Solgold Share Discussion Threads

[lowtrawler] 07/7/2020 13:43

Arcadian, perfectly put.

[arcadian] 07/7/2020 11:41

Low

We await the news of finance and drilling when we can share the sentiments of Isaiah

"How beautiful upon the mountains are the feet of him that bringeth good tidings"

[lowtrawler] 07/7/2020 10:39

Much as we might try, direct comparisons with other mine valuations can be very misleading, particularly those at different stages of development. Once up and running, Cascabel will be worth around USD 8bn (5bn NPV + 3bn to build). However, it is not clear what percentage of the value will end up with current shareholders. There will be dilution due to the 3bn cost to build and so current holders will only end up with part of the 5bn. If the FNV deal were repeated for the full 3bn cost, shareholders would end up with 70% of the 5bn less 15% owned by CGP, so about 3bn. You then need to make risk deductions due to the state of development etc. Overall, it would be difficult to argue that Cascabel should currently represent any more than 1.5bn in the SOLG share price. This is still a lot more than the current price but the real value is in our other development opportunities.

[fsawatcher] 07/7/2020 10:11

ere .... ave this then and x it 5 times while singin i am a chocolate hobnob


Newcrest Acquires Fruta del Norte Stream and Offtake Contracts For $460M; Eyes Cash Inflow From This Tier 1 Mine
April 29, 2020 Editor

Newcrest Mining Limited (NCM:ASX) announced today that it has signed an Acquisition Agreement with funds affiliated with Orion Resource Partners and Blackstone Tactical Opportunities and completed the acquisition of the gold prepay and stream facilities and an offtake agreement in respect of Lundin Gold Inc.’s Fruta del Norte mine (the Facilities) for $460 million.

The acquisition was structured as a purchase of the shares of the companies that hold the Facilities. All references to $ in this document are US$.

Key deal terms
 $460 million cash consideration for the shares of the companies that hold the Facilities

 The book value of the Facilities as at 31 December 2019 in the financial statements of Lundin Gold Inc (Lundin Gold) was approximately $552 million, which implies a book value ratio of ~0.83x

 Applying analyst consensus long term gold price of approximately $1,400/oz to the projected life of mine production, the estimated yield on the gold prepay and stream facilities is approximately 6%

 Applying a spot gold price of approximately $1,700/oz the estimated yield is approximately 11%

 Newcrest, as a lender under the Facilities, will receive cash flows from the Fruta del Norte mine, with approximately 34% of free cash flows from the mine estimated to be directed to service the Facilities over the next 5 years, ahead of Lundin Gold equity holders, assuming a gold price of $1,400/oz

 Newcrest acquires a customary lender security covenant package, which includes a requirement for Lundin Gold to seek approvals from the senior lenders and Newcrest as subordinated lender under the Facilities for any material amendments to the mine plan, financial model and operating budget

Newcrest Managing Director and Chief Executive Officer, Sandeep Biswas, said:

“The purchase of these gold prepay and stream facilities and the offtake agreement increases our direct exposure to the cash flow generated by the Tier 1 Fruta del Norte mine, in-line with our stated growth strategy. The acquisition is expected to be earnings accretive with the gold prepay and stream facilities expected to provide Newcrest with economic exposure to approximately 400,000 ounces of gold from the mine between 2020 and 20263. With gold prices at the levels we see today, Newcrest expects to receive significant cash flows which will rank ahead of Lundin Gold’s equity holders.”

About Fruta del Norte
Lundin Gold owns Fruta del Norte, which is a high-grade, underground gold-silver mine located in south-eastern
Ecuador. Newcrest currently holds a 31.85% interest in Lundin Gold. On 20 February 2020, Lundin Gold declared it had achieved commercial production by reaching an average throughput of 70% of mill capacity for a period of 90 consecutive days. On 22 March 2020, Lundin Gold announced the temporary suspension of
operations at Fruta del Norte due to COVID-19 related concerns. For further information on the terms of the facilities, including event of default provisions, please refer to the facility agreements as filed on SEDAR (www.sedar.com) under Lundin Gold’s profile.

