SolGold Share Chat (SOLG)

"And we'll use all of the latest sustainable mining techniques and leave you with a lovely landscaped garden at the end of it. And we'll build you a detached garage for free too".

Ah yes - it all appears to be there. That's an improvement on the windfall tax but it's quite steep! Not new news though, as this has been the status quo for years. Cost of doing business - no wonder the Ecuadorian government are keen to get foreign investment - they are creaming off half the profit without lifting a finger.

The silver lining is that even the biggest half-wit in Ecuador can see that mining is a no-brainer. If I had an ore resource in my backyard and somebody came along and said: "tell you what: I'll offer you 50% of the profits if you let me develop that ore body. No need for you to lift a finger or put any money towards it at all. Sit back, relax, and watch the money roll in. Plus, we'll give you a well paid job to boot. What do you say?"

Punit you are a great mathematician

Morning all....do we not have to negotiate with the goverment.

Bit about under Ecuador on our website.
https://www.solgold.com.au/ecuador/

Pinot

:0)

is CAD1.9 = 110p?

I've asked Eliza to clarify tax/royalty obligations that would apply to Alpala. I have it as totalling 42-45% (including royalties) plus the 5% tax on money leaving the country (with an exempt dividend workaround).

You might be right DBW...they got the governance issues out of the way on a slow day for markets...

My speculative order would be...

La Hueca/ Blanca initial positives....

Big update on Porvenir...1500m?...stellar grades...

Huge initial news on Rio Amarillo...exciting grades and lots of prospective gold...potentially bigger yet than Alpala and even Porvenir...

PFSand draft funding package announced at the same time...significant jump in NPV and substantial debt/streaming element..

The only other wildcard being a possible JV with BHP which would get CGP off their backs...

But if you're Barrick, BHP or the Chinese, there is a shrinking window to get your bid out there, especially while the gold price and Junior mining shares are relatively flat...

As to Newcrest, I think they're out of the picture now and the conclusion of their advisors may well have been to give them leverage and ultimately a satisfying profit when it all shakes down. They surely can't see themselves as a long term partner to SOLG now...?

AIMO as usual and open for discussion...

NM for heavens sake! Little brain and big fingers not in sync yet.

DBW - not as many times as NBM! Lol!

Grim - 'snore and bore' - love it!

Hi Grim
Not so long ago we we’re getting news every two or three working days ( 9 releases in 22 working days during October) and these wee mostly drill related.
Just get the feeling they’ve eased off a touch and something has happened/ is happening.... I’m 100% convinced we’ll see 50-60p in a very short space of time ..... just my thoughts and like everyone here I’ve called it wrong many times

DBW, I hold onto that thought too.

Problem is same could be said for any period over the last two years! Blanca drill news suppressed / unreleased last year, (deliberate) delays to major announcements (PEA, now PFS), etc

I hope you’re right. ‘Shock and awe’ Nick says. Snore and bore at the moment...

Whilst they have to release some news to satisfy shareholders ( to some extent) I’m fairly certain they are keeping this to a minimum. The only thing we have in detail in the first 500m of the first hole at Porvenir.
Nothing on Blanca or La Hueca and no mention as to whether drilling has commenced at Rio.
Something is being sorted in the background here (my personal guess is that revolves around funding and that BHP are involved in some shape or form) and this announcement will be the catalyst. As if by magic PFS will follow almost immediately and these current (30-40p) levels will be a thing of the past

Good post CD, over the past few weeks I have top sliced and traded some of my SOLG holdings but from here on in I have concluded it is time to hold and wait for a significant return. I suspect the market makers assume there will be plenty of small investors willing to sell as SOLG passes 40p but what if we did not? Will the institutional holders sell their considerable holdings at 40 or 50p?

The government may raise the CGT to get booted out.
Do the labour party trick,
Spend all the money and leave the bill for the next lot.
GLA

Chart and TA is in a good shape now with RSI cooled down and consolidation at 31p for a decent period now. So the next batch of news has headroom and should see a return to 40's assuming it's all good.

