SolGold is an Australian mining company that is public on the LSE and TSE.

SolGold is an Australian gold and copper mining company which is listed on the Toronto stock exchange and London stock exchange. The company has recently closed down multiple sites due to COVID-19 and with restrictions now being lifted operations are starting up again, starting with thier mine in Ecuador. This mine is very important to SolGold as it is classed on a tier 1 mine - this means it is worth some serious money - the project is called Apala. Within the financial year of 2019 SolGold was able to raise £45m from BHP Bilton towards the development of thier mining. The shares were issued at 45p.

The financials of SolGold are different. The most recent accounts for 2019 show a current market capitalisation of $435m with no defined revenue just yet. The company did take a loss of $32m in 2019, though this should not be an issue as once the mine becomes active it will turn this company profitable. The balance sheet is interesting. Total assets are $244m with liabilities at $6m! This gives net positive assets of $238m.

From a technical standpoint, the shares are mixed. MACD suggests positive momentum is picking up, however, the chart does still trend in the lower Bollinger band. Until both suggest positive, this is net natural for us. RSI also gives fair value at 40. The chart has plenty of support below, the first being 17.42p (17.6% fib). A break below this could take this market down to 10. To the upside, initial targets/supports would be 22p followed by 25.7p.

Overall SolGold as some serious potential fundamentally. Financially speaking the company loses money, however this is expected as they are still in the development and explore stages of thier mines. From a technical aspect downside is possible, but at the same time upside potential is there. As a longer-term investment this could play out well as the mines will operational for over 8 years, they could even sell the mine one once development has finished.