[greenelf] 07/7/2020 09:12

Sorry for the tone FSA. Just tired of OTP claims. NAV is also a spurious figure but does give an indication of ballpark.

[arcadian] 07/7/2020 08:44

In your opinion are his "facts" wrong or is it his conclusions that stagger you?

Surely deserves better or at least kinder treatment.

[greenelf] 07/7/2020 08:04

Not sure what he has been smoking.

[greenelf] 07/7/2020 08:03

Get a new flag packet.

[fsawatcher] 07/7/2020 07:29

newcrest paid $460 million cash for 30% production from Fruta del Norte but it capped at 2.5moz

So minster say Cascabel got 5 x more but we know it got 22m gold so 10 x newcrest $460m = $4.6bln

but that 30% take off innit

so we looking at cascabel at $13bln value on 85% interest

13 billion

less finance 3bln

$10bln me fruit bats.... $10bln and newcrest fink they got a good fruti norte deal


no wunder solg share price gonna go up viagra styles

$10bln value that be me fruit cakes

[goodgrief] 06/7/2020 14:10

A promising strategy https://stockhouse.com/opinion/independent-reports/2020/07/02/aston-martin-solgold-tui-where-to-put-money

[rougepierre] 06/7/2020 13:36

Copper still with vast potential....at $2.77 its broken out of its 2.1/2 year downtrend...next target north of $2.80 and off to the races...

[lefrene] 06/7/2020 12:58

At least gold is going up even if this dog isn't, and copper too is responding to a supply squeeze.

[arcadian] 06/7/2020 08:48

I think I`ll stick with the 22 million oz.

[johncasey] 06/7/2020 06:55

Latest Articles
MININGMAVEN on: 02 July 2020
ECR Minerals – right at the heart of Australia’s second gold rush (ECR)
The goldfields in Victoria, South Australia are grabbing the world’s attention for the second time in history.

Upon the first discovery of the precious metal in the 1850s, we saw this desert area become a major international mining centre.

As you can probably imagine, technology has moved on from the hand-dug pits, wooden ladders and dynamite that marked these times.

Today, 3D-mapping, drone-based mineralogical studies, and vast national resources devoted to seismic, geochemical and geochronological surveys are unearthing a deeper, second layer to Victoria’s gold rush.

The Geological Survey of Victoria now estimates that 75 million ounces of high-grade gold is currently sitting under the earth in Australia’s most southern state.



Tax no dampener on gold rush

The scale of finds being made in Victoria are so enormous that the local government is even keen to cash in.

In January 2020, it announced that mines recovering more than 2,500 ounces of gold a year would be subject to a 2.75% tax.

But this has done little to dampen exploration interest.

Not least because the state government has been handing out multi-million-dollar grants to mining companies to get their projects underway.

What the tax development does mean, however, is that the cost of mining an ounce of gold has risen to the point where only the most well-capitalised projects with licenses to boot will succeed.

Enter ECR Minerals (LSE:ECR).

ECR has more than a few strings to its bow in Australia.

The firm’s main area of interest is the Victoria boom.

In Bailieston and Creswick, ECR boasts two enormously exciting and prospective Victoria gold projects.

Bailieston is found in the major orogenic Lachlan Fold Belt, while Creswick sits on the Dimocks Main Shale that extends to Ballarat then miles to the south.



Bailieston’s location within Victoria

Recreating Kirkland Lake’s success

Kirkland Lake Gold (TSX.KL) (NYSE:KL) has become the poster child for success in the current wave of Victoria gold interest.

In the last five years, the firm’s share price has exploded 2,263% thanks to its ownership of the Fosterville Gold Mine.

This has made the company and its investors rich by any standard.

Fosterville is the largest gold producer in Victoria, increasing annual gold production by 315% between 2014 and 2018 while also seeing a 540% jump in gold head grade from 4.6g/t to 24.8g/t, according to the national geological survey.

