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SM, do you not think that if the project is currently uneconomic the company has an obligation to say so? And are we 'pushing ahead' with the DFS? Bear in mind, we've been told of an indefinite delay.
RK, sure, the Chinese could do it, but we can't.
Blackrock have sold 39.6 million but UBS have bought 45 million (on whose behalf?)
B;ackrock bought 5.1 million shares in BHP and now have 13.5%...
Interesting...
Hi dave...I wonder if those are T2/T20 switches...? I've done a few of those in the last week or so...means you don't have to ante up the cash...
SM...remember that Jiangxi have done Due Diligence at the time they bought their 155 million shares...
From the Prospectus:
Purchase price
Common shares of SolGold issued (a) 86,246
Replacement Options granted to Cornerstone option holders (b) 2,620
Fair value of SolGold Plc’s initial 5.5% shareholding in Cornerstone (c) 5,064
93,930
Less allocation of non-controlling interest consideration as of 30 September 2022 72,354
Remaining consideration 21,576
Fair value of net assets acqacquired
Cash and cash equivalents 1,732
Other receivables and prepayments Property, plant and equipment 252
Financial assets held Financial assets held at fair value through OCI 25,767
Others (8,909)
19,458
All of the above revalued effective at the date of the Prospectus
Btw, I would assume construction can only start after a mining license has been granted. I am not aware Solgold has one or are even in the applying process. Pass me the salt jar please. Oh no, I might melt :-)
But is it highly unlikely addickt...?
China is already mining in Ecuador...they are world leaders in civil engineering projects...they would simply bring in an army of Chinese to build it...
And they don't need a DFS if they are self funding, so they could even start construction in 2023 maybe...?
Is this the same Ministry that announced that Mitsui want a stake in Cascabel (Vice President of Mines)?
SP currently controlled with a 34/35k buyer/seller up and down, keen to keep the SP where it is...why...??
Add, which part of what I said would mean SOLG are misleading investors? Thanks for the 21% - I did glance over the PFS but it wasn't clearly signposted.
Eish, why is she there in Ecuador? More importantly..."on our doorstep"!
Let's wait and see!
Good luck buddy.
Bit off topic but one ofmy stocks of interest.
Was trading like a dog at 130's (had been as low as 100p) and today confirms rumours that 'a month ago' they were approached for a cash offer at 230p.
So anyone that says the sp is a sign of action ahead is way off the mark. Often action goes on when the sp looks unwanted and down and out (like Noront at 23 cents too).
Have a look at wood group and see if you can see any signs of rumour speculation building over last 6 weeks?
Often it happens when you least expect it. And WG are not minnow. This is billion dollar stuff.
observation from another poster
“Interesting observatio….in all the recent RNS announcements, Fawzi is listed as a contact
But the last two (17th and 22nd Feb) he’s no longer a contact”
Just wondering??
copperpot, a quick "Google & Wiki" makes me wonder if Gina is "big enough" (financially) to take on this project. Building a Block Cave Mine in Equador?
The payback is 4 years in a 26 year mine life or longer (or something like that!) but comes with many potential problems. Including a possible change in government in 2024.
SM, 21%.
If what you say is true, the company are misleading investors and I do not believe they are.
Any ideas on rough numbers on Tandy? $300m spend ...mine life of around 6 to 7 years with 150 to 200koz equivalent?? That's much easier for SOLG to finance. Doesn't resolve the Tier 1 asset financing but may help reduce or attract a partner or counter bid scenario if or when announced. Generates decent profits in years 2 to 3.
Eish, I think we shot ourselves in the foot somewhat when we produced the revised PFS under Cuzzubbo's leadership, which took a much more cautious approach (I can't remember what % of the orebody it accounted for). The project economics were viable but not great. Solgold told us they were going to produce an amended PFS in H2 2022 and then a DFS in H2 2023. This was back in April 2022. The PFS addendum has been canned, and we are allegedly pushing ahead with the DFS - and to be fair to SOLG if they do produce that study this year, they will have stuck to a timeline.
I think the main reason the studies have been either canned or delayed, are because of the macroeconomic environment has deteriorated substantially since April '22. Inflation has meant costs have rocketed, and the economics of the project (particularly given how conservative we were) are now far less attractive.
Interesting another conglomerate being mentioned ,next week going to be fun imho ,o/t I've just bought into AYM ,as we move towards global demand for rare minerals this minnow has just taken a huge chunk of a company with massive upside in europe and the best to come next month on a mine in Anglesey ,12yrs copper,tin and gold to mine ,fair chance of government funding 150+ jobs to be created ,levelling up funds available maybe ,so fully loaded in here for sometime and a chunk in AYM whats not to like !!:):)
To put this into some context, we are doing a deal to acquire assets and yet our balance sheet position will worsen to the tune of $19m.
RK, you're an accountant, can you offer an explanation?
????????
;-)
I should add, that if the Chinese do get involved (deeply involved) then I fancy they might repeat what they have done in the south and go for a smaller start up mine like Tandy offer... open pit and cheap to extract, generate some profits and then make the block cave works and second phase of mine build out (or down) relatively easy to finance.
So Tandy kicks off in 2024/2025. Block cave deep shaft developments follow in 2025/26 and then mine plan build plans for greater exports kick off in 2027/28 as currently guided.
Tandy potentially holds the key to reducing the overall build costs albeit on a separate satellite project basis. Far better to get some income coming in while bigger pipeline/infrastructure plans and deals go on for the bigger Alpala mine.
Eish, that's the critical question and the company has done little to clarify the situation.
Do we need a DFS?
Why did the company say we have sufficient information? Sufficient for what? Capital raising, or the sale of the asset?
How can we raise cash in the money markets without a DFS/BFS? This seems highly improbable to me.
How much of our recently raised hypothecated cash for Cascabel will be spent on a DFS? All of it? Part of it? None of it? Have we downed tools on the study? If so, why? And why let the Minister get up on his hind legs and boldly announce construction will start in 2024 when we know that it's highly unlikely?
So many questions and absolutely no answers...just more speculation.
No red, I made my peace with you nothing to do with me.
GL
Geejuss Red! Hope you're right and that your observation and post IS correct! it would help, LOL!
Agree, Lasso and mining ministry are 'trying' their very best to attract business and get billion dollar projects off the ground. Lasso is under the cosh at the moment as inflation hurting (not his fault) and people growing angry with lack of business opportunities etc etc etc. Lasso will fall over backwards and lay out the red carpet (not red tape) for SOLG .... anything to get the headline of 'multi billion dollar mining deal agreed'. So anyone that thinks the Ecuador gov will be obstructive or play hardball is living in la la land.
Ecuador need to send a firm message to all potential miners / majors out there that they are OPEN for Business.
But what Lasso et al are not keen on is this lethargy or limbo position of having mines that cost billions in the hands of minnows when they should be in the handoff deep pocketed companies. So Lasso will want to push and press SOLG into agreeing some kind of deal with a finance partner or full sale. The sooner the better. So all in all...everyone seems aligned to the common interest imho and that's why we look in good shape to get this done in 2023.
"Or, do we have a possible buyer/bidder and this makes a DFS irrelevant? "
Thats the one Eish...and also why we've cleared the decks to such an extent that there was nobody clever to put the Propsectus together...