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Interestingly, all the talk at PDAC regarding Ecuador was mostly centred around the biggest investment signing in Ecuador's history with SOLG's CIPA. But apart from the other companies mentioned in the other 6 to 8 deals signed, names like Newmont and BHP were missing in action.
Both are already in Ecuador so might explain why they are not signing up new deals. You could say same for FMG.. with twiggy having a decent acreage under his belt already. But when you look at the period of time that FMG, BHP and Newmont have been in Ecuador and look at the progress they have made... it's almost zero. None of them have discovered a Tier1 mine yet. None.
Barrick's name was perhaps the most mentioned and since signing new deals in Dec 23, throw in Gina R's recent $120m commitment and you can see it's hotting up big time.
Of course, NMM and BHP have a 10% stake in SOLG so you might say they have already placed their bets on the prime asset in Ecuador long ago. But that's not enough for those two. A 10% stake is minor and not going to bolster their growth numbers. They need the entire asset ands if they want to protect from their competitors, then they need bulk of that regional folio too. If they do nothing, it could all be going to Barrick or Rio or a Consortium.
The country's credit rating is heading in the right direction and that cannot be underestimated
price now coming back
They’re still a junk investment but the improvement is certainly a positive for Ecuador
It's all coming together. Ecuador will become investable once more and monies should start to re-flow back into mining etc
March 6, 2024, 5:04 PM GMT
Bonds from Ecuador were the biggest gainers in emerging markets Wednesday on a report that negotiations with the International Monetary Fund are likely to begin soon. Barclays strategists also upgraded their recommendation on the notes to overweight.
Bonds due in 2030 rose 1.2 cent to 45 cents on the dollar, the highest in 13 months, according to indicative pricing data collected by Bloomberg
Debt due in 2035 jumped 1 cent to 51.2 cents on the dollar
The IMF is currently preparing for negotiations with Ecuador that are likely to begin formally within weeks, news site Primicias said, citing Western Hemisphere ...
https://news.bloomberglaw.com/bankruptcy-law/ecuador-bonds-jump-on-imf-official-remarks-barclays-upgrade
Approaching a technical breakout. If it can break 3.93, it should be off to test 4 again. Last time it tested 4 was July 2023.
It smells like it will be Enami and Jiangxi for Cascabel.
Agree
HFH,
Exactly that, I said this the other day, we are all in a very good position now, it’s happening, just have to wait, which in my opinion won’t be that long.
Atb
That much is obvious to everybody except one moron
It won't be Solgold taking it into production, that's for sure
I don't really understand why people are arguing about who takes Cascabel into production. The important thing for shareholders is its being built, there will be a mine! Whether SOLG somehow finance it (which I doubt, although I think our relationship with the Government is intrinsically linked), whether its a JV, whether Cascabel is sold, or whether SOLG is sold (which is what I think will happen with the new owners keeping the name and personnel), it really doesn't to me. ALL scenarios add shareholder value and that's my one and only concern. To me, just a matter of time.
The Ecuador government has committed $3.2-billion to the Cascabel copper and gold mining project, London- and Toronto-listed SolGold said on Wednesday, announcing a complementary investment protection agreement (IPA) for the Cascabel project.
The signing took place in Toronto at the Prospectors and Developers Association of Canada (PDAC) convention, representing a major advancement for the project and SolGold’s partnership with the Ecuador government.
In addition to the $311-million investment addressed by the current IPA, under the complementary IPA, there is a commitment to invest a total of $3.2-billion over the subsequent years in activities related to the Cascabel mining concession.
The complementary IPA embodies the biggest investment in Ecuadorian history.
"The complementary investment protection agreement not only reinforces the protections for our key investment in Ecuador, but also symbolises a deepening of our relationship with the Ecuadorian State,” said SolGold president and CEO Scott Caldwell.
Caldwell, on behalf of SolGold, signed the agreement with Ecuador Production, Foreign Trade, Investments and Fisheries Minister Sonsoles García.
Caldwell said President Daniel Noboa's attendance and speech at the PDAC convention were warmly welcomed by the mining community. “ . . . [it] underscores the significant support of his administration for responsible mining in Ecuador,” he said.
