Member Info for Fortissimo

Not sure if this was discussed or missed as over 2 weeks ago now.

SOLGOLD hold a 12.5% stake in Sunstones Bramadero's. Sunstone's sp moving up nicely and market cap suggests our stake worth around $13m.

Might not sound much in grande scheme of things, but that $13m (if monetised) could fund the remaining works on Porvenir pre the spin out and add more drilling catalysts to our 2025/26 schedule.

Link below

https://www.proactiveinvestors.com.au/companies/news/1077781/sunstone-expands-surface-mineralisation-footprint-at-bramaderos-project-1077781.html

With Rio, Glencore and Barrick all reported to be sniffing around Ecuador and meeting Noboa... surely we can get a nice regional deal sorted with one or more of them. The Super Majors appear to be gagging for some Ecuador exposure right now.

TAM rightfully taking the main show right now but important to remember that regionals/folio is worth a tidy sum and attractive to major miners.

Dan also mentioned in a presentation recently that we had a major miner doing a site visit. My guess was it was Jiangxi as we've bene led to believe that NMM and BHP's interest has cooled although they are still shareholders and haven't gone anywhere. But perhaps the miner onsite was Rio or Glencore?

Mmm Glencore

they need something big on their books as they look vulnerable right now... swiss based too and our chairman knows them well.

lovely.

"Ecuador is again on the radar of global mining. President Daniel Noboa announced that three of the industry’s most influential companies — Barrick Gold (Canada), Glencore (Switzerland) and Rio Tinto (UK/Australia) — have shown interest in exploring opportunities in the country."

Sept 19th... mmmm.... nice and current find PBOW

Yes, very good to see. Sometime it just needs spelling out and DV is doing that well at present.

So we should be around 40p to 46p right now based on PFS which is actually fairly placed amongst peers and aligned with most albeit SOLG more advanced in many areas.

Then during construction phase we should be double that or low case 80p. And then the big one... if we make it out of the Lassonde curve and start producing, we'll double again to 160p to 180p region.

And that uses a hefty discount and doesn't really apply higher metal prices.

Excellent stuff.

And agree... a super major is going to take us out well before we get near production.

Global X fund followed you Shipright... they topped up another 300k shares. They seem to be buying up 200k or 300k or 500k blocks every day now. They now stand at 31.45m shares.

Easy to follow with holding updates the next morning

https://www.globalxetfs.com/funds/copx

Based on CEO comments and recent drill results it's almost nailed on now that TAM is economically viable (and some!) and the second phase drilling plan of around 2800m's pretty much confirms it. You don't go drilling almost double the area first intended if you feel you have a non starter.

Looking forward to seeing the economics on TAM as open pit. These pits tend to be 'very' economically at shallow depths especially with PoG at $3600oz ranges. With PoG at those levels, even the lower grades are worth the effort. Ultimately metal prices being well over double what they used to be pretty much makes TAM a serious cash generator. So the more shallow finds the better. It's an absolute game changer and the market as per usual is slow to pick up on it. We should be in the 20's by now.

SOLG have been smart with the the latest stream deal. Firstly, it only includes Gold. So that leaves the 'copper' ready and waiting for a stream deal. Nice move.

The Gold stream deal has a 50% buy back clause set which allows any buyer or JV partner or even SOLG to buy back 50% of the royalty stream. However, time is running out as the buy back clause ends around May or June 2027. Therefore, any buyer wanting to avoid the 100% stream... will have to make a move to acquire SOLG or ENSA long before mid 2027. Most buyouts take at least 6 months to finalise from accepted offer. So again... nice move by SOLG as they know that will force some hands... sooner than many think. Get TAM concluded by year end and CIPA bagged, and 2026 will be the year that we likely see a sale or bid for ENSA IMHO.

Heading for a 20m volume day.

3 to 4 x the level of last few days.

MM's certainly got some churn going today.

The high grade shallow find headlines will come... but not from those sections. Some pi's don't seem to understand the point of the drilling on some of the holes. Some we're still open and now based on some lower grades can be defined as closed. So in essence, you won't be drilling that area again and it helps with the overall planning of the pits. Some holes are still open... hence there is a phase two drill campaign ongoing to eventually find when they tail off eg... when lower grades kick in.

Just wait for hole 58 and surrounding area's targets to come in... they'll be very rich imho.

