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I think we'd all worked that one out.
Many juniors dream of attracting partners such as BHP and Newcrest Mining. Mather brought them in and then eventually alienated them. He also alienated Cornerstone Capital Partners, a junior explorer which owned 15% of Cascabel until the two companies finally merged earlier this year, but not before Mather had twice failed in hostile takeover attempts and alienated its board and management.
Following the merger, Cornerstone changed SolGold’s board and picked Caldwell to run the company. Maxit Capital was the largest shareholder of Cornerstone, and its chief executive Bon Singha, was not shy of expressing what he thought of BHP and Newcrest in their approach to working with SolGold, as Mining Journal reported in late 2022 with the help of a few asterisks.
Caldwell has some bridges to build. Part of my role is to work with all our stakeholders, including shareholders, and we are trying to get a good working relationship. The relationship with BHP and Newcrest has not been the best at times. Both BHP and Newcrest voted against me on the board, which tells you what they thought about me joining, said Caldwell.
One relationship that is likely to change anyway is that of Newcrest following its acquisition by Newmont. However, as Mining Journal reported recently, Newmont’s chief executive likes Ecuador and the company’s investment in Lundin Gold but did not mention its investment in SolGold. Newmont would look to realise some $2 billion in portfolio adjustments following the acquisition, leaving some to speculate that SolGold may be a position it would seek to monetise.
I have not spoken to Newmont. I want the dust to settle on the transaction with Newcrest, and we will reach out to them when the timing is appropriate. I certainly would encourage anyone to at least look at the asset before they sell the stock, just because of its size and the magnitude, said Caldwell.
Shares in SolGold are trading at 29c, valuing the company at C$873 million.
A key task is to continue advancing discussions with the government about obtaining an investment protection agreement and amending the company’s current investment protection agreement to reflect development and exploitation. We are in discussions on both of those, and we would like to get those successfully negotiated by the end of the year, said Caldwell.
It is not just Caldwell who has relocated. The accounting and IT functions will be done in the country as well as other functions, including the engineering on the feasibility study, once that resumes.
There are tax savings, and it is good for the country to spend those dollars here. We will ensure that when we resume the feasibility work, we will put it out for bid and ask that the work is done in Ecuador. Obviously, some specialists would have to be imported, but we would make sure the work was done here in country rather than offshore. It really is emulating what Lundin Gold did, said Caldwell.
While progress has been swift, with the initial focus being a business restructuring to reduce costs and improve efficiencies, Caldwell and his team are now moving onto the most important nut to crack: how to profitably develop Cascabel.
The SolGold under Caldwell will be a very different beast than the SolGold under his predecessor Darryl Cuzzubo and company founder Nick Mather before him. Mather had visions of grandeur, such as the company becoming the next BHP, which in addition to perhaps raising the hackles of the company’s biggest shareholder, BHP, saw him aim for the stars with a large block cave development with a 40-60Mtpa throughput and pre-production capital expenditure of US$2.4-2.8 billion and total capex of $10.1-10.5 billion, in a 2019 preliminary economic assessment.
Repeated delays to a prefeasibility study eroded market confidence in the company, and when it eventually came, in April 2022, it featured a more modest 25Mtpa block cave operation to produce an average of 132,000tpa of copper, 358,000ozpa of gold and 1Mozpa of silver following pre-production capital expenditure of US$2.7 billion.
First up for Caldwell is an internal study to assess the options, which Caldwell should have ready to present to the board in about three months time. If accepted, engineering work would follow before the company begins to speak publically about it.
The Cascabel deposit has some very high-grade zones inside that massive deposit. The idea would be to begin the operation by exploiting that high grade, with smaller throughput, lower capital costs and a shorter development schedule, rather than a massive block cave right out in the block. Then expanding over time to where you extract the entire resource. We don’t have any numbers yet, but the preliminary indications are positive. [The capex] would be significantly less than the current capital costs, said Caldwell.
Caldwell was brought in to fix a litany of fractious relationships, temper and refocus expectations and fix several other issues that had almost made SolGold untouchable despite owning a deposit endowed with one of the greatest mineral endowments in the Andes.
