Member Info for Fortissimo

Last year (june 2024), when the company announced the Franco / Osisko deal for $750m stream funding, the market got excited and priced the stock from 9p area to test 13.5p I believe.

13.5p... a year ago and since then metal prices have jumped, SOLG are past first tranche and fast heading toward tranche 3. Tandy drilling underway. Regional folio to be packed up and marketed with exploration to begin again on several high prospect Tier1 potential targets.

Markets are weird these days. Trillions can be ploughed into digital coins that have no value at all... just an invention and yet... the market cares not.

With a copper shortage looming... it prices a Tier 1 asset holder like SOLG at admin levels.

Bonkers stuff. But looks like green shorts for return back to the teens in short term.

I think once TAM is done and dusted and they've remodelled all data, then yes... they will update on the project metrics and I suspect use much higher metal prices too. That's should see a very large re-rating.

The market valued the asset/company at 40p+ and that was post covid times and well before the $750m funding stream deal arrived.

It's amazing what you can do when you actively market a company and tell the maerket that you think you're 'grossly undervalued'. Makes you wonder why they were so tight lipped for last two years and just content to see the sp plummet down to 5p levels.

Some might call it an act of self determination to rid the stock of pi's and increase the II and insiders share.

Now the insiders and chinese are all fully nestled in (including the new CEO) it's time to market the business again.

You gotta love the markets and the greed that comes with it.

I think the Short of 0.6% is averaged at around 8p level. 0.1% was added to suppress the rise after the Ecuador elections win for Noboa.

So Short player turns negative from 8p upwards. To be frank, it's chicken drum sticks and chicken thighs to be honest as every cat and dog knows it's a Chinese short lol! And they bagged 5%+ of SOLG for just $18m due to their shortshannigans.

I was thinking more of how warintza compares to Porvenir as similar stage albeit solaris bit more advanced but might hold indication of pre market value expectations IPO plans as Porvenir will undoubtedly be the core asset of that southern folio.

That's right... quite a surprise to see is effectively rise 3x in value over the last 12 months.

I have been banging the drum about this for a while now but not much debate over it.

You'd think a potential Tier1 asset (that's a stretch for Solaris to claim) in Ecuador would be the perfect comparable for SOLG.

Look at the stream they've achieved and the structure of finance. They are years behind us but valued at 3x as uch as us right now or we are 3x undervalued.

As below...

"Upfront Consideration

Royal Gold will pay Solaris a total cash consideration of US$200 million in three instalments as follows:

First tranche of US$100 million upon close of the transaction (funds available immediately as signing and close are concurrent).

Second tranche of US$50 million made available following the publication of the Pre-Feasibility Study (“PFS”) and receipt of the Environmental Impact Assessment technical approval (“EIA”).

Third tranche of US$50 million made available on the first anniversary of the closing date and completion of all filings necessary to fully perfect Royal Gold’s security.

Closing of the second and third tranches will be subject to other customary conditions.

Proceeds from the Financing Agreements will be utilised to complete technical studies, permitting activities, early infrastructure development, the repayment of the Company’s Senior Debt facility, some district exploration activities and general working capital requirements, and fully-fund the Company through to a FID.

Stream

Royal Gold will receive gold deliveries equivalent to 20 ounces per 1 million pounds of copper produced from the RGLD Gold AOI (“Stream AOI”) (Figure 1 – area demarked with the pink boundary), which is expected to represent only a small percentage of the gold over the life of mine.

For each ounce of gold delivered under the Stream, Royal Gold will pay Solaris a purchase price equal to:

20% of spot price until 90,000 ounces have been delivered; and

60% of spot price thereafter.

Royalty

Royal Gold will receive a 0.3% net smelter return royalty on all metal production from the RGLD Gold Expanded AOI (“Expanded AOI”) (Figure 1 – area demarked with the blue boundary).

The Royalty will increase annually by 0.0375%, up to a maximum of 0.6%, until the earlier of:

the first delivery of gold under the Stream; or

eight years following the closing date.

Question is, how does Porvenir rate or compare to Solaris Warintza??? The latter slightly more advanced but still pre-pfs.

Work on aligning Porvenir with Solaris warintza and you'll then get a better steer on what Dan should be achieving with Porvenir.

It's the closest comparison we have and Solaris is over $1bln CAD market cap.

Chinese have been giving 'technical assistance' so whether that's on roads... Tailings... or other things, one assumes we are now firmly in Chinese and G-mining hands.

I'm still quite concerned about Chinese involvement 'directly' as they are our largest shareholder and clearly have a strong interest in the asset for themselves and certainly not all shareholders interests. So Dan needs to be careful that the Chinese do not lead us down the garden path.

If the chinese are heavily involved with any of the regionals in the south when that gets announced, then the regulators might start to think it's a 'creep' takeover under way. Of course having NMM and BHP involved with the regionals too would help offset that. Personally, I'd rather BHP didn't get a look in at all. Leave them on the sidelines. They had their chance. Don't give them a sniff of exploration. NMM a different animal entirely and we've heard that they are interested in the regionals so lets hope they have similar stake to chinese when the plan is announced. I think Dan will announce the 'cornerstone' investors then as likely add weight to the broader proposition if going down the IPO route.

Well, we've been informed that they are now 'accelerating' the development of Alpala so one would hope that they plan to get a jog on. We've seen what happens when they delay and drag their feet... it costs millions and delays franco/Osisko payments. Hence, it's absolutely key now they get motoring and with G-mining on the ground, their a responsibility (outside of SOLG management) to deliver on time as per schedule. I think they'll need something concrete or material before year end if they want that Environmental permit updated/approved (targeted for Dec 2025).

