Member Info for TheItalian

Thank you Mog...and we were discussing sentiment just a few minutes ago, what a coincidence!

Even though I am les rampy than Red, let e add a couple of factual points to support his general argument.

1) I asked Scott specifically whether there was any chance that they were being too greedy, hence the lack of bids. He said he completely agreed with Nick's view about the value, and they were working to advance Cascabel exactly to make it a turnkey project with the NAV as a benchmark. Now the assumption we can make, but that is an assumption and not a fact, is that indeed prospective buyers may have been dissuaded from bidding low because they were not going to get us, but if that was the case then equally we should conclude that management still feels strong about the prospects even though they cannot tell us in a form that some of the PIs here can understand or appreciate.

2) Investors in this sector, even the half wits, should be able to understand the share price in the context of the general market sentiment. For example, all my "junior" portfolio stocks are down YTD, from -22% to -77% even if most of them actually made some operational progress. The same stocks between Q4 2020 and Q1 2021 were on average 200% higher. Now these are facts, and so is our choice of when to buy and sell and if we bought 200% higher it's not the management's fault. I have commented in a previous post that just based on sentiment returning positive, SOLG would be worth 20-22p, not guessing but actually studying the correlation with GDXJ. Sentiment is an externality and many obviously don't understand it, in fact if the price today was 22p we would each still make exactly the same comments.

Personally, considering the shape and levels of the cup and handle starting 2011, and the fact that inflation has simply not been factored in the price, I would not bother commenting on gold unless the price goes beyond 2200.

Forte, come one man, anything you have to comment on, just bring it on with Scott instead of just spreading misinformation and misinterpretation here. You were a much more respected and enjoyable poster to read, but recently you have become incredibly unreasonable.

I for one would love to see you in your previous form.

If you had bothered to engage the company instead of people you don't know in an anonymous BB, Scott would have told you that the feedback from the data room is that we need to advance the project in order to make Cascabel palatable to investors (what he called the "turnkey" project), as in getting the permits (not made faster by the change of government) and repackaging the project at the right size in order to make it easier to swallow for investors (hence the new phased approach that is in progress).

Of course the repackaging can be read, or not, as an attempt to lure tier 2 investors or negotiate other streaming-type deals, as opposed to selling to tier 1 miners (like BHP) who would only pay at heavy discount to NAV to take on board such a huge project.

Eloro, my young friend, once again you show how inexperienced you are as an investor. Genuinely, if I were you I would seriously question myself and my way of understanding the companies I invest in.

I don't mean to patronize but that was a very unintelligent post.

For one thing, instead of ranting here, I have emailed Solgold asking for a clarification about the rationale for resolutions 10,11 ad 12, the intended use of the funds and a good reason for existing shareholders who would be diluted in case of capital raise.

Let's see if they answer.

I seriously think you should all email them asking similar questions, prior to the AGM, which might be the only way to make them aware that there is an unhappy group of shareholders.

I am having a dense moment, not sure what to make of this

I think we are "almostdone"

By the way, given the BB anonimity, don't you all wander what we look like in real life?

I for example have a mental picture of some of you, hopefully one day if we finally sell and wish to celebrate in person, we will see what our rampers and derampers look like.

@Mathersfinger, I am pretty sure that my screen has more green than most, even if it's not enough.

I don't mind the usual suspects at all even if 80% of the time I disagree with the excessive ramping or deramping or fantasizing about this and that scenario.

But I do mind the constant bickering, that one says more about the writer than it does about the receiver, and it's ultimately completely useless.

Anyway, I said mine, have a lovely day everyone, one less day to go until we know if SOLG will make us win or lose money.

GLA

I think we should all make an effort in favour of the green transition, and filter more people on the BB so that more green appear and we transition to a better conversation.

I can see that the BB is increasingly confusing fantasy with reality.

There are no auctions, there is no kicking out SC (this year at least), there is no alternative strategy at the moment whoever runs SOLG.

If you don't understand the strategy that has been explained ad nauseam you should not invest in the company. Besides CEOs do not control the share price, they control the strategy and strategy is only one factor affecting the share price.

Given the illiquidity, we have a first drop to 4p and a second drop to 1p if further instability is added to the SOLG equation.

If you rock the boat, prepare to drown.

Cut-off grade is perhaps the simplest way to understand the economics of large, low grade mining operations. This is the grade above which a particular mine is profitable. Freeport-McMoRan Copper & Gold Inc. is the world’s largest, listed copper producer. It has operations in the America’s, Indonesia and Africa. It also happens to mine some of the lowest copper grades in the world.

Cut-off grade depends, inter alia, upon the processing method used. Freeport uses three processing methods at its open pit operations in the Americas. Milling, crushed or agitation leach, and run of mine (ROM) leach. The lowest cut-off grade for milling is 0.18% copper equivalent, for crushed leach 0.12% and for ROM leach 0.05%.

From: https://marketcap.com.au/large-low-grade-copper-gold-deposits-how-low-can-grade-go/

Forte, I am not sure what changed in you, but perhaps instead of vomiting negativity on a BB you could pick up the phone and talk to Scott himself, ideally before the AGM, then you could at least developed a more balanced view.

None of us likes to wait any longer, however there is simply no desirable outcome from kicking Scott out at this point in time.

Gino, I think that the statement that there are 41 days to Christmas is the only indisputable fact that was posted on the BB today, I would not call it a low!

Was doing some boring reading on Equity Risk Premium (ERP).

Interestingly, dividends and inflations are the two most stable components of equity returns, followed by earning growth which is moderately stable. What is really volatile is P/E (contraction and expansion), which is a reflection of sentiment and investor expectation.

SOLG does not have earnings or dividends being an exploration company, and so apart from inflation, which is an externality, our price is heavily driven by sentiment. When hole 5 was announced, sentiment ran really high for example. When majors decided to not invest in new mines and rather cash in the high commodity prices and pay dividends, a junior like SOLG (and many other I sadly have in my portfolio) has dropped to the bottom.

Yes we are event-driven and the price can change in a day, but overall our price is a reflection of the wider sector low appeal with investors at the moment.

As I calculated and posted some days ago, just based on sector sentiment we could be repriced to about 20p and no one could pinpoint a SOLG-specific reasons for it.

GLA

When they say "time is a healer"...

I think time is having the opposite effect on this BB. The longer we wait the more obtuse or confrontational some entries are.

Considering we are possibly all here to make money, the infight is the most useless behaviour.

We can just accept that we made the investment at some time at some price for reasons or predictions that belong to each of us, and just because the outcome is not what we expected in whatever time frame we had imposed on ourselves, it does not make that decision right or wrong, it does not make anyone else decision right or wrong, and it has no bearings on the outcome itself?

Come on, 41 days to Christmas, let's be merry!

Thank you lcwanderer, interesting find.

Compared to the other project in the list I think we can all see in plain daylight why this is a tricky company to shift: lower IRR, larger Capex, longer time to market, country high risk (although most in the list are actually).

So actually, it validates the idea of creating a smaller PFS and by inference the credibility of the team that is working to deliver it.

I can see why you will go to the bin pretty soon....