Member Info for NotMuchMoney

Redknight's comment:

"anyone can check the Financial Report to see that Operational casburn to 31 March was $817k, I.e. $270k a month"

The same consolidated statement of cashflows shows:

Operating activities: outflow of $817k

Investing activities (Capitalized exploration and evaluation expenditure): outflow of $8,458k

= Net decrease in cash and cash equivalents of $9,383k over 3 months.

So c$3m a month.

Doesn't matter if it is operating or exploration, cash is being spent.

Given SOLG is an exploration company, I don't know why redknight ignores the exploration expenditure...

...to pivot on the rubbish he is spouting I suspect.

Honestly DBW, I don't think it is due to building value.

I think it is because negotiations / potential deal in place hinges on items from the Ecuadorian Govt. Various agreements to be signed etc.

I feel Scott, CGP-crowd, even Nick, will take what they can in the next 3 months (at least for Cascabel).

And to quote Darryl's 'Plan A begets Plan B', then any financing or JV agreement may encourage a full sale.

CGP's job done.

...and I'm going to speculate here, I think Solgold have already taken the loan (13th May).

I know the RNS says "Loan Facility", but the end-March MD&A and Financial Statements simply refer to it as a loan. No mention of 'facility'.

Also, from RNS, the loan "provides an immediate cash infusion of US$10 million to support the Company's ongoing operations". Key word being IMMEDIATE.

Also the loan has already been "Executed under customary terms and conditions".

I'm not precious on this, key point being it is short-term, to get us to a monetisation event.

Addicknt - absolutely spot on re: redknight1 continually getting cash burn wrong.

He keeps on going on about $1m a month. But sure enough, the MD&A showed $3m a month over Q1 2024. And cash / working capital of c$3m at end-March; that was 6 weeks ago.

I agree with you, the company would - barring further financing news - need the loan facility within the next month.

The company even say this in the MD&A - "the group has sufficient liquidity for the next few months".

All info suggests a financing or corporate event by end-July. I can't wait.

Haven't they been pulling together for the last 15 months?

Time to get a plan sorted / funded / communicated.

Because the current lack of news / "trust us we're working on plenty in the background" is wearing a little thin.

Stackhigh.

I'm a bit confused where you've got the 3.15bn from.

Financial data (e.g. FT Tearsheet) and SOLG's own slides show the shares in issue to be c3bn.

Which is consistent with the May 2023 'Share Capital and Voting Rights' RNS. (I can't see an updated Voting Rights RNS).

Then Solgold Canada sub owns another 5%, i.e. 0.15bn, but I don't think these are in Treasury and not Issued or Outstanding shares?

Forgive me, but I tend to fact-check what redknight says vs. what the reports actually say.

Clearly the Qualified Persons only verify certain aspects of the report. As per the certificates at the start of the PFS document. Separate experts for metallurgy, underground infrastructure, surface infrastructure, environment, finance etc.

Section 2.2 has a nice table showing which sections each Qualified Person is responsible for.

Carl Kottmeier from SRK Consulting is the Qualified Person who has approved section 19 of the PFS, which refers to Sales and Marketing Contracts. Not all 8 experts that redknight has listed.

The PFS also says "the QP has not reviewed any of the Expressions of Interest received by SolGold".

I agree with the text around expressions of interest and offtakes. But have no way of knowing when these were received; report only says since the 2020 fiscal year.

Time for Solgold to address this, by end-May is my guess.

Hi addicknt

I'd question whether the current IPA still applies. Given SOLG didn't meet the spending obligations under it.

I know SOLG made various proposals for amendments etc...

... but I'd still prefer a revised IPA signed ASAP. Whether International, Chile or Ecuador arbitration.

1984 - Fawzi was Head of IR & Comms.

I also understand, from people he had direct conversations with, that he was involved in Financing / Corporate Strategy too.

Not just manning Twitter.

Sure, Fawzi had worked at a number of Investment Banks so given his experience, his remuneration wasn't small.

However, the phrase "pay peanuts, get monkeys" equally applies. Particularly now.

Tiny volumes. It's not the major investors running to the exits...

We're left waiting. And whilst I agree comms have been dire, since Fawzi Hanano left to be honest, we have to trust that lack of updates is because SOLG are working through credible finance offers. Or needing to delay until some items formally signed (e.g. IPA/Exploitation Contract ratified in Ecuador).

Yes, I 'follow'

An alternative view is the company is going through various options and negotiating the best possible deal.

Will try again...

Stackhigh - do you consider a sub-£300m MCap to be too high for a company which owns 100% of Cascabel and various regionals at different stages of exploration?

I'm sure SOLG management are working through a number of viable options re: financing. Sure, it is unlikely one of these is a bid of 60p+. But it doesn't need to be at the moment.

Get a cash runway of 1-2 years and show the phased approach is possible. That may force interested parties to act.

Stackhigh - do you consider a

1984 - precisely.

Huge/Wow UT? Am I looking at a different one? £163k?

Wait until the real buying begins.

1984 - TMX or redknight?

1984 - this is Solgold, you expect that level of clarity? ;)

Page 77 of 2023 Annual Report gives details of the performance conditions.

Make it a more realistic 65p sale price Scott and I'll happily let you keep your £10m profit from share options!

Three year daily average from 17 March 2023. Prob averaging 10p currently.

BUT, on a change of control event, I (cynically) expect the 3yr average will fall away, and be awarded based on the agreed sale SP.

(30m options at exercise price of 17p. He'll profit £5.4m at a 35p sale price).

A reminder of Scott's options; he is looking for MINIMUM 35p:

0 if 3 year SP is less than 25p

50percent if 3 year SP is greater than 25p

100percent if 3 year SP is greater than 35p