We would love to hear your thoughts about our site and services, please take our survey here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
If I may, during its history, SOLGs share price has been correlated to gold, at some point I calculated up to 0.84 correl.
Right now, as Fort said, there is no correlation. For the last 12 months I calculated 0.003 correl.
I think we just need to accept that the corporate events are just creating a medium term stress on the share price. Or not accept and sell that is.
GLA.
Red, I'm not knocking your reference to gold in terms of value/SOLG resources, I'm just saying the market doesn't correlate direct to SOLG and understandable as BoD's have not given market any insight into how they are going to fund and extract it along with timelines. Even by the time SOLG gets 100koz out, PoG could be $1300oz again. Or conversely it could be $3000oz.
If they released a downsized PFS tomorrow, they would have to use PoG benchmark pricing which is considerably lower than $2000oz. I think they could gain 10% uplift and go with $1850oz and that might offset the inflation data feeds but it's still nigh impossible to get a sensible read when you have interest rates at 5%+.
They need to get capex down to $1bln... for phase 1 mine plan....and deliver an IRR of above 25%+ for a 5 to 6 year mine life phase one project. Ideally nearer 30%. PoG price helps but merely as an offset for rising prices elsewhere.
And you say "There is virtually zero correlation with PoG and SOLG...."
So please explain why the ASK went from 9.15p to 9.90p the instant that Gold spiked over $2,000?
Fort...SOLG has 78 million ounces of Gold Equivalent...
Thats $156 BILLION GROSS...
Sooner or later that has to assert itself because right now, with Gold at $2000 and $53.4 billion dollars worth of gold on its own, SOLG must look pretty attractive to a Gold Miner...
He knows exactly my position on the stock and I see him regularly.
He knows I can’t abide rampers like red ramper, albeit he likes red ramper, and has qualified in a response to Seanhunter why I post.
I have never said it’s a bad investment, it may or may not turn out as a good investment, I’ll just highlight what I think is ramping.
I don’t have an issue with negative or positive posters who can back it up with reasoned arguments.
The problem with a lot of posters is they have been sucked in by the rampers and have over optimistic expectations of what may happen here.
I hope genuine investors like qalibashi make money, the rampers like fort, dbw etc not so much.
Fort - do you really think artisinal miners are running round Alpala right now with their shovels, pickaxes and other small scale mining gear?
You can be sure that Alpala has been properly manned for a number of years now. The camp and infrastructure build out started 4 or 5 years ago.
Tesla - because as I see it, an acquaintance of yours tries to sell you a stock. 6 years ago would have been right amidst the Alpala discovery euphoria.
Instead of just saying "thanks but no thanks" you then rub his nose in it by joining LSE and not so subtly trying to tell everyone else what a bad investment it is.
Does that sound like normal behaviour?
There is virtually zero correlation with PoG and SOLG. That's proven by the $170oz increase or 10% in PoG vs SOLG's near 40% decline in same period.
You might get some gold trackers nibbling but the weights are usually focused on producers foremost.
The Irony is, if SOLG announced a side hustle... to Alpala like a 150koz open pit shallow 4 to 5 year mine life project on Tandy... well... that would be worth £500m+ based on a modest $100m to $150m capex.
When you have a market cap at near 10% of your main asset value, it's sometimes worth breaking it down into tiny pieces so the rather ignorant market can understand it. SOLGOLD is seen as a copper player. It's not had much affinity with gold and silver even though it has probably the largest resource of any Gold producer on market that is sub £1bln market cap.
The Artisinal miners (illegal) are making more money out of Alpala right now than SOLG shareholders.
Lighting up the SP...
(Gold over $2,000!!!)
Aye DBW Based on Gross Annual Revenues of £2.16 BILLION, as stated yesterday or...to put it another way...
Using the PFS 1 figures and the tonnages quoted yesterday, the INCREMENTAL total gain PER YEAR, at current metals prices would be:
Copper $51.2 million
Gold $131.4 million
Silver $5.6 million
That totals $188.2 million or £155 million
Which puts SOLG on a P/E ratio of only 1.7 times, FOR THE ANNUAL INCREMENT ALONE...
So just imagine what that does for the PFS2 and, to answer your question, coupled with a gold streaming deal equivalent to the Lumina deal (i.e. a prospective cash raise of $2.3 BILLION...more than enough to finance Cascabel...
