Firering Strategic Minerals: From explorer to producer. Watch the video here.
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I have recently been reading and re watching some of the presentation's.
The strategic review I feel will be completed by the end of October at the latest and in the first half of August at the earliest.
This is reading between the lines and looking at a timeline for the explotation license.
We still have a number of uninformed poster's on here who don't think the strategic review will take place.
However they have been wrong about everything else and will continue to be wrong.
Let's remember that the strategic review is about advancing Cascabel.
Also let's remember we are looking at staging Cascabel, so the huge sums of money to construct a block cave operation are not immediately required and we are looking to bring Cascabel to production for a fraction of cost.
How much?
Well that's the purpose of the strategic review.
I feel we will start construction this year.
So after all the waiting and the uninformed stating that construction won't be started for year's I say.
Listen to what Solgold are saying and listen to what the government of Ecuador are saying.
"We are not mine builders"
Confusing, isn't it?
Quady, I must apologise if I had misgivings on your consistent view: "We will build a mine and come to production" but, you clearly have a point from all the current (concealed) evidence. There is clearly something murky happening behind the smoke screen. Patience is still a virtue, LOL!
Solgold are not currently mine builders, add. That is true. We'd have to bring in some expertise to become mine builders. That's true for any company looking to become a mine builder.
Not that tricky!
A perverse interpretation of what our CEO has actually said and quite clearly not what he meant.
That's the thing though, add: you're hearing it through your own bias, just as I am.
For me, he could have said "solg are not going to mine cascabel", or "solg are not going to be mine builders" but he didn't. "solg are mine finders, not mine builders". Well, that's true right up until they build their first mine. The phrase was so clearly a laboured sound bite, and he proved this by going on to say it a second time, reading the words off his script. Why not something less ambiguous? Why such contrived syntax?
Addicknt it's not perverse.
If Cascabel was up for sale.
He would just say so.
It's completely wrong to believe this would all be done behind closed doors.
We would want the maximum amount of interest and that's how you would achieve it.
The problem we now have is we are at last running out of time.
Solgold have promised to start construction next year and the government has stated that construction at Cascabel will start next year.
So something has been agreed.
We just don't have the details.
Will the strategic review give us that level of detail.
Probably not, but I feel it will outline the pathway we will take.
Seanhunter I am honest so yes their is some vagueness as there should be on all discussed here.
The we will be bought argument has no vagueness but has been repeated for over ten years.
What do you want.
Propaganda or proper discussion.
I favour proper discussion.
Seanhunter of course it can't be done in an afternoon. Do you know what a strategic review would encompass.
It looks at many options.
We may be talking about altering mine design that later allows for the full block cave operation later on down the line.
Remember that the build will be completed in about fifty years time.
Because as we extract we continue to develop what is easily accessible and profitable as we go.
Don't get hung up on the cost.
We have an idea on pay back period and IRR.
So these are distractions only.
AgArCu, I agree that virtually everything he said was ambiguous, but, given the context, that quote was one of the less opaque comments.
It's funny how no one thought of this new interpretation until this morning (at least I haven't seen it). It strikes me as being somewhat contrived in order to suit an argument and doesn't wash for me.
Actually, I've reached the point where I don't much care which route we go down - I just want clarity so that I can decide what I want to do with my holding.
Fully agree on that last point.
I've long believed the choice of words was just too cluncky to be straightforward. It sounds like something Johnson would say about a lockdown party: extremely carefully chosen and too catchy to be natural. What phrase would you have chosen to tell the world that your company definitely were not going to be involved in the construction of a mine on your concession? I think I'd say something like that.
That was certainly my interpretation - what is more meaningless than saying you are considering ALL options?
"it is important to be crystal clear here. Solgold have made a great discovery in Alpala and cascabel, but we are not and will never be in a position to mine these concessions. It is therefore important to us as an explored and an active party within the local community that we find a suitable company capable of continuing our great work to take construction forward in the interests of all Ecuadorians. This will be our focus in the coming months, as we also seek to streamline our operations to increase efficiency in our discovery and development model".
Something like that, maybe.
That's probably exactly what he would have said if we didn't need a smokescreen around the fact that we are sitting waiting for a bid or perhaps in talks.
Of course large holders and long termers want the FULL value from Cascabel but we blew that over many years and we are where we are.
If we did announce we were starting a mine, the SP would drop to 2p -4p but the trading opportunities in that range would be enormous until we bankrupted ourselves but that wouldn't be much reward for the faithful. Yet a sale now at 32p won't be much reward for the faithful. But that's what dilution does, it's what u certainty anfd drift does, it's what alienating those who could have helped us does.
Anyone else out there have the foggiest idea how we could start mining without financial ruin?
I wonder what the Minister for Mining makes of all this? He must be as confused as we are.
Seanhunter you are not thinking, why would the share price drop if we started construction.
Have you any idea on funding for large scale projects.
Look people fund on 10-25 year payback cycle's.
Ours is 3.3 year's and that's on our current project estimation.
If we can construct an open cut cheaper, the share price will fly on the news.
Quady when you announce to shareholders that you are committing to a vast amount of spending with money you do not have, without a partner to shoulder the costs, they will run for the hills - because the best case scenario will be that value will be created many, many years down the line.
That's fine for you if you are prepared to wait 15 years to get back into the 40s and above, but for most of us it will be the last straw and we will sell up. The price will crash (regardless of the value of the asset, which might as well be located on the moon if we can't exploit it). Look how easy it is to fall, and how hard it is to climb again.
Then we will enter a financing death spiral - the SP way too low to effectively dilute anymore. Jeez our last placing at 16p confirms we are already in one. BHP paid 45p!
There will come a point where the SP is so low that printing more shares is pointless. The company could go private at that point, or it could simply run out of money with no means to raise more.
A mine is nothing but cost, cost, cost into the foreseeable future. I asked you when we would get the first tonne of ore into a lorry and you can't tell me - you, of all people, who so badly want a mine.
I can tell you that a bid is possible, and I can tell you roughly how it would pan out.
I'm told that a mine is possible but absolutely no one can tell me how it would even begin to become a reality, least of all not Caldwell.
This situation isn't a shock to me - I knew from the merger that we were in a race between a sale and catastrophe.
I remain very optimistic, and the trading is very good right now, but I think all this "all dressed up with no place to go" is wearing people down month after month and now what was once patent nonsense - that we will build our own mine - is starting to appeal to those who are desperately tired and willing to grab at straws.
I was willing to look at the case for a mine but no one can give me one - or sketch even the scenario - that doesn't involve debt, dilution, loss of control, or bankruptcy.
Seanhunter why not look at the financial information on Cascabel.
We could have this built and paid for on loans alone and the loans all paid off in six years our costs are really low, compared to what we have.
Sketch the scenario for me to help me see how this would result in that first tonne of ore in that truck. I know we have cash but I'm genuinely curious
Seanhunter that's what the PFS is about. We await the strategic review.
Back to waiting for the Strategic Review. Ok.
Anyone out there have the foggiest idea how we would get from here to dumping the first tonne of ore into a truck without financial disaster? What are the steps? Other miners have clearly done it but no one at Solg can even envisage it or lay out the basic route? How can we possibly be even contemplating it when no one has a clue how we would even start?
That’s the point Sean (as I’m sure you’re already aware ) no one in their right mind seriously believes construction is a possibility…. Suicide
DBW I am genuinely willing to look at a viable mining route case. I'm just shocked that there's absolutely nothing there.
With all the discussion of it as if it's a reality (thank you Scott Caldwell) I thought I might be missing something. I'm tired of waiting for a bid too but we just can't replace one hope with a far more unlikely one.