Member Info for mattlilly

"Trust me Quady is right..."

That...is the height...of arrogance...who does he think he is...God...or Donald Trump...

Why are you all reading and responding to this arrant tosh...

What is "diverse book" theory...?

He was a trainee actuary and a statistician but he writes as if he is a Corporate Finance ex[ert...

The fact is that companies do...frequently...overpay for acquisitions...I know because I AM a corporate finance expert...

But they DON't pay the assessed NPV for a mining asset...

He is either stupid, dangerously deluded. or just plain wrong...

And when you confront him he either:

Picks up on some strand of what you've posted and counters it

Tells porkies or twists what you actually said, or...if all else fails...

Changes the subject...

He has one fan on here because at one time or another he has attacked, insulted or simply p****d off most of us...

But I will CONTINUE to pint out when the stuff he posts is factually incorrect and especially when it is dangerously misleading.

Good night all

Reasons for gold...

"For every US Treasury security outstanding, roughly three parties believe they own it. That’s right. Multiple parties report that they own the very same asset, when only one of them truly does. To wit, the IMF has estimated that the same collateral was reused 2.2 times in 2018, which means both the original owner plus 2.2 subsequent re-users believe they own the same collateral (often a US Treasury security).

This is why US Treasuries aren’t risk-free—they’re the most rehypothecated asset in financial markets, and the big banks know this. Auditors can’t catch this because GAAP accounting standards obfuscate it, as I’ll explain later. What it all means is that, while each bank’s financial statements show the bank is solvent, the financial system as a whole isn’t.

https://www.forbes.com/sites/caitlinlong/2019/09/25/the-real-story-of-the-repo-market-meltdown-and-what-it-means-for-bitcoin/

I was rcgl...rationalised my portfolio...

GPM, HOC, SOLG, NG., JAY....in order of size...£80k cash...

Much easier to manage...

Majors don't sell big share stakes...do they...?

BHP strategic share stake sales:

2011 - "BHP Billiton is in talks with Royal Dutch Shell on buying its 24.3% stake in Australia's Woodside Petroleum"

And earlier...

"BHP yesterday finally quit its 36.5 per cent stake in Foster's Brewing Group, in a $2.5 billion deal that ends one of the most controversial chapters in Australia's corporate history.

BHP's $1.78 billion exit, unloading 31.4 per cent of its stake to local and overseas institutions at $2.49 a share, will be the largest single stock sale ever recorded in Australian broking."

Newcrest

Have we forgotten this one (although they later changed their mind:

"London | Newcrest Mining has hired investment bank RBC Capital Markets to explore options for its 13.57 per cent stake in gold and copper producer SolGold, two sources said, after it contested SolGold's latest fundraising initiative."

And there was this...they needed the cash...

"Australia's biggest gold miner Newcrest Mining has sold more than half of its one-third stake in Evolution Mining for about $106 million.

Newcrest has reduced its holding from 32.3 per cent to 14.9 per cent and will use the cash to repay debt."

And

",Australia's Newcrest Mining has announced that it has sold its 11.89% stake (in Normandy Mining) the entire parcel to an overseas institutional investor. The sale was completed at A$1.78 a share..."

And

"Newcrest Mining Ltd...was selling its entire 75 percent stake in PT Nusa Halmahera Minerals to Rajawali Group, the company announced yesterday. The deal is worth of US$90 million. "

I'll stop there, but major companies take strategic stakes in other companies which sometimes lead to a bid and sometimes they sell on for a profit...

Hilarious...I'm enjoying countering his rubbish without getting attacked and insulted...so here's his latest gaffe...

"Now here is the Elephant in the room.
Why would any major holder of Solgold shares sell below their value.
They wouldn't."

"During the year ended December 31, 2019 the Company sold 829,576 shares of SolGold Plc for total proceeds of $279,013"

That's 33.6 cents or 19.5p...

Extract from CGP Annual Report 2019...

"During the six months ended June 30, 2020 the Company sold 12,185,838 shares of SolGold Plc for total proceeds of $4,526,585..."

Thats 37 cents a share or 22p...

Extract from CGP 6 Month Report to June 2020...

So less than a year ago...Cornerstone...a major holder...sold £2.7 million at LESS than today's price...and 2 years ago they sold for much less than today's price...

Ha ha ha...

