Solgold Share Discussion Threads

[jarega85] 08/9/2020 08:02

I think 27p could be broken this week

[pecker1] 07/9/2020 18:45

FWIW, my biggest concern is not about the PFS, Financing and DFS et al.

It is all about the drill permits or, more precisely, the lack of them. The whole regional strategy depends on the timely application and receipt of the necessary permits ( including water usage etc). Without drill permits, the strategy falls apart.

It always seems that they are just about to come but ... . All the while we are shelling out for several hundred exploration staff. As mam fach says, nobody believes. With the fall in oil prices, the Equador government has every incentive to facilitate progress by the miners. Yet where are the permits for Rio? It comes down to credibility and so far the pace is glacial.

[lowtrawler] 07/9/2020 17:14

These discussions recur on a regular basis. Like all investments, we wouldn’t be here unless we thought SOLG was undervalued. Selling Cascabel to fund regional exploration is one solution and is actually the direction CGP are trying to force. As long as we own a Tier 1 asset, there will always be speculation of a bid and so selling Cascabel takes away that speculation. That is, until we find the next Tier 1 asset.

When you step back and look at the bigger picture of SOLG in Ecuador, you see SOLG acting as if they are a major player, not a small explorer. They have invested in the people, infrastructure, environment and politics. It is clear that they see their investment in Ecuador as transformational for both us as a company and the country itself. If they sell their first major find to the highest bidder, it will undo a lot of that activity and they will lose trust. For these reasons, I don’t believe Cascabel will be willingly sold.

Bid speculation has always surrounded SOLG but Nick controls 20% of the company. This means any bidder is going to have to pitch their bid at a higher price than would be normal. With Alpala as the only proven find, it would be difficult for any bidder to justify the premium to their own shareholders. A second find would alter that perspective. If Porvenir turns out to be another Tier 1, it will be difficult to avoid a competitive bidding war for SOLG and at prices much higher than Alpala alone. At this point, Nick may consider selling one to pay for the other and keep SOLG independent.

Ultimately, I expect more value from Alpala to be reflected in the SOLG price as we progress through PFS, Financing and DFS. In my view, providing visibility on long-term financing proposals together with the PFS will raise the price to 40p. Post DFS and commencement of the mine build, 60p and after production commences, 120p. Discovery of other significant assets will add additional value. Proving the regional exploration assets is the key to unlocking value in SOLG and not sitting around waiting for a bid.

[r9505571] 07/9/2020 16:25

This looks like a sitting duck. Fair chance BHP is gonna take this out next spring according to the article in the ST!

[mam fach] 07/9/2020 16:07

Agree entirely. Excellent summary of the situation. Been of the same opinion selling Cascabelle is way forward. GLA

[rougepierre] 07/9/2020 16:06

Good points lefrene...

On the one hand I'm quite encouraged today by the solidity of the share price and the narrow spread...

On the other hand I remain convinced that the share price is being held down...

Lots of 'signals' going through at 26.825p...?

AIMHO as usual...

[lefrene] 07/9/2020 16:01

mam fach, although Solg has not been on AiM for years, it has still behaved just like an AiM business, forever talking up prospects but not being seen to deliver very much. Simple to say I know, and I do believe that NM is doing his very best to deliver value here. Will he get the PFS out before BHP come out of Purdah? Going by that article from rougepeirre, and the 13 sites thought to be similar to Alpalla, there's a possible $50 billion of value here. Not that anybody is going to fork that out in one bite, but selling Cascabelle for say $6 billion would provide capital a plenty to start mining one of the '13', and underpin the foundations of a big league mining house, which I suspect is the ambition of NM.

I've held my tickets to this circus for far too long, but once again we seem close to the show actually starting..................maybe.

[mam fach] 07/9/2020 15:48

Simple. We are at 26.65 because no one believes. Still time for those who believe to top up. But do it soon. Time is running out and this is absolutely the last chance. IMHO

[mknight] 07/9/2020 14:35

Makes you wonder why we are at 26.65 p

Difficult to understand .