I've think they are being smart with the RNS's and bundling drill results places less emphasis on the lower grade holes... that's fair enough. But that's more designed for pi's than institutional investors. The latter have analysts on board and better knowledge of what's being tested.

There are some great holes in there, and the add on prospect of Tandy West and North west is very interesting. They clearly think there might be some shallow rich areas there.

What started as some simple planned out defining drill holes has now become a proper exploration expansion to define something much much bigger than originally modelled.

It's looking great and I can see why Dan is grinning everytime he mentions the open pit TAM opportunity. It could deliver $300m to $400m of early cash flows imho which would in theory reduce the JV % required or the royalty on the copper. Not to mention reduce any required shareholder skin in the game when it comes to full development finance.

We have a long way to go to before share price starts to look remotely fairly valued compared to peers.

I predict we'll be in the 20's with next Assay results and CIPA sorted.

There was evidence of larger fund buying prior to second TAM news as shown by Global X fund reporting. But on a broader note, I think many II's were relooking at SOLG especially after the bullish yet also still very conservative broker note from Canaccord who are respected in this mining sector for knowing value/fundamentals.

Combine that with the recent mining conferences which will have peaked further interest and hey presto... you have more institutions getting involved. And with that, you get larger volumes and nice sp movement although not always straight off the bat... as you say... mm's collect shares from the flaky retail pi's and then just transfer to their clients which have lets say... pre ordered.

I think in the past major institutions have been frustrated by the cash burn and poor management which includes a muddled exploration business and huge Tier1 mine discovery. The two don't really mix. You have some II's that want 'in' for the ENSA side of the business and want nothing to do with the exploration business (regional folio)... others want the opposite and some want both. In past SOLG have put stress on the Tier1 Alpala progress due to over burdened exploration campaigns and poor cash management. Hence picture created by Dan and the new reset makes the forward path very clear for all. Invest in SOLG and you are investing in a Tier1 mine with all cash injections going to that asset and G&A. The exploration business will be funded as spin out and non dilutive (cash exposure) to the ENSA business. Then there's the 'chairman' box ticked. And voila... all is looking just dandy for II's to get back to being involved in what is a huge asset / billion dollar business.

I think you'll see the sp move higher again over coming days simply because more II's and fund managers seem to be buying in now and the retail traders which buy ahead of news exit.

It was apparent before they drilled TAM that the Tier1 mine asset was grossly undervalued. As exemplified by the Solaris Resources I gave and Dan's recent peers comparable chart. SOLG didn't need TAM to hit 41p a few years back. But the addition of TAM now certainly adds much more value than in those days. So the market will rerate accordingly but like any machine has to process the movement of the retail pi's and the new interest from larger buyers like Global X. Incidentally, the latter added further yesterday and appear to be building a larger stake again.

On grades, Warintza (solaris) is around 0.48% CuEq average on 1 billion tonnes. Grades are mixed (very much like Tandy) and remember, they are priced at around £650m market cap and no where near as advanced as SOLG.

TAM has every chance of being similar to Warintza although I think even if it ended up half the size... it would warrant at least 10p appreciation on our valuation. Perhaps more based on TSF solution too.

Tandy West is a completely new target and additional to the planned open pit 1 and 2. Looks like they have 3 rigs active across pit 1 and 2 probing away at the shallow high grades areas and extending hole 58 etc. Either they'll stick 4th rig on Tandy west or will wait until pit 1 and 2 phase works are complete and then move to Tandy west and North sites.

You don't deploy more cash and go drilling double the amount of holes your first planned if you don't think you've got something economical. So I would take the extended drill program as pretty much a firm confirmation that they now think TAM is a goer. Still need hole data to confirm it but that's massive news and just what we needed. A viable open pit early cash flow add on which dobles up as TSF opportunity is a very neat solution. The best we could ask for imho.

Some decent grades and some average grades. The latter are expected as they define the key resource areas and are actually 'good' when it comes to outlining the pit boundaries. Some holes are designed specifically to seek out those lower grades areas and others to test higher rade potential.

This is without a doubt looking bigger than they first thought. Still some way to go but very exciting as alos offers tailings solution to boot.

Tandy West is a bit of a surprise... where did that come from!! Blimey... if that delivers anywhere near what the rock samples suggest at shallow depth then it really is party time as that's even closer to the planned TAM Tailings. And then there's Tandy North West too.

