I think you'll see $2500 on POG before 2020 is out. Covid 2 is going to sink the dollar and the FED really have no other option than to keep printing 'free' money. On commodities (dollar focused) OIL is in for a rough ride which means more pain for US shale with heavy job losses across that sector.
Trump is toast and I think the market knows it. I don't think the market has much faith in Biden.
That said, BHP do employ the services of hedge funds to balance their PM's with currency fluctuations etc so fairly standard stuff for them but clearly more benercial right now to be paying down a 5%+ bond with cash rather than holding debt and having cash lose 5%.
Buying SOLG for $3bln+ is an easy sell to the main shareholders and I doubt it would even need to be run past them. If it was a $20bln deal, then I guess they'd need major holders on board.
BHP are throwing off so much cash right now and as stated below, that cash is losing value on the balance sheet unless it is deployed to good use. The dollar is causing issues across the board and ironically, BHP would better off holding the gold lol!
Investors often wonder why Gold gets sold as well as equities when a correction takes place or a sizable fall in the DOW. Well, the simple idea is that gold is cash and when margin calls are ringing and liquidity / cash issues suffer through stock losses, funds and investors are forced to seek cash and with dollar lightly held, it's gold that they turn to, to get themselves balanced. But here's the thing... when the calls have been met, that's when the balance tips back to Gold. Gold dip is invariably short lived in scenarios like this as it's thego-to safety hedge. So expect POG to be back bursting through $2000oz very soon as Covid wave 2 means one thing.... more FED printing and more dollar devaluation.
I thought the markets were just having the usual tantrum ahead of the US political scene which includes the elections but more recently the QE package. With second wave locks downs looking inevitable the markets are saying... we want that fiscal package sorted and we want politicians to think of the country and not their own political opportunity/ career.
That's all it is. The FED will not allow markets to trade down too far as it can't afford a bank/debt problem to unfold. That said, there has been several examples of late whereby the 'markets' (mainly the FED imho) have been doing a few 'shakes' to warn off the fast growing and overly populated leverage market - especially on the retail side of things. They did it on POG and they've tried it couple of times on equities but the sheer weight of zero rates and savings going no where fast is driving more and more cash in the markets. The big banks like BoA and GS cannot push things around like they are used to which means Trump, the FED and a few others like BoE cannot control things they way they want. In a nut shell. The retail investor on a global level is causing the FED some headaches. All the money they are injecting it supposed to go into bankers pockets (like always) and of late it's been going into retail pockets. That's good news but it's also bad news for FED. They want the leverage trade snuffed out so I would expect to see the likes of IG and others being 'aske' the the mighty ones to raise leverage levels and make it more expensive to deter retail. Once sorted, they'll then be able to buy Gold again with the banks making the most out of the next run.
With US elections ahead, it's looking possible that Trump is going to try and get the event shifted or cancelled due to Covid wave 2.
Quite frankly, why GOLD isn't $2200oz now is a mystery... but the FED know the answer as they imho the ones keeping a cap on it. They need the dollar to hold firm and it's on the edge of collapse with covid 2.
With Bank rates set to be low for at least next 3 years+, and gov backed schemes like NS&I now slashing savings rates and Premium Bond prizes, you can seen why Gold is going to gain attractiveness along with Equity investing as a whole. There must be a plethora of retired individuals which are now staring down the barrel of a once decent return on their lump sum savings - now about to be turned to almost zero income.
The 'folio' is the what the majors are after. Super majors tread carefully when going for new regional geo entry as often they find major issues with social / government complexities accellerated when a name like BHP or Barrick are involved. Allowing a smaller miner to do all the hard work does present more expensive acquisition pricing but more importantly, it also reveals rich veins and corridors giving a greater indication of the upside ahead.
There is no doubt that Alpala is more than enough econonically for the likes of BHP but it's always been about the regional entry and 13 x other opportunities across the folio. And remember... this is early days. There may well be 20+ other style type opportunities that SOLG have not even scratched the surface on as yet.
Alpala secures the commercial story for entry into the country. The 13 x style Alpala targets are what the super majors are needed for most. And that's what the want most. If BHP or Rio or Barrick allow SOLG to go it alone, then there is a real prospect that all these super majors kiss goodbye to Ecuador and will witness the rising of SOLG to the 40 billion super major title alongside them.
I simply can't see how a super major (all cash rish right now) can allow this opportunity in a lifetime to slip away. Even if they paid 150p+ a share it would be cheap for them based on what they are potentially securing.
I wonder... will they use some 'heavy metal' music as background to the bridge video that seems imminently destined for twitter/youtube. Or something more along the lines of dam busters. Joking aside, as a new investor to VAST (i hold no historic vast baggage and have a sub 0.165p ave to show for it) I do think the worst is over here and with PM's in favour, it shouldn't take long before this stock doubles upon proven production sales. It really is a great time to be a PM /Copper producer and the share price doesn't presently represent this.
"the Company can announce that activities are on schedule and the bridge is being installed today. The Company will provide footage of this process via social media."
Thanks iceberg. I do hope NM gets that news out there if/when ready rather than sit on it. That said... if it is price sensitive information the he needs to RNS it without delay... and that's not CGP talking... that's market rules.
For those that like to spot the ripples in the fabric, I think we've seen a couple of clear examples on how this stock is primed and being contained. So... first up is the BoA note. Share price breaks free of shackles on moderate volume after BoA issue 83p tgt price. Then after an hour or so, book pressure resumes and price magically returns to its original position. Next, we have an intra-day RNS, and the share price leaps to 28.5p levels on moderate volume. After assessing the RNS and determining there is nothing in there of concern, normal service resumes and price is reduced back to pre RNS levels.
