Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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To you as well addicknt, let's see your calculation why no dividend till 2036.
Of course you will weasel out by saying that we are not going to production, but that wasn't the question.
If Solgold take this to production, show the figures that say no dividend till 2036.
Oh dear..."But we could start dividends straight away"...
Although on current prices and projected AISC, SOLG could be turning a margin on ore fairly early in 2026 (assuming that's the year production commences), the production will be ramping up throughout 2026...it doesn't suddenly start pouring out at anywhere near maximum capacity from Day 1....then ore has to be milled and smelted and sold, which incurs further delays...
Then you've got the interest costs, the Administration costs and...the Exploration and Drilling costs of the other prospects, all of which are a Revenue item so...there is no way on earth they will be generating net operational cashflow in 2026 (assuming that is Year 1). Even if they generate it in 2027 or 2028 they would be unwise to declare a maiden dividend before 2030, if then, because of the need to create capital resources to invest in the development of, say Porvenir...
And then on your wildly optimistic and wishful assumption of production commencing in 2024 by 'open cut', even you have acknowledged that the open cut element will be modest in comparison to the block caving element, so there would be massive losses in 2024 and 2025 and those have to be financed by borrowing or equity...so I still see no dividends before the 2030s...
So in conclusion, the best prospect for early monetisation remain...
1 A J/V with BHP or NCM
2 A takeover bid or
3 Progressive MRE/PEAs for the 'string of pearls' giving regular boosts to the SP, BUT no net cash benefit to the company whatsoever unless they sell them off, in which case you might get a one off 'special dividend'...
And if you say that is my opinion, remember I AM a CA, former Banker, Treasurer, GFD of quoted and major Financial Services companies and former Head of Corporate Finance for a leading firm of Accountants...not bragging...just putting that argument up against and actuary...
Sorry Tiger show me the maths that shows addicknt is correct, or are you showing your ignorance again.
Even addicknt knows he is wrong, he is just winding up this chatroom, with no proof.
Apart from taking against me, his posting is assertion only.
Addicknt is, of course, quite right - especially the last line of his post.
And Quady is merely displaying his remarkable ignorance again.
Q, you're right - I meant 2036.
addicknt remind me what you do or did.
That post is rubbish.
If we have a payback in under 4 years at PEA, and at PFS we are going to build cheaper and quicker, that could easily bring it under 3 years.
Then with the PFS at higher copper and gold and silver prices, maybe closer to two years.
So how on Earth do you get to 2035, and yes we will debt carry and have a gearing ratio, so all exploration costs taken care of and no further dilution at that stage.
ET, it will be years. There will almost certainly be various restrictive covenants in a lending package which will prohibit dividend payments until certain gearing ratios have been met on a sustainable basis. And let's not forget the minor issue of needing cash to fund the ongoing exploration activities. No divis this side of 2035.
But you don't need to worry about this issue - we won't be going to production.
It's a good question E.T. I have no idea.
But we could start dividends straight away, as although payback is just over 4 years, we can renegotiate to have gearing set at 40%.
This is normal, and would allow for further exploration and an immediate dividend.
I also think this would be good in the terms of tax paid in Ecuador.
But all guess work, so to be taken as a pinch of salt.
Zoros none of us have any idea what a quick open cut to get us to production could achieve.
I was watching an IRR presentation this morning, and they have just released a lithium MRE1, and are talking about production in just over a year.
I understand that Alpala is more complicated and the water treatment slows up things, but imagine we announce that we can get an open cut leading to production in two years, that would mean 2024.
I don't believe that this scenario is likely, but in truth none of us know what the term cheaper and quicker means.
HI Quady if we start production in 2026.
When do you think dividends would start?
Would it be 4years after that when we have repaid our borrowing
Would it be deferred and spent on othere projects ?
It all seems to keep getting pushed further into the future
And Hannam are closest to the Company as thats where Ingo was a partner and there last two updates were so swiftly after the RNS that they must have had the first nod...however...
Underpromise and overdeliver...watch this space and prepare to be surprised, whether on Alpala or the other prospects...
Well done Zoros, when you have a company statement and a broker note, and they differ, you believe the broker note.
Good grief, I don't think I need to add more.
While the previous Presentation iteration indicated production some time in 2026...the PFS process could put that back...or the additional finds and different mining approach could bring it forward...
A J/V would almost certainly bring it forward or at the worst substantiate the 2026 start date...however...
Even the GANTT Chart has been removed from the Presentation, so nobody knows...
Q - afternoon.
I have three sources for production:
1. Solg - NM told us 2026. Only one response to that: PMSL.
2. You, 2026.......erm?
3. Brokers, 2027 at the earliest: Might not be right all the time but have a deeper insight regarding their research, than 'normal' people!
So until someone with insider info (who can be relied on) informs the markets of a realistic date....I will stick with Hannam.
2027 AT THE EARLIEST....it seems
Z
addicknt as usual I go with the evidence.
So original date if we had PFS in this quarter was 2025.
I think you would agree that the delay to PFS has effectively kicked this a year down the road, so 2026.
Also we have had an RNS, saying we are still going for a block cave operation, but with an early open cut.
So production quicker and cheaper could be 2025 or 2026, but I have seen nothing saying 2027, or indeed as one person posted 2028.
Let's keep some reality here.
Q, you've repeated the assertion that production will be 2026 or earlier on a number of occasions - there is no proof this will happen.
The company has merely stated that the much delayed PFS hopes to improve the schedule. There can be absolutely no guarantee this will be the case.
Zoros quick correction for you, production in 2026 not 2027, who knows maybe earlier.
So much news incoming........
March could be a turning point for various reasons:
Supercycle in commodities starts!
Vaccines kick in.
Sun shines every day!
And just look at whats coming this quarter...........
2021. 29000m Cascabel resource definition drilling. (Tandayama A / Aguinaga).
03/21. Tandayama drill results expected. (Drilling between 09/20 and 12/20).
2021. Porvenir. Updated drilling programme, 25000m. 112 man camp enlarged.
Q1/21. Blanca (Cerro Quiroz). Final assay results for holes 1 to 4.
Q1/21. Porvenir holes 5-8 assay results.
11/4/21. Ecuador GE results.
05/21. FNV $50Mn deferred loan due date.
2021. Blanca (Cerro Quiroz). 3000m extended drill programme. (3rd visit to site).
2021. Blanca (Cielito). On hold.
31/3/21. Nick Mather steps down as CEO.
Q2/21. Varela target (Rio Amarillo) 12000m drilling programme commences.
05/21. M D and A and Quarterly financial report.
08/21. M D and A and Quarterly financial report.
Q3/21. Sharug project 3000m drilling commences.
Q3/21. Celen project. 3000m drilling commences.
11/21. M D and A and Quarterly financial report.
Q4/21. PFS.
2021. Helipuerto project. Recommenced reconnaissance work.
2021. Chillanes. Ongoing access negotiations continue with local communities.
[Highest Cu results from any Solg project in Ecuador].
2021. Timbara. Continued mapping.
Q4/21. La Hueca. Early reports inconclusive. Further drilling commences.
Q1/22. FS (DFS/BFS).
2024. Renewal of Cadastre lease agreements on various tenements.
2027. Alpala production.