Solgold Share Discussion Threads

[lefrene] 20/11/2018 13:59

There's still time this year to bring out more drilling news, I wonder if this welcome early news has been brought forward to clearly demonstrate the value here, just in case a predatory bid was being got together?

[pob69] 20/11/2018 13:37

Further coverage $SOLG.L SolGold $SOLG #ECUADOR $CGP

In what has become routine for SolGold (LSE:SOLG), the Ecuador-focused explorer has backed up its stunning recent drill results with a bumper resource update.

Alpala now has an indicated and inferred mineral resource estimate of 2.95 billion tonnes at 0.52% copper equivalent, for 15.4 million tonnes contained copper.

This is a 108% increase in the contained metal compared to the previous resource, which came out in January.

Alpala has 8.4Mt copper and 19.4 million ounces of gold in the indicated category.

The high-grade zone - with 0.96% copper cut-off instead of 0.2% - also doubled to 420Mt at 1.47% copper.

SolGold CEO Nick Mather said there was more to come from Northern Ecuadorian project.

"Alpala has got more to grow yet and we are pursuing that aggressively over the coming months," he said.

The new resource estimate comes from another 80,000m of drilling at Alpala this year.

The company said the 0.2% copper equivalent cut-off showed "high production rate mass mining methods such as block caving" could be part of the preliminary economic assessment for the project.

SolGold said growth would come in 2019 through drilling at Alpala SE, Alpala NW, Trivinio and Alpala Western Limb.

In the northwest-Trivinio area of Alpala, SolGold reported intersections of 402m at 0.65% copper equivalent, including the discovery of a new zone, north of the Alpala Breccia unit, containing primary bornite mineralisation of 162m at 0.95% copper equivalent.

Last month, BHP upped its stake in SolGold to 11.2% for almost $60 million.

This makes the major the third-largest shareholder, behind Newcrest Mining and Mather's DGR Global.

Newcrest managing director Sandeep Biswas said at the time he was fine with another big company getting involved in the project.

"If Cascabel develops to the extent we'd all like it to - we'll have to see whether it's going to get there - it's going to be a big mine with a lot of investing capex, so in relation to developing a mine in the future, there's no question there can be more than one company accommodated in terms of those developments," he told reporters.

[pob69] 20/11/2018 12:59

No worries Mirabeau and always nice to be namechecked... (worth noting and sharing that the latest RNS refers to 11 further priority projects, from 10 reported. Jason Ward mentioned this in his latest presentation but now it is confirmed. What/where is it as there was also no mention in the Annual Report recently posted either? Expect additional RNSs about their other concessions imminently).

[mirabeau] 20/11/2018 12:51

p69 - good stuff fella. appreciated - i'll nick some of your postings and re-post onto the L-S-E site...if that's ok..thanks

[pob69] 20/11/2018 12:45

Edison's new diagram comparing $SOLG.L Solgold $SOLG #ECUADOR $CGP to its London listed peer group is very illustative and compelling.

[lefrene] 20/11/2018 12:28

Remember this is just Alpala which contains $90 billions of metal, right next door in other parts of Cascabel there will likely be more metal which would use the same infrastructure as Alpala thus making better use of capital sunk into equipment.

pob69, nice find thank you for sharing.

[pob69] 20/11/2018 12:16

First time I have seen the UK Broker/research house Edison cover $SOLG.L Solgold $SOLG #ECUADOR $CGP

SolGold (SOLG); announces eye watering resource upgrade
SolGold’s Alpala project towers above its peer group

SolGold (SOLG.L) announced this morning an eye watering resource upgrade at its Alpala Porphyry Copper-Gold Deposit, located in Northern Ecuador. The project now has a Total JORC 2012-Complaint Mineral Resource Estimate of 3bt at a copper equivalent grade of c. 0.5% Cu eq. This is a massive increase from the previous estimate of 1bt at a copper equivalent grade of c. 0.7% Cu eq.

As a result, Alpala now towers in size above its London listed copper peer group. Despite its massive size SolGold is currently trading on an enterprise value per attributable tonne of copper equivalent of £50/t compared to an average of £100/t for its London listed peer group.

[mirabeau] 20/11/2018 12:00

Noccer - I'm not a mining expert or indeed au fait with the various methods of valuing resource companies. My approach is simple - the news is either positive or negative for the company...I have a basic appreciation but that's the extent of my understanding

[pob69] 20/11/2018 11:47

Investor Chronicle's update on $SOLG.L Solgold $SOLG #ECUADOR $CGP

Ahead of schedule, SolGold (SOLG) has more than doubled its mineral resource estimate for its Alpala project in Ecuador, after this year’s drilling brought the overall resource to 15.4 million tonnes of copper equivalent. Analysts at Liberum believe the upgrade puts Alpala into the top ten projects globally, and that it is the only one in a palatable country, with sufficient grades for current risk appetites, and without “serious permitting roadblocks” which would otherwise dissuade majors from buying. The shares are up 7 per cent this morning, but we remain buyers.

