Solgold Share Discussion Threads

[mknight] 16/5/2020 11:27

What DD forgets to say is that if 100 million was raised at todays equity price it
would gave cost approx 400 million shares of dilution to the shareholders of 20 percent of the company.

it would also given BHP and Newcrest a further 10 percent meaning if they decided to jv
it would take solgold out of NMs hands .

[dozyduck] 16/5/2020 10:34

pparekh - Its sponsored by the streaming cos - so they would say that, wouldn't they ?
The comments you point to, to my mind are rather muddled. The key point is that for every $100m Solg gets now, it gives up 2.5% of the NPV (shown in the PEA sensitivity table.) It can't go on at that rate. I've said before that to raise the $1bn the co has suggested will halve shareholders' NPV. Streaming and pre-offtake deals are good to kickstart a project and begin to tempt in other funders - but far too costly beyond that.

[mknight] 15/5/2020 21:47

Tmx 124000 at 32.5p close .

Why dont they buy at 26.5p in London ?

It really is madness . Or is it ?

Stupid or not it keeps happening .

Were the 2 lots of 300k on the seller side someone trying to get out or were they mm,s or a different party trying to hold the share price back

If you want to sell would you put 300k blocks on the sell side ? Why not put 100k who knows .

My gut talking again is telling me its going to rise again .

If thats a ramp so be it ..

Time will tell .

[pparekh20] 15/5/2020 20:21

Hey guys, thought i would share a mining video which talks about Solgold and the Franco Nevada deal in a positive light.



They talk about Solgold at 11 mins, 50 mins 54 mins

Have a good weekend!
Pazzy

[mknight] 15/5/2020 16:39

My daughter is a crack at golf ..

Probably pro standard handicap 2.3

Turned 13 in March will be plus by 14 ..

She has a good teacher .....me 😁

[rougepierre] 15/5/2020 16:22

Three consecutive days golf frees up the mind...

Not only is Gold flying...silver is flying faster...happy days...

[lefrene] 15/5/2020 14:09

At least gold is going up even if solg isn't.

[nas_daq] 15/5/2020 12:51

More ramping with unsubstantiated facts as usual from mkrampynight....readers beware

[dozyduck] 15/5/2020 12:06

Perhaps someone could ask a question at the seminar (I don't particularly want to for various reasons) re splitting off the exploration into a new company. It should be easily done, with shares issued pro-rata to existing shareholders. Apart from the 'prospects, it would have little in tangible assets at present, and could raise new funds (at whatever share price doesn't really matter) - enough to kick start exploration. Its sure to be popular.

[lowtrawler] 15/5/2020 11:13

Not challenging the numbers rp. I just don't think they can use any of the 15m for non Cascabel expenditure?

[rougepierre] 15/5/2020 11:07

Yes but they've got cash in the bank that more than covers the $3.67 million. I've only copied the exact numbers from the MDA

[lowtrawler] 15/5/2020 10:52

Rp, I thought the funds they raised could only be used on Cascabel?

[rougepierre] 15/5/2020 10:46

Dozy...your separation suggestion makes total sense...

[rougepierre] 15/5/2020 10:45

Lowtrawler see my note above...they have the $15 million already...

[rougepierre] 15/5/2020 10:44

MDA continued...

SOLG has the first $15 million in the bank:

"Concurrently with entering into the NSR Financing Agreement, the Company and Franco-Nevada have also entered into a US$15 million BLA of immediately available funds as an initial advance prior to closing the NSR Financing Agreement. The full amount of the advance (net of legal costs) was received by the date of the lodgement of this report, 14 May 2020."

Scout drilling permits are agreed for Blanca, La Hueca and Porvenir....

"A drilling program has been designed that awaits permitting." for Rio Amarillo...

"Following excellent results from initial exploration at Rio Amarillo, Chical, Sharug and Cisne-Loja, scout drilling applications are being prepared to test these projects."

"Aside from Alpala and Aguinaga, the Cascabel concession has defined several other untested targets, namely: Trivinio, Moran, Cristal, Tandayama-America and Chinambicito. It is anticipated that some of these will be drill tested in due course."

Planned expenditures in Q4 (to June 30) at Cascabel $12.97 million; Regional projects $3.64 million...

