SolGold Share Chat (SOLG)

There is always someone to take the wind out of my sails! I have just spent £29,212,33 in the last two days on topping up my SOLG holdings and was pleased with the price. But at 16p I could have got another 37,000 shares. LOL! If only!!

'Sol G is currently forming a head & shoulder reversal pattern on the daily chart'
I'm generally quiet here - but this made me laught so loud I had to comment - what a load of tosh !

@swazers, most of the obvious technical indicators are pointing to a weak trend in SOLG's share price.
If you were trying to offer a valuable contribution, you fell short (don't mean to be rude).
If you were trying to look smart in your deramping, you have been clumsy.
If you genuinely think that the price can fall lower, sure, given everything happening around SOLG, the price has been pushed higher and lower depending on how close the company might be to a corporate event, this is just another one of those movements, and depending on market sentiment it might hit 18p, 16p or 14p, but so equally the right good news will push it to 30p, 40p, etc....
State your agenda, this is a fairly tight and transparent BB.
Cheers, TheItalian

Swazers

If you need some training on the candle sticks BN c will be along soon , I’m sure he will be able to help you as your training isn’t going well.

No - you need to see copperpots posts to understand the context.

I'm just saying that future owners of Alpala will need to keep gov sweet with firm promises of delivery etc otherwise the gov will not sanction the purchase.

I wouldn't be surprised at a bid from the Chinese.
With the amount of Chinese money in country, maybe it would placate them a little to be assisted in acquiring one or MORE world class finds?
It is public knowledge that they are in need of raw materials.

GLA TRUE SOLGERS

DYOR DYOR DYOR

swazers, that's the third time today that you've posted the same message. Some of us here may think you have an agenda.

Got to ask the question. WHY is someone that's only been a member TWO DAYS, so intent on posting only negative comment?
I would suggest, NOT a very intelligent DERAMPER.

GLA TRUE SOLGERS

DYOR DYOR DYOR.

Brilliant chats today.

Colonel...are you saying the Ecuadorian Govt wouldn't sanction a bid from a company that was already in Ecuador...?

Let's hope we can beat Fulham or avoid defeat tomorrow, I must admit I'm not that confident after last weekend.

Sol G is currently forming a head & shoulder reversal pattern on the daily chart. We have had it consolidating along with tight levels. This is usually an indication of a drop. I think it will struggle to get over 23.22. I see it heading back to around 16p before it finds support and then starts to trend back up. I would not go long on this stock yet. It may retrace to the bottom of its medium channel. Cheers :)

Been a supporter since BILLY Bremmer 1965 about as long as I've been in this co. No technical fouls yet

As far as i'm aware the Ecuadorian gov would have to sanction any sale of Alpala and or the rest of the licence blocks so based on that any Super Major would need to reassure the gov that they can still deliver on 2025. But lets get real here... in a world that is based on forward selling the non physical product... Ecuadorian gov could easiy do a deal with IMF in 2024/2025 based on the advanced development of Alpala (which it will be advanced or almost completed etc) and I would expect they would have another 2 or 3 Alpala style developments in the making too.

So I don't see an issue to timeframes and infact, I think the IMF is likely to support Ecuador more if they had BHP involved rather than just SOLG and Franco. Super Majors carry weight both in wallet but also political sway.

Hi Colonel, for me that is one of the problems the government are facing...the timeframe. Can they risk a major flexing their muscle with regards ripping up PFS/DFS and starting from scratch again to suit their own model? I think this is why the relationship with Solg and the government works so well. Time is of the essence for the government!

Good afternoon Colonel, due diligence can happen in two ways, you can be invited in to prepare a bid. ( Happened to the company I used to work for. ) Also as you say a bid is tabled and Due diligence confirms that you are buying what you thought you were buying.

Quady,

You are aware that both newcrest and BHP both made bids for SOLG in 2016? Due diligence follows bids and nealry all offers are conditional on terms etc. Newcrest have had a director on the board for last 3 years so they are more information available to them than probably any independent due diligence process.

That all said, I think the PFS is a good bench mark for tabling offers. As for BFS... majors like BHP, Rio and others will simply rip up the PFS/BFS and create their own based on completely different structures/plans that are more suitable to super majors.

Good morning DBW, on the subject of bids, I don't believe the October 15th deadline when BHP released, will see any bid.
My reasoning is thus:
If any other company apart from BHP was going to bid for SOLG, then you have to ask yourself, why it hasn't happened up to now. Possible reasons are you don't bid for something that doesn't have a PFS and BFS. So you know what your bidding for. The shareholder register is too widely spread, and some consolidation needs to happen.
Also I doubt anyone has done due diligence on SOLG, as this is something that you would be invited to do, by the BOD.
That leaves BHP, surely is October comes and goes, with no bid, then I believe in the near term, bids are off the table.

Morning Colonel
I always thought the October standstill would approach and the price would rise in anticipation, then nothing would happen . It feels very different now

What Newcrest are not telling you is that NM may have invited them to participate in the funding but that any equity issued would require the usual lock in agreements x 2 years?

