Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
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As I say: won't stop people dreaming.
Didn't notice slug was back... keep your neck in this time and all good.
My take on this is that he's been appointed in fulfil the role when our non-Alpala assets are hived-off into Newco. Bear in mind, a full time CFO is a requirement for a new listing.
... that are certain of an imminent sale appoint permanent CFOs?
Price is moving up nicely as it was probably oversold. Not a huge fan of churn at this level as low average newcomers make a climb higher harder, but at least volume isn't massive.
No imminent sale then, by the looks of it, but that won't stop people dreaming of one.... Enjoy the rise, and hope to repair some of the damage to the sp that the current band have caused.
Hey DinnerMoney,
No expert on this but probably the three main metals’ prices over time don’t move exactly the same therefore the mix allows for hedging against the different peaks and troughs?
Firmly over 18p level again
Hardly any LSE traded stock on the offer
With thanks to HH...
"The Company is also focused on advancing the Cascabel Project in a cost effective and value maximising
manner. The Cascabel Project team is rigorously reviewing all opportunities to de-risk the project, reduce
costs and further improve project economics. In light of the evolving capital cost environment, numerous
value enhancing aspects currently being studied and the potential positive impact of these aspects on both
capital and operating costs, it is expected that the Cascabel DFS and the Porvenir PEA will be delayed. The
Company is proceeding with the Cascabel DFS as the next stage.
The Company is also taking initiatives to restructure the organisation, including a reduction in the workforce
across all areas of the Company to ensure more appropriate levels of personnel are in place, whilst it also
begins a process to hire a permanent Chief Financial Officer. The Company is taking steps to reduce the
number of time zones of its operations and is focusing resources in-country to best advance Cascabel and
surrounding high-priority targets."
I had assumed Pad was taking the p*** as it made no sense to him, the video is in English
I'd lover to see that Monte...is that opinion or do you have substance to share...
Meanwhile, delighted to see 18p go...IMO if we hold above 17.70 and close in the 18s, we're into new territory...
Next target bust 19p with momentum...
I haven't looked. I thought someone to said it was in Spanish
Just to intervene, I expect the metal mix is off the charts because Cascabel could become “the largest underground silver mine, third-largest gold and sixth-largest copper in the world”.
https://www.reuters.com/article/us-ecuador-mining-idUSKCN1TE047
Is the video not in English for you ship ?
Has anyone got his email to ask for an English transcript?
I think the value I stated will almost certainly come true but not for us shareholders unfortunately... we'll get our payday but the buyer will take the Lions share and rightfully so as they will be taking on the development risks and regional/political risks too. At end of the day... mining is always about funding and whether you can or can't fund it. Minnows don't usually end up with 100% stakes in Tier 1 discoveries. Usually by the time it's proven up so a buyer wants it, the minnow has dealt away 70%+ in process of funding just the exploration!
So for SOLG to be in a position of having 100% ENSA stake in Tier1 asset really is very rare. Yes we've had dilution along the way and a few royalties in there too but it's time now to see the fruits of holding onto that 100% stake. Super majors absolutely love 100% interest assets. They don't like fragmented to multi partner deals as the partners involved can often be the biggest drag on the development.
But ENSA is certainly worth multiples of in ground prices. The metal mix is off the charts. It's one of a kind.
Actually i think the total inventory is 17.6 MT CU, but my valuation between 39p -> 58p per share still stands, just my text comment in my spreadsheet says 14MT, but the calcs are done @ 17.6 MT CU
The Pre-PDAC presentation has been removed
Sorry for any confusion, i hope Forts value would come true
Mogg,typo apols
Might,yes agree with valuation top end 58p
Just for the benefit of our regular trolls: is everyone buckled up? We are about to shoot to the moon
The 21% of resources relates to the economic story or PFS that is better suited to SOLG than a super major. The Capex and IRR of importance a minnow doing pre finance talks etc for a project like this takeover the broader metrics.
In reality, a super major like Rio or Anglo or BHP would rip that PFS up and start with something like $5bln Capex tap into 30% to 40% resources delivering a values that dwarf SOLG's projected numbers. Throw in rising copper prices and the quality of metal basket mix at Alpala (and don't forget open pit Tandy), and I reckon you are talking around 200p a share on comparable basis to the 50p mid point in your 14MT CU.
Block cave mines are all about scale. Scale up Capex by near double and the profits really begin to surge and the payback period is not far of the same.
The super majors have the cash and access to debt that allows them to take advantage of 'scale'.
SOLG's numbers are the lowest we can do on Capex vs gaining the funding remit or minimum IRR of 21% or above.
Trouble is... IRR is always done at 'spot prices' which is ironic when dealing with copper which is on track for a huge deficit in 2 or 3 years time yet the market is too occupied playing with copper prices as an old hedge or barometer for equity markets bull vs bear strategies. It's an outdated tool now and needs to be binned. Then copper can really get a move on.
173 days since Maxit launched into the SR process. If you take the earlier parter/interested parties discussions which kicked off in Q1 2022 with main focus on grass root and licence block bundles... that's close to a year. Of course the parties involved in those grass roots projects might have zero interest in a project the size of Alpala, but all the same... SOLG have been sounding 'interested parties' out for sometime now.
As we enter Q2 next week, SOLG/Maxit will be edging toward a full 6 months on the SR. As some have muted on here already... based on the 3 or 4 possible outcomes... what else is there to discuss??
Aside from SOLG specifics, we also know that Ecuador gov are in extended talks with Chinese on a first ever free trade deal between the two countries. We know SOLG are also in discussions with Ecuador Gov regarding various key milestones on Alpala pre DFS. We also know that Lasso is under pressure to deliver something 'big' business wise as the latter formed the wider context of his election campaign not to mention IMF debt issues.
So lots of pieces involved in this all looking for a rewarding outcome and all likely motivated to get it done.
So my assumption would be, SOLG might well be done and dusted on the SR but are sitting on their hands until China/Ecuador Gov finalise their trade deal. The headlines will be big on that deal and shake a few up in the SA region (US included). But also announcing a multi billion dollar investment in copper/gold mine (largest in Ecuador history) would fit really nicely with Lasso's ratings and ensure plenty of momentum for all involved.
I know it's been said time and time again, but patience required as not all is within SOLG's/Maxit's hands. Bigger issues at stake right now with Ecuador and Chinese Trade deal talks. Timing is everything and I think Bob's Rolex is working just fine.
One of the solgold presentations, it might have been the PRE PDAC one, the presentation gives a a total metal inventory of 14 MT CU, which combines Cascabel (Apala, TA) and Porvenir
Which gives a value of between $1.4BN -> $2.1BN
Previous post from me gives that a value of between 39p -> 58p per share
With a negative view Pad, that would be pushing $0.09 cents in the ground value, where as the likes of Warren Irvin and Malcolm Norris are quoted as saying between $0.04c and $0.06c in the ground values, the big unknown is all the other concessions and the addition of Cornerstones licenses/JV, maybe it could push the value up, who knows
So all of the copper, gold and silver in the ground is worth $150 billion?
How many would pay over $3billion to own that lot and the other tenements and the inherited Cornerstone assets?