One of Cornerstone’s criticisms of SolGold was that it was being run as a large company when it wasn’t one. Caldwell’s first task has been to restructure the company and make it fit for purpose.
Our number one focus was to optimise the organisation with the goal of reducing costs and improving efficiencies. We had key groups spread all over the world, from Brisbane, Australia, London, and, of course, here in Quito. We are really trying to move as many activities in-country [Ecuador] as we can. I moved to Quito and probably spend 80% of my time in-country. We have been successful in dramatically reducing our costs over the last six months, and with our available cash balance of US$46 million at the end of March, we’ll definitely be able to carry that well into 2024, said Caldwell.
With country factors being one of the most significant risks to the development of any project, Caldwell believes the only way you can manage it is to be there. He has taken inspiration from Ron Hochstein, chief executive of Ecuador’s development success story, Lundin Gold and its Fruta del Norte project.
At PDAC this year [the Prospectors and Developers Association Conference in Toronto, Canada in March] Ron spoke at the memorial for Lukas Lundin and told the story of when they were marketing in London during the early days of the company. He said a potential investor asked what makes them any different from Kinross, to which Lukas said, Ron’s moving to Ecuador, which was the first time Ron had heard about it. That is when I said it is the right thing to do, and I decided to move. The person in this position needs to be in Ecuador to be involved in the day-to-day decisions and the political situation, said Caldwell.
The current political situation in Ecuador, where president Guillermo Lasso has called for new elections to escape corruption charges, makes Caldwell’s relocation a prudent decision. Based on the historical development of the mining sector, both Lundin Gold and Mirador were permitted, developed and built under previous regimes that were more liberal or left-leaning than the current president. I think the responsible mining of renewable energy minerals like copper is the future of Ecuador and that we will have the support of whoever is ruling. Responsible mining has a place in Ecuador’s future, and we are going to do what we need to do, said Caldwell.
Christ. Nothing of any substance for another 3 months or so. More talk of developing Cascabel ourselves. Two big agreements with the Ecuadorian govt to finalise by year end.
Taking my money elsewhere for a bit. Best of luck to you all.
Cornerstone changed SolGolds board and picked Caldwell to run the company. Maxit Capital was the largest shareholder of Cornerstone, and its chief executive Bon Singha, was not shy of expressing what he thought of BHP and Newcrest in their approach to working with SolGold, as Mining Journal reported in late 2022 with the help of a few asterisks.
Caldwell has some bridges to build. Part of my role is to work with all our stakeholders, including shareholders, and we are trying to get a good working relationship. The relationship with BHP and Newcrest has not been the best at times. Both BHP and Newcrest voted against me on the board, which tells you what they thought about me joining,; said Caldwell.
One relationship that is likely to change anyway is that of Newcrest following its acquisition by Newmont. However, as Mining Journal reported recently, Newmont's chief executive likes Ecuador and the company's investment in Lundin Gold but did not mention its investment in SolGold. Newmont would look to realise some $2 billion in portfolio adjustments following the acquisition, leaving some to speculate that SolGold may be a position it would seek to monetise.
I have not spoken to Newmont. I want the dust to settle on the transaction with Newcrest, and we will reach out to them when the timing is appropriate. I certainly would encourage anyone to at least look at the asset before they sell the stock, just because of its size and the magnitude," said Caldwell.
And we would like to get those successfully negotiated by the end of the year said Caldwell.
It is not just Caldwell who has relocated. The accounting and IT functions will be done in the country as well as other functions, including the engineering on the feasibility study, once that resumes.
There are tax savings, and it is good for the country to spend those dollars here. We will ensure that when we resume the feasibility work, we will put it out for bid and ask that the work is done in Ecuador. Obviously, some specialists would have to be imported, but we would make sure the work was done here in country rather than offshore. It really is emulating what Lundin Gold did.
While progress has been swift, with the initial focus being a business restructuring to reduce costs and improve efficiencies, Caldwell and his team are now moving onto the most important nut to crack: how to profitably develop Cascabel.
