Member Info for rcgl2

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.

But little Solg probably wouldn't ever have been able to assemble such a huge portfolio of assets if it was operating in WA.

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.

Patience, calmness and willingness to hold for the long term are what let you reap the big rewards.

Fear, panic selling and snatching at quick gains are what make you miss out on them.

Hi Italian - agreed on 1) - it was always going to fall back from high 30s in the absence of good news, I just thought it would bounce up and down in the 30s... although external market forces obvs came to the fore.

On 2) I'm still hopeful of a decent payday if Solg can produce a cracking PFS in conjunction with a good MRE for Porv... Even with this new entente cordiale, I doubt the big holders of CGP like WI and Bob Sangha are going to want to see Alpala or Solg itself slip away on the cheap, and neither will the other big holders of Solg aside from BHP.

Hi Snuggtopz - out of interest, when you called 28p a little while ago, what were you basing that on? At the time you made the call my very limited charting ability suggested Solg was in an uptrend channel that peaked on 3 June when you called it, and should have found support around 30-31p if the lower bound had held. I don't think anyone was expecting the Fed's comments this week (which I actually think are fairly meaningless and about as far from hawkish as you could get without being dovish) to suddenly trigger a huge unwind of the inflation trade in 2 days, which seems to be what hit PMs and miners hard and knocked Solg down through the previous support.

Either way it's all short term noise, 28p or 33p today is kind of irrelevant to me in the long run. Just interested to know what you saw that led you to predict 28s again? Thanks.

Reading the comments on here there are so many people who either plan to sell a load as soon as this gets above 35p or people who announce that they sold last time the share was over 35p... And yet once it comes down again we get the usual complaining about "it's being held down", "it's being manipulated", "MMs having a laugh" etc.

I love the way everyone thinks that "top-slicing" or "taking some profits off the table" is somehow different from just plain old selling, and that their own selling isn't in any way related to price formation.

Could you not also take the view that "a period where the FED and other central banks may well cap interest rates, smooth the yield curve and let inflation fly" is the perfect time to borrow a ton of money, use it to build a mine and then begin selling gold and copper and paying back the debt in say 5 years time? At which point the metals prices will be higher in dollar terms and the debt will be worth much less.

EWT - exactly. So many PIs literally just looking at the bare numbers with no context. If it's a few g/t and they see double digit metre lengths they assume good, if not bad. As someone pointed out yesterday, the company could have stuck a drill right down the throat of one of those veins and reported 100m at 4g/t and everyone would be going bananas. But that would in no way indicate a commercial resource any more than what was reported yesterday indicates it isn't commercial. It's way too early to call that just on these results.

Exactly.

Why don't you guys just sell your shares then if you think Solg is such a basket case and a disaster for your portfolios? Why are you still invested?

An outcome will occur with each of Solg's assets. It seems like people forget that. If you look at the landscape generally, it takes a very long time these days to progress from discovery to producing mine, often 10 years plus. There are exceptions such as Havieron or wherever which people constantly bring up, but these are actually the exceptions that prove the rule. Most discoveries take much longer now, due to geography, geology, politics etc.

Easy to form the opinion that Solg has been working on Alpala for years, the SP is still bouncing up and down between 20p and 40p, nothing will ever happen... this is not true. It has taken many years to get to this stage, but now they are near the end of the road imo, and in a much more favourable metals market to boot. The PFS will arrive, as will the DFS. An investment decision will be made. If it's favourable, then regardless whether it's Solg or BHP or the Chinese or any or all of them, the mine will begin construction at some point.

Of course there are risks of an unfavourable outcome. Uneconomical, poor deal terms, too much dilution, lowball takeover, whatever. But we have invested on the basis that the risk of such an outcome is lower than the likelihood of a favourable outcome which will unlock substantial value for us all.

Ultimately Solg isn't just going to sit there constantly drilling its targets for the next 30 years while we all just endlessly debate whether it will go to production or get taken over. At some point with each asset, it will either sell it, JV it, or start mining it. Or it may get taken over lock stock and barrel. But it's a process that takes time. Just because it hasn't happened in the last 10 years doesn't mean it never will.

You catch more flies with honey than vinegar...

Genuinely asking, not having a pop, but what exactly did you invest in 200k Solgold shares for, if not for what's about to unfold over the next year or two? Why sell out now, after holding for years in anticipation of the company realising massive value from Alpala and its other prospects... which in relative terms it seems to be on the brink of doing.

sol1 AKA news AKA jlondon

The closing price was 34.70. There was a late reported cancelled trade at 32.50 after the close which is causing some of the websites to incorrectly display the closing price or daily change. Don't worry, it closed up over 10% as RK said.

FTSE 250 and FTSE 350 are indexes, not market segments. Solg isn't included in any of the FTSE indexes because it's listed on the standard segment of the LSE main market. I think a company has to be listed in the premium segment to be eligible for inclusion in the FTSE indexes. However, there is a revenue requirement for obtaining a premium listing and Solg has no revenues (for some time to come).

Solg's market cap is already larger than a few of the smaller FTSE 250 constituents. Unfortunately I assume that having no revenues, it won't be included in the index any time soon. Which is a shame because obviously then it doesn't get automatically bought by all the index tracking funds. FTSE 350 is FTSE 100 plus FTSE 250 by the way.

Interesting they name checked Valuestone alongside the two big boys. They aren't even at a reportable threshold but the company felt the need to specifically highlight that they are supportive.

Hi Bozi, agreed. Also I think they are doing work for the Alpala DFS concurrently with the PFS. So it should follow hot on the heels of the PFS. Plenty to come here over the next 6-12 months.