Solgold Share Discussion Threads

[mknight] 27/4/2020 08:06

Got another 20k in the auction

[phattrader1] 27/4/2020 07:54

Are we buying back our DGR shares from
Our funding package....
Let’s see

[mknight] 27/4/2020 07:43

That was the first news phattrader. The second news mentioned funding and halting the shares until the funding is annouced .

[phattrader1] 27/4/2020 07:36

DGR have issued a new update and the ASIC is not happy with them using the Equity Method of valuation for their SOLG holding (basically % owners of SOLG x SOLG net income on the P&L) as it reduces their profits and therefore tax liabilities.
They want DGR to the the Fair Value method which values the investment on the Balance Sheet at market value of share price and only affects the P&L as an unrealised profit or loss on SOLG shares.

DGR naughty naughty. But nothing wrong with it, it’s a matter of judgement. Doesn’t affect us in any way.

[mknight] 27/4/2020 06:22

DGR trading halted until Friday .

Waiting funding annoucement .

Not sure if this is connected to Solg but it would seem possible .

Will we get the same treatment today ?

[mknight] 26/4/2020 22:07

Just a thought over the weekend .

It makes sense that all the large trades were sells . If an institution is buying as phattrader1 thinks they may be buying as many shares as they can before funding is annouced or they reach a price level where they feel they will be making money after the news .

Many shareholders have a few million some may sell thinking they will buy back cheaper bit i can tell you honestly that the only shares i could buy were shares on the offer . I got nothing by putting shares on the bid and when i did get close someone jumped over my price .

Tomorrow i expect the same the less people sell the quicker the price will rise .

All imho only the broker with the order knows how many he has to buy and until that massive trade goes through its only guess work .

[goldrush] 26/4/2020 14:47

Thanks to Odsjp on AAZ Thread

SOLG mentioned.....

[phattrader1] 25/4/2020 16:29

... hence it is called a Conditional Finance Agreement. But as long as it’s signed, it proves to the big guns we are serious and we can go alone. Will we be at 40 or 80 upon confirmation of this is another thing.

Does Newcrest and BHP’s existing 15% rivalry not show we are already heading for a bidding war?

[greenelf] 25/4/2020 16:24

"probably 3 years away"Complete nonsense.

[mknight] 25/4/2020 16:19

Apart from my two week price guide you mean which is puré maths 😏😏

[dozyduck] 25/4/2020 16:00

There won't be comprehensive funding until financial close, which depends on a DFS or BFS and all funders are certain of market conditions when construction is committed. As far as we know, the only funding is $150m - only for preliminary work (and FS) which is always in advance of, and not included in, any PEA - and which is only 15% of likely project equity. Even if all funding (by banks, or equity-like funds) is promised it will only be 'conditional' on all parties signing up at financial close. - probably three years away. Everything said here is unrealistic

[mknight] 25/4/2020 15:23

My gut feeling tells me you are right phattrader1 .

Monday should confirm this when and if the Sp kicks off like a speeding train .

Plenty of places the leak could come from . Too many to trace the leak imo .

[phattrader1] 25/4/2020 15:07

DD - SXX needed $6bn capex upfront for a company with lower market cap than SOLG. They didn’t have bidders falling for them so in the end they had to accept whatever was given to them. Shareholders lost out.

SOLG is different - it only needs $2.85bn and we have bidders willing to fund everything up to production.

Newcrest and BHP will fight this out.

Conditional funding agreement with smelters and traders is smoke screen.

One quote from the webinar “funding negotiations are speeding ahead faster than we all expected and will be concluded soon”, this week is the week. Funding or takeover? Or both.

[mknight] 25/4/2020 14:45

DD we already knew the first part thats why the are going to choose one of 10 offers with confirmation of which one in the next few days .You do t by any chance work for the institution buying our shares do you .You do seem some what more negative than any normal person .

[dozyduck] 25/4/2020 14:36

PS

The latest Sedar MD&A shows they need a fund raise now, even merely to do the work they plan on Alpala this half - let alone restart exploration elsewhere. So that's the more likely reason the BoD can't buy

[mknight] 25/4/2020 13:07

Ntbb

I dont read it that they have recieved a bid . I read it as they want to cover themselves should that bid occur .

I read that the bidding process is connected to the offers they have recieved for finace from the smelter and traders .

I may be wrong , maybe others read it the same as you . M&A may suggest they need some help with the offer for Cornerstone which they said they were having some problems with .

[dozyduck] 25/4/2020 13:00

They might be in M&A. But they might also be preparing a fund raise. Both matters they would have to disclose to Cornerstone ! And SXX was/is a 'miner' with the same metrics.

[ntbb] 25/4/2020 12:32

Dozyduck give it a rest, dont compare fertiliser company with gold and copper

Look at company's like boohoo valued 26x forward earnings!!!! Its bloody crazy and all they sell is clothes and delivery, we have the real assets, just watch the fireworks on monday, this email confirms why management cant buy share because they are in m&a !!!!

[dozyduck] 25/4/2020 12:19

SXX issue was the way analysts 'valued' the shares before the 2016 fund raise. NM's 'value' as you say was before funding. I'm talking the value per share after funding !
And you should explain why any investor will pay 'up front' for all the cash flow to come (up to 55 years !) - which is what paying an NPV is. He'd might as well buy an annuity at the same discount rate. Mining investors want a lot more than that.

[phattrader1] 25/4/2020 11:30

DD: in the latest presentation on the SOLG website (36 page April pdf) Hofmaier works / used to work for the same company (Hannam & Partners) for 20 years, which has a broker valuation of 116p and current analyst Roger Bell. Do take time to check it out lol...

Also I worked in M&A and corporate finance for 6 years, now an Equity Researcher for a Bank, ACA and CFA qualified.

How can you dispute My calcs of being valued at c25-40% of NPV before funding given NM stated the same in the webinar? SXX got done over due to bad management, how many directors held SXX shares? How many shares in comparison does NM hold? This is his retirement pot, he doesn’t want to go to production - he wants a 2020 takeover.

Anyway - whatever will be will be. As shareholders we want capital gains and no losses. SOLG fits the bill, happy to let this game play out. Competitive bids coming soon.

[greenelf] 25/4/2020 11:23

All metrics give different answers, simply give a range of possibility. In the end it is the outcome of the dance between buyer(s) and a seller. There is no definitive answer.

[dozyduck] 25/4/2020 11:18

PS Phat
Interested to see where Hoffmaier has stated his 'target'.