More drilling and loads more assays to come over the next 5 to 10 weeks. Certainly keeps the newsflow catalysts nice and frequent with all important CIPA due soon too along with Portal/Pilot hole development works in November.

Panda,

How is Mather these days? Is he as bullish as ever?

The next resource update will be a significant step up as metal prices have surged since the last PFS/update. There is a higher discount rate required for blockcave due to the unknown's involved. You also need to account for the fact that the PFS is based on just 18% or so of resources. As Dan 'keeps' reiterating... he's only interested in 'reserves' right now. That's because he's a finance / bank guy and he know's what is 'bankable' and what is not. TAM will require significantly more drilling before they can get to 'reserves' status but that's not an issue. Main issue near term is defining the open pit economics and capex required. The Capex for Cascabel will increase and Dan has intimated this already. However, it's unclear whether that's down to additional plans for TAM or the reconfig on the mining footprint.

For all development projects pre finance, it's the IRR that matters most. Ideally, you wat this nearer 23%+.. or 25% would be great to have the super majors or potential buyers waiting in the wings on their toes. You need to prove you can go it alone or else the majors will just sit and wait for you to flap around... hence that being the case for last 5 years+.

It's when permits arrive... it's when IRR's rise... it's when early cash flows / open pits are confirmed etc etc that's when the buyers on sidelines are forced into action. Dan is doing a great job at getting us there. Cascabel 'deed' is effectively sitting on some swiss lawyers office waiting on some add on permit red tape stuff. The price tag goes upm with every derisking event that Dan and team achieve. Simple as that.

True... thanks for reminding me Damers.

I'm happy with the TAM focus as said from the start that ExploreCo news would be lost and confusing if mingled with TAM at same time so makes sense to push it out to Q4 (next month onwards) while TAM steals the show.

Looks like they are already 'expanding' the TAM drilling and I guess we'll see more 'near surface' numbers that will dazzle the market near term.

Like many, I'm just keen to see us getting back to good old exploration across licence blocks as feel that's the most exciting aspect of SOLG and the folio.

The ExploreCo will be a seriously attractive company when listed and I believe that will easily get up to £500m+ cap pretty swiftly upon some good holes.

Dan was certainly pushing the 'gold' aspect of SOLG and understandable with PoG where it is. Important that SOLG is not seen as a pure copper play when there are many investors out there keen to gain exposure to gold.

Ironically, it's investors that are keen on gold and it's the super majors that are keen on copper as they prepare ahead of that metals boom.

My only issue with the latest catalyst list on the presentation is that the ExploreCo was not on there. Appreciate that the TAM story is the main driver right now and that Ecuador land levy etc causing issues with the regionals etc etc but I would like to see the ExploreCo plan/deal and some drilling kicking off soon or very early next year at latest (in next 3 to 4 months). Such a great opportunity there and we know what the drill bit does for the share price.

The 'independent management team' was an interesting comment.... so does that mean the ExploreCo won't have Mather on the board??

I think based on their TR1's they were out before the merger was concluded.

Appreciate your thoughts but I've seen Blackrock take positions in companies and not all are long term investments.

We'll have to beg to differ on this one!

Blackrock we're buyers when SOLG were mid 20's and they built up a near 6% holding with further buys in the mid 30's. They were active and some believe stake building ahead of BHP bid. That year, BHP opted for Oz minerals and the speed that Blackrock dumped SOLG down to 0% holding was quite revealing. They were in it for the buy out ... no doubt about that. So they wouldn't have been there in mid 30's if they didn't think high 50's offers were coming. Anyway... that's in past. For Blackrock, their last sell out positions were around the 17's or even 16's. So if they were to buy back in now, they wouldn't be hugely out of pocket although they clearly made a loss on the SOLG stake from earlier years.

Not easy for likes of Blackrock to get a re-entry into SOLG unless there is a placing. They would find it very hard to acquire stock in open market at volumes they require if wanting another 5% holding again.

Of course, there is always the NMM debate simmering away. Are they longer term holders or would they sell out to blackrock or JPM at 25p? I guess Paul and Dan would prefer that NMM's shares (10%) went to II's rather than Jiangnxi as latter would be a one horse race if they got 22%+ holding I think.

As we head higher (and we will) the NMM 10% will come more into focus. Do they have the patience for 35p+ or 40p+ is the question?

Exciting times ahead.