Member Info for TheRouge

I have only attended a handful of AGMs but would always expect a CEO presentation and a short Q & A.... - no?

You put the link in your name instead by mistake..

You seem like a very reasonable person being happy with £10 a share...

(I agree with you re: Alpala)

I thought this deserved more

that's the tip of theiceberg

Same here - I can’t find it

I am a brunello man. I think 2013 was the year but I enjoy the 2014. I visited Sesta di Sopra (sp?) and love theirs.

Schlemiel - out of interest why did you sell your solgold stake? Was it out of necessity or because you think 20-21p is a sell price? I have my humble amount of Solgold shares and am holding as all I can see is a big upside.

Thanks KB007. And which ones do you have the most positive outlook for?

^^^^^^^^
Someone got a little bit crrrrrunk.

and which one are you most excited about?

I am in SOLG, GGP, ECR Minerals and Condor, but wondered what everyone else was in and which investments you are most happy about..?

Completing Cornerstone deal.
Drilling results.

These are the things we would expect to affect it.
“The market cap is way, way below the value of the project and company on any analytical basis.” NM.

By doing what we do best we should add market capitalisation in great chunks.
?EMPLOYEES INVESTING
They are not currently able to invest as they are prevented from doing so at this moment. ?
TAKEOVER
Q - Have Newcrest or BHP indicated there will be a hostile bid? Otherwise, why hire Citi?
They haven’t but we want to be ready and prepared for any hostile bid wherever it comes from. So that’s why we hired Citi, we think they are the best in the business and they are working on a number of different angles.

SHARE OPTIONS
What will happen to the millions of options expiring soon?
NM: They will expire. Unless there is a massive rerate these will expire.

SETTING UP DIFFERENT COMPANIES
Q: Why not have each major site as a different company?
NM - one of the things that sets Solgold apart is that there is a pipeline of great sites all within the same company. The political, social and practical frameworks - and the duplication of this - is a massive advantage. The govt would not like to see us fragment either. We don’t want to simply get rid of assets. Each one of these 14 sites ‘could’ deliver an Alpala, why on earth would we want to do that?

JOINT VENTURES
Q: Have they considered JV-ing some regional projects so more can progress
There is a huge amount of time and effort involved in progressing joint ventures. They can exhaust you and you will be giving away your upside. So no, JVs are not high on NM’s agenda. If we apply the same techniques from Alpala to other parts of the country NM is confident another can be found. These systems are so large once you discover the tip of the iceberg and we are not interested in farming these out.

ECUADOR PEOPLE / LEGAL CHALLENGES
Q: Are we likely to see future legal challenges in Ecuador?
NM - can’t speculate on this but the constitution enables opposition to mining but there are two stiff conditions for this:
1. Properly formatted of the appeal (addressing the question whether the proposal is constitutional. Many can’t prove the ‘constitutionality’ of the case.
2. Then if this is fulfilled, they need to consider the detail and merits of the appeal. Given the economic situation and the importance of mining to this, proving it is not in the national interest will be difficult.

Both Solgold and Lundin Gold are working closely with the government in this area.

DGR STAKE IN SOLGOLD
As a member of the board I can say it is their intention to hold and look after that 10.9% interest in Solgold. There is no interest in losing it.

COPPER/GOLD PRICES
We are convinced copper is about to rise. We think gold price will keep going up.

GLOBAL QUANTITATIVE EASING
NM remarked on the crazy amount of new money that has been printed and is still being printed. This money will need a home and this project (Alpala) is a banker’s dream.

KEY MILESTONES TO A SP RE-RATE
NM: Hard to answer as what we think doesn’t necessary translate to investor behaviour.
We would have thought the deal with Franco may re-rate us more significantly. Perhaps there was concern over COVID wrecking this - once the deal is complete this may affect it positively.
PFS will help the share price.
Putting in place conditional funding agreements will help us (we are working on a number of large opportunities, we can see about $2 billion coming together. We are some months away on this but we are working on it). It’s not the whole 2.7 billion but its coming together and we are not even at PFS release yet.
Permits and fisc

NM: it amazes him that Alpala has made a small amount of difference to SP. But don’t discount that we find something great that will be 100% owned.

Q: Were Aguinaga results disappointing? Has it been downgraded?
No, it’s a good prospect but we have generally taken the view that given finding more doesn’t seem to affect SP, let’s work on the opportunities we have.

In the Solomon Islands we are working at ground level. Ecuador is the focus.

FUNDS FOR OTHER DRILLING OUTSIDE OF ALPALA?IH: Thanks investors and encourages them to stay in touch. Ingo is based in London.
We have a carve out from some of the FN funds to fund some of the drilling.

CORNERSTONE
We are bidding for Cornerstone. We are still preparing documentation - this changes with each development in the company. We are proceeding with it and we continue to maintain the best course of action is to consolidate under the Solgold roof. Advantages to CGP shareholders are:
1. A large premium is being paid
2. There are cost savings for CGP
3. Solgold shares received
4. The Risk of financing a massive dilution in the CGP share register will be avoided.

CGP shareholders should be encouraging the board to accept this.
It is coming. We are revising and preparing the documentation. We have always been of the view we are proceeding with this bid and nothing has changed. We hope that common sense prevails and CGP shareholders are given the opportunity to support this.??CASH BALANCE NOW

4 million in bank + 15 million advance from the 100 million FN cash.
We are spending a lot less currently due to COVID/drilling stopping.

ALPALA ROYALTIES
We are not able to speculate as to what future royalty arrangements may be, nor provide information on any angles of the financing deals they are working on. We have given the market as much guidance as possible as to what they will do.

