Member Info for Fortissimo

Excellent feedback ... well done DBW and DG1.

I'm not too concerned over Cascabel as think Franco and Osisko have pretty much confirmed that it's rock solid and almost half of the funding already acquired (subject to milestones/permist blah blah blah).

What I'm slightly disappointed by is the lack of drive toward the regionals. They've had over 24months already on this. Barrick, Gina et al have all been buying blocks and doing deals. I appreciate they have had to focus the small teams efforts to securing the forward path on Alpala... and some might say it wise to get that done and dusted before you start drilling for more Tier1 assets and muddying the waters... potentially.... but I can't believe for one moment that they can't see the importance of pushing the regionals forwards and that should have been an exercise that was lined up immedately after the Cascabel finance deal. They seem some way off if they are still thinking about spin offs and other ways to fund.

What's happening with Porvenir?? That's been gathering dust for the last 24 months!!! Something doesn't add up here to me. With licence blocks rare in Ecuador right now and Barrick/Gina et al being active.... how can they still be scratching around to get regionals / exploration financed??? The mind boggles. Or something else is clearly bubbling in the background and they can't say right now... I believe the latter more likely.

Perhaps the recent Franco / Osisko deal got actioned because the chinese were still kicking tyres and have said they need to see more permits sorted and the asset derisked more before they make a move. The Franco deal has cost them a small fortune if that's the case. I like what Bob is doing but think now is the time to get that drill bit turning again. Get a deal sorted on Porvenir. Get things moving faster as it has been terribly slow.

An IPO/ spin off would take 6 months minimum to get organised... so if they are still pondering it... then we are still long long way from drilling anything new.

I was hoping they were more advanced with the regionals but it seems they are still dithering around. Get a shift on... please!

We are on the upward curve now despite the sp girations all is on track although I'd say the $750m deal puts us way way ahead of where we should be, however... that is phased in tranches so sp should rise upon each derisk event or ahead of it.

Mining cycle explained better to newbies using the below link. Not always the case, and things can play out differently epseically with Tier1 assets, with latter usually getting bought out during development or when key permits are signed like Environmentals.

https://www.visualcapitalist.com/visualizing-the-life-cycle-of-a-mineral-discovery/

I'd say we have about 250% to rise from here before environmental permit and potentially 600%+ (bit like Noront some years ago) rise upon bidding war.

Benchmark this against what should be an absolute belter for copper focused mines over next few years and today's share price or anything sub 20p is a bargain. Mop them up while you can if it suits your risk and investment goals.

I think MSCI review is in 4 weeks time, eg Aug 19th.

So not long at all.

Something has to happen on the regionals as what's the point of doing a 'Strategic Review' only then to sort funding for Alpala and then leave potentially another 60 Alpala's gathering dust at cost of $6m per annum. Not acceptable. SOLG is an explorer... so we need to get back to exploring.

Personally, I'd support a new listing / spin off designed to break the business into two distinct parts. One being Tier1 asset funded by Franco and other parties and then the exploration business doing the discoveries across 60 licence blocks or more like 6 priority targets.

Either Sell Porvenir to get cash or do a spin off and IPO and raise $50m and drill baby baby drill. You could see the explo business float at say $100m (if porvenir included) and get a few decent holes in and we could see that move to $300m+ with ease. And $1bln+ upon another Tier1 discovery post PFS.

They need to delivery on the exploration front as Noboa wants it and the globe needs it. We need more copper discoveries.

MM's really flushed a few out early doors. They are workin it hard! Bodes well. They need stock!

I get a feeling that they might do a deal on Porvenir or they are close to finalising a deal on Porvenir. This is in the south and very close to Chinese owned assets. We know they chinese were keen on it as they specifically invested $5m toward further drilling. What if SOLG announced a deal that saw a jv on Porvenir go to Chinese which had an earn in agreement plus some cash up front for SOLG to get back to doing some exploration??

So so quiet on the regionals, that it makes me think something must be underway as we have 60 licence blocks and can't hang on to them forever especially when Noboa et al want to see progress.

Volume was very high on Friday... director buys aside, strong buying interest has been evident since Monday's big news.

Well, it's up to would-be interested parties. If they opt to sit on sidelines, then Franco/Osisko deal will close and they'll be staring at a 50% royalty deal embedded in and that's on the basis they buy back the other 50%... which is not cheap.

We are talking $750m cash here but in real terms, that 100% royalty or even 50% royalty will work out like 20% interest per year lol!

Cash isn't a problem for BHP and co, so only reason Franco has got a bite at this is because BHP or NMM have left the asset in SOLG's hands. Only a minnow like SOLG would do a deal with a biz like Franco. BHP would never do that.. simply because that's not how it works in their world.

Still time for the likes of NMM and BHP to offer up their alternative ideas to fund the $1.55bln development or of course... offer shareholders an early exit opportunity and take it all off our hands for 70p+.

Seems a bit fruity by their standards. They usually do about 10% of that.

12.4p equiv at 22 cad cents.

Come on then Mining.com... lets have the BHP 45p offer rumor released over weekend then lol!

We we're 12p when the end of the world was happening (covid) and the dow jones fell from 30k to 18k.

With $750m in the kitty, you'd think we'd be double that covid low as a minimum!

Market is so sloppy these days.

Perhaps blackrock buying in again after selling out couple of years ago lol!

Remember the CEO's share options are all around 17p. And they were cheap when they were awarded against a level of 41p reached 7 months earlier.

