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Another three highlights form the interview are: 1) financing is difficult but finding a large resource is 10 times more difficult so the large projects eventually get financed; 2) the entire junior sector has gone through a trough in the last couple of years and the next 1-2 should see a recovery and better market sentiment; 3) many projects where Rick Rule invested, that eventually returned multi-baggers, were at 50% loss before that (I suppose this is the "orphan period" we sometimes talk about).
So all in all, we might still have a chance to see some good money here.
GLA
@highflyigman, thank you very much for sharing, it's a great interview.
@NMM, the 20-25p estimate is for cascabel only, based on the assumption that the market would not price in any other assets at this stage. Considering it seems difficult to get Cascabel itself priced in completely, it might just be a reasonable assumption.
In theory my projections are higher (see below, and they are indeed theoretical), but I think that theory does not match reality in this market phase.
Exploration valuation = 30p to 45p
Feasibility valuation = 70p to 80p
Development valuation = 90p to 120p
Production valuation = > 130p
Best, TI
1) All in all, positives and negatives from the last two days of news balance out, with a slight positive bias since we actually have progress and some additional clarity.
2) I find it somewhat reassuring (mildly but still...) that the company does what the company says, which highlights the value of listening what the company says (Quady loves that!). Better that for us rather than relying on the often misguided micro-commentary and volatile moods of this board.
3) The PFS seems good, or good enough, but of course it's a bit cheeky to use a higher resource price.
4) Considering the progress and the actual roadmap that has been indicated, I would agree that we are in a stronger position than we have been in the past, what we were not made aware of was the under-the-carpet dirt that was accumulating, so it's reassuring (again, mildly...) that the company is just being pragmatic and focussed on putting the real company building blocks in place.
5) The one grudge I still have, but this started in the NM days, is the way management seems to take a gamble with our money. IF it's true that they are not practically concerned (remember they have to say otherwise in the MD&A because it's a PWC ratified document) about funding because they know something we don;t know and they cannot yet tell us about, to the point that the can push the cash position to dangerously low levels before raising funds, we private investors are still left with having to use faith rather than good rational judgement about the risks we are investing into. This binary way to develop the strategy has kept us holding our breath since 2017, and that is the one unforgivable sin in my opinion.
6) I will not bore you with my calculations, but my updated estimates, factoring in market sentiment and actual SR news, now point to a 20-25p target in the medium term. naturally, should a bidding war take place, all bets are off, but I don;t really see a bidding war happening to be honest.
GLA
I suspect that the posts in the next 6 weeks will be even more colourful than usual, will be interesting to see how low we go (with the quality of posts and sadly the share price).
GLA!
Morningstar says that the half year report and MD&A are published, but I cannot find them yet.
You guys seem to have too much time to waste.....
In the meantime I am keeping pressure on Sean Tufford to get some updates on PFS, IPA, SR, financing, general strategy, which he is yet to provide.
I will keep you posted.
By the way, water is not a fuel, even breaking down H2O into H and O the process generates less energy that it takes to break them down so the car does not move. Can we put it to rest and not engage the moron? If we answer we are like him.
Have a good day all.
You can tell that SOLG is all about expectations
For what it's worth, Sean Tufford says that management is very busy finalizing the PFS to answer my questions about the PFS.
Can't you all feel the buzz and the excitement at SOLG HQ?
I am so thrilled to be holding a substantial sum at 75% loss for the privilege of dreaming a multibagger.
Aren't we all just living the dream?
Have a nice weekend, dear shareholders!
Come on Colonel, of all things naive I am not.
For years SOLG's management has put us investors in a difficult position, and our options are now very limited.
The only way to make money with SOLG over the last 7 years has been trading the volatility, which has got nothing with investing and especially with an event-based investing strategy that many of us has been following, the event being a takeover, and it adds to the fundamental risks associated to the company.
It does not mean that an "event" is not possible, and in fact I still very much hope we have such breakthrough and that is why I am holding, but this looks more and more like a deep OTM binary option, which was not the intention when I invested here.
Quady, one thing I agree with at he moment, the price would not be so depressed if a takeover was even a remote possibility. If there is such a thing as the market pricing efficiently, it's pricing for SOLG not selling, leaving a chance that we finance the smaller project ourselves, leaving our hopes for a better investor return to much later.
For a company that is allegedly in its best position, the optics are remarkably showing exactly the opposite.
Did anyone had any meaningful communications with Sean Tufford?
I emailed him last week, asked him some very specific questions, he came back all hyped up about SOLG but promising to answer factually this week and then disappeared.
DK, if that's how you think of an investment in SOLG, perhaps you should have invested in a consumer goods type of company. This is a mining exploration company pre-development stage in need of finding its way to development, there is no clarity until the company knows how development will happen, so there is no "what it says on the tin".
There are certainly many professional ways to deliver a message that sounds positive in SOLG's management point of view, but "Fun fact" is not it. Who have they hired to manage comms?
Which I would urge you all to listen to. A very great insight on the background workings of today's juniors' world and lack of investment.
ToS, to be fair to Red, even the Deloitte paper discussed earlier explains how the price of metals affects exploration companies, so perhaps I would give it a rest.
Https://www.youtube.com/watch?v=H0_VN_E3ZvM
Found it, thanks
Add, have you got a link to that specific interview? There are many on YouTube recently, he is quite keen on media!
Thank you Add