Rainbow Rare Earths Phalaborwa project shaping up to be one of the lowest cost producers globally. Watch the video here.
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Lighting up the SP...
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.
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.
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...
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?
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.
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, you can't align every movement in SOLG's sp with Gold just because of the timing. SOLG's shareprice is at levels whereby we have seen greater than normal volume, more volatility driven by liquidity and it's pretty much expected to see more pronounced moves when at multi year lows and off back of a 1.5% holder dumping stock heavy handed.
The volume today looks weak compared to past days so my guess on why the Ask moved higher and the bid gradually nudge up is likely down to off book deal or something that will get printed in after hours. Watch out for a large trade printed at 9.5p level or higher. being Friday... the mm's might print it early in normal trading hours or they might print it on Monday.. they have 2 to 3 days to post large trades based on LSE rules. Just a hunch of course...!
Colonel...what you have posted is your OPINION what I posted was the raw facts.
So please substantiate the following opinions, 3 months before PFS2 and about which you nothing, other than the assumptions in PFS2, so...
"$1850 "will be used for gold (BTW that gives a Gross Value of $144.3 BILLION for 78million ounces of gold equivalent
Why do they "need to get capex down to $1bln..."
And why do they need "an IRR of above 25%+ for a 5 to 6 year mine life phase one project. Ideally nearer 30%..."
I would be grateful for your detailed recalculation of the PFS, otherwise you might as well use a wet finger...
Let me repeat...an exact equivalent of the Lumina deal would give us $2.3 billion and we wouldn't need to justify any debt or equity funding...
It certainly doesn't correlate with the copper price and my 'opinion' is that we would have been more like 7p but for the spike in gold over the last 10 days...but thats an opinion...
Question for Redknight.
If the share price of Solgold is related to the price of gold.
Then why was gold under 2,000 dollars an ounce and Solgold was 46 pence a share . That's five times more on the share price meaning a gold equivalent would be around 10,000 dollars an ounce.
Redknight talking rubbish again.
Colonel...the ASK went from 9.15 to 9.90 precisely when Gold spiked over $2,000...on ZERO trades...
Immediately after, somebody paid 9.5694 for 207,235 shares when the previous trade was a SALE of 75,000 shares at 9.12p...
I know one swallo doesn't make a summer, but watch SOLG establish a new uptrend when gold establishes itself above $2,000...especially if copper remains above $3.70...
Sorry red, i'm not sure what on earth you are on about?
You've been told they are working toward a lower Capex (by Scott) so it enables a phased approach and more interested parties to participate in potential fund talks. Some interested parties just can't make $2bln capex work. So to get more interested folk in the room... the lower capex plans make sense. But ultimately it may well result in a larger player gazumping and taking the lot on and doing their own pfs based on deeper pockets and better scale.
I think you need to take a breather. You are correlating a £15k trade with PoG's move through $2000oz on a company that has a £260m+ market cap?
My dog farted just about the same time as the bid/ask popping on SOLG today. Shall I correlate that?
A crow just crapped on my DB11... just before SOLG spiked...
I think I've opened the bb up to abuse now. Sorry!
Sorry Colonel...your arrogant disdain means I am filtering you for the first time ever.
Bye
Relax red! Things will look very different soon here and you might be able to afford a merc again
Cheers mate but my change to a hybrid was based on climate change...currently averaging over 1,000 mpg...
Smart move red.
ATB
Just noticed the bid just dropped after you stuck me on filter!
Oh no... doesn't bode well. Quick unfilter me and see if the bid goes up!?
Bid getting smashed down now... just at same time bananas spiked. Possible correlation due to Ecuador connection??
Fort making fun of another ramper's ramping?
Pot calling the kettle stupid. About time they turned on each other though - their baseless rambling has alienated most other posters here, who only chip in to shoot down their latest crackpot nonsense. Except those deeply underwater, who cling to their BS like it's a door in the drink at the end of Titanic!
i’m not buying that red! chin up soon have a v12 monster on the drive to replace your virtue signalling ****pot
Oops...broke a promise...just bought another 100,000 for Mrs Red at 9.18...
Instant profit...9.53...hoping for a strong close to the week...
On Bloomberg talking about the equity market rallying into Xmas, led by metals and minerals...
That would be a great present...
Apologies...forget that...London Stock Exchange official page showing as completely wrong live quote!
Have a good weekend...