He's quoting the PEA as evidence of the value of the company but the other day he said the PEA was irrelevant in determining when we could pay dividends...

His 'value' of £1.50 is based on the NPV of $4.4 billion and an IRR of 25.9%...but...

"For a good mining project the IRR needs to be at least 30-40% and some are much higher..."

That brings the NPV down to 97p...

"NPV is also no guide to a project’s real profitability, or to the desirability (for the shareholders) of their company taking it on. That depends on other measures, the most significant of which is the IRR (internal rate of return..."

"The NPV calculation is not a ‘real’ number – being dependent on an arbitrary parameter – the discount rate – which reflects a particular lender’s requirement...."

"An NPV is a very imprecise guide in any case. Mine planners only use it (‘at the project level, not the ‘company’ and shareholder level’) to give loan providers an indication of the risk of lending to a particular project in relation to their appetite for risk and expectations of long term interest rates. It is not the ‘value’ today to anyone – let alone shareholders."

https://masterinvestor.co.uk/latest/how-to-value-junior-mining-stocks/

PS Its a good job Quady has me filtered...not just because of the previous post, but he wouldn't have a clue what hypothecation was without googling it and then he wouldn't understand it...

On the day that Bloomberg said 'liquidity has drained from the market' I told my Chairman/CEO we had to sell all our commercial property...he refused pint blank...the Board backed him...I left the company having sold my shares/options at 165...

A year later the SP was 2p...2 years later they ceased to exist...

Remember the day when a French bank had to liquidate 3 funds because they could not sell any of the assets to fund the investors run...

It could happen this year...which is why I'm entirely in gold, silver, SOLG shares and cash...

AIMO as usual...

I don't believe any prospective bidder is waiting for the April election...

I believe they're all waiting for the starter's gun...

So what will cause it?

As Pierre says, we're going to see a surge in M&A in the PM sector in the next 3 months and Juniors will be the primary target...

We are a prospective Junior gold miner...

But as he also goes on to say...coper/gold is where the focus will be...why? Because gold miners are already mining gold at 0.05% or as he says, they're 'mining dirt'...

So most days from now on I'll post something that should really scare investors and why gold/silver are and-brainer and why its only a matter of time before SOLG receives a bid...

As far as the latter is concerned, the development of the deposits is taking too long because the company is to small and, unlike the major miners, does not have enough cash or access to cash...

As Lassonde says...no banker is going to lend more than 50%...they'll just says "where's the equity" (which of course is why streaming deals can break the circle...)

So the starter's gun is more likely linked to the imminent impact of Basel 3 (March 29).

Why?

Because US Treasuries are the most hypothecated market in the world...to be specific, every 10 year Bond is owned by 3 people...

How can that be...? 'Stock lending'...

But US Bonds are a fundamental plank of US Banks Capital Adequacy and...if there's a 'black swan' event, like 2008 when Bloomberg reported "liquidity has drained from the market"...banks will be secured and judged by their capital adequacy and when it becomes clear that much of their Tier 1 Capital is just paper...

Boom! the system is in crisis...gold booms...silver follows....gold miners race to buy Tier 1 copper/gold assets...

So I believe SOLG cannot avoid being bid for unless they get their act together much quicker unless they get a J/V deal pronto...they won't go bust and it may not happen for months, but this company WILL be a 2,3 or more multi bagger one way or another...its only a matter of time

There are many relevant thoughts in those videos, but here is another that is relevant here...

"companies should be run for shareholders not managers..."

Well done for apologising Quady...(no irony intended)...

If you didn't watch the video posted on here yesterday, its a must watch...excellent basic research...

Here it is again...

https://www.kitco.com/news/video/show/BMO-Conference-2021/3250/2021-03-08/Pierre-Lassonde-what-gold-bullions-decoupling-with-miners-signals-for-price#_48_INSTANCE_puYLh9Vd66QY_=https%3A%2F%2Fwww.kitco.com%2Fnews%2Fvideo%2Flatest%3Fshow%3DBMO-Conference-2021

But here is the $20,000 gold one from last September...don't watch it for that...watch it for the underlying factors that support Solgold and especially the M&A discussion...

(Any Junior)" with 5, 10, 20 million ounces (of gold)...there'll be a bidding war" (and they'll buy it at better than par...)

We have 21.7 million ounces...and that's just Alpala...Porvenir may have more...and Rio Amarillo the most...

