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Https://www.mining.com/web/miners-seek-partners-for-copper-assets-as-ma-heats-up/
Good article, this will be acquired most likely directly by a major but it’s not impossible a wealth fund or major benefactor such as an automotive giant won’t pony up some cash for securing copper.
Only a demented camel with its head shoved so far up it’s backside it can lick it’s teeth clean, thinks that a motley crew whose efforts so far are a community bakery and a coffee shop can develop a $5bn capex mining facility
Almostdone
Good find, whilst copper is going to be in great demand, at present gold is being bought by the east, they know the dollar is in major problems, over printed and trillions in debt, not accounting for the shadow balance book, which is meant to be silly amount.
This is why central banks have been topping up their gold reserves, gold is being bought at 112.00$ over the spot price, this suggests the US might start to default on loans, they keep raising the treasury values which is a sign they are desperate, Solgold has plenty of gold in their ground with copper and silver, bargain basement value and must be on the radar now for companies.
Atb
Forgot to add, have a peep on YouTube, fella called Andy Schectman, worth a listen
The 112$ over the spot price was per ounce
Atb
Https://www.lse.co.uk/news/anglo-american-and-mitsubishi-materials-to-work-on-copper-value-chain-ql304ntabss8uog.html
Grasping at straws but yes eventually someone will buy this dog but when and for how much?
The revised IPA looks very significant and well worth any interested party waiting for ….
“One of the key economic assumptions is that the company expects a reduced corporate income tax rate of 20% (previously 25%) during the Project’s life once the Government of Ecuador approves the amendment of the Investment Protection Agreement. Based on this reduced corporate income tax rate, the Mining Concessionaire, the State, and SolGold have agreed to a variable royalty on net smelter revenues in accordance with Ecuadorian Mining Law. The applicable royalty rate follows the progressivity criteria stated in the Mining Law, stipulating a variable percentage rate from 3% to 8%.”
Another decent read …….
https://www.mining.com/web/miners-seek-partners-for-copper-assets-as-ma-heats-up/
Thank you for sharing Almostdone.
I wander whether, given the diverse book and the amount parties who engaged SOLG in the so called "data room", it's possible that the ongoing conversations under the strategic review banner are made more complicated by this partnership angle.
In other words, if the Chinese are interested and maybe BHP or Newmont, and who knows about the Barricks or the Sumitomos of the world, Maxit might be taking longer to figure out an investment structure that lines up two or more of these parties, and that is nor made easier by Ecuadorian country risk and western countries antagonizing China.
I know, I know, just fantasies maybe....
Almond thanks …. Sorry I missed it earlier
'western countries antagonizing China' hmm... It isn't the West provoking both regional and global tension by threatening Taiwan and the Philippines. Nor can I think of a western nation engaging in ethnic cleansing of its own people. Please don't think of China as a victim - it isn't. It's an aggressor.
As to your main point, you may well be right.
US investors are torn on long bonds...some see c5% yields as unrepeatable...more sanguine commentators look at the funding stream to come and the prospect of QT next year.
The dollar has been a busted flush for years...China has steadily reduced its exposure to US Treasuries...me and Mrs have £250k exposure to gold mining...not including SOLG...
They could make it easier if it was Mitsui and one other...publicly declared interest...
No love lost between Newmont and BHP...but they and Barrick are easily big enough to buy this and fund the new phased mine out of petty cash...
SOLG has it all. The idea that SOLG asset are unwanted or a burden is ridiculous. There is no distress or concern when selling these assets. But there are red tape hurdles to be cleared before any miner would want to take the risk. These are being ticked off gradually. These are the highlights as a reminder:
1. Best metal mix / basket you can hope for with copper, gold, silver and number of other crucial metals all in great grades. This gives any major miner options due to exposure to all kinds of metal pricing and market shortages.
2. The infrastructure is already there. Pipeline route simple using old train line route.
3. Location... it's great for exports to China. Cheaper to get it there.
4. SOLG has largest acreage / licence block holdings in Ecuador.. second to FMG I believe. Almost impossible right now to get hold of new licence blocks in Ecuador so SOLG is the ONLY player out there that is affordable to super majors. They can buy FMG ... but that's super major on super major stuff. That's not a 'new country' entry ... it's broad based acquisition. Whereas any purchase of SOLG is specifically a 'new country entry' and Majors like that.
5. There could many Alpala's out there across SOLG's folio. Ironically, a super major may prefer to go-slow on Alpala development eg early phase high grade low risk ops while they drill baby drill across the rest of the folio hoping to discover another Alpala but one that is easier to mine... lesser of the more risky block cave element.
6. All assets and licence blocks are 100% owned. Almost unheard of these days. That's perfect for super majors. They don't like fragmented licence blocks with partner that are not of their choice of hangers on'ers vis free rides to production.
The list goes on... SOLG is in great shape. Assets are great. There are plenty of majors interested. No doubt about that. Why wouldn't they be interested??
Well for balance .. here are some sticking points:
1. Ecuador politics and country as a whole is less proven than other mining nations like Chile, Peru etc. So it's early stage stuff and tax laws along with other key business terms need to be finalised. Remember, the likes of Brazil and Peru, Chile etc have increased tax charges on some mines/exports
2. Block cave element of Alpala is risky and can be capex intensive. BHP has similar issue with OZ Minerals but seems to have devised a solution which SOLG are now mirroring into Alpala... no coincidence there... the industry often learns from one another. But the fact is... BHP already has the solution for Alpala. Mmm.
3. Rest of folio / licence blocks may never get drilled due to permit and eco issues. That's a risk. But some blocks are already cleared and not in disputed areas.
4. Inflation/costs. The asset requires significant capex and time to deliver production.
It will get sold when Maxit are ready.
Adikt. you are as naive about world affairs as you are investing.
your little country is the master of black arts,
your little England views say it all
DM,
"ADVANTAGEOUS LOCATION ACCESSING EXISTING INFRASTRUCTURE"
Page 12 of September presentation.
Read it.
You seem a bit irritated these days and the nit picking feels a bit junior.
Needalife you are a veritable Henry Kissinger.