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Wasn’t the previous PFS and mine plan remodelled by Keith Marshall and his crew, to try to make it more realistic and efficient?
I will be astonished if somehow, they missed the opportunity to mine the resource for less than half the cost.. like we have promised to now show in PFS 3.
They must have had the mining vision of Mr Magoo, if they couldn’t see the opportunities that Scott’s new boys may show, if they can release a credible, genuine method to extract for substantially less, that stands up to close scrutiny .. IF being the big word here.
There is another IF though… As in, what if Solgolds new PFS doesn’t clearly and unambiguously prove it can be mined for half the price? What if it disappoints.. what options are we left with?
The ore body is the ore body, and it is where it is, it’s not changed.. if after 3 PFS we can’t get any major to buy it or JV it with us, after they have each looked it over and kicked the tyres.. then what?
It’s just laughable to believe Solgold are capable of moving it forward profitably if all the experienced and proven miners walked away for reasons we will never know..
AROK I'm in absolutely no doubt that the SP is being managed. I can't remember ever seeing even an AIM share with such a vast proportion of AT trades and SOLG has a full listing. And every time there is weakness it is pushed down unless PIs buy shares...e.g. on Tuesday...7.10 to 7.92...
Good lord a reasonably sensible and realistic couple of posts from Red.
Not happy but only solace for me is, Bed & ISA !
Nothing left in trading account....loss registered with false average in ISA !
Still think, its managed !!!
The second priority has clearfly become what I've called PFS3.
PFS2 was announced in April 2022 with a DFS to follow, but Scott knocked that on the head in November 2022 after Darryl was sacked for incompetence and Scott took over.
In September 2023 he made clear that the PFS would be massively revised to produce a better, quicker, cheaper mine design, building on Keith Marshalls suggestion that the rich ore be mined from the top to fund the later block cave from cashflow.
Even under Marshall this produced a payback in 4/5 years. I epxect a lower CAPEX, more metal and better revenues in the revised PFS which is imminent. I believe it will leave people in no doubt that Cascabel is a Tier 1 mine.
The third priority, given the need to set up datarooms, etc; to produce the optimum possibility of a bidding war or a knockout bid and/or the best possible monetisation, together with a revised PFS was to strictly manage cash.
Just imagine how worried you would be right now if September's cash balance had been $2m instead of $22m...
So as with the merger, PFSÂŁ has taken more time than they or we would have wanted, but trust me it is imminent. Scott is being pushed hard by Sangha et al but, as with much he has done so far he is taking a professional approach.
I expect PFS3 to spike the SP simply because of its arrival, let alone what it contains
I expect 'insiders' to buy shares that they haven't been able to since 14 December
I expect further announcements about tailings, railway, pipeline, exploitation agreement, green energy proposals and maybe even at least one or two announcements about the 90+ 'outside' projects (which, remember includes Bramaderos), including possibly at least one J/V.
Not all at once, that would miss the opportunity, but although Nick was guilty of overhyping, he was good at keeping the market fed with even tidbits of news.
What I would LIKE in addition would be an auction of the former CGP Solgold shares to the highest bidder, starting, say at 20p. This alone would make clear who was seriously interested and would ignite takeover fever.
In my final post I will consider the position of us ordinary investors
Well done FTJNY. I am hoping to buy my last last ÂŁ20k work at sub 6p. SOLG is the gift that keeps giving
SM, it's amusing to be called a de-ramper by one and a ramper by the other.
The are both mince thick and are consistently wrong - although from opposite ends of the spectrum.
Given the value we have in the ground so couldn’t resist adding another 49355 of these little beauties this morning! :) :)
I think you'll find Bob has taken out more than he has put in.
That's the reality here. Bob is coining it in and able to lower his average when many investors are not in the same position. I'm lucky enough to be able to add stock when it appeals but others have been diluted and left hung to dry by Bob's strategy to go into some kind of hermit like existence which mirrors exactly what they did at CGP... just sit and hide behind a hollow company waiting for a bid or money event. CGP did zero over the years.
Add, I have long thought they are remarkably similar. Peas of the same pod.
This morning I've read some of the most sensible comments for some time.
And please don't berate me for being optimistic...its the way I'm made.
But I'm not stupid either. OK I've made some unsound investing decisions in my time, but this is not one.
It is entirely understandable that we are frustrated and/or impatient.
Obviously really good news would help the SP but, given the crystal clear communications we have had over the last several months, we know what we can expect.
Scott made it abundantly clear that previous management had been incompetent. The best example was the snail like progress on the merger which led to SOLG having to produce a fresh Prospectus from January because nobody noticed that they had to get the merger completed before the MD&A was completedm because of the change of finacial information.
So it is no wonder that Nick merely scraped in at the AGM and Twigger and Clare are gone, together with much of the management.
And we now have a skeleton staff, which together with other measures has seen the operational monthly cashflow fall from c$3 million to c! million.
And yes the other main casualty has been the drilling programme which would of course have produced probably positive RNSs from time to time to support the SP.
But Scott has been abundantly clear on three priorities:
a thorough going Strategic Review aimed at producing the monetisation event(s) that would produce the optimum returns for shareholders. In this he is convincing because he, Sangha and the former Cornerstone shareholders have huge skin in the game and have thrown their lot in with Solgold despite twice before turning down takeover bids, in defence of which they claimed their shares were worth between $12.50 and $20...
