Solgold Share Discussion Threads

[lefrene] 01/2/2018 11:01

Not YOU as WELL! I paid 21p when they were asking 21.25p, thought I'd done very well, at least Wisteria2 has to share the bragging rights with you. :¬)

Perhaps the penny has dropped, if you wanted to take this out it won't be for less than $1 billion, and as drilling proceeds the value of proven metal rises, then throw in Aguinaga if it turns out as expected, and you have a low cost primer to the block caving, that in my view gets us to $2 billion at least.

[rougepierre] 01/2/2018 10:56

picked up 40277 at 20.95...hope that was the bottom...onwards and upwards....

[lefrene] 01/2/2018 10:52

Well it certainly is with the ladies wisteria2, and markets seem just as obscure and fickle. Perhaps a bit too early to count the chickens just yet?

[wisteria2] 01/2/2018 10:42

Some chunky automated buys at about 23p! timing is everything don't you agree Lefrene. lol

[lefrene] 01/2/2018 10:40

BAH! I wanted to claim to be the hero who bought at the very bottom, and NOW you've gone and SPOILT it!

[wisteria2] 01/2/2018 10:40

Gosh going uuuuuppppppp!

[wisteria2] 01/2/2018 10:38

Seems oversold to me! but who knows. smidge under 21p meself

[nateroyd] 01/2/2018 10:37

Something happening!!

[lefrene] 01/2/2018 10:31

I paid 21p wisteria2, I hope I am soon kicking my self for not picking up a lot more. But on the other hand if they get cheaper I still have some ammo to get more.

[wisteria2] 01/2/2018 10:27

Grabbed a couple of clips this am! so expect further falls!

[lefrene] 01/2/2018 10:02

I just took my own advice and picked up some more. There's no way you could take this out for the current market cap, also considering there is circa $90 million in cash, although that's burning at circa $1 million a week.

I suppose it's the 'take out' price that would have to be paid that shows this current price action up for a nonsense. Given the size of the resource at Cascabel (at least £50 billions worth) plus the favourable attributes of infrastructure that will apparently save $2 or $3 billion and greatly speed up initial extraction, you have to ask yourself, what is this actually worth to a miner? Certainly not less than £1 billion and very likely if Aguinaga proves an open pit candidate then perhaps not less than £2 billion? But whatever it is, I believe the current £350 million is way too cheap.

[lefrene] 01/2/2018 09:57

It does seem to rise faster than it falls, so when it turns it will probably be difficult to grab much on the rise. So if you think this is going to survive and prosper I guess now is the time to accumulate.

The other nice conundrum is speculating what somebody would have to pay to own it, considering that Cascabel appears likely to have 15 million tons of cu eqv, do you think £350 million would buy it? I don't.

[paleje] 01/2/2018 09:44

Indeed gentlemen, is it their final big flurry? I don't know, I just know it will stop when the bots have had their fill and don't think they can wring any more out of the situation. People, stop feeding them!:)

Looks like I entered too soon, hands in pockets for now.

[lefrene] 01/2/2018 09:36

I was thinking 15p by close tomorrow! Will this turn out to be a high volume capitulation day? I bet Newcrest aren't selling their stake! Perhaps BHP (and friends) are filling their boots?

[mrpiggy] 01/2/2018 09:32

Looking like stop losses are being triggered this morning, we should bounce back off these lows!

[lefrene] 01/2/2018 09:23

Working their magic this morning paleje.

[paleje] 31/1/2018 17:03

I know you've been following it more closely than me lefrene, and thanks for your comments.

"...nothing to do with the value of the asset, simply following a number sequence..."

Absolutely agree with that, they'll have it worked to optimise their gain (and others pain). Events can wrong foot them sometimes though, I hope we're not too far away from such.

[paleje] 31/1/2018 15:34

I hope it doesn't go back to 4p I bought some today:)

But shouldn't they be starting to turn soon, now more than 10% under placing price. I can understand some shorting from higher up but at these levels and with news due any time surely it must be near time to settle up.

[lefrene] 31/1/2018 13:03

alwaysevolving, I think the company is providing real world assurances with it's drilling reports. There's a clash of worlds here, lizards looking at screens playing nasty games, and a physical world of blokes in a sweaty jungle drilling holes in the ground finding metal.

The current market situation is down to having to raise more money to reassure the Ecudorian government that there were exploration funds available to prospect any new tenements granted. Without that fund raising I doubt Solg would have been granted all those concessions. Unhappily it's created the current situation of a large chunk of shares being available to a 'grey' market.

Although annoyed at the price action it has now made me greedy for an even lower price, bring it on, I want to load up as cheaply as possible. It's plain that Alpala has to be sold, there are 77 other tenements to be exploited, and I believe the company has the expertise to select the most viable ones. There is in all probability more than one trillion $'s worth of metal in those tenements.

If the company can get through this market squeeze it remains without debt and without having sold its future in forward contracts, so improvements in metal prices will all go the business if it becomes a miner, but also makes it a 'clean' purchase for another party to mine.

So it can go back to 4p for all I care, that buried value will have it's day at some point.

[alwaysevolving] 31/1/2018 12:18

Something decidedly dodgy going on here with the share price I feel you might be right Lefrene in that this is being hammered down for a cheap Takeout? It’s looking like the only logical explanation for this relentless fall against the mammoth (and still growing) resources.

Would be nice to hear some reassurance from the company however under the circumstances!

[pecker1] 31/1/2018 10:39

charlieeee,

Thanks for that analysis. Have tried without success to find a website that will give the short interest in Solg on a daily/weekly basis.Can you point me in the right direction and/or explain how one can find out the short interest. Seems easy to do for larger stocks.

[lefrene] 31/1/2018 10:37

Those 180 million shares are off market and thus cannot themselves be traded, however it would seem likely that some sort of forward contract has been used to commercialise on a future event. It does look like an orchestrated bear raid when a company is valued at less than 1% of one part of one property out of a total of 78 ignoring other properties in Auz and the Solomons. One also has the company delivering on the talk, which is pretty rare, and halving the cost of drilling too.

So who benefits? One would guess it's the disappointed vultures who want it cheap with all the risks taken out of it. The only way to beat this is to get Alpala proved up and costed asap, then you have something you can sell, or even borrow against to mine it.

[charlieeee] 31/1/2018 09:59

There is no evidence to suggest that there is any overhang and every effort was made to ensure that was not the case, with the number of underwriters, jurisdictions (particularly Canada and the 4 month holding period) and the pricing (not to mention that Newcrest seems to have taken their share out of the 180m, as I cannot see a separate RNS).

Inevitably, there will have been flippers, but they will have presold, as they do and above 25p.

What you are seeing is a determined shorting raid (the SOL figures support that) and the intention to damage sentiment, thus causing PIs to lose confidence.

Shorting on SOLG escalated in October, before knowledge of the placing was in the public domain.

Volumes are really drying up: presumably, residual PIs do have some knowledge of the value of their holding and can see beyond the current trend?

Clearly, the placing was a set back for the SP, having damaged sentiment and opened the door to a shorting opportunity, but every day that passes, distances that negative effect and some of the positive effects of the cash raised, at work, reboot sentiment.

[caffeine1] 30/1/2018 20:12

I've been reading that the Ecuador referendum is scheduled for this Sunday. Not sure that it's big news for mining. It seems more like the referendum is a power struggle between Moreno and the former president Correa.