will bottom out?

[onedayrodders] 09/11/2017 19:55

Your opening sentence is particularly spot on Lefrene

A feeling of 2 steps forward and 1.99 steps back at the moment.

For us PI's, if this is Aladdin's cave of multiple Copper Gold world class resources, a sell off of one to fund the rest would have been my preference.

But I guess you can't force that and they have taken the bull by it's horns.

The run down in the share price prior to the 25p placing leaves a disgusting taste but hopefully next few news releases will surprise to the upside and get is back on track.

ODR

[lefrene] 09/11/2017 17:56

Mrpiggy, I presume it's the size of Alpala and the fact they had already invested time and money there before realising that Aguinaga might be a goer? I was hoping they would sell off something to raise operating cash, but it seems that NM wants to go large and not sell bits of his empire. Which makes sense but it takes longer to see any rewards coming in.

Much of the current value seems just down to Alpala, once some finds from these other tenements start to come in, Solg might then become seen as the most richly endowed of any company in the copper/gold sector?

One has to trust NM that his strategy is the correct one to release maximum value to shareholders. If he favours large institutions as holders, then he will have plenty of professionals watching over his shoulder. Those 25p bankers are likely to be greedy, they haven't just paid out £45 million from their books to see a loss, they will scrutinised the assets and prospects, and liked what they saw. If it comes good it means the company can go back for more cash directly from those Banks and avoid the games and costs of going into the market for more money. I hate the fact this was done at 25p, and suspect the market price recently got driven down to that level because this deal was not a tight secret in the industry.

Penrith, it would make a huge difference to future capital requirements if Aguinaga is an open pit goer, as it could be got going comparatively quickly. Hence the impatience here for a drill to be put down through it.

What's done is done, lets see the money put to work to speed things up and expose the value in those holdings.

[penrith] 09/11/2017 17:43

Could Auginaga be an open pit mine? I thought all the Ecuador Mining would be underground. If open pit then surely this is very positive.

[mrpiggy] 09/11/2017 17:16

Yep, as I said the other day ODR this will be marched down to 25p(placement price or slightly sub 25p).

[onedayrodders] 09/11/2017 16:57

Well 10% is less than I thought but hefty selling momentum late afternoon suggests a little more red tomorrow