SolGold Share Chat (SOLG)

Quady,

Of course it's mad. That's the point. If some on here think the Franco deal is going to be scuppered by BHP or others, then they are indeed 'mad'.

It's not going to happen. It's a good deal by NM and Franco and can be scaled back at later date in terms of SOLG buy back rights.

It's now just about getting those pre development issues sorted and $100m is quite a decent sum so should allow for some speedy solutions.

Quady do you mean like jp morgan did to sxx so anglo america got them for peanuts?

Good morning ColonelDrake, always enjoy reading your posts, but your last one is mad. I think you must have been on the Whiskey, while watching Pretty Woman. Where Richard Geres character holds up a deal during appropiation, so they run out of money. If Franco did something like that, their reputation would be mud, and they would be finished. No one would deal with them.

I read the reports and the only large holder that was clearly not happy was Newcrest. I think the reporters just threw BHP's name into but I couldn't find a quote from BHP saying they were unhappy or words to that effect. Could you post their quote as I must have missed it.

In terms of some on here thinking the large holders might be having a rethink on this... just bear in mind the potential scenario of BHP calling Franco and saying.... find something you don't like on site visit and we'll then see you ok.. words to that effect. Dirty business goes on and that would be put NM in a corner for sure. So if you think BHP want SOLG and want to play dirty to get them... then why Don't BHP just work with Franco and get the Stream cancelled?

That wouldn't bode well imho, so best hope that Franco deal concludes as planned and no one interferes

Good morning RichyRich1, the 4.4 billion figure is NPV, the NAV is 3 billion. So as 10% is normal for PEA, we should see an increase in share price, as we approach PFS. However in saying that, these things don't always translate immediately.

Yep nav is net asset value so the value in the ground a much bigger figure..npv is the net present value which is the much smaller one...generally npv is the import one and nav is less used as it's less useful, the article is maybe trying to big it up by using nav but it still proves the point 're now little value is being subscribed currently.

Thanks Ice. The article says we’re valued at 0.1 of the NAV of the project?

Sorry rich it's not npv it's nav...they are very different. One is the value of the asset in the ground, one is an economic calculation at an 8% discount to figure out economic return on capital over LOM

Thanks Iceberg, Good read.

Well it says current Mkt cap is valued at .1 time of NPV.

Would be good to get some so rerate.

I agree that the political position s and considerations of BHP and newcrest have been put to one side but that starts to become more opinionated. Although of incredible importance to solg.

Am I missing something here? We are currently valued at 0.1 of NAV so 10% yeah? If NAV is $4.4B that equates to roughly £3.6B. 10% is £360m. Our market cap is £500m so more like 15% of NAV. Considering we haven’t released our PFS when we should be valued around 25% of NAV current valuation is about accurate?

Govts are more wary of majors, not least because they have a habit of taking longer to do things. Rio have a bad reputation for sitting on things, but we also saw with newcrest that they would be happy to string out the drilling a couple of years.
Ecuador etc need these things asap so they contribute to the coffers.
Also majors tend to employ less local staff, I can't think of a single major with solgs track record of local country employment particularly of skilled staff.

Interesting article and thanks for posting, but I think he completely misunderstands the implications of the package as it relates to BHP and New.

https://seekingalpha.com/article/4346805-solgold-first-part-of-cascabel-funding-is-secured

Good article above...nice overview for anyone considering investing.

DBW, I love the fighting cider one.
I never got on with cider. I always found after 15 pints I felt a bit queasy.

addicknt…..lol. I don't feel too "lively" at the moment matey. Right, bum into gear, and get some work done! Good luck mate.

GLA.

Colonel, they only issue I have with your post is the suggestion BHP are 'quite happy'. The various reports yesterday appeared to imply they are not. In fact, far from it.

Ha Add
I used to live in the West Country for a period and one pub had fraught pumps of cider . The labels read
Supping cider
Sleeping cider
Fighting cider ( please drink outside)
Probably not allowed now like most good things in life

copperpot, excellent stuff is Bushmills. The only problem I have with it is that it makes me - how can I put this?...quite 'lively'.

Got a better link to that Cookie? Don't seem to find it.

Morning addicknt, I'd had a few Bushmills yesterday evening, and still a tad groggy...lol. I agree with you when you say that Ecuador would love a major on board, and why wouldn't they! I feel mining (big time) in Ecuador is at a very delicate stage and would be accepted a lot more with a smaller outfit like Solgold involved at this early stage. With regards a major getting things done quicker, I can't really disagree with that comment, however, don't under estimate Nick and the team! If the government would prefer Solgold to develop Alpala, permits/licenses could very well be issued pronto from now onwards to expedite mine construction etc. Nick himself would also want Alpala up and running asap just like the government. He desperately needs a nice income stream coming in to finance further exploration! Take care addicknt, have a good day matey!

They announced about 8 weeks ago that they had numerous interested parties and that they were short listing the offers of finance. It was a robust process and they ended up going with Franco. As processes go... it was about as thorough as you can get. So 'no', there will not be any changes to the stream deal or other offers replacing it. SOLG need to get moving ASAP with the pre development planning as the timelines are important especially for Ecuadorian gov who need this in production by 2025 planned date as it helps with IMF payment deadlines and dollar issues.

Mather and team must move like the clappers otherwise if things slip, then Ecuadorian gov gets edgy and that's when 'permits' become elusive all of a sudden. NM and Mining minister get along just fine, but Ecuador need this development producing in 2025 and I imagine they want to forward sell their royalty/rev interest too at some point!

Finally, just to clear up the BHP issue. BHP can bid for SOLG if 'another ' party bids first eg, if Newcrest or Barrick make an offer, then BHP can counter offer. If no one else makes an offer, then BHP cannot make an offer unles Mather is happy with it and there's no way he's going to be happy with it as the best offer will be one that is pushed to the bid process by having an auction of interested parties.

There's alot to do over the next 4 months in derisking Alpala with permits, land acquisitions, water issues, local issues and so on. Go back and read some of the RNS's. What do you think the $150m is for??? Twiddling thumbs? It's required because certain potential issues to development plans need to be cleared up first... eg bought.

The likes of BHP will want to see all these issues around development plans cleared up and so they will be quite happy with the fund raise as they will benefit in the long run.

Fail to get all the pre development issues resolved and that's when delays occur and Government will be come edgy especially going into 2021 Feb Elections. Lots to do and the faster the better. Hence why the bridge loan was agreed, so Mather can crack on while the ink on the $100m dries.

There's always one, OK BNC, I accept, as you challenged me, I get to choose the weapons. Balloons and Blunderbuss above a Pig farm. All the best.

copperpot, I'm sure you're correct to think Mather has bent over backwards to appease the government, despite this not being part of his nature. However, I'm not sure I agree with your point about the majors.
It may have been accurate years ago, but they've all had to change the way they do things and are now every bit as solicitous as anyone else. They know which side their bread is buttered.
The other point is a more practical one. I'd bet the government would be perfectly happy with a major taking this on. It would guarantee production will happen and would almost certainly mean it would be done quicker and without the problems a small business is bound to encounter. In other words, they'll start getting tax revenues much earlier, and after all, this is the only thing they're interested in.

EISH,no one liner lol!!:),but it will come imho ,have a read on bhp /Rio tnto conference yesterday ,good read