George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
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So almost a 10x multiple on current price?
madness!
Something is Moving this NORTH.
Volumes speak for itself here.
GL ALL
More than likely NO.
The 3 analysts offering 12 month price targets for SolGold plc have a median target of 62.70, with a high estimate of 65.08 and a low estimate of 39.68. The median estimate represents a 833.01% increase from the last price of 6.72.
https://markets.ft.com/data/equities/tearsheet/forecasts?s=SOLG:LSE#:~:text=The%203%20analysts%20offering%2012,the%20last%20price%20of%207.54.
Is there any truth to the rumours here?
So why is the SP rising? I would assume they've heard the same message as I have, and that's multiple entities were waiting for the revised PFS before making an offer for Casabel (or indeed the company), that will conclude the Strategic review. News coming soon in my opinion. Exciting times ahead.
Pure speculation.
Unusually high Volumes.
Possible BUYOUT on the cards?
GL ALL
Im in 138k share brought.
Brokers give this a 800% upside potential
BUY before you miss the boat.
GL ALL
Plenty of buyers about and has been for a while but it's the manipulative seller which is the one that has suppressed the stock seemingly with that intent and not well disguised either especially when lobbing in 200k block sales whenever there is some buying interest. The price jumped from 7p to 11.75p during late december when the controlling hand got caught napping with their Turkey pies.
Funding or no need for funding (royalty etc)... it's that kind of news that will place a rocket up the sp.
Equally, if there are parties out there that want a 5% slice of SOLG, then an agreed placing price at 13p/14p level would need 'someone' with some control on the sp to walk it back up to 11p levels.
Lets face it... anything sub 17p (last placing price) and it's looking cheap.
Are you back in now Fruitbat?
Morning Jezzoo it's not a paywall, you just have to register, no money required.
Struggling SolGold cuts Cascabel mine bill
Mining hopeful publishes new study for mine with new cheaper route to production
February 16, 2024
by Alex Hamer
**New Cascabel pre-feasibility study cuts over $1bn from upfront bill
**Company will have to raise cash this year
Mining exploration company SolGold (SOLG) has knocked just over $1bn (£790mn) off the upfront cost of its Cascabel copper and gold project in Ecuador as it continues to face an uphill funding struggle.
The company’s share price has dropped by half in the past year as investors remain sceptical of its ability to build the mine, made tougher by political volatility in Ecuador.
Hopes of a buyout remain, although given the share price weakness and blocking stakes of heavyweight shareholders, this will also prove difficult to pull off and would leave most shareholders sitting on a loss given the shares are sitting around 6p. As recently as two years ago, the company was trading at 40p.
The new pre-feasibility study sees production of 123,000 tonnes of copper and 277,000 ounces of gold a year, over a 28-year mine life. The cost is forecast at $1.55bn, down from $2.7bn in the previous study two years ago. The net present value of the project is up 10 per cent to $3.2bn, helped by increased copper and gold price estimates.
The cheaper mine build has largely come from shifting more development post-startup. Post-production capex has gone from $2.1bn in the previous study to $2.6bn, while this slower ramp up comes alongside a higher forecast for the copper grade in the first 10 years, going from 1.35 per cent copper equivalent to 1.45 per cent.
The company is also running a strategic review, looking at sale or partnership options to develop the mine. In the meantime, SolGold has slashed spending in a bid to stay afloat, cutting administrative costs in the second half from $14mn in 2022 to $5.9mn in the six months to 31 December.
It had $12.8mn in cash on 31 December, so more financing will be needed in the current year. SolGold has burned through cash at a breakneck speed in recent years, after selling off royalties for Cascabel to raise just over $150mn between 2020 and 2022.
Equity investments have also been used to raise cash, the most substnantial being a $36mn sale of shares to Jiangxi Copper in late 2022, giving the company a 6.3 per cent take at the time. The other major shareholders, with around 10 per cent each, are BHP (BHP) and Newmont (US:NEM), through its buyout of Newcrest Mining.
Investor unhappiness is clear beyond just looking at the share price. The December AGM saw another significant vote against former chief executive and shareholder Nick Mather, and 33 per cent of shareholders voted against giving the company approval to allot shares.