SolGold last month announced the results of a new prefeasibility study (PFS) for the Cascabel project, which supports a phased block cave mine development that substantially reduced the initial capital expenditure (capex) required.
The PFS puts an initial capex price tag of $1.55-billion on Cascabel, which the company noted was a $1-billion saving on previous estimates.
The initial block cave will achieve a production rate of 12-million tonnes a year, extracting high-grade ore of about 1.45% copper-equivalent for the first ten years of production.
SolGold points out that the extraction of high-grade material will not sterilise the surrounding lower-grade ore.
In the second phase, the mining operations will be expanded by an additional 12-million tonnes a year, increasing the yearly production rate to 24-million tonnes in year six.
Over an initial 28-year mine life, Cascabel will produce 4.3-million tonnes of copper equivalent, comprising 2.9-million tonnes of copper, 6.9-million ounces of gold and 18.4-million ounces of silver.
At peak production, the mine will yield 216 000 t/y of copper, 734 000 oz/y of gold and 1.16-million ounces of silver a year.
BHP owns 10.36% of SolGold and Newmont acquired 10.31% when it took control of Newcrest.
7 March 2024
https://www.miningweekly.com/article/ecuador-commits-32bn-to-solgolds-project-2024-03-07
If you are chasing a sale of the asset, you chase the value of the NPV which is 3,2B.
If you are chasing capex to fund and operate the project, you chase the value of the 1,5B ticket.
So securing 3,2B number is intriguing...
Could it be that we:
- have accepted an offer for $3,2B for the sale of Cascabel project (and not Solgold)
- Solgold retains its interest in its regional assets
- Solgold uses proceeds to fund regional exploration program.
So Bob & Citi have defined a package.
Will the majors want us announcing a deal with the government?
tick tock
slide 11
chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://wp-solgold-2023.s3.ca-central-1.amazonaws.com/media/2024/03/March-2024-SolGold-Presentation.pdf
That was it really … keep calm and carry on.
Over the past couple of days, yes games are afoot, A very big game is being played here, !!!
there are those who DONT want any new investors buying, so they will continue with there de-ramping BB rhetoric.
DYOR , and check out SOLGOLD website for the real information on resource. etc, my 5.9p shares have helped immensely
5m+ traded in first 2 hours of trading is pretty good especially when you account for the 32m traded yesterday and the 75m block traded late Feb.
Interest is returning to the stock and rightfully so with Ecuador swinging from being 'apparently' a war zone to a mecca for mining. Fast it it turns around... just like this stock. The return to double digits is upon us after a tough few months.
Mickb, that's rather what I mean: when it fell at open, the wailers and teeth-gnashers were either dumb or posting mischievously. They're shares; they go up, they go down. It's what they do.
Yep I am heaps over my head.
Would you like me to share my most recent tax return on telegram?
Mickb
I’m sure you know BBG the ramper has been posting the same 💩 for years.
Not one trade, of multiple trades over this period, is above water.
Says all you need to know about this ramping 🤡
My thought too, Franco would no doubt love to pick up another 0.5% unlikely. though as the bigger boys would be throwing their toys out of the pram,
They have a bigger monster in the room to deal with ATM JIANGXI!!! , who want a larger slice of the pie, imo
ALL OF IT!!!
Roxi I agree. In my opinion the only risk with SOLG was their financial viability. Slashing their burn rate helped but to me, having a recent MOU signed for a Hydro-Solar plant with multiple multinationals to provide additional power to Cascabel, and most notably the confirmation of the $3.2bn commitment to actually build the mine has taken away all perceived risk. You simply do not get the President of Equador changing his diary to not only take the 8 hour flight to Canada but actually stay longer than planned just to sign a flagship history making deal with little SOLG IF he wasn't 100% sure the mine was not 100% funded and would be built. There are very exciting times ahead. 50p-£1 is realistic for this share, sooner rather than later. But, I'd emphasise its just my take on things. GLA.
One of these guys are defo in the loop for finance... whether that's for another 0.5% or for $500m and 3rd of capex... who knows. But don't rule out Mitsui either. Nor Osisko. Between them, SOLG could raise $500m for 5% royalty imho.
You missed this bit:
"No debt and $2.4 billion in available capital as at December 31, 2023"