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Quady yes I agree they have stated build a mine and take to production they have to put that in writing to the Ecuadorian government as they stated must be in production by then or lose tenament ,yes lose cascabel...the government hold sway on all tenaments quady solgold need a partner or sell it as time is running out so actions need to be taken now not in six months time when they won't be able to do anything imho
addicknt, there was a graph on King World news on the 15th June showing Junk Bonds blowing out with the heading: "Onslaught of Corporate Defaults on the way!" Zombie companies will be slaughtered and I don't think your pessimistic view is unrealistic. Question is, how the deterioration and instability in the markets will affect us here? Financing might be more difficult? Time to a deal(s) is not exactly on our side?
You can benchmark the US markets with SOLG share price. It's very easy to do. For instance, when the DOW was at 25k levels SOLG was at comfortable in the mid 30's. Over margined traders are the main reason for market collapses. It's called a squeeze.
US markets have been over priced for years now compared to FTSE and EU markets. It's well known that the Fed Reserve have actively propped up the US via active buying or cheap money printing. It amazes me how the dollar retains it's value with so many of them now in circulation.
On an historical basis p/e levels are still average and interest rates very low even with recent rises. Those indicators are not a concern and as such a market crash not likely at all. Global markets are not in turmoil as you suggest. Where did you get this info from?
The DOW Jones was over baked at 36k and looks more realistically valued at 30k. Last point for you, today is OPTION EXPIRY day. It's normally very volatile. As is the run up to that day. Add this to the impending Summer trading pattern where volumes are you can see why this expiry is a big one.
This is what happened last month May 20th.
https://www.bloomberg.com/news/articles/2022-05-19/battered-stock-traders-get-ready-for-1-9-trillion-option-expiry
Today is even a bigger event but I think the volatility this week is down to the preparation ahead of today and nothing to do with "market turmoil' or impending crash. It's just the market having an 'option cycle'.
a safe haven stock?
In my opinion we are staring at the prospect of a FTSE which could easily collapse to 5000, or perhaps even less. Not only are the global markets in turmoil, here in the UK we have one of the most economically illiterate governments I can ever recall. They really are startled rabbits in the headlights and are lurching all over the place as they struggle to come up with a coherent strategy. This bodes ill for our near and medium term future. I should add that I don't see any other government who knows what to do, so global markets don't offer that much comfort.
How will our business react?
I don't for one moment believe we are immune, but the fact is in a sense we are fortunate not to be in production already. As we know, our value is wholly predicated on the long term value of copper (the gold is a huge bonus, for which we are accorded little value) and that isn't going away.
Many of us will currently be sitting on a significant profit and the temptation to sell must be great. The problem is, where would you put your money? Everything will get hammered and your profits could evaporate in a trice. Companies which are considered "safe" will also suffer - no one will escape the potential disaster.
Many of us on here are old enough to recall the '70s and '80s and understand what could happen: sadly, our policy makers are not and appear to be utterly clueless.
As I said, we will not be immune - far from it, but with the prospect of a bid lurking, perhaps this is as good a stock to hold as any?
CGP just touched a 2 year low of $3.40CDN...
SOLGs bid was well above that...especially now...
I'm taking it from the GANTT chart lunch. Construction finishes Q4 2025...
Correct DBW that's what I said.
BHP will have to pay full price and we know they won't do that.
Solgold are not moving forward as if going to production, they are moving forward to production.
Oh dear I see Slug is back as SnailTrial. He will be gone soon.
So easy to tell as he is so unintelligent.
https://m.youtube.com/watch?v=oQ1LN-ZC3s0
Listen from 5 minutes bubble
“If someone comes along we’re open to it, we’ll do what’s in the best interests of our shareholders “
In the meantime they’d be stupid not to move forward as if going to production ….. that way all options remain open .
Do you honestly believe the likes of BHP or any other potential suitors will happily let us take it that far ??
Sorry Bubble since 2015 NM has said the opposite. We now know that no one has even approached us for a bid, and we proceed to production.
The message has been constant, and now our CEO has confirmed this.
Quady ,your a good poster and I respect your comments)post but listen to me the facts speck for themselves solgold will not take any tenaments to production NM has and always will have one objective with solgold just like he has done with other companies he had been connected with to bring them to the highest in terms of exploration then sell it in to the benefit of all shareholders so you really need to DYOR my friend and be patient as the biggest rewards are about to come
Which bit is rubbish Bubble, are you saying Solgold are lying.
Rubbish Quady
Well it couldn't be any clearer, not only do we not have a bid. No one has approached us.
Also as stated we are going to construct Alpala, unless we get a bid at full value.
We all know what that means.
Thanks DBW for transcribing all that was said from Mining Journal and DC's comments are most useful! An Improved Comms and transparency from our new CEO versus a while back! We are making inroads towards underpinning a higher sp, no doubt about that! Pity Rome was not built in a day! LOL!
Poker faced DC. The majors will need to decide when the right time is to take a larger chunk of the SOLG pie. The longer they leave it, the size gets bigger and price of copper gets higher. Excellent position to be in.