"The Company had a commercial agreement with Samuel Capital Ltd (“Samuel”;) for the engagement of Nicholas Mather as Chief Executive Officer and Executive Director of the Company. For the nine months ended 31 March 2020 US$300,317 was paid or payable to Samuel (2019: US$432,246)."

So he's cut his salary...well done Nick! Now buy some shares...

Enjoy!

[arcadian] 15/5/2020 10:44

" We are in blood so stepped...…230;….."

Webinars are held for a purpose and not postponed without good reason so I wondering what is afoot in this struggle on the world mining stage with a well informed and financed audience eager for the main character`s opening lines.

[lowtrawler] 15/5/2020 10:39

Another takeaway for me is, unlike my view yesterday, Blanca does not appear to be their next target. They haven't yet set up any drill camps for Blanca.Also, although the Franco-Nevada deal will help, they pretty much need a funding injection now and so we should hear something on that imminently.

[dozyduck] 15/5/2020 10:33

LT I don't think anyone, let alone banks, would provide loans for exploration. Maybe NM should restructure the co into Cascabel and Equador. Then he can raise equity for Ecuador separately - which is the normal way to finance early stage exploration. That has been the obvious solution from way back.

[rougepierre] 15/5/2020 10:27

Points from MDA...

Nadine comes from BHP....

Theres been no drilling at Alpala for 3 months...

"The demand from traders for the Alpala concentrate was significantly in excess of planned production volumes and all received submissions were an improvement on the commercial assumptions relating to off-take made in the PEA...

"Current assets overall decreased by US$35,123,377 primarily as a result of a decrease in cash and cash equivalents of US$37,336,004 as a direct result of funding the exploration programs at the Company’s flagship Alpala project and the 13 high priority gold and copper resource targets in regional Ecuador. This expenditure was funded by the share issue in December 2019.

$14,221,996 was spent on regional exploration other than Cascabel in the 9 months...

Total Measured, Indicated and Inferred Gold in Alpala alone now has a gross value of $41 Billion...

"The Company has to date received 10 qualifying Expressions of Interest, with further submissions expected following the easing of COVID-19 restrictions. The offtake terms, while non-binding, are sufficiently detailed to give the Company confidence that binding agreements can be reached during forthcoming negotiations.

Demand for Alpala’s concentrate from traders was significantly in excess of planned production volumes, testament to the inherent quality and value of the material. Furthermore, the terms of the EoIs were an improvement on the assumptions outlined in the PEA, some significantly so. Nevertheless, the Company expects further improvements in the final agreed off-take terms. In particular metal payabilities, precious metal refining charges and payment terms are expected to be finalised on better terms than previous conceptual assumptions.

The Company has also received material offers of funding in exchange for offtake from a number of traders. These include the provision of both short-term and longer-term capital with proceeds available for studies, mine construction and cost overruns as well as working capital during ramp-up. The Company is now ranking and selecting a short-listed group of traders with a view to finalising offtake agreements as well as funding support.

[rougepierre] 15/5/2020 10:06

The operational cashflow for the three m months was less than $4 million, but there is always this big cash expenditure of:

"Acquisition of exploration and evaluation assets"

$15 million this quarter...what is that? Is it drilling costs...?

[rougepierre] 15/5/2020 10:00

That...mk...is the $1.8 billion dollar question...(do the math...)

Dozy...what's your view if the Ecuadorian Government gave some sort of guarantee or concrete commitment in the funding agreement...?

[lowtrawler] 15/5/2020 09:59

DD, I reckon they are unlikely to make any longer term funding commitments for Alpala in the near future (unless they have the ulterior motive to flush out a bid or act as a poison pill). They have the money they need through to BFS and will get a better deal at that point.In terms of funding the other projects. I think it is almost certainly going to be some form of debt funding. I'm unclear how much funding they'll need for these but they likely need to do something on this front in the next couple of months.Would you agree?

[mknight] 15/5/2020 09:49

It looks like it will all unfold within the next few weeks .

Will the bids start coming in or will INGO raise the monies needed making bids unlikely .

[dozyduck] 15/5/2020 09:32

I see from the MD&A that the co is still (as at end March ? - or still now ?) 'ranking' and selecting a short list of traders, some offering funding. Don't know whether they might be the further funding NM is talking about. If so will be greeted with the same sniff as was FNV. The only 'funding' promise will impress the market, I think, will be from a major bank or investor promising either debt or equity 'at a fair price' (but will have to be conditional)