The SolGold under Caldwell will be a very different beast than the SolGold under his predecessor Darryl Cuzzubo and company founder Nick Mather before him. Mather had visions of grandeur, such as the company becoming the next BHP, which in addition to perhaps raising the hackles of the companys biggest shareholder, BHP, saw him aim for the stars with a large block cave development with a 40-60Mtpa throughput and pre-production capital expenditure of US$2.4-2.8 billion and total capex of $10.1-10.5 billion, in a 2019 preliminary economic assessment.
Repeated delays to a prefeasibility study eroded market confidence in the company, and when it eventually came, in April 2022, it featured a more modest 25Mtpa block cave operation to produce an average of 132,000tpa of copper, 358,000ozpa of gold and 1Mozpa of silver following pre-production capital expenditure of US$2.7 billion.
First up for Caldwell is an internal study to assess the options, which Caldwell should have ready to present to the board in about three months time. If accepted, engineering work would follow before the company begins to speak publically about it.
The Cascabel deposit has some very high-grade zones inside that massive deposit. The idea would be to begin the operation by exploiting that high grade, with smaller throughput, lower capital costs and a shorter development schedule, rather than a massive block cave right out in the block. Then expanding over time to where you extract the entire resource. We dont have any numbers yet, but the preliminary indications are positive. [The capex] would be significantly less than the current capital costs, said Caldwell.
Many juniors dream of attracting partners such as BHP and Newcrest Mining. Mather brought them in and then eventually alienated them. He also alienated Cornerstone Capital Partners, a junior explorer which owned 15% of Cascabel until the two companies finally merged earlier this year, but not before Mather had twice failed in hostile takeover attempts and alienated its board and management.
Caldwell was brought in to fix a litany of fractious relationships, temper and refocus expectations and fix several other issues that had almost made SolGold untouchable despite owning a deposit endowed with one of the greatest mineral endowments in the Andes.
One of Cornerstone's criticisms of SolGold was that it was being run as a large company when it wasnt one. Caldwells first task has been to restructure the company and make it fit for purpose. Our number one focus was to optimise the organisation with the goal of reducing costs and improving efficiencies. We had key groups spread all over the world, from Brisbane, Australia, London, and, of course, here in Quito. We are really trying to move as many activities in-country [Ecuador] as we can. I moved to Quito and probably spend 80% of my time in-country. We have been successful in dramatically reducing our costs over the last six months, and with our available cash balance of US$46 million at the end of March, we'll definitely be able to carry that well into 2024,; said Caldwell. With country factors being one of the most significant risks to the development of any project, Caldwell believes the only way you can manage it is to be there. He has taken inspiration from Ron Hochstein, chief executive of Ecuador's development success story, Lundin Gold and its Fruta del Norte project.
At PDAC this year [the Prospectors and Developers Association Conference in Toronto, Canada in March] Ron spoke at the memorial for Lukas Lundin and told the story of when they were marketing in London during the early days of the company. He said a potential investor asked what makes them any different from Kinross, to which Lukas said, Ron's moving to Ecuador', which was the first time Ron had heard about it. That is when I said it is the right thing to do, and I decided to move. The person in this position needs to be in Ecuador to be involved in the day-to-day decisions and the political situation, said Caldwell.
The current political situation in Ecuador, where president Guillermo Lasso has called for new elections to escape corruption charges, makes Caldwell's relocation a prudent decision. "Based on the historical development of the mining sector, both Lundin Gold and Mirador were permitted, developed and built under previous regimes that were more liberal or left-leaning than the current president. I think the responsible mining of renewable energy minerals like copper is the future of Ecuador and that we will have the support of whoever is ruling. Responsible mining has a place in Ecuador's future, and we are going to do what we need to do said Caldwell.
A key task is to continue advancing discussions with the government about obtaining an investment protection agreement and amending the company's current investment protection agreement to reflect development and exploitation. "We are in discussions on both of those, and we would like to get those successfully nego
Hi Add
Will try when I get home
DBW, are you able to copy this article to the board?
For fairness/balance, this is from a very left leaning publication…
but worth a post considering the garbage, playground bickering clogging up the board recently.