[rougepierre] 07/9/2020 14:32

Aye LT its all subjective but those figures are what was actually paid, rather than conjecture or PFS valuations...

E.g. what is the true value of Alpala...NPV...average ounces in the ground...or the what FNV would pay for a 100% gold stream...?

Its sure as hell way more than the whole of SOLG is valued at right now...

And therein lies the rub...

SOLG currently valued at £550 million, but to a buyer, much more than that...50p/share...£1...£1.25...£2...£5...£10...

The average life of gold reserves for all those companies in the article is 19 years...

Alpala has a LOM of 55 years...so far...

[lefrene] 07/9/2020 14:15

rougepierre, thank you for sharing, so Alpala alone is worth $5.4 billion alone and that's without the copper! Add another 13 known sites and another 60 unknowns, and Del boy will have to take a sit down. :¬)

[lowtrawler] 07/9/2020 14:12

Rp, round averages hide a multiple of sins. The article even shows a range from $8.02 and up. We have much better information on SOLG to create or own valuations than using those sort of averages.

[rougepierre] 07/9/2020 13:45

Apparently there's a buyer in the market...s/o got bid 26.5 for 150k shares...

Meanwhile you'll love this...average acquisition gold price paid $245 an ounce...

[mknight] 07/9/2020 12:27

Seems quite strong today . Can we break 27p ?

[lowtrawler] 07/9/2020 12:24

The MMs look happy to keep the price near top of its recent 24p - 27p trading range despite low volume. Good sign, let's hope it lasts.

[lefrene] 07/9/2020 09:44

chavitravi2 thank you, but best not turn this into yet another brexit board, I'm sure we're all sick to death of it.

A tiny tick up this am, one hopes as ever that it continues.

[chavitravi2] 07/9/2020 09:25

I like that Lefrene, nice one. l.o.l

[lefrene] 07/9/2020 09:09

LT, oh well best take a truck over to France then and harvest the livestock from all the French fields, since it seems that UK waters belong to the UK, but the fish in those waters are "another matter entirely"! That would be a level playing field then.

I suspect the "fragrant M. Barnier" might start shouting indignantly, don't you?

[lowtrawler] 04/9/2020 16:48

The drilling is outsourced. I believe we collate the drill samples, send them to the lab and review the results. I'm sure a lot of labour is used for site clearance and security but 700 does seem OTT.I won't have a bad word said about the fragrant M. Barnier. Boris on the other hand.....

[mknight] 04/9/2020 16:42

I just think its slow going .

A good question for NM would indeed be what are the 700 employees actually doing .We are paying their wages and for the life of me we dont seem to have anything to show for it other than a few coffee shops a bakery a seed house and a very happy community.

Sometimes its hard to think long term and how important it is that the locals are happy but we need to push ahead .

We still dont have the permits for Rio Amarillo either .

[lefrene] 04/9/2020 16:23

I believe things don't really happen until all are back from their summer hols, so I assume from next Tuesday the markets generally become more active. Hopefully Solg has some worthwhile info to put out. I do wonder just what the heck 700 employees are actually doing for us, because so far one doesn't feel that much is happening on the ground, although no doubt keeping so many people employed helps from a PR aspect.

Solg never seems to get ahead of the curve, perhaps the DFS following swiftly behind the PFS might improve sentiment? Things are difficult enough, but then throw in CGP antics, and it feels like we have our very own M Barnier flouncing about, distorting the facts to suit a selfish argument!

[lowtrawler] 04/9/2020 16:13

Over 3 weeks since the la Hueca regional exploration update. No official announcement on Porvenir. I expected at least some rock saw sampling at our non drilling sites. Nothing.Are they saving information for a bumper reveal?

[lowtrawler] 04/9/2020 15:10

Labor Day, Leger Day...... It's the silence before battle. So much happening in the next few weeks. Everyone has assumed their positions and waiting for battle to commence. The MMs are doing their best to generate interest but they just can't get any volume.