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I agree novice but sentiment isnt helped by LTHs on here keeping on talking about a placing at 20/25...
They must have a death wish...
This has fallen 25% in 6 trading sessions...they seem intent on getting it even lower...
Let Ingo do what he does best, WHEN the funds are needed...
Much much better today after all the scaremongering yesterday, some ii's must have had a very fruitful fishing trip.
Can see this climbing steadily over the next few weeks as the elephant in the room event approaches.
Have a great weekend all
Fairly certain there will be a placing before the end of Q3. In the absence of a bid, there has to be in order to keep operations going. Equally certain it won’t be at anything like 32p. Look at the SP for heavens sake. My best guess would be around 23-25p. Which.... unless BHP and NCM gobble them up.... we will be lucky to get through. .
Surprised they lost the earlier gain, however, the market is down in general & after all it's Friday when profit taking is on short term investor's minds' !
Putting the funding of drilling Cascabel, Porv and Rio to one side, our spending commitments across our portfolio over the next five years is hundreds of millions. If the Solgold board are serious about developing Cascabel on our own, we will need to offload a significant number of these sites, if we cant get these regional JVs off the ground..
Unless its opening the door to a third major, (my preferred option), that wants a stake of roughly 10% or an insti investor, I think its safe to assume any raise on the open market will have to be at a discount.. usually around 10-15% to market value at the time.
CD yes true... And the one in April last year at around a 10% discount was apparently 2.5 times oversubscribed...
Totally agree a fund raise of some sorts was always going to be necessary at some point this year. Got to fund the exploration somehow.
"Do not want a capital raise to happen."
Neither do I, good sir. I hate dilution.
However much I'd like SOLG to sit tight right now waiting for a bid, they've got to pretend that they are serious about "paddling their own canoe" to use that disasterous term (playing hard to get to use another term). I agree that we should not start to look desperate, so I will take this (hopefully last ever) placing on the chin.
I believe the big boys are tired of the drawn out mating dance now: the PFS is a watershed beyond which a bid could come in any time, and I firmly believe sooner rather than later.
In the PFS presentation Ingo said "we get constantly approached for funding" and "we have no doubt there's funding available in the short and in the long run."
This doesn't sound to me like a company that needs to go cap in hand to the market trying to get a raise away at a discount.
This was the latest nearly 6 months ago
“Partial assays from Hole 1 to 1,052m downhole depth at the Varela target return 72m @ 2.16 g/t Au, including 24m @ 5.77 g/t Au
Assay results from 1,052m to end of hole at 1,708.1m including free gold and porphyry mineralisation are pending.”
That's what I was saying Lunch - they have the drills but the use of them is $85/$100k+ per hole!
Z
Lunchmoney.
Your average RC drill hole is north of $85k and a diamond drill: $120k. Not many of those to the pound, so I can understand why they "might" be throttling back in the regionals whilst scurrying around for more cash for the rest of the year. What is their employee monthly bill @ 1000 people now!!!
Z
They will dilute - mark my words.
Z
J.Maria, I agree with you fully.....no placing has been mentioned. People are putting the cart before the horse again. Some have tried to pre-empt almost everything rather than wait for the company to enlighten us. Having said that...I think the money has already been sorted with a smelter who were on site two weeks ago ;-)
GLA.
I believe this is way undervalued and put the share pride down to all the get rich quick merchants bailing out at the prospect of having to wait another 5 yrs personally I cant see this hanging around that long before someone makes a bid.
Ingo also said the half yearly cashflow is z$40 million and also that they had several offers...
Colonel did you miss my post...
8.01 66,583 at 29.88...
The early bird...?
Fair point Lunch, but EBITDA is pre tax and P/E multiples are a key indicator for valuing companies...
Also, many analysts these days look at cashflow primarily...Cascabel annual cashflow are higher than the EBITDA...if I remember rightly c$1.4 billion pa...
That gives SOLG a price to cashflow multiple of c0.6 prospectively, which is also insane...
And all this at a copper price of $3.60...
Value will out...
Where is this idea of a placing coming from? Has not been mentioned by the company. What is known is their cash balance and the run-rate but the expense, as Ingo said on the presentation, is because they paid fees. Those are paid early in the year. Capital raise will come if the company is not bought out. But that is a question for Q3/Q4. Also, if there is a capital raise BHP would think probably I buy you out here anyway. Do not want a capital raise to happen.
Oops, obvs meant shouldnt!!
Wonder if Norges will partake or if it’ll be something out of left field
Probably. Probably done and dusted. Not too shabby if not down in the 20s... a very good starting point for another climb.
To whoever kept asking why we think we know more than the markets - we certainly don't. They ALWAYS know these things well before us. Hence the SP mysteriously adjusting itself. We shall see...
Jerry
“Which is another reason they should be let anywhere near mine build and production”
Don’t think there’s much chance of that ….. this feels a bit like a game of chicken at the moment
Totally agree Lunch. If this project is a goer at high tax rates then a) there is less likelihood of a change in fiscal terms and b) the government of whatever persuasion will want this to go ahead asap.
However on the PFS/DFS timing I am disappointed with yet more delays. Werent we promised a super PFS that encompassed a lot of the DFS, such that the DFS would be out this December? Instead we get a good PFS this April, the super (PFS+) in December and the DFS Dec 23. Whether this has any effect on first ore I dont know, but it further demonstrates that the company really dont have a clue on timings. Probably cos they have never done anything like this before. Which is another reason they should be let anywhere near mine build and production.
But its a great asset and thats the only reason I am invested.
Exciting times ahead by October this year. Only have to read the news on their deal. So any spare cash should be invested here, besides bottom fishing Solgold. PUR does seem very attractive.
.@SolGoldEc with its #Cascabel project, considered world class for its copper potential, projects a useful life of several decades and an investment of USD 4,880 million in 9 years. Their presence ratifies responsible mining as a key economic engine for the country.