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Last night...
I was checking the share price and it was 10p...then it was 21p..then 43p...
And I thought how has this happened...
It was a FOMO feeding frenzy in SOLG shares...
So I thought..its just a dream...
But how could it happen...?
And then it came to me...
Read on...
At last needy someone who posts the truth and love the barbed nature of your post it adds to the good nature and narrative of this bb. Hope this hits 9 p today otherwise you’re blooming right we are all fooooooked 🤷♂️
RJ. I read with incredulity your daily update on the price of gold.
in 2022. solg sp 37p
today 8p
can't be bothered to collate the rise in gold to the drop in share price
I hope the price of gold doesn't rise to much more. we've only 8p to lose.
we're many years away from production. the price or gold today means. S F A
RK, I'll say one thing, you've got a vivid imagination.
US doing its utmost to sell the story they are doing well, but hiding many facts that they just brush over, gold has to go quite mad soon.
Anyway have a peep at this, see how they hide employment rates, just waffle
https://www.youtube.com/watch?v=IUWnkU9EoIU
Atb
The regional exploration targets are worth next to nothing until we monetise cascabel. Then they’ll be worth something as the precedent has been set ; the original business model I believe ...
Why would anyone put money into exploration at the present time while a tier one is on the shelf ?
Son asset valued at nothing is retained at 20% of a new valuation of £50m for the same thing
Why wouldn’t they just buy into solgold and get all of cascabel and all of the thing that’s worth £50m?
You are away with the fairies. Old timer’s disease setting in?
Dollar dropped like a stone...gold bounced over 3% in 4 hours of trading...more to come...
No vision add...Newco gets £10 million (20% x £50 million) from the sale of 20%...
Inter company loan to the parent, i.e. SOLG, pro tem (because you can't start a drilling program instantly).
£10 million is $13 million...6 months worth of operational cashflow, added to the $10 million SOLG still has left...
Short term cash worries disappear. Share price bounces.
Market value of Green Rock through IPO reappraises the value of SOLG...SP bounces further...
Prospective bidders forced into action...
Final auction closes at £1...job done.
QED
So...gold going bonkers...Copper and silver bounced as well...SOLG set to break 9p tomorrow...?
2210 at the mo, all helps
I suggest you buy level 2 or listen to all of what I said not part of it, you thick twat.
I said the activity was recent as in last few months leading up to the end of feb rebalancing and it’s been absent on large volume days of late
Hasn’t been years it’s been months. It’s got nothing to do with bed and isa which happens at slightly different execution prices owing to the face exactly £x is sold from a trading account and bought immediately (or in the case of ii when I did it, 9 working days) back into an isa
This is blocks of shares of exactly the same volume on both bid and ask, all moving in a coordinated way with identical time stamps during the day. In other words the same none maket maker player is acting as Ax
People wash there shares back and forth, as you call it. And have done for years in March in the uk.
They sell and rebuy them into an isa or whatever you call it. For tax purposes.
Have done for years. It's well documented.
But that doesn't make a manipulation story, so we will ignore it.
Gold heading closer to $2200oz level.
Looks like Fed Reserve likely to do first rate cut in June. Expect at least 3 cuts before US elections as that's how the political illuminati like it.
BoE likely to cut first imho as early as May and cut again before UK elections. One thing you can be sure of these days is when elections are on... it's happy clappy time for voters.
Come on Bob... no need to dally around now... Mr Liu has feet under the desk long enough now... just get the news out.
Cash pile must be around $7m or $6m right now.
Bob clearly has a plan as no one in their right mind would leave it that late. Even Dazza was onto sorting funding when SOLG had around $20m left. I don't think I've ever seen SOLG with a cash balance this low... even Mather got it sorted in timely order.
Kat, what you refer to in the 80s happens all the time in the present day. Many businesses are valued less than the sum of their parts. That's where the likes of Nelson Peltz and the private equity guys get involved and buy and breakup. Sometimes fairly, sometimes through grim financial engineering.
I think you could argue that SOLG could potentially spin off its regional portfolio (which is of course worth something) to make the investment case at Cascabel clearer (though isnt this what ENSA is for?). But it certainly wouldn't be a means by which we could return cash to shareholders, and it would certainly be dilutive as per addicknt's post below.
Stop poking holes in his fantasy scenarios…. It must be so disheartening
NMM - yes I get the idea in theory but nobody’s interested in solgold and one of the major reasons is nobody knows about it. How would spinning out even one if the partially explored properties help?
If it did, why not spin out cascabel?
The idea you can raise masses of money without dilution in a non revenue raising early exploration asset is ridiculous. When you IPO something like the post office it has a clear value. When you IPO something that’s 10 years away from revenue even if tens or hundreds of millions in expiration proves it’s worth something you’ll get nothing
It’s akin to setting up a new solgold with zero funds
1984 - generally agree.
But capitalised expenses for the regionals are running at c$108m. A large amount of that will have been spent at Porvenir.
So potentially an IPO of Green Rock would more accurately reflect the value of the Porvenir exploration and MRE.
I think the points are that an IPO would require some capital, and also result in some dilution. redknight was arguing neither would be the case.
How about you both being correct, potentially. Let me try and explain.
Sentiment drives SP, yes ? Value is simply number of shares x share price. OK, investing 101.
If the assets are split in, say, two ways, and this split is seen by the market as being positive ( i.e on one side, the existing discoveries can be sold as freestanding, whilst the other prospects can be kept or sold separately to another party which is interested in them, then the accrued value can be unlocked to create an overall gain in value. )
This has precedent, as anyone who watched Wall St. knows, when, during the 80s, the US stock market was crazily depressed and valuing companies at less than their asset value, so takeover and asset stripping made money for those who bought the businesses at stock market prices, split them up and sold them off in their component parts.
Gordon Gekko was not a figment of Hollywood's imagination.
A similar thing, during a commodities sector depression, could be possible.
So both views can be right. Who knows, until it has been tried ?
Blue Horseshoe loves SolGold ? (tic)
RK, let's put the initial dilution argument one side. If we followed your idea, and let's be generous and say we can persuade the market that newco has a value of 50m ( currently it ascibes no value). So newco has a quote and we now only own 80%, but it has no cash. It then raises 50m for exploration. I guess you can see how we end up owning a minority holding?
So the question is, how does this derive any benefit to existing shareholders and how does it accord with the stated intention of providing us with a cash return?
He’s trying to say that tenements we’ve spent next to nothing on will suddenly be worth £15m if they’re moved into a company and IPO’d
Cascabel is worth money because it’s been explored
The untapped assets are worth almost nothing because they haven’t. You can’t “IPO” something that’s worthless and generate worth.
It’s not the post office or aston Martin you’re offering to the public on a listing
This guy is on a level of stupidity of his own. And I say that having locked horns with Quady
Is a better description 'diluting but value-creating'?
redknight makes his points with such confidence, and disdain for other views, that I genuinely question my understanding of what he is trying to say.
Addickt...its non dilutive for SOLG because its a 100% subsidiary...
Green Rock Resources might have zero liquidity until IPO funds come in but it weould be floated on the back of Porvenir, Chillanes, Cisne Loja and Timbara...
Oh and BTW I've IPOed a plc from start to finish and been GFD afterwards...I also prepared a prospective £860m IPO...
It feels as though we are in control of our own destiny now and it's been a long time coming. With Noboa on side we should be able to determine the best partner for Ecuador and shareholders. Selling more than ENSA seems unlikely unless there is a keen bid. Bob get swinging 🙂
Well said add. I’d have left the final four words off
Let’s take this thing worth nothing and move it over here and get £15m for it 🤪🤪🤪🤪