SolGold Share Chat (SOLG)

There's simply no defined, publicly stated strategy in place which leaves investors directionless and non-committal. Some say Alpala to production, others say a company takeover, some say Alpala monetised with all efforts towards exploration or a combo of this, that and the other. It's a fog, a mist and a conundrum. No wonder the price couldn't give a feck, it's almost lost interest and given up with the bullcack and games being played. Throw in the uncertainty AGAIN of more political developments in Ecuador and it's not too difficult to see why we are where we are

Someone, anyone from Solgold or the majors (BHP and NCM) stand on a stage and declare exactly the direction in which they intend to take the company so that we can decide for ourselves whether to sit and wait or exit

Good afternoon Colonel, I always read your posts with great interest, but there is a lot of conflation in your last post, I would like to question one aspect in particular.
You state we should read the RNS's to see the emerging story, I have done this many times and it emerges that the direction of Solgold is to take Alpala to production, yet you have posted the comment, I will paste in below.

Followed by Alpala Committee decision to sell or JV Alpala??? Which ultimately may lead to Alpala being drilled for another 1 to 2 years by the new majority holders???

I don't recall this, could you tell me which RNS date it is, so I may read it.

Many thanks and keep posting.

addicknt,

I find in general that pi's tend to get absorbed in the daily fluctuations of sp movements and when news arrives it's absorbed and then discarded / forgotten about.

I suggest all pi's invested in SOLG just spend 20mins or so going through the RNS's over the last 6 months. You'll soon see a pattern. It goes a bit like this... Firm strategy on Alpala... then events like Oyu Tolgoi begin to sink in. Followed by Alpala rethink. Followed by a decision to set up an Alpala committee. Followed by a change in strategy? Followed by PFS delay. Followed by surprise sterilisation drilling. Followed by NM eventually standing down.

Followed by Alpala Committee decision to sell or JV Alpala??? Which ultimately may lead to Alpala being drilled for another 1 to 2 years by the new majority holders???

In my opinion, they were track and they had firm strategy in place. Then Oyu Tolgoi happened. Sensibly, and fortunately, it enabled a rethink/redesign which in the end will derisk and attract a better price whether through fund deals or farm out.

Personally, I wish I could tweak SOLG's raison d'etre and plaster it over the front page of their website. It would go like this...

SOLG are an exploration company in Ecuador with the largest licence blocks acreage under 100% ownership with potentially 15 Tier 1 project opportunities. The company specialises in exploring and proving up licence blocks to Tier 1 level and then monetises through full licence block sale. The first of the teir 1 projects to be derisked is Alpala which is currently under an auction process with a number of global mining companies. The next tier project 'Porvenir' is well underway and upon derisking will be sold using similar process. The company is drilling Rio, it's 3rd tier 1 prospect which it aims to complete in the next 6 months before initiating the same process as above blah blah bah!

Not hard is it?

Give the market some clarity like that and the share price will do cartwheels. 100p+ with ease.

Enjoy your weekends... I'll upload to SOLG's server now...only kidding!

CD, I agree with much of what you say. It's been interesting to note that since the agm there has been a considerable shift in opinion towards the view you express.
NM was an impediment to the obvious and sensible strategy, and his removal (sorry, 'retirement') has removed the blockage.
As ever, Quady fails to understand the importance of BHP and the nature of their holding (the same applies to NCM) and why they will dictate what comes next.
I remain convinced we'll see the disposal of Alpala as being the first and most obvious step and I think you may well be right that a "strategic review" of our ownership will be announced.
Where I disagree is with your assertion that the agm was a 'success'...it was anything but. In fact, the NM vote wasn't the really important bit, even though it's led to his departure, it was the failure of the Specials which really mattered. This was the moment our future was defined.

@ 09:43
The powerful array of positive opinion has influenced me to retain half of the original SOLG holding. The other half has been scattered in five new stocks in the past fortnight. Three of them have gained 10% or more. Two of them should gain another 30% in the coming week. SOLG, however, represents nearly half of my emerging companies' portfolio.

I don't pretend to have the expertise of others on the bb. but there is at least one contentious issue that I steer clear of. Possibly another gnawing concern is the grasshopper nature of NM-lead practice, e.g. I remember first investing in the company for NSW, Queensland and Solomon Island factors. Although I have not checked recently those prospects still remain on the company's preamble, still unattended.

IMO something has to be done/completed fairly quickly. Merely lurching from pillar to post ain't going to cut it. And surely the Ecuadorean government is going to draw a line in the sand at some point.

[Also, the ******* who persists with Friday night effects, adds to the exasperation.]

Hi BNC, sorry for not getting back sooner. I have only just seen your message. I dropped in here last night but when I realised the manchild was on the prowl I logged out.

It will be interesting to see what evolves going forward matey. It would be nice to think that Nick would head up exoration, but I'm not holding my breath on that one. I'm not being argumentative or contrary to Grimmy.....I'm not sure that the exploration team like NM too much. I think we may find that JW is holding all that together. Im pretty sure that the BOD would prefer JW ahead of NM to head that department. Im 100% a beiever in NM and what he has achieved for us here, working with or for him is a different matter. Im very keen to see how things unfold at Solg Towers.

