Solgold Share Discussion Threads

[dozyduck] 29/4/2020 17:15

RP - re balance sheet
You missed the small printin the MD&A. end Dec cash etc 23,071,680, receivables and prepayments 3,756,255 trade payables (5,930,720) Net working capital available 20,897,315
Planned spending to end June (page 55 MD&A) $58.8m Shortfall $37.9m - will have to be plugged before long. plus what will resume for H2 Conclusion ? - Work it out !

[mknight] 29/4/2020 17:01

Phattrader1

There was alot of trades in the last few mins after the mm,s tried to crash it .

Not sure could have been punters betting on news tomorrow .

I would say no news because i think they would have taken out the 30p . Cant be far away .

[ntbb] 29/4/2020 16:59

In 5 months time bhp standstill agreement expires

[phattrader1] 29/4/2020 16:54

Judging by the number of AT trades between 4.26pm and especially at 4.29pm, seems like someone wants to be in for tomorrow.

What’s the odds on an offtake agreement being signed, sealed and delivered?

Or a takeover office for 100% premium at 58p to start off?

[ntbb] 29/4/2020 16:43

Not bad at, tommorrow should be fun

[mknight] 29/4/2020 16:36

UT 29 up 8.2%

[ntbb] 29/4/2020 16:05

232,965 at 29.46 buy

[ntbb] 29/4/2020 16:05

232,965 at 29.46

[ntbb] 29/4/2020 16:04

Too busy watching the screen, nice chunky buys going through

[greenelf] 29/4/2020 15:59

The only desperation here is toiletduck trying to talk this down lol

[dozyduck] 29/4/2020 15:52

ntbb - As NM says. "The high quality is attracting those who want it".
One could say "So What ?" The PEA (and everything else including whether to built Alpala at all) assumes the mine's output will be sold ! All this news tells us it that it will attract a slightly higher price. But the absolute price depends far more on metals prices in general. And those assumed in the PEA are already seriously out of date - just as they will be in the DFS and the BFS - and in reality in the future.
The only real benefit of this development is that those smelters (who want high quality so they can make a better margin) who want to be first in the queue are willing to arrange (they don't have the funds themselves) for some financier to pay a tiny amount up front now, to help NM's desperate need for funds to keep going and perform the very very necessary preliminary work on Alpala before ANYONE will cough up the full build cost. Its why NM's trumpeting this smacks, a little bit. of desperation. Normally a miner wouldn't publish what is really just a 'move on moment - nothing to see really. Its just routine.

As for calculating NPV's and how they might (very loosely - too loosely to be of much help)determine a share price I've published the basic method a few weeks ago. The same basically as LT's. The main factpr however is that paying the NPV upfront for a project is logically and financially utterly STUPID. (Look up the definition of an NPV to understand why. And do a bit of thinking. Hint - think what an annuity is)

[ntbb] 29/4/2020 15:32

Either take over or finance news will come, it's a win win situation for us holders, this is not the time to watch or stay out imo,

[ntbb] 29/4/2020 15:10

Thanks trev1223, this explains why the smelters want these!! I think we are about to breakout

[trev1223] 29/4/2020 15:03

ntbb
As I understand, the ore is crushed to form mineral concentrates e.g. copper, gold,zinc, nickel etc. The concentrates then go to the smelter.

Obviously this will be done by first grinding ore samples down into concetrates to establish whether the ore is worth mining.

[ntbb] 29/4/2020 13:00

Guys check how many times they keep mentioning "high quality concentrates" could some expert shed a.light into.this importance of concentrates plse thanks


"SolGold Chief Executive Officer, Nick Mather commented: "The high quality of the concentrates and the gold rich nature is attracting significant interest from not only traditional financiers, but from traders and smelters, pointing to a strong outcome in the generation of a near term development funding package. Running the parallel processes of permitting, feasibility and financing with concentrates like SolGold has at Alpala, will, in SolGold's view, deliver a much quicker than expected development decision."

[yufff] 29/4/2020 12:49

Nasdaq- as MK says all views are welcome but I think with no offence intended you are in a minority of 1 !!

As your friend who is heavily invested perhaps you might wish to take on board his advise now.

[lowtrawler] 29/4/2020 12:26

Trying to be helpful here. It is the NPV which is our potential prize for alpala and we need 3bn to win it. That means current shareholders do not own the prize and it will need to be shared with whoever provides the 3bn. If you take our current market capitalisation of 0.5bn as a proxy for our share of the prize once the 3bn is added, we will own 1/7th of the NPV. This is where you have diverging views. Some will look at the assumptions underpinning the NPV and tell you that it is understated or overstated. It is very easy to make different assumptions and come up with very different NPVs. Equally, some investors will look at a 1/7th ownership and tell you that it will really by 10% or 30% depending on how they see financing develop. What is clear is that a starting valuation for Alpala should be PEA NPV (approx 5bn). If you really want to have a debate on value, suggest you structure a discussion along the following lines:

Alpala Base NPV Value = 5bn
Share to existing shareholders = [1/7th] = 0.75bn
Adjust for more minerals [33%] = +0.25bn
Adjust for PFS mining structure, other announcements [-10%] = -0.1bn
Ajust for personal view of metal pricing [+10%] = +0.1bn
Reduction for execution risk [-50%] = -0.5bn
Reduction for political risk [-20%] = -0.2bn
Reduction for timing risk [-5%] = -.05bn
Other adjustments [0] = 0
Total = 0.25bn

Add: Ecuador Prospects [0.2bn] = 0.2bn
Add: Other assets [0.05bn] = 0.05bn

Value of SOLG = 0.5bn

NOTE: I have deliberately structured this to come to our current market capitalisation.

Change anything in square brackets to reflect your own view.

I'm not going to get involved in any debate resulting from this as it is really a ready reckoner which I hope will help you each to understand where you believe SOLG is going to extract value rather than acting as an actual valuation for SOLG.

[mknight] 29/4/2020 12:19

Nas daq

Seems sensible if your investor is good .

[mknight] 29/4/2020 12:16

Level 2

28.95 to 29.00

The mm.s are ar 27.30

Hope this helps .

19734 at 28.95
25000 at 28.45

Probably tick up soon

[ntbb] 29/4/2020 12:12

Has anyone notice how these rns are attention to details?

[greenelf] 29/4/2020 12:12

So why the uck are u here? Go play somewhere else..

[ntbb] 29/4/2020 12:06

We seen it so many times when spread is this wide, breakout soon

[nas_daq] 29/4/2020 12:01

MknightI have a friend who has a large holding and he's been trying to get me to buy for years.He posts on here occasionally.I think you are right you need positive and negative views, I have no doubt solg have a very valuable asset it's extracting value out of it that is key....The world markets are crazy at the moment Apple is less than 10% off it's all time high, that is ludicrous in this environment imo.Personally I don't invest anymore as I leave it to professionals who in January had added 17% value to my fund in 2019, I haven't looked since January as I assume it's not looking pretty at the moment

[mknight] 29/4/2020 11:51

Ok this is how i see today .

Quite a few blockers on at 30p .

The mm,s will keep things ticking over until nearer the close then they will move this up taking it over 30p .

News tomorrow .

All guess work as usual with me .

Btw most of the blockers will disapair into the sunset just before the price reaches them .