Firering Strategic Minerals: From explorer to producer. Watch the video here.
If it makes you feel better FTJNY, I'm more bullish about Solg now than when I first invested, I've not sold any shares, just added, and have no intention of selling any until either someone buys it out or they are worth a lot more than they are today.
I'm pretty relaxed about the timeline, I'd rather they got Alpala right than rushed it and messed it up. Ideally the regional drilling would have progressed faster but it is what it is. It's a frontier jurisdiction, not the easiest terrain and we're still neck deep in a global pandemic that has wreaked havoc with timelines of pretty much everything.
I'm not 15 but I am younger than what I guess is the average age of posters on here. Everything I invest in I am happy to hold for 10 years or more so if I have to wait a few more years for Solg to really deliver then that's fine.
Personal circumstances of course, we are all different.
Schlem. Do you think that once Alpala PFS and DFS are released there will be a substantial uplift in share price? If no, then why did you even hold Solg in the first place? If yes, then do you think that the PFS will come by the end of this year and DFS sometime next year? If yes, why are you selling out now? If no, then again, why were you even holding in the first place?
If you all keep selling all your holdings then no wonder the share price isn't going up. You can't complain that Solg isn't rising while at the same time selling shares.
God, the number of conspiracy theories on here about people shorting the share, playing games with the SP, MMs trying to screw us etc etc. It's more like all the people who keep selling in and out blocks of 100k+ shares who are just churning the price here.
And I don't think you need inside knowledge to know that not much material is going to happen until the autumn, the company have pretty much said as much. It's obvious with the drilling status, lab delays, Porv MRE pushed back and Alpala PFS due by year end.
I don't think it's manipulation so much as market fears that the reflation trade and booming economy is evaporating. US 10y and 30y yields are down, the curve is flattening, if copper is down it's because of that no? Also today silver just got hammered, I assume due to its industrial use in solar and green tech, but gold not as much. If anything gold holding above $1800 seems a nice surprise considering silver just got whacked in NY.
To clarify a bit, obviously I do agree some dodgy behaviour does go on, there will always be bad apples who break the rules. Leaks happen, but imo they mainly come from company insiders and execs tipping off their mates and families or just not being able to keep their mouths shut. But I take issue with the idea that in modern banks the private side bankers are tipping off their public side colleagues - the controls and surveillance are too strong and the risks are too great these days.
I'm sure it used to happen back in the day, but we are not living in the 70s and 80s any more.
I also disagree with the idea that all the institutional players are in cahoots to deliberately trash a stock before a takeover. Solg is a prime example of what takeover rumours do to a SP. You don't need to be an insider or have some mate at a brokerage tipping you off, it's been a market assumption for years now that Solg will get taken over. Every now and again there is a rise in the price as people anticipate the impending offer and then it doesn't materialise, interest ebbs away and the price sinks again. It's like buy the rumour, sell the lack of news.
Price swings are exacerbated nowadays by HFT, algos and a small army of amateur day traders all frantically chasing momentum, just because a price rise or drop seems to be too strong in relation to fundamentals doesn't mean it's being manipulated by a shady cabal of hedge funds and banks. Factor investing has been a big thing over the last decade and the momentum factor seems to be consistently one of the most reliable if you like that sort of thing. It's no wonder moves up and down get piled on and amplified these days.
If you're going to get stiffed by anyone, it's much more likely to be the existing controlling shareholders who stiff you. Quady your experience in that oil share where (iirc) the Chinese family owners just squeezed out the PIs on the cheap is a prime example. Dodgy individuals and families from dodgy countries are more of a risk to PIs in small resource stocks than Goldman or Citadel imho.
That article is largely boll ox and it just feeds the typical retail investor narrative that it's all a grand conspiracy against you and the big evil banks and hedge funds are working together to manipulate every stock you buy and cheat you out of your money. This is why so many PIs invest with emotions rather than logic and actually are their own worst enemies. The professionals just have to sit there and watch PIs fritter their cash away because of rubbish like this.
I feel like the situation with Porvenir and the regional drilling demonstrates that Solgold are bumping right up against the limits of their capacity now. Whilst it's an enviable position for an explorer of their status to have such a prospective portfolio and so many promising targets, it also shows how easy it would be to over-extend themselves.
Alpala has been the flagship for a long time. Last year it felt like focus might be shifting to Porvenir and even a few weeks ago we were expecting an imminent MRE. Now it seems that resources and focus are firmly back on Cascabel with the need to drill more around TA etc, and Porv has had to go on the back burner to some degree. Also some of the regionals we are constantly being told are about to get going but never actually seem to deliver a full drilling programme. Clealy Solg are having to manage their resources carefully as they have a lot of plates spinning at once, but when push comes to shove they have to focus on keeping the Cascabel plate spinning ahead of everything else.
I'm not being critical and begging for a takeover here. Just noting that sometimes the timelines can become extended because Solg don't have the resources to keep pushing all of their targets with equal speed. If the portfolio was in the hands of a major, I guess they would have more resources available to keep drills turning and studies progressing at a faster rate across the board.
I find the stuff on page 7 about the share price a little odd. Talking about the rises and falls since the Porv discovery.
"Announced discovery of Cacharposa Cu/Au porphyry system at Porvenir generated strong shareholder returns in late 2020. Share price up over 50% from announcement to peak adding nearly £300m to SolGold’s market capitalisation"
It may well have generated "strong shareholder returns in late 2020" but they were hardly very sticky... The inference almost seems to be "you wanted high returns? Well those were them. But if you didn't sell all your shares at 42p during the 1 day it was at that price, then too bad!"