Solgold's shares were up 10 per cent on the release of the new study.
Get through 7.50 and me go to 9p
Paywall
Https://www.investorschronicle.co.uk/news/2024/02/16/struggling-solgold-cuts-cascabel-bill/
Good morning addicknt, I don't disagree with you.
However we are shareholders as well, and they need to communicate something meaningful in one way or another.
Ship they don’t bother to reply to investors emails
Orthern, you need to send that comment to Scott and the bod in an email.
Nobody is working on a strategic review. The strategy is to sell the lot.
The strategic review process is dirt in the eyes of the gullible to make them think that work is being done in this time
Jezzoo, I think we are at the stage whereby it's the chinese vs anyone else. As mentioned over the weeked, The Chinese railway construction group already have many infrastructue projects underway in Ecuador and have been there for donkeys years. Hence it's no surprise to see the early producing mines in Ecuador all owned or run by Chinese.
In Ecuador, if you need a road made, mountain cut through... bridge... dam ... whatever.. it's contracted out the chinese.
So lets just assume that BHP get ENSA and the chinese lose out. Assuming BHP use their own staff and Ecuador locals etc or multi nationals, then not only do the chinese lose out on the resources, but they ALSO lose out on the infrastructure spend. So that $1.55bln capex is in effect a contract LOSS for the chinese. So look at this way... Tonguan... may already have some 'rights' or ownership of the railways or over that potential route to export for Alpala. SOLG mentioned using an unsued railway line and putting the pipe under it. But what if the chinese have the licence or rights to that railway based on past contracts or legacy agreements??
There's loads of stuff that is important and essential to this Tier1 project happening. There will always be ways around things and alternatives but these may come at increased costs. Sometimes, it just makes sense for someone like the chinese to take ENSA on as they make money from production but also from the construction. They can do it cheaper than BHP... that's the simple reality. Wouldn't surprise me if BHP actually use or have to use chinese firms in Ecuador anyway due to past Chinese/Ecuador agreements on infrastructure. In summary... there is $1.55bln (and lets get real here... it will be more than that) and much of that spend is not on equipment but on man hours.
So bottom line... there's much more in this for the chinese than there is for BHP and I genuinely think the Chinese and Bob are trying to find a way of making this monetisation event happen without BHP being able to interfere. Goes against the bidding war scenario... but I think Ecuador and Chinese are very close and Noboa will have been told by high up powers (inc chinese contacts) about who wants what.
But there's haggling involved like all things that involve billions of dollars. The chinese need to be sure Noboa is 'their' man before they potentially get a deal done which could seal his presidential campaign set to begin in 6 months (the election campaign has really already started etc).
Back in operation today 14 entries on buy and ask using three similar sizes and identical time stamps
I made the point last week we are long overdue a progress update/clarity on the review…. Even if it’s not the final outcome, shareholders deserve a progress update.
Just for comparison, Barclays, with a market capital of over 22bn, employing more than 80,000 people all over the world, servicing practically every industry globally began their strategic review in June/July last year and are due to announce its results this month..
Solgold, currently employing less than a dozen people, with a market cap of 200m and only focused on one small sector, have been labouring with theirs for over a year.. still silent, with no end in sight.. it’s unacceptable.. pitiful even.
Q, yes, an update and some clarity would be helpful, but would it make tactical sense?
They may have put certain options on the back-burner, but perhaps they don't want to rule them out in case something interesting comes out of the blue? Additionally, they may be in quite detailed negotiations which are at too early a stage to disclose, and they must not mislead the market.
It seems to me that there is one of the options that is in their own control and they could have completed by now; the spin-out into Newco of the regionals. Does failure to do so imply it is no longer being considered?
A decision to mine would get the attention of prospective buyers.
Okay, we have PFS3 and to me it looks good, no surprises and a decent route to production.
I know we are awaiting the strategic review, but because of the share price at the moment.
I believe Solgold should issue a statement of intent.
In other words, what the strategic review is still mulling over and what is excluded at this stage.
Also as the strategic review aims are about how to advance Cascabel, then any finance options that are currently being looked at.
They can do this as a statement of intent has no legal standing, but it would give us an idea about what is being considered and what is not.