RE: down 25% in 10 days21 Apr 2022 18:14
You've only got to look back at this weeks posts on here to see how clueless 95% of the posters are on here. That's not a criticism that is an emotionless fact. So many posters really genuinely believe they know what they are talking about...but it remains guesswork at best.
Because we (the posters@Solg) have immersed ourselves in this stock for years, we "think" we know it all. We dissect each 'event' forensically: AGM, term sheets, bids, new CEO, other tenements......and so it goes on. For months and months Solg published the square root of NIL and still posters thought something was brewing in the background.
I include myself in the above.
What we are seeing here, is the market looking at yet another publication by yet another junior explorer (solg is not and never will be a miner) and seeing the following:
Remember this: Solg is professing to go this alone (bar the shouting):
An IRR of <20%. Now if you don't understand this - go do some googling.
Solg has to find $2.5bn for phase 1, let alone the rest.
Nothing is going to happen on the ground for atleast 4 years, possibly longer.
Open pit early cash generators are solely dependent on Ecuador agreeing Solg's ESIA proposals. Ecuador is not yet a user friendly mining domain - Lasso will be gone by beginning of 2025.
This is what the market is reading into what we all think is a good PFS. It might be good..........to us....... but we are extremely biased, are we not?
Yes the mine is long term viable.
Yes the stock is heavily discounted.
Yes the resources are huge.
Yes, yes, yes.
But not now.
In 4 years time, after debt funding, with the approval of the then government.
Then she will fly.....
I think it has been posted recently.....the SP will now flop **** between a mediocre range until a Major decides enough is enough...and swoops.
It is a double edged sword for Solg:
If it openly advertises itself for sale, the bidders will know it can't manage this project on its own and so the bids will be ruthlessly low.
If Solg continues to brag it is going solo - the majors will watch it bleed to death.
That is why we need an experienced CEO to navigate this tortuous route.
Good luck to us all. We are going to need it.
Z
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