Take care matey.

Colonel you express my point eloquently, but miss the conclusion.
Anyone can bid for Solgold at any time. All they need to do is offer full value or near to full value. Nobody is going to do that. For all the reasons I have given. So they own over 13% of the company and have two chances. Watch Solgold get the funding for Alpala and go to production, or purchase Solgold in its entirety. Buying Alpala separately isn't an option, for all the reasons that Solgold have said, and indeed alluded too.
Question why has no one bid for Solgold, forget about BHP, anyone can bid for them.
The answer is the same as it has always been.
The price is too high. Well above what they want to pay. NM stepping down to bring on a CEO with experience of building a block cave operation in Ecuador tells the whole story.

Note: “....could potentially accelerate the delivery of value through a corporate transaction...”

Just about every cat and dog knows that the way forwards is through a jv deal of some sort or sale. Selling the entire business does not make sense as there are potentially another 13 Tier 1 opportunities with majority of licence blocks being pre approved by Ecuador gov and exempt from future eco warrior hassles. This is the conumdrum for any buyer or interested party. They can take Alpala for xx and that's their lot. Risky as things can go wrong and options beyond Alpala could be limited. Solg's other 13 identified assets help derisk any new majors entry into Ecuador... massively. That's the problem here at present. A buyer is likely to be asked to pay a price for Alpala which is possibly twice the price of SOLG's current entire market cap. So why would they do that when they can have a pop at the entire business and gain 13 Alpala's for the price of 1?

So I fully expect the Alpala committee to conclude at the end of this month that a strategic review has been launched to investigate a number of funding options (tell us what we dont know eh!) which could involve an entire sale of SOLG's 85% interest (mmm... now that is a new bit isn't it?)

Post the Ecuador elections, we'll likely see a sizable transaction. Hannan are telling you as much and they are insiders. So if that's the approach, then NM's position becomes untenable as it goes against his wishes and as such he's going to stand down.

The inevitable is becoming more transparent by the day.

At what point do BHP simply say to the risk department... enough is enough, we need to bag the ecuador business lock stock and barrel?? After the Ecuador elections? After PFS? After they have tried all other options...like a JV?

Citi were employed to protect SOLG from low balls and the AGM victory suggests they did well as BHP and co do not have the majority vote they needed and are quite a few votes short of pushing an unwanted takeover through.

A massive result on Porvenir over next few days and weeks would without a doubt swing things in favour of a JV on Alpala simply because the asking price for SOLG goes up 2 fold once Porvenir tier 1 status. How many more holes are needed?

?? cheers Z

GLA

https://youtu.be/UbvxP08FlMs

Getting his own back on us all LOLzz

See you all next week :)

umgenuberbung -
https://www.hannam.partners/disclaimer/
Z
You did ask!

Talking horse-shiite is my forte mate, big dollops of it

I wonder now that Mather's departing back to Australia he'll be focusing on his other companies like IRR? With Herbert at the helm and Mather's experience it could be goer

Schlem, you have a wonderful turn of phrase (pmsl) and took the correct path, avoiding a political career.

He is not left wing, he is left of center, Some of the worlds greatest leaders have been Socialists, read your History schlemiel.
It's the extremes on both sides that are the brain dead,

'I did read that the left wing candidate'

thanks for that Zoros

'corporate transaction' and 'value maximisation' are two phrases that jump immediately out at me from this report. Monetisation needs to happen but before all that we have another political hurdle to overcome early Feb in the form of the Pres election. I did the left wing candidate has committed himself to respecting all current mining concessions but with a higher adherence to environmental and social rules (community engagement bollux and the like). Socialists are brain dead cretinous extremists as we know but there are some that still retain a degree of circumspection and appreciation of real world practicalities

DBW - Thanks for seeking clarification on this point as since the AGM there has been a slow slide in the SP driven by relatively low volumes but nevertheless around double the sells vs buys. Personally I think this is about PI’s with large holdings (eg: Iceberg / Phattrader) who have decided to move funds elsewhere which of course is their prerogative and I wish them well with their investments! However the negative overhang from the AGM should hopefully have just about run its course now so I’m personally hoping that by mid week next week we may see buys vs sells level out which should see more support for the SP. Not withstanding that it would help if Solg provided a much needed boost with some stonking assays from the regionals! Stay strong Solgers and hold onto those golden tickets which will surely be life changing in the next 12 months IMHO

really ? gla to lth

Thanks Pad
Just had it confirmed by the company that the fact all regional projects will be updated in the quarterlies in no way means we will not be getting drilling updates in the meantime:)
As Cookie would say , onwards and upwards

Redknight when is the last time any investor ever made an investment on any broker note, they always over egg things.
Only failed investors make decisions on broker notes.
Nice to read, but that's about it.
Based on broker notes, this share should have been double our price years ago.

Its Hannam & Partners, where Ingo spent 6 years 7 months and from where he was directly hired to Solgold...

Thanks Zoros.

Note: “....could potentially accelerate the delivery of value through a corporate transaction...”

Which translated means “ a sale of all or substantially all of the Company's assets, or a merger, consolidation or other capital reorganization of the Company with or into another corporation.”