Rainbow Rare Earths Phalaborwa project shaping up to be one of the lowest cost producers globally. Watch the video here.
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Instead, Mather and then Cuzzubo plumped for royalty deals with Franco Nevada and then Osisko, designed to provide SolGold with upfront finance in exchange for conceding profits once the mine is in operation. The royalty arrangements angered both Newcrest and BHP leading to boardroom clashes. Mather said in a YouTube interview recently the majors want us to pump out cheap equity and by way of their pre-emption rights take control of the company without having to offer the sort of premium one would expect with this sort of …. Recruiting the Chinese has certainly ratcheted up the bid tension - with action probable in the first half of 2023. But a fly in the ointment that few have considered is the reaction to any Chinese takeover by Washington or the Ecuadorian government. The Chinese have overtaken the US to become the largest overseas investor in Ecuador. The South American country’s first large-scale copper mine, the Mirador project operated by a subsidiary of Chinese consortium CRCC-Tongguan, began production in mid-2019. But recently the wind has been blowing the other way with many in Ecuador, as elsewhere, angered by onerous interest rates charged by the Chinese for loans designed to cement Beijing’s global trade offensive. As a result, the Americans are no longer viewed with as much suspicion as they once were. Last year, the US International Development Finance Corporation struck a deal to help Ecuador repay billions in loans to China and boost development in exchange for excluding Chinese companies from its telecom networks. The US cause has been helped by the election of centre-right businessman Guillermo Lasso as Prime Minister after years of rule by left-leaning administrations. What will Lasso’s position be if the Chinese look like acquiring SolGold? Will he come under any pressure from the US? Another wild card is linked to the widespread opposition to mining in Ecuador, especially by indigenous communities who tend to live in areas where minerals are found. Last month, there were huge demonstrations in Ecuador’s capital Quito by protestors who want to block six gold-mining concessions in the Choco Andino forest. They cited threats to water sources, nature and their local businesses. Lasso will have to play his cards carefully despite his stated intention that he wants to boost mining in Ecuador to make it less dependent on oil. The battle of Solgold is reaching a climax but, frankly, anything could happen.
Italian, thanks for posting.
Thank you TheItalian for taking time to post, very much appreciated.
Nothing conclusive, or anyway nothing we could not have considered ourselves based on the official information. Perhaps just the Ecuadorian government angle is an additional variable, assuming that really a takeover is escalated to a matter of international clash with China.
Thanks Italian and Paul, things certainly developing fast, See you in a week, right airplane mode on au revoir ;))
There are real risks in Ecuador as with Chile and Peru etc. If the Chinese are brave enough to get mining in Ecuador through mirador etc then why shouldn't they be rewarded (or allowed) to take on ENSA/Cascabel. Ultimately, they have already proven their worth and commitment. What's the answer to American interest??
Anglo American plc and their 44 billion market cap.... easy... just stock a 75p bid in and it's yours.
Job done.
Honestly I wouldn't be surprised if the journalist in question reads the asylum that is this BB. Pretty sure we've covered all of that ground at some time or another, including the political angle.
I think Sangha & co must be very confident of extracting an offer from Jiangxi, probably upon completion of the merger. If they don't, we as shareholders will have been done a massive disservice as there does not appear to be a semblance of a plan B (so far).
Fortissimo totally agree there
Or perhaps the answer is a consortium... Chinese 30% stake, NCM, 20%, BHP 30% and codelco 20%?
Double the PFS with CAPEX at $6bln and knock out 25 years of mega resources which would return enough cash to Lasso and co to manage Chinese debt and please the IMF. At end of the day... the way forward for Ecuador is through big business not preventing it due to US politics.
Yeah, that consortium seems just as likely as AA buying solg. I'm torn 50:50 between which of these two well-founded suggestions is most likely....
Any other theories? These are great. Maybe Elon could 'stock an 80p bid in'? Don't stop now, one of these must be the eventual outcome!
Seriously.... how good are those Senegal fans!
Brill stuff
You would have thought that the journo would have spoken to Quady before going to press with that piece. Honestly, do people not check their facts these days before going to press?