But the merger was completed at c$4 a share. And none of them has sold a single share. Indeed Sangha, Scott and others have bought more shares.
The unavoidable conclusion of the Strategic Review has been that SOLG will seek to sell the whole company to the highest bidder or at worst Cascabel; together with separate exercises in monetising the other 90+projects, including Porvenir.
And yes I also have made the mistake of thinking the bidding would start much sooner than this, but in retrospect we cannot ignore the macro factors:
Mining stocks in general have had a bad year. Just look at the correlation between SOLG SP and GDXJ for example; or even Newmont.
There is no doubt we face a massive global copper shortage but in real terms copper has underperformed although it still rmeains above the PFS1/2 assumptions of $3.70.
SOLG is a gold play and the forecasts of such as Goldman of $3000 have not come to pass but at $2034 it is 56% above the previous assumptions.
To be continued...
The second priorityt
And that's markets for you! Completely useless valuation tool. It comes down to the asset and what someone will pay. That's SOLG's value. When Bob delivers the offer... the market will react accordingly... but it's currently Bob's ability to secure a deal at near zero. And that's fair enough as in the right hands ... deals get done. In the wrong hands... they just end up in a stalemate going no where.
And will be again soon. patience required
And throw in metal prices... some at all time highs too.
So almost everything is related to SOLG is near multi year highs.. market... metals... and copper boom around the corner.
When SOLG were last at near term sp highs of 42p, POG was $1350oz nearly 50% cheaper. The Dow was 25% lower.
SOLG did not own 100% ENSA. SOLG were some distance behind where they are now with red tape gov permits and awards.
Put in simple terms... SOLG has more reason to be 42p+ today than it did back in 2021.
What an absolute tool you are. Your inability to understand what's being said rivals that of our Aussie friend.
Addicknt, you have a certain style about your posts... Its quite funny how mostly start with:
I agree...
I accept...
For someone that holds lots of other shares but only comments on SOLG, it shows that you're here to simply agree with the derampers all day long.
Off to the filter bin for you!
Tesla, I accept your point, but in this instance the market (whatever that is) doesn't have a clue about the likelihood of one thing or another. I do not believe there are professionals out there who are constantly evaluating our circumstances - in fact I imagine we are roundly ignored.
The thing I keep coming back to is the result of the AGM. Clearly, the institutional holders and some of our larger shareholders, who would have had contact with SC, have bought into his strategy and the fact they haven't sold indicates they are content to let it run its course.
I am in total agreement with your last sentence, although I apportion the blame to the previous regime, not SC.
"No point in arguing all day as we are firmly in the hands of big institutions who clearly want our shares"
If it were so 'clearly' the sp would be going up. Another daft post from novicemuncher🙄
It's fair to say that the 'pinch' post covid has removed alot of capital from PI's pockets. The pool of money coming into the smaller companies or higher risk investments is greatly reduced. Combine that with the higher rates landscape and many are able to get 5%+ or even 10%+ for riskier NON specific market based investments or alternatives to equities etc.
The big money in equities is going elsewhere. The S&P and DOW are at or near all time highs... yep the highest level they have ever been. Against that SOLG is at it's lowest level for years. And it's not the only one.
It's a great time for the bigger fish to swallow the smaller fish. In fact a much better time than when BHP took OZ minerals out and much better time than when Newmont took NCM out.
And BHP and NMM waited another year they would have got them alot cheaper imho.
So timing is not always nailed on for even the bigger M&A experts. But it's bargain basement time across mining sector for sure.
I agree Bozi that's not happening in a month of Sundays. All I'm hoping for is the PFS to be delivered on time and to be updated by the company on the IPA negotiations.
Addicknt
That’s not strictly true. The market evaluates the likelihood of certain scenarios without getting emotional about it.
The only facts it is focused on are, will there be a bid and judging by the sp performance possibly not and the chances of a funding event.
Certain Solg BOD etc have tried to ramp up the bid scenario with silly( my opinion) data room comments, after a while the market will discount this as BS as there is only so long that can be entertained as material to the sp.
The other issue is funding ……most on here accept that at some point in the near future Solg will require further funds and there is no strategy in place that has been forthcoming, so it’s no wonder the sp is drifting down.
A bid is not in SOLGs hands the funding issue is and I’m sure shareholders hope they have a plan to sort this out that isn’t too painful for current holders.
But let’s face it Solg only have themselves to blame for the current position…….
Get yourself on another pretend ski holiday skint and stop posting rubbish on "social media " you turnip.
Cheers
I very much doubt it SM.
Any potential suitor knows it can buy up millions of shares at this level over time and the chance of a bid is vastly reduced.
That's what I believe The Italian is getting at and I agree.
I also agree with Fort's post from yesterday about the accounting process.
There's no two ways about it. We're in a pickle and the SP is reflecting this.
Hi Novice, not wishing to appear confrontational, but you state we are firmly in the hands of big institutions who clearly want our shares.
What evidence do you have that supports that statement? My own (personal) view is that we are clearly in the downward spiral of a market that is showing no interest whatsoever in our shares.
Sharket that is what the big institutions want us to do buddy then bang it goes for a quid a share in the summer… sit back relax and remember why each one of us invested here decades ago !!!