Solgold Share Discussion Threads

[lefrene] 22/2/2018 13:44

I agree it will take quite some time for the car market to become largely electric, and I would expect there to be more demand from city delivery trucks in the nearer term. Also as you say in the nearer term construction will remain the major consumer for copper, but a sea change seems to be under way to move to electric vehicles, and in the case of trucks it might happen quite quickly depending on the economics, but also regulatory action to keep diesel out of cities.

If the US "pukes" the rest of the western world will have the plague, I guess China and its friends will then have first pick of any asset morsels. But lifting interest rates a little bit each quarter seems unlikely to bring down the house of quantative easing suddenly.

Mining is a slow game, it's a huge decision to commit large capital sums to an extraction unless you feel certain there will be demand at a workable price. But presumably once you have made that commitment, then you want to get to production as swiftly and economically as possible. Cascabel looks a good candidate.

[5070481] 22/2/2018 13:07

I thin ODR's point was that if the US is going to puke then everything will get dragged down with it. Time frame you are referencing is long term over many years. Electric car demand isnt sufficient to compete with chinese building demand currently which is the real driver. Long term i believe in the compnay. Short term I can see the case to be made that price could go lower.

[lefrene] 22/2/2018 12:38

ODR this is an asset play, not a business play. Solg isn't a business, it's a bunch of blokes using other peoples money digging for treasure in a sweaty jungle. Interest rate movements barely affect its prospects. Demand for copper is going to increase, there are few places where you can find very substantial resources in one location, and even fewer again where the location has favourable infrastructure. Interest rates rising 2 or 3% are unlikely to have much impact, indeed it might help speed the move towards electric cars as they will be much cheaper to make in mass production given the greatly reduced parts count, against ice cars.

[onedayrodders] 22/2/2018 10:42

CNBC who ban bears on their channel and only allow bulls or mega bulls comments on the same..

[onedayrodders] 22/2/2018 10:30

I have freed up some money for a modest top up but hesitating as I think the US is gonna sneeze big time again and all markets will be dragged down by it's sentiment tentacles.

The bubble loving media in the US are desperate for volatility to go away however DOW reversed a 300+ gain to -167 in the last 2 hours of trading last night, and the long term int rates on the US10YR TSY reached a 5 year high. The longer teem rates are seen as a slur on the US ability to repay it's debts (which they already cant) and now Trump wants to bash the USA credit card by a further unfunded $1.5 trillion !

The inflation genie is peeking it's head out the bottle and not even the BS jawboning of the FED can make him go back in now.

Anyway I'm babbling on and you are probably bored but the relevance is that stocks crashing will force the FED to reverse talk of int rate rises and start talking of QE4 which will send the US$ down the plug hole and Gold and commodities soaring ... there .. I knew I would get to the point !

Problem is Gold will not instantly soar and global stocks will be dragged down short term in the stock market carnage.

Just my idol thoughts as we stay suppressed and depressed here.

ODR

[mrpiggy] 22/2/2018 10:01

Many thanks for your clarification lefrene.... much appreciated! :@)

[lefrene] 22/2/2018 09:42

Mrpiggy, if you own the rights to something that temporarily you cannot trade in an open market, there is nothing to stop you entering a contract to sell those rights to someone else at a future date. So if you paid 25p for something when the open market price was circa 36p, then you could tempt somebody by offering it at 33p now, but for delivery at a future date. If you did this you have an instant 8p profit. Then you might decide that you don't want to deliver on the contract so you set about spreading FUD to wear down the price, and possibly engage in shorting too, making it possible to cover your contracts for less than your initial purchase price. This may or may not have happened here, but it is a possibility. We have seen nothing but good news coming out of Solg, and yet the price gets ground down even when the price of copper and gold remain robust. The long delayed marketing of the 25p bought deal created conditions for this price action to happen, one simply has to ask 'who benefits'? I suspect that NM was 'sold' this idea by the nice bankers who bought the shares.

[mrpiggy] 22/2/2018 09:04

SolGold plc (LSE and TSX code: SOLG) is pleased to announce that it has closed its previously announced "bought deal" private placement of 180,000,000 ordinary shares in SolGold (the "Offered Shares") at a price of 25 pence (C$0.42) per Offered Share for aggregate gross proceeds of GBP45,000,000 (C$75,600,000) (the "Offering").Can anyone explain in simple terms how the share overhang due to expire on the 31st March are used to manipulate the share price down and why when the private placement investors paid 25p/ share. I can't quite get my head around why it would be in their interest to bring the share price down if they paid 25p/share. I think lefrene amongst others may have an insight as to how this works.Many thanks.

[lefrene] 21/2/2018 15:30

Well both Glencore and BHP seem to be making large sums of money, and we know BHP have made a cheap pass at Solg, but perhaps they didn't send a Valentines card this year? Indeed it does seem that logic is being defied, bu then miners move very slowly, apparently BHP have been studying for five years the possibility of just having a single listing in Oz and dropping the London listing. So if they have been mulling that for 5 years, I guess their decision process is akin to that of careerist civil servants?

I wonder if we won't wind up with electric cars that recharge at diesel powered hook-ups at motorway services. We simply don't have the generating capacity to cope. The mobile equivalent today is so called hybrid buses, where a small diesel screams away all day trying keep a worn out bank of batteries charged up. But whatever it does appear that there is a ground swell towards electric vehicles, and weighty delivery trucks are going to need quite a bit of copper to get the job done.

[alwaysevolving] 21/2/2018 14:18

I’m reading increasingly that Larger vehicles/Commercials and long range cars will end up being Hydrogen fuel cell powered (China currency making big in roads to support this in several major cities) and that regular cars will most likely be electric tech, with the Former using more Platinum (10x the amount of plat a current fossil fuel exhaust system uses) but either way, electric cars seem to be the future and a lot more Copper is going to be required going forwards

.....that being said, I see the Solg share price with their vast and ever increasing copper deposits (let’s not even mention the Gold) is being walked down again!! Defies logic really?

[lefrene] 21/2/2018 13:15

Mercedes planning for electric city delivery trucks. Merc makes a huge number of trucks, these things are going to need an awful lot of copper.

[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.