Solgold Share Discussion Threads

[trev1223] 21/2/2018 10:35

Glencore has quadrupled earnings, could be top runner for a stake in SOLG. They have the cash.

[noccer] 21/2/2018 08:42

Who has got a Tier 1 asset and who is looking for them? Just spotted this in Glencore's prelims today .. "We look to the future with confidence. We believe our unrivalled positioning in "Tier 1" commodities and "Tier 1" assets will continue to create compelling value for all stakeholders." and it seems Ivan is sitting on a Tier 1 heap of cash. So maybe, one day, we will get a little of it.

[lefrene] 20/2/2018 15:13

Have I upset the MM's and this is their spite! :¬)

[mrpiggy] 20/2/2018 15:10

Spoke too soon!!!

[mrpiggy] 20/2/2018 13:31

6 weeks to April before we find out who controls that 180 million shares, I'm quite sure they won't be below 25p by then.Yep, you can bet your bottom dollar on that lefrene. It'll be nice between now and then to gain a bit of daily traction as we have been doing.... small enough to be off the day traders radar which isn't a bad thing! ;@)

[lefrene] 20/2/2018 12:49

The more time that goes by the more Cu gets proved up, yesterdays update revealed improving grades. We seem to be getting a lot more metres drilled for our money, so there's a good prospect of the whole of Cascabel being proved before the money runs out. Given the building scenario for a copper squeeze Solg could simply prove what they can and then mothball the whole thing until one of the greedy miners pays the right price for it. Why give it away?

Cascabel will likely be an earner for a century or more, perhaps a J/V would soon make Solg a divi cash cow, so long as they get the right deal based on a future loking value. What will the price of Cu be 30 years from now? £50,000 a ton?

6 weeks to April before we find out who controls that 180 million shares, I'm quite sure they won't be below 25p by then.

[whites123] 20/2/2018 09:31

Less than 2 years ago BHP Billington were being touted as being suitors to launch a bid for SOLG. along with Newcrest.
Now we are being told the resource RIVALS Rio Tinto's World Class Oyu Tolgoi copper mine.
Yesterday PodCast by Nick Mather effectively confirmed the market is M&A ripe, actually stating with regards to SOLG being swallowed up by a bigger entity "When or what price... and ...... It certainly wouldn't surprise me"

Rio Tinto has also recently said it is looking at M&A as it is awash with cash.

Yet here we are sitting at less than the recent funding price which was shouted by every man and his dog as "Gifting" stock away....

Any rocket scientists in the house to help us understand what is likely to happen to SOLG???


BHP Billiton has joined Newcrest Mining in trying to take a stake in a little-known copper and gold explorer in a sign of miners’ renewed appetite for low-cost entry into promising projects.

The battle between two of the world’s best-known miners for a stake in SolGold, whose prize asset is in Ecuador, shows how large companies are stepping up efforts to forge partnerships with smaller rivals to restock production pipelines.

So-called “junior” companies in mining have suffered a dearth of investment since the commodities cycle turned down from 2011, while larger companies have slashed budgets for capital spending and for exploration over the same period.

With most larger miners expected to show limited appetite for large-scale acquisitions — given the lack of attractive targets and shareholder hostility after a string of overpriced deals — agreements with juniors are regaining importance.

“This is going back to a more traditional model — the market has changed and people are looking at building or improving their pipelines,” says an executive at one of the large diversified miners.

SolGold, which is listed in Australia and the UK, said on Monday that it received an investment proposal from BHP at the weekend. The proposal included an offer to acquire 10 per cent of SolGold for $30m and an offer to spend a further $275m to buy up to 70 per cent of Cascabel, the miner’s project in northern Ecuador.

But SolGold said the offer was less attractive and had more conditions attached than a rival offer from Newcrest, one of the world’s largest gold miners. SolGold’s shareholders are due to vote on the offer of funding from Newcrest and Maxit, a financial investor, this week.

Nick Mather, SolGold’s executive director, said: “We are very pleased to see BHP join a growing list of international mining companies that are interested in investing in SolGold. However, the current $33m financing with Maxit and Newcrest is the preferred option at this time as it leaves us in control of this very exciting project at Cascabel.”

Shares in the company climbed 15 per cent on Monday to 18p, compared with June when they were trading at about 3p.

SolGold published what it said were “world-class” drill results for Cascabel this year involving copper and gold, which are often found together.

BHP has made copper one of its main exploration targets and has struck a deal with one junior this year, agreeing a potential right to get a 75 per cent stake in Canada-listed Aston Bay Holdings, which has a copper project called Storm in the far north of Canada.

In an earn-in deal of this kind, large miners can gain a bigger stake in a project by funding exploration for cash-strapped juniors.

BHP’s largest rival Rio Tinto has also signalled a switch towards exploration spending and tie-ups with juniors. Speaking this year Stephen McIntosh, Rio’s head of growth and innovation, said Rio had “a renewed focus on greenfield projects” and a bias towards copper.

“Attracting partners to advance exploration projects is another key feature of our current approach. This also makes sense at this point in the cycle,” Mr McIntosh said.

SNL Metals & Mining, a data provider for the sector, said its Pipeline Activity Index, a measure of exploration and development, reached its highest level for three years in the second quarter of the year.

[mrpiggy] 20/2/2018 07:52

Good morning. I've listened to the brr interview 3 times now and in all fairness to nick he was asked by the interviewer about M&A speculation at the mining conference, was he meant to evade the question?He clearly stated that solgold can take the project forward in their own right but then states the obvious about Newcrest and other interested majors, it's common knowledge that solg cannot get copper to the market from Alpala without a JV or without an area or cascabel being sold off!