Cheap as chips...patience is a virtue...

https://www.kitco.com/news/video/show/BMO-Conference-2021/3250/2021-03-08/Pierre-Lassonde-what-gold-bullions-decoupling-with-miners-signals-for-price#_48_INSTANCE_puYLh9Vd66QY_=https%3A%2F%2Fwww.kitco.com%2Fnews%2Fvideo%2Flatest%3Fshow%3DBMO-Conference-2021

Shhhh, Shhhh
It's nice and quiet
Shhhh, Shhhh
But soon again
Shhhh, Shhhh
Starts another big riot
You blow a fuse
Zing boom
The devil cuts loose
Zing boom

I agree addict...CSR is old hat but ESG is not s=tosh and it incorporates the best of CSR...

You only have to look at the PDAC agenda this week to see how very important it has become...ESG.equality, sustainability...alll there aplenty...

I was disappointed that this wasn't picked up yesterday...it has been a strong theme in all Solgold's Presentations and Annual Reports for a couple of years now.

The thing is that they have huge credibility in ESG...unlike many other companies where, when you poke your finger you find their policies are actually wafer thin...

The three key elements that are obvious are:

Social....especially community engagement...this willl be very powerful going forward, especially while dissident elements such as Perez can get a listening and engaged audience going forward.

It is eminently clear that Solgold is serious about sustainability, including sensitivity to ecology..they Neva even slipped in that they will be looking at 'sustainable' and green elements in the revised PFS.

On social, the appointment of two clearly NOT token women is very powerful; one is an acknowledged ESG expert and the other is 'indigenous, credible with the Ecuadorian people and especially Government.Building a long term partnership with the Ecuadorian Government, whoever leads it will IMO pay huge dividends in the long run as it becomes recognised as the 'new Chile'...

And clearly the governance has been reviewed and, where appropriate written or rewritten to right the wrongs and missteps of the past.

So PLEASE I would be genuinely interested in your comments and, if you haven't read it, Larry Fink' Annual Letter to CEOS makes it crystal clear how fundamentally important ESG will be to Blackrock (the biggest fund managers on the planet, with a singular ESG approach to investment), to quoted companies and their shareholders going forward.

It has already produced differentiated share performance for 'ESG ready' companies and I'm clear it can be a credible way for Solgold to establish itself as a 'thought leader' in the global mining industry...

https://www.blackrock.com/corporate/investor-relations/larry-fink-ceo-letter

Haha...'brothers in arms'....keep it up....

I don't want to be a topic of conversation so I will merely make this observation...

The $3 billion was the most widely bandied figurr, including by NM...

But annual interest cots on $2.8 billion at 8% are still £162 million a year...and thats still 96,000 ounces of gold equivalent just to cover the interest costs...GROSS...net of AISC its 324,000 ounces...

Oh my God....that is so hilarious...deluded or what...?

I'm getting more and more enjoyment from these displays of a deranged mind...and no addict thats not you...

Its very clear to me what this means, despite Quady's determination to reinterpret this as "We're taking Alpala to production..."

It means that the ENTIRE funding of Alpala/Cascabel will be completely independent of the Solgold funding process per se.

So what do I mean?

That there will be no more Solgold equity raised for Alpala...and that is VERY good news for the SP, because any new funds will go entirely to the other priority projects, starting with Porvenir and Rio Amarillo.

It is a stroke of genius, because it could also mean Porvenir is developed faster than Alpala, giving two fillips to the SP.

I have previously trailed the possibility of Green Rock Resources being IPOed...that would mean that Porvenir was 'independently' financed as well.

So what does 'independent financing mean for Alpala...?

Cascabel is a separate corporate entity 85% consolidated into Solgold.

So...it could mean a Joint Venture with BHP as the lead partner with the funding coming mainly from a mix of Streaming, including an element of this to BHP themselves; and debt funding (either straight debt or corporate bonds) place in the US/Canadian markets. The funding would be in the name of Cascabel.

This could also lead to Cascabel being hived off in due course...

I am clear that what it very definitely does not directly imply is "we are taking this to production as Solgold with no outside help'...because that would take far too long and leave Solgold strapped for cash just when they need to develop 'the string of pearls'...

Sorry Quady, but if you always see things through your own single minded prism you will sometimes be completely wrong...

There's an old saying...

If you always do what you always di, you'll always get what you always got..."

Its certainly not you Quady...