You can't in effect have 1 x Alpala and be worth 30p+ (as per sp pre Porvenir news) and then have 2 x Alpala style assets (eg Porvenir) and not be worth 60p. Porvenir still needs another 6 to 8 holes in it before the market will give it a decent % towards it's true worth. In simple terms, I think we should see 6p+ a share for each hole drilled with good assays. Excellent assays could see 10p a hole.

The only real concern and worry to the significant upside / profits here is the recent UK gov's potential move to raise CGT levels and lower thresholds. If they do go ahead with it, they better do it after the next election as if they do it before, they will be voted out for sure.

Morning Q thanks for that
Surely we must be due a drilling update from hole 2?anytime now .
Potentially three other drills underway. The silence is deafening here with the added expectation of the PFS which could drop at any moment. Frustrating as hell but fairly confident it’ll be worth the wait.

Hi Quali
Cannot read all of your post. Any chance you can post the rest of the recommendation please.

SolGold Plc. (TSX:SOLG) will be hosting virtual marketing calls November 11 and 12.

Notable News
SolGold Plc. (TSX:SOLG, BUY, C$1.90 target, Jacob Willoughby) announced the resignation of Mr. Priy Jayasuriya, Chief Financial Officer (CFO), by mutual agreement, effective immediately. While the company has commenced the search for a new CFO, it has appointed Mr. Ingo Hofmaier as interim CFO. Mr Hofmaier has served as Executive General Manager, Project and Corporate Finance of SolGold since September 2019, and has over 20 years of corporate finance and investment banking experience. SolGold also announced the formation of the Alpala project committee comprising of eight members, including three of its board members and two independent, non-executive directors. The objectives of this committee are to set the strategy, provide advice, support decision making and monitor the development of its Alpala Cu-Au-Ag project. In our view, the formation of this committee should be viewed positively given the gaps identified in the expertise of the company’s Board of Directors, following an internal review and shareholder feedback, earlier this year. The executive oversight to be provided by this committee, leveraging the experience of its members, demonstrates the company’s commitment to move the Alpala project forward. Read more

There is so much information available and I find it really quite difficult to follow. I should say, I don't consider the information on our web site to be up to date.
One useful article was the President's State of the Nation presentation earlier this year. It's gives a clear indication of just how important he considers mining to be for the future of the country, but is also at pains to emphasise the restrictions, which are clearly designed to appease the environmental lobby. He also mentions us.
If I were to hazard a guess I'd say the direction of travel is to support those with existing concessions, provided they are not in protected areas (some are, but not ours) and to make it far more difficult for those seeking new concessions. Obviously, this is a huge advantage for us.
It's also clear there's a huge drive for transparency and public engagement, which of course, we're told we are very good at.
As far as the tax issue is concerned, again it's difficult to follow the developments (at least it is for me). The only thing I can see is that there hasn't been a change since January of this year (I stand to be corrected)
Let's not kid ourselves here, there is undoubtedly a level of political risk associated with this share and there are many contradictory statements, making if very difficult to gauge the real situation. In this instance, we have to rely on the company and our lawyers to provide clear guidance and I admit I'd like to see a bit from NM about this.

Wasted an hour tonight reading this mince.
And we wonder why they frequently shut us down.

If you are reading this in the morning ShawaddyQuady will have gone and you will be wondering what this post is about.

But seriously - it was a “pure dead funny zinger” after a good single malt(s)
Honest.

skint.

But at what price will it be sold?

Great RNS tomorrow?
GLA

That's from the 2019 Latam Investor doc. None of this is new. So we have 25% Corporation Tax (although LATAM 2019 states 22%), plus 12% Sales Tax, plus 5-8% royalty. Then there's that 5% tax on funds withdrawn from the country, but it's not applicable to dividends, so there's a workaround there (keep everything in country except the dividends).

There's a 12% Sales Tax - that must be the "profit sharing".