Now you might begin to understand why BHP and Newcrest would not be interested in taking on more interest. They wouldn't want to be locked in for another 2 years would they lol!

The above is an assumption but it's based on previous capital raises with NC and BHP which ended up with lock in caveats.

I think reality is... Newcrest and BHP thought they could swan along gaining cheap equity via placings and gain 30%+ interest in SOLG. Lets face it... they both tried to take SOLG out 4 years ago on the cheap although that said, it was roughly $400m in cash terms and we are $150m above that now 4 years on. So just shows how much Alpala has grown adn how the value has yet to be applied. It's at least 5 times the size it was back in 2016 so these guys best get out the chque book for $2bln minimum or just wind their necks in and stop whining.

Sol G is currently forming a head & shoulder reversal pattern on the daily chart. We have had it consolidating along with tight levels. This is usually an indication of a drop. I think it will struggle to get over 23.22. I see it heading back to around 16p before it finds support and then starts to trend back up. I would not go long on this stock yet. It may retrace to the bottom of its medium channel.

Sol G is currently forming a head & shoulder reversal pattern on the daily chart. We have had it consolidating along with tight levels. This is usually an indication of a drop. I think it will struggle to get over 23.22. I see it heading back to around 16p before it finds support and then starts to trend back up. I would not go long on this stock yet. It may retrace to the bottom of its medium channel.

“Newcrest will not be participating in the raising...."

This is where it started...

"The rift between the management of SolGold and its two biggest shareholders, BHP and Newcrest, has widened after the copper junior's latest fundraising attempt prompted Newcrest to consider removing its representative from the SolGold board.

BHP and Newcrest collectively own close to 30 per cent of SolGold, but neither will participate in a surprise $US20 million ($28.8 million) fundraising announced by SolGold on Friday morning.

The raising comes less than a month after SolGold, which has no sustainable source of revenue, disappointed BHP and Newcrest by signing up to an eight month loan with interest rates of 12 per cent.

BHP and Newcrest have publicly urged SolGold directors to raise funds via equity, arguing that approach is in the best interests of existing shareholders.

The big miners have argued equity is a cheaper source fo funds for a company that is developing a long-dated and expensive mining project in a frontier jurisdiction, than debt or offtake deals.

SolGold appeared to have met those calls with Friday's opportunity to buy more shares at a discount of about 10 per cent to the closing price of SolGold's London shares on Thursday.

But neither big miner will participate amid concerns over SolGold's chaotic approach to financing.

“Newcrest will not be participating in the raising. We are disappointed with the approach that Solgold management has taken in respect to financing the company,'' said a Newcrest spokesman in a statement.

Friday's raising came with extensive legal footnotes, appendixes and disclaimers, which made clear that only a certain number of investors would be invited to participate.
Australian residents face legal restrictions if they want to participate, and participants cannot trade the new shares prior to October 10.

BHP will be liberated from a pre-existing standstill agreement that prevents it from buying more SolGold shares within a week of that October date.

Newcrest's block caving expert Craig Jones has served as the company's representative on the SolGold board, amid expectations that SolGold's flagship Alpala deposit will be a block cave if it is ever turned into a mine.

Newcrest indicated on Friday it may relieve Mr Jones of the fiduciary and legal responsibilities that come with being a director of SolGold.

''We are considering our position with respect to our representation on the Solgold board,” said a Newcrest spokesman.

The fact BHP and Newcrest will not participate despite publicly urging SolGold to raise funds via equity highlights the gulf that now exists between management of the copper developer and companies that control almost 30 per cent of its register.

That combined stake will almost certainly shrink through dilution in the wake of Friday's fundraising, which SolGold said created an opportunity to'' broaden the Company’s shareholder base through the introduction of new investors''."

Indeed the 70s was a bit of a scary time for me watching liverpool v leeds I got seriously injured and I was only 14 ,glad theses things are in the past violence ,anyway when do we think we will see an update on cgp offer now NM mentioned it ?

Since when has SOLG ever hit a pre set deadline? There is no chance that PFS will be ready before Sept 30th and NM knows it. Covid-19 combined with Ecuador issues will ensure this PFS is delivered in October at the earliest. My guess is that it likely arrives in November or December. But that's a sideshow in my opinion. What happens post October 15th and BHP's lock down release is all that really matters in 2020. That said, I must say I am getting excited about the exploration phase which is now underway. Looking at other stocks like GGP, investors seem to be getting very juiced up on nice grades/drill results whereas a year or two ago, most were just ignored. If NM and team can deliver some more holes that rank in the top 30 best porphyry drill holes ever drilled then surely it's time to get excited over the next Alpala?

The best bit is that we have potentially 13 Alpala look alikes and in NM's opinion (and presentation last night) there are signs that Alpala might end up being the runt of the family!

I believe the share price will spring back to the 30's once signs of a new Alpala begin to come through. Not a cert and risks are present but the regional geology certainly supports these kind of world class systems.