Today*s Solg Announcement was very detailed and definitive.
It was at an INFLECTION point that many were waiting to see what the results were especially the further Alpala results and more importantly Aguinaga.
One of the broker notes prior to today mentioned that the Next Catalyst would be the 2nd porphyry target, in this case Aguinaga.
TODAY*S BROKER NOTES - 6 June 2018
>The 1st one was from the National Bank of Canada and it mentioned the Preliminary DCF for Alpala is based on an Overall Mineable Resource of 800Mt...or 1.08% CU EQ at US$3/lb Cu and US$1,300/oz Au-based on the GRADE TONNAGES curves provided in the co*s most recent resource update.
If one compares this with Junin the next door deposit at 982Mt @0.89%Cu [pg 8, Corporate Presentation in London May 2018 on
www.solgold.com.au/presentations/ ], then the figures would come in with a comparatively higher grade.
Pg 2 of the said Corporate Presentation gives the MOZ figures of "Cascabel Tier 1 copper gold discovery" which I posted earlier - 17.66Moz & 21.22 Moz= 38.88 Moz.
This is just for the Alpala Maiden Resource Statement. This is not a small figure.
>Cannacord Genuity also posted a broker note today.
I have not seen Cannacord posting a note before on Solgold.
From their site, they do discretionary portfolios and wealth management etc including Investment Banking. The headline was: "1.04% Cu Eq Over 302 metres" as posted by Solgold with the said note.
>Hannan & Partners are very well known also as a specialist boutique [Investment Banking] and as Independents they were on site this week. So Solgold is catching the eye of the well known ex J.P Morgan banker [Mr Hannan etc] who specialises in natural resources.
Comment:
Some of the detailed notes will not be made available to the public but only to their clients.
When the Alpala Maiden Resource Statement came out on 3 Jan 2018 with 1.08Bt at 0.68% Cu Eq, the London forums said it was not good enough. However, the benchmark of grades are falling and 0.68% compared to the projects that are coming on in Peru [I posted in the last few days] come within the quartiles especially with copper prices rising and potential supply crunch + EV demand.
When the Announcement came out today, no one in the London forums were able to compute the figures eg National Bank of Canada DCF figures as above.
In one of the Master Investor*s articles, it was said that the London investors are not nuanced in mining as Canadians. For that reason, it was said from recall that it is better to list also in Canada where they are more nuanced.
In Canada, the Solg rose 8.25% and it was picked up by Mining.com and posted earlier.
In London, the volume were low and with the share price falling, it has to be that selling was more than buying. From the volume, it does not even appear that it is the normal volume. Many investors appear to have been scared off by the misinformed info all these months about Aguinaga and Alpala both in terms of grades etc. However, these opinions were NOT benchmarked by what was happening in the market itself.
So what does one conclude? Many of the opinions on the London forums are now benchmarked against well known broker notes [Investment Banks etc] and one has to judge which of the two groups are correct?
In London, the people producing these notes are licenced etc. In their detailed notes, the figures are even more detailed.
MAJORS
From one of the articles which was quite recent, I recall that 12 are eyeing Solgold.
I am sure the keenly awaited Solgold Announcement today would have come to the attention of the majors.
BHP in making the investment proposal to Solgold quite a while back BEFORE the Maiden Resource Statement [MRE] now appears to be nuanced and savy. The more detailed results are now out today, 6 June 2018.
Just a discussion.
(20min delay)