Thanks for posting DBW - a very good read.
Thanks DBW
Thanks RK ....Exciting times ahead indeed
Not forgetting Norges adding another 5m shares since the last presentation 3/4 weeks ago
Hi from Chardonnay...
I'm just having another detailed look at latest presentation. Hers a few observations...
Ayten is not on the Board.
Annual gross value of gold production alone at assumed prices is c$1.4bn...
Several people have referred to a disappointing NPV, but that is based on a mine life of 26 years and 21% of the ore...
But...$11bn (80%) of the free cashflow comes in the first 13 years...
Cascabel ore contains an average 32% iron ore, significant molybdenum, some zinc and also some REMs...no lithium, cobalt, nickel, etc.
DFS now projected for Q4 2023; Project Finance completed by Q2 2024; first commercial production Q1 2026...
Cash at 31 March $38.1m...
DBW, thanks.
Onwards & upwards !!! Blue finish today
Part of this is the company's aim for Cascabel to be the development stage project with the lowest ever carbon footprint. "When we have got a clear plan on how to achieve that we are going to release that to the to the market. There are a few things going for us with access to hydropower and block-caving is intrinsically a low-energy mining methodology because you're basically using gravity to grind the ore. We're transporting concentrate down a pipeline down downhill, a low-energy way of transporting concentrate, and the site is self-contained from a water perspective as we are not tapping into aquifers. There will be a bias towards electric vehicles underground, which saves on ventilation and roadways, and the government also has a tax incentive for investments in in carbon friendly technology. We want Ecuadorians to be proud of what we are doing and having a key role in getting the world to a net zero emissions future," said Cuzzubbo.
Government support for the development of its mining sector goes beyond tax incentives. "There is no question that the government is supportive and open for investment. We see actions following the words. We see exploration increasing exponentially and other companies investing heavily into Ecuador. A number of mining majors have moved into country in the last few years, so there are many very tangible signs that we are not the only ones seeing the sovereign risk really come down," said Cuzzubbo.
"At our Porvenir project we are kicking-off a preliminary economic assessment so we can help the market understand our true value as our market capitalisation is reflective of just Cascabel and we want it to see now we have a major position in Ecuador and can be a multi-asset organization. We are going to help the market do that by doing PEAs on different projects," said Cuzzubbo.
The company's Chillanes concessions surround Warintza, where it is awaiting permits to start drilling. "Two months ago, we came across an outcrop and we can see it is a porphyry system. We have three concessions which wrap around Warintza and that outcrop shows we have a significant porphyry system there with visible mineralisation," said Cuzzubbo.
SolGold is also seeking joint venture partners for 76 other concessions it has in Ecuador under its Nightingale project.
SolGold has been a large, high-profile copper development project for a number of years whose shareholders include BHP and Newcrest Mining. While some market observers have been expecting a SolGold buyout for a long time, it has yet to materialize and with little acquisition activity in the copper space, it may not happen for some time, if at all. But Cuzzubbo is unfazed.
"I don't know what BHPs or Newcrest's intentions are but I know our focus is on what we can control and that is making sure we are optimising Cascabel, de-risking it and building a team that can pull it off with or without an acquisition. We are building the relationships with the community and the government, and building robust planes. I want us to be able to do this with or without a major. That gives us additional optionality and additional leverage, which makes us more valuable to a major as well," he said.
SolGold is working to boost the potential of its Cascabel copper-gold project in Imbabura, Ecuador through optimisations and exploration drilling to show its porphyry cluster potential as it prepares to update its pre-feasibility study (PFS), CEO Darryl Cuzzubbo told Mining Journal.
In May, SolGold reported a measured and indicated resource of 2.7 billion tonnes grading 0.53% copper equivalent at the Tandayama-America (TAM) porphyry copper-gold deposit a few kilometers from Cascabel. It also reported it was seeing drilling success at Moran, which is between the two deposits.
"We will include [Moran] but it won't come in time for the PFS addendum as we would have to update the full technical report and have a mine plan over it and we won't have sufficient time for that. We will continue to update our mineral resource estimate as we drill more and this resource is clearly bigger than what we currently see," said Cuzzubbo.
In addition to expanding the Cascabel area resource the company is also working on optimisations to increase the net present value (NPV) of the potential development. "We are pursuing through the next six months in our PFS agenda things like optimising the mine plan further to lower infrastructure costs, lower the amount of development to optimise our surface process infrastructure, which will lower capex, and bringing-in the TAM open pit, which brings production forward, because if we get underground ramp-up delays, we can rely on the TAM open pit. These are the biggest ideas in terms of assuring an additional US$400 to $800 million in NPV," said Cuzzubbo.
SolGold is also working so that the market understands that it is not a one-trick pony and that its value extends beyond Cascabel to include the Porvenir project in southern Ecuador, and a host of other exploration projects, including one adjacent to Solaris Resources' Warintza project.
As usual rcgl2 you make a good point, but I would have expected this at the AGM. Which at that time I would consider what was being proposed.