Existing agreed royalties
1-1.5% to Franco Nevada.
There is an existing royalty on the project which they can buy for 4 million dollars when the project reaches feasibility, which they will be doing.
There is a royalty re: Cornerstone.
There are royalties to the Ecuadorian 5-8% for Gold, 3-5% for Copper. We have put the maximums in to the PEA, but it could be lower. Given the size of the project we would expect the government with work constructively with us.

We are happy with the agreements. Some are not until e.g. 2028, so it’s not a massive strain on the project.

FRANCO NEVADA DEAL TERMS
There was a long period of due diligence for several months.
There is a site visit to be done which has been delayed due to COVID. (They didn’t seem too worried about completion).
?Q: …about this FN deal souring relationships with BHP/Newcrest
It’s not soured. They are probably disappointed that we didn’t dilute and pump out new shares, but the market cap is so far below the value of the Alpala project. It would have been about 15% of the company to get this finance.?

Apologies for any inaccuracies. I hope they are useful to some who couldn't attend.
-----------
WEBINAR - 19th MAY - RED CLOUD

ALPALA
NM mentioned that the risks are eroding regarding this project as it progresses.
And concerns are evaporating with regards to the Ecuadorian government.
With low interest rates set to continue to for the rest of his life, debt funding was the way forward with this.?Having BHP and Newcrest on board endorses the quality of the project.
?NM wants to see this project developed as quickly as possible.??PFS - by 30th Sept 2020
DFS - 30 June 2021??Q: Have you considered, as other majors have done, skipping PFS stage and producing a combined PFS/DFS?
NM: The thing that sets us apart is that we are doing all of the studies to PFS/DFS standard. Because we have been collecting all the data with the DFS in mind it will be a seamless transition. Producing the PFS should not slow down the DFS report in any way. It is important for us to keep shareholders + government informed as we progress, plus it enables us to put in financing deals.??They believe the metal stream funding can deliver about 2 billion of the 2.7 billion required for the whole project. They are working on conditional finance packages at the moment.

GENERAL
NM is here to realise value for Solgold shareholders.
NM wants to turn Ecuador into a leader of copper-gold production.

We believe the geology of Alpala is ‘replicate-able’ throughout the 700km. There are other discoveries we will inevitably make.
One dreams of a situation where we will be able to fund these internally and create a major.

The market cap is $750 million pales beside the value of Alpala alone and we have 14 of them lined up.

They are going to do these webinars regularly to keep people informed.
?PERMITS AND NEXT PROJECTS
NM: We do envisage the difficulty in gaining permits easing, with the government driven by the economic imperatives.
JW: Even though the permits were slow, they were never stalled. They are and have been moving along.
JW: There are lots of different permit stages. We have many more than 26 applications (mentioned) pending. I expect lots of permits to be granted over the rest of the year.

JW - Blanca, La Hueca and Porvenir ready to drill. Everything is approved there, we have the permits including the water permit which was the most delayed.

Porvenir is a great target. A bigger outcrop than Alpala and similar grades.
La Hueca - they are building a camp and getting ready to drill.

JW: My ranking of these targets changes all the time. One day can make a difference.

Salem (sp? I must have missed this name) is looking like a great find.
Chical - two porphyry systems there as well as an epithermal one.
Amarillo is a massive system so we are really pushing the permits for there.

It will depend on when communities open up as to the drilling order.

Hi Brokenovice - what's next the next move according to your calculations?

What about if it digs through the ground?

Could be Solgold related?

It's pretty high now in the 9s.

Do we think really good news is now priced in and it will need to be really amazing news to push it on further? And 'just' really good news will see it static or fall back?

Here are my noddy notes from the webinar for those that couldn't make. Apologies if I misunderstood anything:

- Repeated info on financing. Spoke about the initial 150m required. Some drilling and geo-technical work needs to be done. Planning for it to be state-of-the-art underground block cave mine.
- The finance packages are in line with the value of the resource not the undervalued share price
- Expects a re-rate of the company value (SP)
- Early stage discussions with Ecuadorian government for what is required in terms of permits and infrastructure for Alpala development
- Will focus on the other sites once to build the company once Alpala plan is sorted
- Seemed quite relaxed on COVID-19 in Ecuador and where our sites are. Had no cases within employees. It has obviously stopped fieldwork though on sites. Their teams are ready to hit the ground as soon as the social environment allows and they will be taking to the authorities as soon as viable.
- In terms of funding, the worst way they could do it is through straight equity. There will be further equity issues in Solgold in the future but they want to limit them, especially as the market cap is so low in comparison to the value of the project/s. They are considering all the proposals. We wouldn’t have announced it unless they thought there was a great chance of agreeing something.
- Ingo: These conversations started in the second half of last year. Very encouraging to have 10 qualifying bids. There is a lot more demand for our product than there is supply. This has been helped by the high-quality concentrate of Alpala. Some bids have logistical advantages. They want to select and close the agreement within the next couple of weeks. (Then some geeky stuff about the advantages of smelters vs traders)
- Conversation about the other elements within the copper deposit etc. Lots of long words about different things contained within the deposit. Exploring all the options for extraction. Nick did say we can’t give details about unannounced findings yet.
- There is a need within Ecuador to push forward with its GDP as soon as they can. The govt is on board and they know mining is crucial to the economic safety of the country.
- There is still a lot of drilling to be done but its infill and not core. Alpala is so closely drilled now they don’t believe there will be any significant change to grade numbers. The confidence that we have in those figures in that will show through in the finance deal and the discount rate. A 4 year payback is fantastic for something that has a 55 year mine life and the feedback we are getting from financiers backs this up.
- The interest that Solgold are getting from smelters, traders and off-takers just shows that they have so much more value to add in taking this to production. They can’t always defend themselves from an aggressive bid but they have appointed Citi to help secure themselves against this. The best defence against this will be a higher share p