[lefrene] 19/2/2018 16:03

As a prospector rather than a miner your stock in trade in finding metal, proving it up, and then SELLING it. On the other hand if you want to become a miner you might do a joint deal with an existing miner who has kit and expertise, but perhaps not enough money to buy your buried treasure. To me this looks like it's moving towards a j/v with Newcrest, unless there's a surprise buyer possibly from China.

Whatever happens, I believe this is worth a lot more than the current market cap, and the longer that NM goes on drilling, then the more metal he is going to prove. I don't know how many other prospects around the world look as good as this one, but there can't be too many of them.

[mrpiggy] 19/2/2018 15:33

OR...... he's telling the truth!

[5070481] 19/2/2018 15:14

States everything that's required clearly. Never a fan though when the bosses start ttrying to talk up their takeover chances. I think it implies they cant/wont take it to production which then leaves them open to downward price pressure as majors wait them out and force them to raise more and more money.

[lcwanderer] 19/2/2018 14:08

Here's a new interview with NM - only a few hours old.



Really tempted to top up here, but probably shouldn't be greedy.

[pecker1] 19/2/2018 13:25

lefrene,

The early-stage stink bid from BHP last year, frankly, was chicken feed for them and if the exploration had not subsequently progressed as well as it has, this would not have been an embarrassing failure like some of the acquisitions made during the last boom.

At this stage, particularly if the share price stays relatively low, why take an unnecessary risk? With a starting "infrastructure credit" of at least 2 to 3 $billion, an extra billion or two will buy a great deal more metal and represent a far lower risk to the major.

[lefrene] 19/2/2018 13:18

I suppose the best measure of the supply/demand of anything is the price. There seems a general view that demand for copper must rise as electric vehicles take hold, and that that demand will become more visible over the next two years. Certainly the electrification of delivery trucks expected to begin in 2020 for Tesla, could create a sea change in assumptions about distribution. All that aside, we seem to have an odd situation here with an ever growing resource, but a shrinking share price. Perhaps somebody has got it in for Nick Mather? I am going to sit it out on the basis that Solg appears very undervalued just on the resource in one tenement, all the rest of it apparently completely ignored.

Currently they seem to be drilling faster than expected and at a greatly reduced cost. The news will just get better, one of those big boy poker players will blink, and the fight for the pot will be on. I have bought my ringside tickets.

[mrpiggy] 19/2/2018 12:37

I would imagine it would probably suit the USA better lefrene but whoever buys Alpala (or maybe even Cascabel) will determine which direction the copper goes!I'm surprised copper hasn't found any traction this year so far.... once it breaks out of $3.30 /pound it will go like a rocket!

[lefrene] 19/2/2018 12:28

Cascabel is too big and easy to be ignored, there is certainty of large profits in it for a competent miner. The more time they give Nick Mather to prove up more copper and gold, the more tasty a morsel it becomes, the more it will cost. The location would certainly suit a Chinese operator shipping back to China.

[lefrene] 19/2/2018 11:44

The story just gets better and better but the price goes nowhere. Cascabel appears to be shaping up to be the biggest copper/gold find of all time and in a favourable location too. Oh well, walk on by, nothing to see here!

[pecker1] 19/2/2018 11:42

Mrpiggy,

Re one of the majors jumping in, this might indeed happen at any moment which is why I am still holding every share I have bought.

However, before we get a bid, I think it more likely that Solg will be able to discover if the Alpala deposit extends to Trivinio, how rich Alpala Northwest turns out to be (another porphyry "centre"?) and if Aguinaga becomes another major high grade porphyry deposit.

Why? First, because I doubt if a major could do a better job in terms of economy, volume of drilling and direction than Solg is doing now. Second, with every month that passes the project is both growing and is being derisked. Third, the infrastructure advantages of Cascabel have to be at least a saving of 2 to 3$ billion in capex and 2 to 3 years in time to development.

Knowing this, a major may well be prepared to wait until more is proved up. Great for us shareholders!

BTW, there is a good article in the October edition of Mining Magazine on Cobre Panama, which is being developed by First Quantum. The infrastructure needs of this project are massive as is the capex.

[mrpiggy] 19/2/2018 09:19

Great Solid RNS once again from the company but as far as trading goes it's all about stock sentiment and as FSA watcher put it "we in the naughty bin innit"Zombie Stock!But holders make no mistake though, the majors won't have such a negative view & will be drooling over this and it's only a matter of time before one of them jumps! :@)

[noccer] 19/2/2018 08:35

Excellent RNS but I am confused about the great grades on hole 33-D1 - 106m at 2.13% CuEq, but hole 33-D1 on the provided graphic showing drill holes is shown as still partly awaiting assays and extending way over to the west of the established core of Alpala. Wherever it hit, that is a chunk of high grade ore. Hole 37 great too, as already mentioned. Good start to the week.

[mrpiggy] 19/2/2018 07:51

Hole 37: Approximately 222m of visual copper sulphide mineralisation, open at depth as drilling continues (1620-1842m). This hole is particularly important, implying major system extensions northwest towards the Trivinio prospect;You will probably find in the fullness of time that some if not all the prospects at Alpala are linked, I've heard it implied before this seem to be backing it up.... let's see what Mr Market thinks!

[mrpiggy] 19/2/2018 07:41

Typo ERROR, it should have read..... MAJOR SYSTEM EXTENSIONS!