And then it follows that by saying "Share price down over 30% from peak compared to copper price up nearly 40% over the same period" I assume what they are trying to say is that the SP is now very undervalued, but to be honest it doesn't come across that well to me. There were strong shareholder returns, for the blink of an eye, but they have now completely evaporated, despite the copper price going up 40% in that period! Way to go.
I think I know what they are trying to say on this slide but it seems a bit of a strange way to say it.
Why do people keep saying we are going into a quiet news period because of the rainy season? Results of work done before the rainy season are still to come no? And there are known lab delays. Just because drills aren't turning over a specific couple of months doesn't mean more news can't come in that period.
Guys the movement of the SP in the first 2 hours after a news release is not the conclusive "market reaction" to the news. PIs and day traders will buy and sell but to really get the re-rate it needs institutional investors to buy in. It's not as if fund managers are sitting there frantically checking for RNS updates on their targets while they eat their Cornflakes, read the ORR RNS in 2 minutes and then instantly get on the phone to their trading desk screaming "buy, buy, buy!"
It takes time for results to be properly digested by "the market", you can't draw definitive conclusions about whether your ORR investment is a winner or a loser just based on what has happened between 7am and now.
Basing investment decisions on the perceived quality of an anonymous message board is ridiculous. Having a "good" board on LSE has absolutely no bearing on the fundamental investment case for a company whatsoever. In fact I think it can be a dangerous thing because it can lull people into a false sense of security or a herd mentality.
And anyway, the CGP board is an absolute cess pit most of the times I've looked at it. Now the SP has tanked it's full of people moaning about conspiracy theories, manipulation, it's not fair the price went down etc. When it was at 37p anyone who voiced a negative opinion was hounded from the board and accused of malicious de-ramping, and in some cases banned from LSE, because the mods on CGP clearly had positions in the stock themselves... when in fact the people saying it was overvalued and would go back below 20p have been proven right. And some of the "highly respected posters" who bamboozle everyone else with their seemingly detailed research may have got it right that it was undervalued at 1p, but they were also still claiming that at 37p and probably tempted a load of people to buy at that level with their theories of why it was going to £1 or whatever. They are usually the ones who then reveal that they "top-sliced" at the top, meaning they sold out while telling everyone else to pile in.
The special resolutions are pretty standard, to disapply statutory pre-emption rights. They are to allow the company to issue and allot new shares without having to offer them pre-emptively to existing shareholders first. Because the pre-emption rights are statutory from the Companies Act, companies have to pass a special resolution to disapply them. The authority will usually last for a year until the next AGM.
It's pretty normal to do this, it just gives the company flexibility to raise funds as and when it needs to. It doesn't mean that there is a specific dilutive equity raise being planned. Many companies will pass these special resolutions every year so their board is authorised to conduct a fund raise if necessary.
Also Zoros, time and money are not mutually exclusive to me. Probably because I'm a lot younger than you. I think a lot of you here are retired, and you want your 55p tomorrow so you can go and enjoy it while you're still able to. Obviously waiting until you're geriatric for a bigger payday is not very sensible.
For me, 55p would be a nice return but it'll just give my ISA a boost and keep the wolf from the door for a bit longer. If I have to wait 5 years for several pounds then I would take that, because if this ever got to multiple pounds then it will have a material effect on my finances and might let me retire earlier than planned or at least quit my job and do something more fulfilling.
Zoros, I don't really understand your complaints or how you arrived in your position tbh. I'm not trying to pick a fight, but it sounds more like it's your own fault for heavily buying the spikes rather than Solg's fault for not having magically discovered, drilled, proved up and started digging Alpala in the space of 3 years.
You said you'd been here since 2013, and that you're in for 500k at 26p. Looking at the chart, in 2013 Solg ranged from about 1.3p to 13.70p. It spent a good chunk of the year under 4p. If someone had bought in 2013 for a few pennies and then held for 4 years they would have had the massive spike up to above 40p. That's the time to sell an explorer isn't it, during the speculative mania phase. Also the SP didn't get above 26p until tail end of 2016, so I am guessing you did most of your buying in the last 5 years? There have been spikes back up to 40p in that time so you could have sold... and to be honest with a speculative share like this, I don't think 5 or 6 years for a potentially multibag payday is that long.
If Solg was a one trick pony with just Alpala, then the SP was always going to struggle after the initial speculative spike to +40p... the classic value valley of the Lassonde Curve. As it happens, instead of just seeing the SP slide relentlessly back down to earth, the company has drilled various other targets, had several moves back up into the high 30s, brought Porv to the brink of an MRE and progressed Alpala almost to PFS and issued a load of shares to fund itself along the way. And yet the SP is still a respectable 28.80p which is many multiples of where it was in mid 2016 before it went parabolic.
Smithtrader - maybe, but to have "won" in that way over the last few years, I think you would need to have a) had that plan in advance and intended to trade it, and b) got your timing right. To make substantial gains you would also need to have got it right several times and have had quite a large amount at stake. If someone originally bought as a buy and hold investor and then got tempted into trying to trade it and made money then imho they have probably been more lucky than skillful, considering the large risk that they have taken on board by doing that.
Buy and hold has served some of us just fine, I'm up 27% and that includes a recent top up just under 30p. Of course, everyone's situation is personal depending on their entry point and price.
I was thinking more about Schlem's comment that he had 1m GGP at 1.5p and sold out for a small profit rather than holding for a 25x life changing gain last year. And then did the same again.
I agree with Bozi, selling out of this at 50p because of fear and impatience would be premature imo.