So deduce from that what you will but my guess is that there is an ALGO or bot on SOLG containing the share price. Any Intraday RNS has the bot worried and any sudden surge in volume has the bot worried until of course a Human (let's call them a trader from RBC for fun) decides it's nothing to worry about.
In my opinion, the way this sp has popped on nothing news just shows how it's contained and balanced on a knife edge with a view to explode higher when the news actually warrants it.
Denver forum presentation up next starting Sunday and running through to next wednesday.
Getting exciting isn't it?
I'm pretty confident you'll be happy with SOLG's progress in business and share price by the time your 80 or within the next 3 months whichever is sooner!
At nearly 80 years, I would assume you've learned the art of patience... that said, I find it almost impossible to queue for anything these days covid or no covid.
"Have lost some patience with SOLG"
Are you mad? How can you lose patience with SOLG when the expected newsflow is just a few weeks away along with new exploration phase not to mention BHP out of lock in agreement and free to bid come October 15th.
It's like investing in Shanta ahead of West Kenya exploration infill results and weeks before they are due... selling up because you can't wait any more?
Seriously... why were / are you invested in SOLG? It's a terrific stock with massive upside and like Shanta it has a super major or two on the share register.
I have no problem with investors rotating cash in and out of stocks, for some it is a hobby and others even a vocation. SOLG will come good. BoA's recent sp target is 83p. The stock closed today at 26.85p. Long way to go on SOLG imho. Long way to go on Shanta too and I can't wait to see the infill drilling on WK.... or I mean... I can wait!
What dip? You've just sold out of Shanta because you think Gold is going to $1700oz which incidentally doesn't effect Shanta as acutely as other miners due to the hedge and margins involved with the business for Q4. POG does make a difference of course. But then so does Singida update. West Kenya Scoping study update... and further exploration news on New Luika.
The II's haven't been buying Odey's stock off him at 19p for fun you know.
With West Kenya exploration news expected in Q1 2021 and possible dividend declaration... I am most certainly not going anywhere soon.
How many pennies are you hoping to save with your in's and outs of Shanta??
Deep Survey1, You must be the worst trader going. Did you write the below on here in July??
"RE: Oil/ gold to Rebalance06 Jul 2020 11:50
I’ve sold out now. The Barrick deal is priced in. Gold is trading sideways ready for a correction. I’ll look back here in a few weeks." END.
Price was 13.25p when you sold out and Gold then went on to break $2000oz. Seriously... you couldn't have called it more wrong if you tried.
Gold bearish again?? Going by your record... it can only mean it's bullish then.
I think 30p is pretty much expected over coming days and weeks. 40p is a better target as that's a little further out and I'm sticking with 40p for early October. So that's 13p move over the next 3 weeks or so. Or 50%. Mind you, that's still behind's CGP's leap from low $3's to early $6's.
Surprised TSX hasn't suspended the stock and ask the Bod's whether they know of any reason for the share price doubling in a matter of weeks?
I'd be interested to know their answer.
Interesting that Odey have reduced as they had previously increased their holdings (also need to factor in the 5%+ dilution via Barrick share issue).
I noted a slight change on the book earlier in week which signalled the move through 18p+. As a hunch, I'd say that R&M, Majedie and Sustainable Capital might have completed their rotations/reductions which then left the MM's and keen buyers wilth limited stock to buy. The book moved to 19p on smaller volumes so sellers are drying up and when that happens, mm's / brokers often go tapping up larger II holders to see if they want to offload. In this case, Odey has delivered 10m shares to market (approx) and all of them were snapped up.
If Odey continue to supply stock, then could see some sideways action again like that seen at 17.5p levels. But if they sit on their hands and just trim holdings as Q3 tidy up, then we could be ready to pop into the 20's.
That all said, it's near term stuff and doesn't really effect the advancements coming via news flow and exploration not to mention POG breaking $2000oz again .... and it will... fairly soon once the Fed/market games are done.
It's good to see the market finally waking up to Shanta's growing cash flows and upcoming projects like Singida and West Kenya. The latter is a massive opportunity and I think in this excitable 'exploration' focussed market of late, any significant success with the drilling in West Kenya which proves up more high grade gold will be rewarded in the share price. The surprise in the last news update was the impending West Kenya drill plans. November 1st commencement is the target and I think that's far sooner than many thought.
13 days left in september and we are still due West Kenya Scoping RNS and of course... Singida project economics/plans and start date.
In these markets Gold explorers are seeing greater gains than producers! But the best combo of all is one that producers, explores and is debt free and cash positive. Not many of them around out there right now that are cheap. Shanta being one of a few. No wonder the II's are mopping up stock at 19p levels. A decent infill campaign at West Kenya could add 6p+ a share with ease.
BHP might want it but that doesn't mean they'll get it. They have 13.6% (approx). If BHP really really want it, then they best engage with NM and offer a price that he accepts and backs. That way they stand a good chance of getting it.
Those hiding oin the shadows are what BHP will fear the most and I for one reckon Barrick want in. These super majors have ballooned so much in value of the last 6 months - they could offer $5bln and that's a drop in the ocean for a folio of this size and new country entry.
With risk assets bursting back in market favour, there should be some wacky valuations coming back into the market for the smaller cap miners.
VAST could be 0.5p in a few weeks and I don't think anyone would bat an eyelid. All is in place for a sustained rise and the spivs that took the 0.15p placing did so because they wanted to offload them at 0.45p+ rather than 0.165p+.
I think this will double up to 0.32p over the next few weeks providing the business delivers on the news flow.