Member Info for schlemiel

'IN CASE YOU MISSED IT' - Solgold's repeated the BHP stake news again on Twitter. What's the purpose? The teasing is way too much for me. It's the same with the wife. BJ with teeth in or teeth out?

10/2/18 : SolGold - Meeting to be held at the Racquet Club of Philadelphia

http://philasecurities.com/luncheon-meetings-events/

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Not sure what this is

for today's excoriation of some on here. We all want the same thing from our investment but we have varying and indeed conflicting opinions about how they might be achieved.

Have a nice weekend and fingers crossed for a decent week to come

Mkt Cap £634m – Annual Report

SolGold have published their annual report today.

The report highlights progress made and further thoughts on the remarkable Alpala project at Cascabel in Ecuador.
The Q&A with Nick Mather, SolGold CEO is particularly interesting.
Mather is targeting 10mt of copper and 25moz of gold in the next resource estimate, a substantial target by any standards but one that may be achieved given the scale of the Alpala resource and massive mineralised drill sections coming out of the project in Ecuador.
Mather goes on to estimate that the resource may enable an NPV of >$4bn and an IRR of >25% for a massive 40mtpa block cave mine which would make it one of the world’s larger mining operations and put it firmly in the very special category of ‘world class’ mining projects.
The delineation of a high-grade core at Apala should allow for a lower capital project by block caving standards starting with grades of 1.5% copper equivalent according to the Q&A.
BHP’s recent purchase of 6% of SolGold shares in the market indicates its interest in the project and suggests an intention to get more closely involved as the project moves through its feasibility studies.
But SolGold is not all about Apala. There are multiple targets to be tested within the Cascabel license area which could see Alpala as just the start of a number of new mines.
SolGold has also been quietly working on the licensing of a number of new targets across Ecuador using knowledge gained from its work at Cascabel.
There is still much work to do in crafting a framework financial deal with the Ecuadorian government to enable the eventual development of Alpala and other similar projects but the government appears to be keen to open up to large scale mining.
SolGold reports a loss of A$21.5m for the year vs a profit of A$2.4m yoy.
The very substantial ramp up in drilling activity and administrative expenses led to an operating loss of A$15.9m vs a loss of A$8.3m yoy
The company.
The business has cash and cash receivables of A$81.8m indicating how well funded the group is to continue its exploration activities.
The report also describes the need for the 15% jv partner to continue to fund its share of activity at Cascabel or to be diluted according to formula as previously agreed.

Conclusion: The company looks set to continue to advance the project through PFS and onto a much more involved BFS in time supported by its new, expert shareholders at BHP, Blackrock and Newcrest who have been funding Cascabel for sometime.

*SP Angel act as UK broker to SolGold

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From VO_X

Debt does not impact profit. Debt interest is written off against income. Debt is a capital item and is recorded on the balance sheet. Profit is recorded in the income statement and if not paid out is added to the capital component of the balance sheet

'Debt and dilution are very different.'...I'm speechless. debt is dilution as it dilutes the equity component of a company's market value. Debt interest also impacts upon future earnings. Debt can also consume a business from within - eg Carillion. Don;t be fooled into thinking that debt is some form of route to riches.

enuff of being slandered for expressing the truth

I've got better things to do than debating with naive investors and their pie in cloud cuckoo's sky...

It's important to understand that shareholder value derives directly the amount of equity contained within the business. If we take on debt to finance production the equity contain within is replaced by creditor obligations. It is this dilution that will guarantee that the monetary value of your holding will fall. Is that what you want?

'Sirius warns its future may be in doubt as mine bill rises. A group attempting to set up a huge fertiliser mine in North Yorkshire has admitted there may be “significant doubt over its ability to continue as a going concern” as it nears crunch time in its attempts to find finance. Sirius Minerals (SXX) said yesterday that it still expected to secure up to $3.6 billion that it needs for the project to proceed, but admitted for the first time that this was subject to “material uncertainty”. Auditors at PWC included an “emphasis of matter” in Sirius’s half-year results announcement to draw attention to the “going concern” warning.'

From today's V-O-X

It matters not one jot what we say. We can argue until the cows come home but in the final analysis we are but mere passengers

Good luck to all shareholders whatever they decide

!!

Of course Alpala's going to production but SOLG won't be its owner, its constructor, its financier or its operator. Such a strategy will dilute you into the earth and anyone who believes otherwise is living in cloud cuckoo land

BHP has made their intent known, public and visible.

Berenburg's take on full year results annual report $SOLG.L $SOLG $CGP #ecuador

"...a sizable first marker and having BHP speaks of the potential scale of Solgold's exploration and development portfolio..."

hTTps://twitter.com/SolGold_plc/status/1045573149780332544/photo/1

Alpala - 'comparing favourably with mines like Escondida'

https://twitter.com/SolGold_plc?ref_src=twsrc%5Egoogle%7Ctwcamp%5Eserp%7Ctwgr%5Eauthor

From pob69-

Here's some comments by Jason Ward, Exploration Manger in the annual report $SOLG.L $SOLG $CGP #ecuador

"...came up with over 100 areas in Ecuador. Of these we currently hold 72 and are awaiting granting of some others.

In our first year we have identified ten high priority targets and already we have identified drill targets at five of these and applied for permits.

We will make further discoveries in Ecuador.”

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thanks to pob69 on ADVEEFHEN

Couple of tweets from Willem Middelkoop of Commodities Discovery Fund (long Solgold) following recent Full Year Report RNS $SOLG.L $SOLG $CGP #ecuador

"...Hole 64 might turn out to be the game changer for #SolGold (the core of the system?, very high grade, step out, BHP, getting very very interesting)"

"..Watch out for HOLE 64 (assays pending). New high grade core discovered in a wide step out (NW-Trivino area), reaching depth of over 2000m now. Could grow this copper-gold discovery in a monster (Grasberg/Pebble size min. 25m oz/au, 50mt/cu)"

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People keep ignoring the political dimension. Ecuador want this project UP AND RUNNING ASAP. The majors are the only companies that can do that. Rio does have experience of block-caving in Indonesia, I think

price looking very frisky!

Q - where does it say this fella? I can't find the document. doh

'predicted to cost'

Newcrest does not appear at any of them

https://twitter.com/hashtag/copper?lang=en

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I don't believe Newcrest have the financial muscle to be able develop a project like Cascabel predicting to cost around $3-$4bn capex. Most of the giant mines are developed and operated by a consortium of majors to, obviously spread the risk. I believe this is the fate of Cascabel. Rio (RT) is looking to up its exposure to copper as it believes it is over-reliant on iron ore. A tie-up between BHP & RT could be a possibility. Both need a quality copper development project with margin for growth