Surely the shares would be rerated to north of 50p at least in no time at all...
Remember...the market has concluded that SOLG cannot finance Cascabel, because theres insufficient capital available in debt markets, but Wheaton, FNV or Trafigura cpuld put up the whole ball of wax for just 6.6% of the output, reducing to 4.4%...
Sounds like a deal to me and...if the prospective predators got wind of that before it was signed, surely it would flush out the bidders...
I would welcome anyone challenging my figures, but again I say...THIS SP IS BONKERS on any reasonable metric.
PS For those worried about running out of cash, the Lumina deal shows we could raise $50m at the drop of a hat...
Red imagine if they released the revised PFS alongside a fully funded streaming deal .. that’d put the wind up BHP and the Chinese
9.06/9.90 spread!!!
Pactrol, indeed they could, but whilst the SR is ongoing the company would simply dismiss it. And without board support an unsolicited low-ball bid is going nowhere.
Hi Quady,
Looking at some of the points from the SR announcement:
-A spin-out of assets, other than the cascabel project, to all shareholders.
-The direct or indirect sale of an interest in the cascabel project howsoever effected; or any other transaction or series of related transactions.
Seems clear to me that a sale of cascabel is not off the table, be it part or whole.
For clarity, I never claimed to be half Canadian. I stated that I hold dual British and Canadian citizenship. The troglodyte immediately inferred from that that I am half Canadian. I am a Manchester lad who worked in Canada for 13 years. Life is easier to take up their citizenship. For example, only Canadian citizens are permitted to work for the federal government.
That's true but with the share price where it is . one would think now is a good time for an interested party to make a lowball offer don't you think
Doesn't matter what the market thinks... what matters is what future partners or buyers of the asset thinks. They won't be buying your shares off you to tuck away in a draw somewhere or to day trade... they will be buying your shares (if a buyer and not partner involved) so they gain control of the company and the asset. It's the asset they want... but to get it.. they need your shares.
Not rocket science... so doesn't matter what market thinks... as market changes its mind every second of the day.
Yes interesting. but it appears the market is not impressed hence the share price
Yes, pactrol, there is. Have a read of the latest RNS, the details are all there.
Tesla, it was overly harsh of me to lump you in the same bracket as the Aussie muppet, because I know you are much smarter than that. However, the unsubstantiated negativity from certain people is getting extremely tedious and the endless comments saying the company's lying etc fall into exactly the same category as those who see nothing but sunlit uplands.
There has been much to criticise in the past - and I've done my fair share of it - but now we've got a greater degree of long-overdue clarity, I think people should accept what's been said by the company...until such time as they either deliver or fail.
So what exactly are solgold doing at the moment ? is there any Activity going on ?
Add
I can give you a very constructive view but I tone down my negativity generally as I have a good friend who I have stated several times has a considerable holding here.
He knows what I think.
However what I cannot abide is the rampers on here who continually post BS trying to dig themselves out of the hole they have created for themselves……they are a disgrace
And there are 3 main culprits plus the seanhunter who is a deluded disgrace
Bozi
I like only refer to Qalibashi as a large holder and he tried to get me to purchase solg 5-6 years ago.
How is that trolling him 🤷🏻♂️
Q, you're right, I have moved to a position which accepts a jv is a possibility. However, as you know, it's not an option I'd like to see, mainly because I've never been convinced of the economics, and it's my view that the company will reach the same conclusion once the SR is complete. But who knows?!
Hi addicknt, he said it on the webinar that said we have twenty tenements up for sale or JV, and then went on to state that Alpala and Porvenir were not included in that number.
As far as I am aware no correction or change of direction has been announced since.
Like you I believe the ongoing strategic review is crucial.
I know you believe we will be sold, but I have seen you also understand that a JV is possible, so like me your thinking has changed as we have listened to what Solgold are saying.
As an earlier post by yourself concluded that we need the best outcome for share holders and all things would be looked at .
That includes to my mind the funding of a start up to get us off the ground and running, so that we can become self financing.
We know that 2024 is going to bring change, as that is the start of construction.
I am guessing this is reference to the decline that has been announced by Solgold.
Q, are you sure that he's categorically said it's not for sale? Can you point us in the direction of the statement?
I think you're jumping to a conclusion based upon omission rather than a positive affirmation.