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There were many reasons in the past why the 'we are going to production' line was believable and much needed. Firstly, if you want top dollar for your asset then you need to make sure the buyers know you have options and are not facing an inevitable scenario whereby selling it is the only way forwards. So that's put that to bed.
Secondly, debt and finance was cheap as chips a few years ago but is now very expensive. I genuinely believe SOLG could have gone to production via deals with Franco for $1bln, Mitsui, Chinese... a number or interested parties. Very doable but our stake would have hd to reduce whether that be in % ownership of ENSA or in profit terms.
Lastly, there are timeframes with all developments and Ecuador/Lasso have rules and regs for moving from exploratory to developent phases. Once that happens, the economic viability of the asset becomes something obviously spread over the mining life. If the clock is ticking, you really don't want to waste another 3 years+ of potential revenue while you seek partners on finance. So all in all... plans do change as and when material changes occur in the market and with your licence terms. But make no mistake about it... Tier 1 assets like ENSA are world class and much needed and NEVER remain gathering dust for very long at all.
So now we are into 'Strategic Review' period, we have a debt market that is ugly and unwilling to take risk and we have super majors all needing to replenish reserves ahead of big copper shortage predicted for 2026 through to 2030.
China will have no problem taking ENSA on. BHP and others have shareholders to please and they might prefer 'proven' political opportunities rather than a maiden venture in Ecuador. I guess we'll find out soon but 'fast and smart' is what we've been told and after just 4 months, we already have finance sorted for 12months+, AGM resolutions sorted, major shareholders structure rejigged pro SOLG and of course merger almost dusted.
It's clear for all to see that the new SOLG/CGP team are announcing very little until that merger is completed. I expected once all done, then we'll start to see what's what. Now that zero capital is required for payment in shares on the merger, we have a decent wedge which could see us doing some exploration again over the next 6 months+ while buyer or partner talks continue or finalise.
Brooke MacDonald from the rns.
The strategic review for the combined group aligns with our views on the best path forward.
Agreed Copperpot also the strategic review was about the best way to advance Cascabel.
I think now is a good idea to reread the Nov 22nd 2022 Cornerstone update that was introduced as an RNS for those who still think we are selling Cascabel.
It looks clearer now some time has passed.
https://www.lse.co.uk/rns/SOLG/company-update-ox8rjcykahjiz2q.html
Solgold......"were" pretending to construct a mine (where they pretending)? Now after the SR is completed our CGP comrades may start to realise things in a different light! Why have a strategic review if your not open to mind change?
Think about it!
Orthern - the RNS at the time made it clear it was for the combined SOLG and CGP entity so I think you can assume the SR has run parallel to the merger.
Same announcement also said a transaction could not be assured. Gulp!
I think I can help Jezzoo.
In previous presentations the Production date is 2025 also the Mining minister is on record also stating 2025.
The completion date for a full block cave operation is 2029.
However the strategic review which is currently underway is to look at how best to advance Cascabel.
Let's await the strategic review.
You have some people on here saying the strategic review is a smokescreen and will never happen, but that's only because they don't listen to what the company says as it doesn't accord with their world view.
I did contact IR regarding when it actually started.... I was ignored..
nope
Has anyone seen anywhere, where it states the SR has actually started? or when it started?
>Their is no plan to sell Cascabel.<
Can you point us to where the planned date to put it into production instead is situated on the website ?
Or the latest drilling programme to further prove up the concession ?
Judging by the SP, nothing is happening in either direction.
id got used to slow and stupid....
@Quady, that page has been updated n November 2022, in the same week the Financial Review article came out, reported below. You may have your cognitive biases, but the reality is that the official page cannot say "we stop exploring and we stop developing" as a matter of proper institutional comms, but management has made a very explicit and different statement of intention...make that what you want, but please don't start another pendantic lecture.
The third and most significant thing to occur at SolGold since the announcement of the Cornerstone merger is the initiation of a “strategic review” that will consider “value creating alternatives” for Cascabel.
The strategic review will be run by Sangha and Citi and will consider selling part or all of Cascabel, among other options. Sangha says the strategic review heralds the end of an era where SolGold was “pretending they were going to build a block cave” mine.
It now seems far more likely that SolGold will sell part or all of Cascabel and use the proceeds to return to its core competency; greenfields exploration.
“We are going to do what we should have done six years ago; monetise this in whatever way maximises value for shareholders,” said Sangha. “We are bringing it to an end fast and smart, rather than slow and stupid.”
April 22, when the much anticipated PFS came out along with this "latest" statement went "live" on the website.
Quickly followed by a reduction of the company's share value eventually by around 50% at current values.
A LOT of water has gone under the bridge since then.
This is the latest statement from Solgold as it's live on their website if you don't believe me then check.
It explains what the strategic review is about.
Their is no plan to sell Cascabel.
SolGold is committed to developing Cascabel to be one of the lowest carbon intensive copper mines in the world. SolGold is actively evaluating several options as part of the DFS to manage and minimise the Cascabel project’s overall carbon footprint. These include maximising power from hydro-generation sources, electrification of the fleet, assessing process integration to optimise operational efficiency, and developing an achievable roadmap to completely eliminating Scope 1 and Scope 2 greenhouse gas emissions. Ultimately SolGold will play a vital role in enabling the transition to a sustainable net zero future, and it can be one of the first large scale copper concentrate mines ever built to be carbon neutral.
Full article below taken from the Solgold website.
https://www.solgold.com.au/cascabel/
I got justice for quibbles see my post on poly to nit....
Anyone invested in Solgold over the years know they never meet their deadlines... nothing new... to be expected.
redknight1 Don't despair plenty of late January left January 2024, 2025 and so on lol
Aw SharketMare nice of you to try to reincarnate Quibbles, this is the kind of comedy gold we are missing. I still want to hear the rest of the Ted Heath story.
JUSTICE FOR QUIBBLES!
Zzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzz!!!!
This is a serious concern...
Ft article on commodity costs today.
Got to get this done!
Not much of "late January" left...
I suppose the relevant question, which I tried my best to address privately with Nick and with Ingo with no result whatsoever, is what was that entity created for and why it was sitting at the top of ENSA. We can speculate of course, thinking that it may be fairly obvious, but obvious is a concept that has clearly eluded us all for a few years now.
It's funny you mention Widow T****ey, Shaunhunter, as back in the early 80s I had the pleasure of meeting Dan Le Rue,
who of course played her at the London Palladium in 1978. Following a lunch at Simpson's Tavern that started at noon and ended in Soho in the smaller hours, we found ourselves at the French House mingling with a few of the artier types from the area- including Le Rue. One of his acquaintances made what I can only describe as a pass at me via a not-so-subtle grope of my upper thigh under the table. I politely refused his advances, and had never told a soul of the incident until this very post.
Years later we'd cross paths again, both Le Rue and The Groper, at Buckingham Palace on the Queen's Birthday. I think it was 2002 and he'd been awarded an MBE. I'd been invited as Mandy's plus 1. He remembered me of course (le rue), and I could never shrug the suspicion that his friend had told him of his
approach to me all those years before. A knowing glint in their eyes when we shook hands.
/Quibbles
Novice careful she got children lol!!:)