[noccer] 20/11/2018 11:46

Hannam have done a calculation I was looking for - 220% increase in the indicated category if you keep to the 0.3% lower cut off. The change from 55% to 97% indicated in the high grade core (as opposed to 'inferred') a clear improvement. 80p target OK with me (for now).

[noccer] 20/11/2018 11:37

Mirabeau - So is this where Red Cloud got their 50% increase prediction from, by copying Liberum? Good to see the high grade core double, and now 97% indicated (rather than inferred). Was interesting to see the lower bound reduced from 0.3% to 0.2% on the basis of indications of an economic grade for block caving - this sounds to me like a sneak preview into intial findings of the PEA.

Initially confused over this Tier 1 designation. I thought it was 750Mt grading over 0.9%CuEq (and we now have 420Mt over 0.9%, averaging 1.47%), certainly from the RNS the threshold is interpreted as 750Mt averaging 0.9%CuEq (where we have 950Mt averaging 0.97%). I think I would be happier seeing one of those graphs with us compared to other mines by a large blob and us moving up with the big finds.

Seems weird now that they excluded holes 68 and 69 from the MRE when it looks like they had time to include them - and they had good grades.

Expected better from the share price Time for a few more of those covering this to up their share price predictions - but for now 72p from Liberum is helpful.

[pob69] 20/11/2018 11:15

Hannam and Partners update on $SOLG.L Solgold $SOLG #ECUADOR $CGP

SolGold has released an updated Mineral Resource Estimate for its Cascabel Project slightly ahead of schedule. Overall resources more than doubled to combined indicated and inferred 2.95bn tonnes, containing 15.4Mt in copper equivalent metal at an average grade of ~0.52% CuEq, albeit with a lowered cut-off grade of 0.2% CuEq vs the 0.3% used in the Dec’17 maiden MRE.

More importantly, on a like-for-like basis using a higher cut-off of 0.9%, contained copper equivalent metal in the high-grade core at Alpala Central increased by 99% to 6.1Mt, with 97% (by metal) now upgraded to the Indicated category. In our view, today’s updated MRE should be taken as a materially positive catalyst, showing the blue-sky potential for the Jan’19 Preliminary Economic Assessment (PEA) to significantly improve upon our conceptual model, on which we have based our 80p per share target price.

[mirabeau] 20/11/2018 10:37

#solg.l, about 2 hours ago
@pob Liberum update on $SOLG.L Solgold $SOLG #ECUADOR $CGP

--

Doubling of high-grade resource, TP increased to 72p

BUY -Target price 72p (from 65p)

Solgold has released an updated resource for its Alpala deposit in Ecuador, confirming its place as a top 10 global greenfield copper project by size and top 4 by grade. The updated resource increased contained metal by 67% (at a 0.3% cutoff) to 12.3mt of contained copper equivalent metal (1,834mt @ 0.67%). More importantly, it has doubled the metal inventory within highgrade ore to 6mt of Cu equiv. metal (430mt @ 1.44%, 0.9% cutoff). The high-grade core is the driver of Alpala’s economics and today's announcement is comfortably ahead of our forecast +50% increase. As a result our Alpala NPV increases from $3.2bn to $3.75bn, applying $3/lb Cu, $1200/oz Au. We upgrade our TP to 72p (from 65p) based on an acquirer IRR threshold (of 12.5-15%) and EV/Resource comps.

--

[5070481] 20/11/2018 10:26

NOt sur eit was a shake. Volume sat on teh ask putting a cap on it at 39.5 and then some pretty chunky sells have come in. May see some buying from across the pond as they open up after lunch

[onedb1] 20/11/2018 10:16

Profitability ? Are you looking at the right stock ? The mine is being prepared for a sale to one of the big miners . Surprised to read such question.

[dmitribollokov] 20/11/2018 10:15

here comes the shake

[the patient investor] 20/11/2018 10:11

when do you guys expect profitability?

suffering in VAST for many months :-(

[lefrene] 20/11/2018 10:08

15.4 million tons eqv at circa $6000 a ton, $92.4 billion and that's just in Alpala alone, never mind the rest of Cascabel and the other 70 or so concessions.

A bit more waiting for the supposed copper squeeze to arrive and one of the behemoths will just have to have it.

[the patient investor] 20/11/2018 09:49

when do you guys expect profitability?

suffering in VAST for many months :-(

[arcadian] 20/11/2018 09:10

NM should not be short of something to say at 121 this morning and could well add something to augment the RNS

[lefrene] 20/11/2018 09:06

Nice to be ahead of the curve, well done NM.

[dmitribollokov] 20/11/2018 09:00

Expect to see quite a few long white candlestick days here...

[mam fach] 20/11/2018 08:57

Up a measly 3p.
Can do better than that.
You know what I always say- still time to get in.
Now I say -Before it's too late.

[bagi58s] 20/11/2018 08:47

Resistance 39.0 is broken now should head for 45.0

[wisteria2] 20/11/2018 08:45

Is moving up quickly on moderate volume, and should be!