Member Info for FTJNY

Don’t know about MM’s doing a bit of tree shaking but some posters on here don’t seem adverse to doing a bit themselves lol :) :)

I have the same message “The a webcast will start shortly” but it’s now 12.35!

Quady - Only posing the question. Your absolutely correct why would a director exercise his or her rights to buy shares at 60p when the SP at that time may only be 30p for example? However don’t forget that presently Nick and other board members can’t buy shares on the open market due to having inside information but it doesn’t stop them taking up their options even at double the market value! Looking at it from Nicks view this would help keep the day to day funding for exploration of other tenements ticking over and at the same time allow him to increase his holding which if he believes in his own rhetoric should perhaps be showing a share price well north of 60p which then becomes a sensible buy as opposed to why in the world would you buy at 60p when the market value is only 30p! I know this scenario is very unlikely but stranger things do happen in life :) All the best FTJNY

Interesting that the combined number for the board due to be expire or be exercised by 8th August is 40m @ 60p so even though Nick & Jason can’t buy shares on the open market due to privileged information one would assume they and other members of the board would be perfectly entitled to take up these options if they so desired (even though they would be paying at today’s SP well over market value!) which would raise £24m! You could say it would represent “ putting your money where your mouth is” and be a massive endorsement by the BOD of the investment case for Solg.

Quady - The below is from page 16 of the latest corporate presentation:-

Cornerstone is debt funded by SolGold through to the end of feasibility

• Cornerstone must repay SolGold its 15% share of costs to Feasibility in excess of US$2.5M (spent by SolGold to acquire its 85% interest) from Cornerstone’s share of proceeds from the tenement
• SolGold holds pre-emptive rights over any disposals by Cornerstone
• Cornerstone may contribute to development at not less than 10% or dilute to a 0.5% Net Smelter return royalty, which SolGold may acquire for US$3.5M
• SolGold is bidding for Cornerstone

The key bit which I’m trying to understand is what exactly is meant by the wording “ from Cornerstone’s share of proceeds from the tenement” Does this mean that they can pay Solg from their share future revenue once the mine is in production? If so then this doesn’t do what we all want ie:- make CGP desperate for funding to pay Solg back upon completion of the BFS

Hope I have interpreted this wrong and would appreciate others take on this matter. Thanks

Jerry - understand but NM was quite adamant and quickly dismissed the idea of selling Alpala on its own as a non starter. His response to the question posed was swift and unequivocal. It surprised me but he couldn’t have spelt it out any clearer so for me it’s either going to production or one of the majors is going to have to pay top dollar to buy Solg outright! Given BHP’s lock in expires on 15th Oct I’m of the opinion that we won’t have long to wait to see which path we take but either way I’m happy but if pushed would like a Takeout at a premium driven by a bidding war - Well we can all dream can’t we :)

Jerry, don’t disagree with your sentiments re selling off Alpala (ENSA) using funds to explore the rest of our exciting portfolio of tenements “ rinsing and repeating” is what we used to call it. However this has pretty much been ruled out by Nick in one of his recent web casts where he was asked directly about this option and he almost categorically ruled it out on the basis of the punitive taxes Solg would incur. So it really is one of two options. Go to production or sell Solg in its entirety. Either way I’m personally happy providing shareholders get fair value so the nearer we get to a BFS the better!

He did. PFS due by end of 3rd Qtr this year (Sept) and BFS due by end of 1st Qtr 2021

Hi L2. Just wondering when this pressure cooker is likely to explode! What’s the book looking like? Is it looking promising for tomorrow? (Sorry but I don’t have L2 access) Thx

Thanks Quady. Yes there has been mention of NSR’s and payments we can make to take their share of a ENSA if they don’t repay their share of costs on time but the bit I can’t get to the bottom of is WHEN EXACTLY do they have to start paying by ? Cheers

Can someone who is more familiar with the terms of our agreement with Cornerstone explain by when they need to repay Solg after reaching the BFS? I seem to recall someone saying once that they don’t have to repay their debt until when we have completed construction of the mine and can repay from their proceeds from the mine? Personally I’m hoping this is incorrect but would like some clarity if anyone can help? Thanks

Wow! Zoros agreeing with other folk then! Never thought I would see the day lol - Unless of course he’s being sarcastic perish the thought :):):)

Pop onto the GGP BB if you want chapter and verse re the Newcrest £1bn fund raise including what its for etc etc. Unfortunately by the looks of it none of the fund raise is associated with Solg

Ice - From recollection this was a bun fight between WI and NM around a specific zone surrounding Cascabel ( not sure how many metres was involved) which meant that the find at Blanca was in dispute as being part of ENSA. Subsequently as you rightly point out Solg transferred PART of the Blanca consession to ENSA but only those specific tenants within the disputed distance which meant that not all of Blanca was transferred to ENSA and again from recollection I think it was the part of Blanca we had retained which Solg then focused its efforts? As I say I might be wrong but maybe someonelse can remember the specifics

BNC - The thing it does really highlight is how much more we will be worth at BFS stage with financing Vs now at PEA! Chalk Vs Cheese and shows why NM has appointed Citi to fend off any unwelcome bids before we have true value reflected in the SP

Mog - Thanks. Yes sorry missed the pesky 15% owned by Cornerstone! Hope NM still has a cunning plan to acquire these before we get sold!

And don’t forget that the financials seem to be improving all the time (as demonstrated in today’s RNS) So can only see the NPV increasing as we move towards the BFS which may result in fair value of £2 per share which of course doesn’t factor in if we had more than 1 major trying to buy us out! Who knows a bidding war for Solg in totality could take us to £2.50 or even £3 per share if we are very very lucky! Now wouldn’t that be nice :)

Ned - In the PDAC presentation it was stated as $4.4bn so by my reckoning after converting to sterling we should have a valuation anywhere between 90p and £1.80 once we have completed the BFS and have agreed construction financing.

It makes today’s SP look rather pitiful

Mog posted this earlier which perfectly sums up how massively undervalued we are!

How to quickly value a project based on NPV and Stage of Development
https://seekingalpha.com/article/3389945-crash-course-how-a-mine-is-made

For me the biggest take out was around valuations. Take a look at the below and apply them to what we have at Alpala alone! The figures are mind boggling especially if we got to BFS with agreed construction financing where true value should be a minimum of 50% of NPV as we start construction later next year. Personally I would take that any day of the week versus selling on the cheap this year!

A company who has recently released a PEA should most likely have a market capitalization between 5-10% of NPV

A company who has recently released a FS should most likely have a market capitalization between 25-35% of NPV.

A company who has recently started construction should most likely have a market capitalization between 50-100% of NPV

Got a feeling that my registration and question didn’t go through as when I submitted I didn’t receive an acknowledgment which may explain why I haven’t got a play button on the Red Cloud site? Hopefully those who have managed to log on can summarise the key points or maybe send a link (if supplied) to access a recording of the webinar? Thanks