Operating cash costs of $130 to $150 per oz are laughably small for a world-class deposit, and the spot price of gold hitting new eight-year highs of $1,759 per oz has done nothing to dampen enthusiasm for the precious metal.

ECR’s key tenement of Bailleston sits just 18 miles east of Fosterville and on the same rich seam of gold that has made millionaires of Kirkland’s investors.

Trading volume has started to pick up in ECR since it won licences at the start of 2020.

But with wider equity markets consumed by Covid-19, attention has been diverted away from a potential goldmine.

With the ECR share price trading in a range at around 0.7p, there is huge upside potential to be had.



The Blue Moon prospect at Bailieston, Victoria

Firms flocking to Victoria

ABC Australia reported in May 2020 that more than 80 mineral exploration applications are now underway in Victoria.

And it is the UK and Canada-listed companies that have got there first.

Top names include Power Metal Resources (LSE:POW), Red Rock Resources (LSE:RRR) and Fosterville South (TSX.V:FSX).

The latter of these has this week spun off two of its gold projects at Avoca and Timor in Victoria — bought from none other than ECR — to create a new company, Leviathan Gold, with FSX shareholders receiving shares in Leviathan on a one-to-one basis.

Shares in FSX rose by nearly 30% to an all-time high of CAD$4.35 on the news.

ECR’s sale of Avoca and Timor to Fosterville South means that – as well as an upfront $500,000 to fund its Bailieston and Creswick exploration – ECR will receive $1 for every ounce of gold discovered, up to a maximum of $2,000,000.

Multinational miners are now converging on Victoria, but they have been beaten to the punch to by their nimbler rivals.

As a relatively small AIM-listed exploration, the results here could be a kingmaker for ECR.

[arcadian] 04/7/2020 19:29

Thanks POB. It makes good reading.

News that the FN deal is done will be even better and a sure sign that NM means business re the development of world class assets. The price of copper is rising steadily and will no doubt be the backbone of Solg but such are the developments on the world stage, dollar weakness etc, that the current 22million ox of gold and the prospect of more to come must raise the stakes all round and alter everyone`s view of Solg`s value.

[pob69] 04/7/2020 13:32

I suspect the govt is currently focussed on dealing with a tailings spill in Azuay operated by Austro Gold


Here though is an interesting article by Vice President Andrew Taunton Solgold SOLG $SOLG $SOLG.L $CGP #cascabel #ecuador

"...But we're going to start first at Porvenir to try to finish very quickly to see if we come across a deposit or part of one. We have high expectations here because there's evidence on the surface."

"...There they're preparing the camp and teaching the communities how we're going to work, all linked to the protocols for COVID-19. We also hired a helicopter company to move the drill to the drilling area."

[jimsyone] 04/7/2020 11:57

Goldman Sachs - Berenberg - Peel Hunt - Liberum - Cannaccord give the top fund managers picks

[fsawatcher] 04/7/2020 11:18

fount or font ... that os the question arcadian

or fiddleywiddlepiddlysticks

peeps filter me if they wanna but it like clearin out clothes from wardrobe.. you soon miss things and wish you hand't given them to oxfam shop that used to be a woolworths years ago

i miss bhs & woolworths, they woz great for sellotape and sweets

sherbet herbet dips

a ramadammadoooozie!!!

[arcadian] 04/7/2020 10:54

I suppose I was hoping for something a little stronger than suspicion from


Pob .............that fount of all things Ecuadorian. He never sleeps.

[greenelf] 04/7/2020 10:33

I suspect it is finished and they are writing a report for the board.

[arcadian] 04/7/2020 09:28

I think that FSA must have enormous fun composing his dissing of Ronald Ridout but sometimes under pressure his face mask slips.

On a practical note I`m wondering if the FN schedule includes a meeting with the mining ministers in Ecuador to reassure them that the project has strong political backing.