Next reshuffle updated indexing is Aug 19th I think.

That could see 30m shares bought.

It's like the controlling hand that has been firmly pressed down on SOLG has been lifted or is now buying.

I wonder if the Chinese are still kicking tyres or whether the recent Franco royalty $750m deal has kicked them into action.

Whoever was fiddling with the book (and it's been going on for 12months+ now) they seem like they are changing tact or actively covering an undisclosed short tut tut.

Volume seems very strong. I wonder whether we'll get a newspaper/online rumour over the weekend that BHP are lining up an offer??

Could be fireworks on Monday.

Lets face it... if they want to avoid that Franco royalty deal kicking in... then they have to act fast.

Fast and smart is what Bob said and fast and smart is required to bag this stunning Tier1 mine.

Thin air above 11.5p all way to 14p.

You can't price the owner of a 100% Tier 1 asset with secure finance royalty deal of $750m for just 20% at... sub £600 imho.

It's an obvious valuation gap which needs closing. In theory, the market is saying it's cheaper to buy SOLG than it is to finance their project but Franco deal has just pulled the rug on that poor market view.

The scales have to tip in favour of equity holders as dilution looks very unlikely. And that's the only basis for markets to hold back on valuation gap.

No major whispers or rumours as yet which I thought suprising as every cat and dog knows that these royalty deal hasn't closes yet and that's down to possible reasons... 1. Franco still doing some transaction tidy up stuff with the legals and bankers. Or 2. BHP or NMM have picked up the phone and said... hold on a minute Bob... lets have a chat. You got 10mins?

One of my sources has said categorically that BHP need to secure a copper deal fast as shareholders growing restless on the forward path after Anglo failure.

When the rumour mill kicks in proper, you'll soon see some proper action.

Just think...BHP paid 45p+ for shares a few years ago. The asset is derisked further now and 100% owned as oposed to 85% owned.

We will be in the teens soon.

What is weird is how the stock market ebbs and flows with it's pricing and valuation. It's mostly sentiment driven so explains the poor valuations.

For example, 3-4 years ago, SOLG had following:

1. PFS and $3.4bln capex (that would be nearer $4bln now with inflation)

2. No major red tape events signed

3. A fragmented asset with 15% in CGP hands and 85% in SOLG hands

4. Funds of around $20m cash left in bank and no sign of capex funding

5. Ecuador politics and lefties everywhere...

6. Covid doing damage

7. Copper story subdued (covid issues)

8. PoG bouncing around $1400 to $2000 levels

Share price range 30p to 42p levels. Mkt cap high near £900m.

Today

1. Revised PFS for $1.55bln

2. Lots of red tape sorted and signed

3. 100% tier 1 mine owned by one company... that's unheard of and rare.

4. Funds of $750m secure pending closing of transaction

5. Ecuador politics pro mining and Noboa doing everything he can

6. Inflation woes turned and market set for rate cuts

7. Copper story very much in main headlines

8. PoG at all time highs $2400 levels

Share price 10.4p

Never in my entire life have I seen a market so inept and sloppy as this. It's bonkers. There's a flipping copper shortage around the corner and this market doesn't give a t055.

Time for a rerate... back to 20p evels would be the very minimum most would expect based on that $75m finance deal.

If we had the environmental permits sorted and signed off, then 100p+ expectations well warranted. Without the key red tape signed off, buyers want a discount so 63p or 70p levels to be expected.

Hang in there for 5 or 6 years, ride the risk out and the dilution that often comes from over runs and add ons etc etc and you might do very well.

But remember... 63p today is really like an offer of 50p 2 years ago. Inflation and dilution has taken place so it's an example of how things move on.

The $750m very welcome and nice to see zero equity dilution.

Can they do the same with the other $800m required??

I guess it's always a question of whether you take 63p now or wait 6 years and then take 20p+ out as divi's year after year.

It's always about risk discount vs end product and timelines.

ENAMI load would be chinese lol! Talking of which... wonder what Mr Liu has been up to. I'd like to see him dropped from the SOLG board if he isn't bringing anything in.

Furthermore, the Franco osisko deal is all Bobs doing so what's stakehouse been up to and why did he get a whopping bonus share deal??

I guess all will be revealed soon. Once bit of news at a time though and see who comes out of the shadows before releasing the next bit.

They'll be dragged out sooner rather than later.... that's the interested parties... not Bob and his team.

Pbow, BHP and NMM wouldn't have taken 13%+ stakes (now 10%) if they did not see the long game?? It's well documented that tier1 mones take 10+ years before they are producing and that's pretty good timeline.

If BHP had pulled their finger out 3 years ago, and bought SOLG... then they'd probably be on track now to deliver 3 or 4 x the projected SOLG PFS and likely by 2026.

They've had plenty of ops to clear off and sell down their 10% stake. But in the last 5 years, they've stayed firmly put where they are.

And you think they are not interested??

Bob's next move imho (if BHP remain silent etc) is to bring a partner in for xx for $500m+. Or 2 or 3 partners for $250m each or get an ENAMI loan deal sorted. Something like that. Then BHP are in even deeper trouble. They have probably the worlds greatest gold/copper discovery in last decade and instead... they seem to be trying to make huge darts at majors like Anglo and failing embarrasingly. BHP shareholders would be delighted to see SOLG's folio come under their belts. It would sort their copper and cold issues and offer decade long ops on regionals.