Lasso lost the 2017 presidential election to Lenin Moreno, but Lasso may as well have won it. Moreno ran as a loyalist to former leftwing President Rafael Correa who had been in office from 2007-2017. But as soon as Moreno took office he governed exactly as Lasso would have and immediately received the backing of Ecuador’s rightwing mass media as he launched a brutal campaign to criminalize Correa’s political movement. Running a totally fraudulent presidential campaign as Moreno did was, by itself, a grave example of democratic backsliding, but it was hailed as the opposite by western media.
Moreno illegally rammed a very deceptive referendum through by decree after he took office. He simply disregarded that the Constitutional Court must approve referendum questions. Moreno benefited from both public and private media being on the same page (vilifying Correa). Perversely, Moreno also benefited, as he had during his fraudulent presidential campaign, from the poverty and crime reduction that had taken place under Correa. The referendum took place before the impact of Moreno’s neoliberal policies could be deeply felt (and eventually made Moreno about as widely hated as Lasso is today). Thus, Moreno was able to put a cheap democratic facade on a cyclical power grab.
One of the seven unrelated referendum questions passed allowed Moreno to handpick a body (the CPCCS-T) that proceeded to act as if it were a constituent assembly that had been directly elected by voters. That Moreno would handpick the CPCCS-T was only clear if you very carefully read the annex to the question. Moreno submitted a list of 21 people to the National Assembly and it had to select seven standing and seven alternate members of the CPCCS-T from that list. And even the order in which they were listed by Moreno was important.
Moreno’s CPCCS-T was able to stack not only the judiciary but other control authorities such as prosecutors, regulators and electoral authorities. In 2019, the illegally-installed Constitutional Court judges predictably gave their blessing to actions of the CPCCS-T to whom they owed their jobs. In 2021, the Constitutional Court ruled that it was fine for Lasso to bypass the National Assembly to subject Ecuador to the World Bank’s kangaroo courts (ICSID) that are loved by multinational corporations. It’s alarming that this court will be the only real check on Lasso’s power until a new government takes office. However, the nightmare Ecuadorians have lived through in their everyday lives has proven to be the real check on what Lasso can get away with. It’s what finished him politically, and it has made Lasso’s greatest nightmare very likely to come true: the return of Correaists to power.
On May 19, Ecuador’s right wing President Lasso announced that he would not be running in the snap presidential election that was triggered when he dissolved the National Assembly days earlier. A Washington Post article, while flattering to Lasso overall, fretted that Lasso’s move might be a form of “democratic backsliding”. In fact, democratic backsliding in Ecuador has been ongoing since 2017, and it received the enthusiastic endorsement of the Washington Post’s editorial board. Since 2017, Ecuador has been governed by right wing governments that have disregarded Ecuador’s constitution, but their subservience to Washington has assured them positive coverage in western media.
Lasso’s Muerte Cruzada maneuver
On May 17, Lasso invoked article 148 of Ecuador’s constitution which allows the President to dissolve the National Assembly and trigger snap elections for both the presidency and the National Assembly. This mechanism is referred to as “Muerte Cruzada” (mutual death) because both the president and the national assembly must face voters shortly after it is used. Everyone elected in those snap elections may only finish off what is left of the electoral term. In this case, that is roughly two years. Muetre Cruzada can only be used once per four year electoral term.
The justification Lasso gave for using the Muerte Cruzada option was that there was an “internal shock” within the country – a justification that did not require prior approval from the Constitutional Court. (Other justifications would have required Constitutional Court approval according to article 148).
However, Lasso’s use of Muerte Cruzada was of dubious legality when you consider that there was a presidential impeachment process underway – one that had received Constitutional Court approval to proceed. Moreover, Lasso made it undeniably obvious that preventing impeachment was his motivation as even the Washington Post reported. Ironically, the impeachment process was underway only because Lasso and his allies blocked Muerte Cruzada from being invoked by the National Assembly last year (as it can do under article 130 of the constitution, but it failed to get the 92 votes required of the 137 member assembly). Efforts to cut short Lasso’s term through a recall referendum were also blocked by electoral authorities. Despite the very broad latitude article 148 gives the president to use Muerte Cruzada based on his or her “opinion”, it’s hardly clear that it can be used simply to halt a legally-approved impeachment process that’s already underway.