I would expect them to have all assays in and TAM wrapped up by end of August or early Sept. Gives them 3 to 4 months to build into project numbers.

Probably need the funds to pay their lawyers lol! One would expect some serious court fees to be incurred so they could end up walking away 'paying' the miners... but I doubt it.

And then there's the counter cases that could come for loss of investment, loss of deals... loss of time. Quite damaging inventing new mining land tax laws without thinking it through properly.

Pbow,

The new land tax fee was due to come into effect for medium to large sized companies on July 31st with first payment due. So like you say... one would expect some kind of injunction to take place prior to July 31st. I would be delighted if it got thrown out entirely, but I reckon there needs to be some placating or mutual agreement to see Noboa happy and (to be fair) foot the bill for the clamp down and increased policing costs of the illegal artisanal miners.

I guess much depends on 'how much' is required to cover that clamp down on illegal mining and how much miners should contribute??

Smaller companies had until Dec 31st before first payment was due but not sure how the small, medium and large delination was worked out or agreed!!

DBW, I think the Exploco news is already pen'd and ready to go but I'm guessing that assumes a reversal in the recent land tax fee by ministry. Until that matter is resolved, I can't see being able to deliver the Exploco plan.

Last I heard Gina R's lawyers were all over it seeking an injunction but that was a few weeks ago, so no idea what is going on now behind the scene's. Are they negotiating an amended deal or some other kind of fee structure??

Need any 'invented taxes' by ecuador gov nipped in the bud as that's not going to help any IPO or spin off plans.

Pbow, you've missed the point of the original post or I haven't spelled it out well enough.

My point was... they might get a 30p bid to fly if they bid in the very near future as the sp has been suppressed sub 10p for a while now. If they wait and the sp rerates and returns back to 21p+ levels, then chances of a 30p going through diminishes.

Where the sp will be pre their bid is anyones guess. I wasn't suggesting it would be 10p the day before they bid 30p. That was your rather linear view without tacking into account the way markets work. What if the sp was 10p next week and rumours kicked about saying bid coming ... next you get a newspaper article saying rumour of bid etc etc and sp is suddenly 16p+ and volume sky high and then (note and then... ) BHP drop 30p bid. Still think their shareholders will be looking over their shoulders at a few weeks ago when the so was 7p and thinking we've overpaid??? Or do you think they'll look at the resources and say ... if 30p bags this... happy days.

Sometimes you need to try and see the bigger picture a bit more rather than just trying to dismiss things.

You missed the bigger picture on the elections and got that woefully wrong.

Pbow,

The sp won't be 7p pre bid you numpty. It will be much higher. Markets move in mysteriosu ways and I suspect the sp will mysteriously rise to teens before any bid arises. Call it rumours... or the market just doing it's thing. The sp is a fruit machine .... not a valuation tool and they only tend to align when a bid is made which is based on 'asset value' and industry standard resources benchmarks less some risk and usual discounts.

Pbow,

The asset is not priced at 7p? The shareprice is currently 7p. There's a big difference.

BHP have never used a share price as a guide to shareholders of value. They use resources based on capital outlay to acquire. Eg... they'll spec cost of acquisition per ounce or via total resources opportunity.

Remember, they bid 48 cents for Noront when the sp was 21 cents a few days earlier. They then when onto offering 72 cents.

Shareholders (BHP's shareholders) are interested in the resources bought and what they cost to deliver profits/returns. Aquisition price is all that matters... not shareprices. The two align in a bid situation. Prior to bid situation, shareprices can do whatever they spivs like especially with small cap miners.

If you were chinese or BHP then I think you'd be looking at the recovery pattern on sp and thinking.... this is going to recover back to 20's pretty quick post Tandy news assuming good etc.

Is it worth the wait or why not just fast forward the pattern and slam in a bid at 30p and see if it causing some weak hands to capitulate. Of course, any bidder or bid would likely secure NMM's 10% holding first (in principle) before going ahead. An sp sub 10p certainly helps with any behind the scenes negotiations with NMM. And as we've seen with GGP, they can be quite casual when it comes to disposals.

The fact is... making a bid in the 30's when the sp is sub 10's stands far more chance of gaining support than if they waited until the sp recovers to 21p+ and then bang in 30p+ bid.

FWIIW... no bid likely to win in the 30's but it's a starter gun and as seen with noront and a few others, the starter gun is often half of what it ends up at or even almost 3 x less in Noront's case (48cent early BHP bid and ended up going for 110 cents).

Chinese will be involved with Southern regionals IPO/folio imho so they might prefer to await that before making a bid for SOLG. Easier to do when just dealing with Northern regionals and ENSA as a separate deal.

Sept 2024, SOLG were 10.5p a share.

Mmm... 3 x or triple would be 31.5p.

Sounds about right for where we are right now.

Solaris Resources

52-wk high 7.94cad (July 2025)

52-wk low 2.58cad (Sept 2024)

And they are still working on PFS.

Why did have tripled?

We need to get back to 21p+ just to match one of our little guys in Ecuador with an asset that is great... but no where near as great as Alpala.

If this is the short being closed then we'll know for sure it was the chinese as they are the only ones that would be able to buy the stock back at these price levels without spiking the price. Probably stock being returned to valuestone lol!

Will be interesting to see what happens with the short as it's clearly chinese based. Assuming it's a hedge against their 12% holding it would be a great sign of confidence if they were to remove it.

Last time the sp spiked into the 8's they actually added 3m shares to the short to keep the price in check. That was back in April/May.

Will they chuck more at it to suppress the rise and keep buyers away?

Seems like a losing battle unless they plan to make a bid soon of course!