Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
The idea that either BHP or NCM are “manipulating” the share price is laughable ! This totally illegal practice is not how the worlds largest miner (BHP) would conduct itself in capital markets. Conspiracy theories like this should be dismissed as they have absolutely zero substance. At the end of the day this is a market “controlled” by willing buyers and sellers and sometimes share prices do not react how we would like them to react, and we have to accept that fact. Virtually everyone on this board owns stock and is bullish (me included) but the wearing of rose tinted specs can sometimes affect our judgment. Patience will be rewarded with Solgold
Highlights
Ø Final assay results received for the entirety of drill hole one (PDH-20-001) at Porvenir:
-- 899.3m @ 0.53% CuEq (0.40% Cu, 0.18g/t Au) from 10m (open at depth) at a cut-off grade of 0.10% CuEq, including
-- 644m @ 0.65% CuEq (0.47% Cu, 0.24g/t Au) from 10m at a cut-off grade of 0.20% CuEq
Ø PDH-20-001 was terminated in chalcopyrite and molybdenum mineralisation, leaving the system open towards the east and at depth.
Ø The end of the hole returned 21.3m @ 0.51% CuEq (0.48% Cu, 0.03g/t Au) and 1,216ppm Mo from 888m to 909.3m at a cut-off grade of 0.30% CuEq.
A royalty effectively establishes a charge over that mine/resource and whoever buys or owns that resource is liable to pay that royalty. A very recent example is the sale of the Kestrel Mine in Australia which was sold by RIO to PE owners. Those new owners now pay the Royalty owners (Anglo Pacific) the royalty. Obviously the price of the mine when sold takes into account the royalty that is held over the resource/mine. We can therefore establish that Solgold can always sell on the Alpala resource as the new buyers would then legally undertake to pay FNV their royalty
Not everything makes sense sensibles but the delay had been announced quietly on their website a few days earlier and had been spotted by sharp eyed watchers on this BB. The price drifted slightly. Confirmation of the delay put the price down initially but then bounced sharply from the 32p (same price Jiangxi paid in placing) An old Stock Market saying was Buy on the strike and sell on the settlement.....in other words buy on the dip of bad news and then sell after the rally
I’ve suggested before that Jiangxi Copper would have put a lot more than $5m into Solgold at 32p. NM has stated recently of not wanting to dilute shareholders and I envisage that initial placing was on an understanding they would look to increase their stake in the market.. A $5 m “investment” for a $9bn (there are several Jiangxi Copper listed and this one of the companies.it’S far bigger in its entirety ) company makes little sense. However they’ve now have an effective seat at the table and optionality going forward. Ahead of the AGM they might acquire a few more, which might assist the BOD ? The more I think about this, the more I feel NM has played a blinder and this will not be lost on BHP & NC . We saw a decent buyer emerge at 32p and upwards yesterday and whilst they’d need to acquire tens of millions to own a declarable stake I feel they maybe active in the market now. IMHO
Historically this has roughly traded between 10-15% discount to NAV. A similar discount to that of its larger stable mate BRWM. The renewed interest in metals & mining (esp copper) has seen BRWM discount narrow to around 5%. The refocusing of BERI away from carbon should assist the market’s perception of the Trust and I suspect we may see the discount narrow to between 5-10% which would imply a share price 74-78p. The exposure away from large oil may eventually see a higher payout in a few years. The energy transition starts and ends with metal !
GLA
And here’s the piece in the FT
https://twitter.com/solgold_plc/status/1333785230663061506?s=21
Apologies if already posted but GS have declared a new bull market for Copper. “The current strength is not an irrational aberration, rather we view it as the first leg of a structural bull market in Copper” Tight conditions exists and demand projected to exceed supply by 327k tonnes next year. “ we believe it highly probable that by the second half of 2022, copper will test the existing record highs set in 2011 ($10,162).