But the Constitutional Court upheld Lasso’s maneuver. That’s very unsurprising if you know that the entire Constitutional Court was illegally fired and replaced in 2018.
“ Caldwell recasting Cascabel and SolGold
Six months into arguably one of the highest profile junior developer turnaround jobs around, SolGold chief executive Scott Caldwell is brimming with excitement, and not just for the arepas that accompany his morning coffee following his relocation to Quito in Ecuador”
https://www.mining-journal.com/leader-interviews/news/1453333/caldwell-recasting-cascabel-and-solgold
QUITO (Reuters) -Ecuador’s President Guillermo Lasso on Tuesday signed a decree to attract private investment and create new jobs as the South American nation faces deepening political uncertainty
Aquinaga. How's the village idiot going. Probably stirred up after your assertion. Hope he doesn't clog up the board. Funny how one post starts him off.
Also orthern. I mentioned on top of all you posted, we had a snap general election to contend with. Fortunately same responce. Nothing to worry about.
Infact copperpot and fydny, went as far to say a takeover is imminent. Apparently the no news from solg for a year is a clear sign.
So all good mate, all good
Good post orthern. I posted similar a couple of weeks ago. Fortunately the board almost to a man reassured me it wouldn't effect solg. Even told me after I posted it, I was a Blackrock stooge. So sleep tight mate. Rest assured padmaster and Co have it covered
Anti-mining activists gave Anglo American an April 29 deadline to vacate the Pegasus copper-gold project in Ecuador's Pangua canton.
Opponents claim the miner didn’t carry out prior consultation and that most residents opposed the environment ministry's consultation. Hence, the conditions for granting the environmental licenses would not have been in place.
Fernando Benalcázar, board member of regional mining organization Olami and former deputy mines minister, expects a demonstration of power after the deadline expires, which would allow the company to declare force majeure. Activists attacked Anglo American’s camp previously.
“The mining sector in Ecuador is facing one of its worst crises since June 2022, as a result of the commitments established in the peace agreement signed with indigenous organizations,” Benalcázar told BNamericas.
To end 18 days of strikes and protests, the government promised not to grant mining concessions until a law on prior indigenous and environmental consultations is promulgated.
In November, the government issued an executive decree regulating pre-legislative consultation, a prior step to environmental consultation, but in March, indigenous organizations asked the constitutional court to nix the decree.
"The situation is very serious. If that request is granted, the entire industry will stop due to the lack of environmental licenses, not just the mining industry," Benalcázar said.
According to the mining chamber, at least 100 environmental licenses are on hold across all sectors.
Pressure groups are planning countrywide actions on June 5 to demand authorities declare their territories free of mining.
After talks in January, the head of indigenous confederation Conaie, Leonidas Iza, said the organization will stop the advance of camps and machinery across the country.
Kept 800k...blind faith...
….and the village idiot!
People hang onto his every word because as I said yesterday. The likes of copperpot crave positive news, and can't countenance anything else. Can't face the thought the ship has sailed.
Also the board is full of fantasists.would be Irish men, Australians, accountants, company directors, retired market makers, stockbrokers, the list is endless. Walt Disney could make a film out of the characters on here
Hang on his every word ??? Quady I think you mistake a lot of us on here for people who give a tish about what other anonymous posters write on here buddy . We’re all just waiting for some kind of pay day that all it is and should something come up me like the rest will be dust in the distance 😂
ONWARDS AND UPWARDS!!! I wonder if red knight selling a “million” will be a lucky omen for us and bad luck for him 🤞
I cannot believe that people haven't cottoned onto Redknight as a fantasist.
He knows nothing about automatic trades, he doesn't have a clue how markets work and he trades shares in the millions.
I called him out years ago and yet people on here hang on his every word.
Well done rk. Me to. I just sold a million. I thought I would splash out on the fairies at the bottom of my garden, and treat them. How many millions have you got left with now mate. Bearing in mind, your incredible wealth and experience, its very generous of you, and must be rewarding for you to spend so much time sharing it with us. I can only dream to be in such a position. One day mate, one day,