Member Info for rcgl2

Every time a company or fund blows up there are these terrible stories of normal people who put all their savings into it and lost the lot. Someone mentioned others like that in SXX here a few weeks back.

It's just insanity to put all your money into one investment. Especially if it's all you have.

On the FNV slide:

Conditions precedent to the NSR Financing are expected to be
satisfied soon after COVID-19 related travel restrictions are lifted

Bearing in mind that if a dollar is only worth 1/5000 oz of gold in 5 years time, the input costs to get the stuff out of the ground are likely to be substantially higher than they are today.

Assuming you mean what we think will happen rather than what we want to happen in an ideal world, takeover.

My guesses would be 1) if decent results keep coming in from other sites, it would increase the Solg share price which would provide better protection against a low ball takeover. At the moment it's largely priced on Alpala and doesn't reflect much if any value from the other prospects, 2) if some of the other sites could be mined by open pit, it could be possible to get producing a lot quicker than the complex block caving that's needed at Alpala, so possibly generating real revenue before Alpala would be producing, if that ever happened, and 3) Alpala would be 2025 at a minimum before it was producing so it would be rather poor planning to let the other sites sit idle for 5+ years without actually progressing them. Each site could be financed as a separate project. And Solg is an explorer after all, it should keep doing its day job and prove up other prospects even if it has aspirations of mining Alpala.

Damp squib. Not damp squid. Jesus.

Yes, articles like this, their Twitter posts, the contents of the takeover rejection... Just a massive for sale sign.

I assume the message to Solg is, if you want 100% of cascabel then up your offer or someone else might buy us and you don't get rid of your 85/15 split problem.

Miagi, let's hope that when the Solgold saga reaches its inevitable conclusion you don't find yourself making an entry in your diary that simply says "b ugger".

Agreed Earthling. If you buy Tesla on a P/E of 773, and you don't even know what a P/E ratio is anyway, then it's only likely to end one way.

Hi Miagi... it was the bit after the comma we don't want! ; )

* now increasingly thinking

Just to follow on from what I said previously and to focus a bit more on Solg, I'm not increasingly thinking that NM needs to get the flow of news out there, get the share price up and then get this company sold sooner rather than later. Sorry Quady, I know you don't want to hear this but I'm wondering if we are at risk of going from the most favourable conditions (now) to the worst possible conditions for progressing production if the equities markets blow up again in the next few years.

https://www.bloomberg.com/news/articles/2020-08-06/robinhood-craze-born-in-america-is-now-moving-stocks-everywhere

Stories like this are not a great sign imo. The classic final stages of a bubble are when the retail dumb money comes piling in, blows it up to epic proportions and are then left holding the bag when it explodes catastrophically. And if this explodes it will drag most equities down with it, and wreak a lot more damage than we have witnessed so far. After the wall street crash of 1929 the US markets staged a couple of +50% bear market rallies, but the final bottom wasn't hit until 1932! I know things are not the same now because of CB action etc but a bubble is a bubble and if you blow one up enough it will pop eventually.

PMs and gold miners may not come down in a potential next crash but Solg is still not a producer and is at risk if the market tanks. What what we don't want is the SP to soar up to 80p on news this year, then end up getting hammered down to 20p again next year in a "sell everything" scenario. Also the economic reality of the world economy has to hit home eventually, everyone assumes Solg can easily raise a few billion in extra funding if it wants to progress Alpala, that may not be so true if the global economy implodes. In that scenario what will happen is that the majors who do have massive amounts of spare cash as a result of the current boom in gold could come in and take Solg for some low ball price (30, 40p?) which will seem generous at the time but will be the bargain of the century for them.

Apols for long waffling post, but in a nutshell I think the stars are aligning for Solg right now. If news flows and takeover happens it could be for amazing value. The global economic background though is not sound, equity markets are detached from fundamental reality and if NM leaves this too long, he may find conditions extremely adverse in a year or two's time.

For me the parallel with 2008-2011 was what gave me comfort. Silver got as high as $19 last year, but when Covid kicked off in March it got sucked down to $12. But that is what happened after the GFC too... at first, everything goes down when the selling panic takes hold, everyone wants cash, margin calls triggered etc... even the "safe haven" PMs get dragged down. And its from there that the PMs launch, as silver did from $10 up to $50 in 2011. So when everything dropped like a rock in March/April I was hopeful that silver would come charging back... and here we are at gold over $2k and silver $28.

Hey BN.c your silver chart yesterday reminded me of this... Here's a bit of pure chart p 0rn for those who like such things. 40 year cup and handle formation.

https://m.investing.com/analysis/silver-creating-a-huge-bullish-cup-and-handle-pattern-200454517?ampMode=1

L2 isn't that because Solg isn't producing any gold? Anyone with some money to throw at junior goldminers is going to throw it at companies who are actually getting it out of the ground and selling it into this bull market with ever increasing profit margins. Solg needs the PFS to translate higher gold prices into higher share price by improving the NPV of Alpala.

BN.c in fact I agree with you. I bought silver at $15 and as I said in a previous post, I bought it expecting it to spike up savagely and then likely come crashing back down again (although maybe finding a higher floor due to money printing plus eventual industrial recovery). I believe that over the next year silver will at least get near the previous high around $50. My somewhat dangerous plan is to sell around there if it makes it, and not get carried away by stories of 100 dollars or whatever.

However, the reason I think the current rally in prices is good for Solg is because the Alpala PFS is due. And the PFS has to use a figure for gold, silver and copper prices. I realise over years those prices will go up and down but for calculating the NPV they have to come up with a number for each. What was used in the PEA, $1300 gold I think? So given we are basically weeks away from the PFS being released I think the PM prices going up are just going to drag the PFS figures upwards, which will increase the NPV of Alpala and hopefully Solg's value with it.

I'm sure those prices will come down again but if they stay up over $2000 gold and in the $20s for silver for the next few weeks, surely it will only help the PFS figures.

And while we sit here theorising, silver has just hit $28/oz... Which is just another little cherry on top of the gold and copper cake.

Ah I see Quady :)

Hi zoros, isn't that what the bridge loan is for? To keep things going until the DD is finished and the full funding is released to progress next stage? In the meantime PFS is ongoing and no one expects any major disruption until Oct at the earliest. Solg also has money in the bank from the regent share issue.

Quady, what conspiracy theories? We are all saying we think the FN deal is going ahead, as stated.