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Mou signed for hydro/solar-electric plant.
Another brick in the wall...or dam.
I admit to being confused. We're told on a regular basis that Caldwell's sitting around twiddling his thumbs and is a total waste of space. Or maybe he's getting on with his job and is gradually putting together the elements which will deliver the neatly packaged turnkey project he promised us?
“SolGold will not be directly responsible for financing, building, or operating the power project“
Thank God for that.
Thats a good RNS, we pay for green energy at favourable rates, no outlay for us just help to raise funding
Dont underestimate the significance of this...for SOLG and Ecuador...
SOLGs ESG credentials are already as good as any prospective copper gold project in the world and this will both underwrite existing and new institutional investment but...
It also reduces the projected AISC, thereby improving Net IRR...
Without committing us the current shareholders to any financial cost at present, because this is a heritage agreement that can be passed to any credible prospective buyer
The first of a flow of RNSs...
W
Non dilutive funding next..?
Delighted with this RNS. It put's a different slant on the whole project and adds credibility to SOLG already excellent ESG efforts. Majors will want to be associated with this for sure. Have a good week ladies and gents. C
Add, if one regard the SP performance of a company as a measure of a CEO's effectiveness, then SC has failed his performance appraisal.
More importantly, how will the market react to this rns? I fear that it will not move the SP dial in the direction we would want to see.
Yes quite refreshing to see a forward looking partnership plan. I like the brazilian connection as the article from ast year that mentioned SOLG with Chinese and Brazillian interest seems to be coming true. Just need CRRC Tonguan's name to appear soon and we should be back in business. Interestingly, there has been some positive relations with Ecuador and Brazil recently with regard to helping with gangland management. A few more of these rns's and BHP might begin to stir from their slumbering sleep.
Elro, I did this a while ago and I suggest you try and do the same. You have to detach your investment thesis in SOLG from the share price as for me the two became almost inverse late last autumn. Our assets are worth multiple billions but ATM we are priced like a company about to run out of money, however that wont't happen. We're getting closer mate, whether it be sooner or later this will be sold and mined, but not by us and the SP will one day reflect true value. C
Wow!! Great News! What a coup for Solg! Well done Scott and the team.
I hear you HH. However, one cannot deny that a high SP would blow away doom and gloom from investors minds. Just look at the excitement here in December when the SP perked up! Lord Braggart was beside himself with glee and was waxing poetically.
I am caught between a rock(Add) and a hard place(Quady). Sale vs Production. This rns gives the impression of turn key activities in support of a sale, while at the same time giving the impression that Solg is gearing up for production. Both cannot be true. If solg cannot find a buyer, then the only other alternative would be to go to production. The lower cost phased plan now makes that possible. So, I would agree with Quady in that regard. However, the BOD won't totally reject an offer if one comes along in favour of continuing to production. Interesting times.
As we know big miners can be seen as the villians (and often are) so likes of BHP and NMM etc tend to attract issues whether environmentally or just local resistance due to their 'brands' and poor reputations. SOLG is clearly a 'brand' in Ecuador that locals and gov both like. That's testament to the hard work which was pioneered by Mather and his team. CGP had nothing to do with that. So today's news is building on that legacy and building a strong brand which you need when doing Tier1 mining projects as a first mover in regions/countries like Ecuador.
What it does do imho is make a full SOLG sale likely but equally a partnership likely. Both will want to retain the brand SOLG reputation.
So someone either buys the entire business and trades in ecuador under that SOLG brand. Or... they partner up with SOLG and use the SOLG brand. The danger of the latter is tat other work SOLG does on other licence blocks becomes a potential risk to the partner on ENSA if something ugly happened like poor environmental controls on Porvenir or another future producing asset. That's why a total sale ... brand SOLG is more likely as it's the less risky route and the most valuable with 60 off regional licences already in the folio. SOLG's folio is basically the Ecuador Mining cadestre lol!
Nicely summed up Eloro.
May I add one thought for your consideration.
The reason we have not had a bid or won't get one is the diverse book.
Anyone who wanted to bid, would have to do so on an agreed basis.
That means they would have to agree a price with the main holders.
Sounds expensive to me.
Next a hostile bid.
Yes that's doomed as again only needs one or two main holders to say we want more or more likely we are not selling our share because we want our stakes in Cascabel.
So the question is what are we left with?
From HH...
"RNS signing a MOU with parties involved in providing hydroelectric power. Something big is happening . Solgold week full of news ahead..."
"This is very bullish.More RNSs to be filed next few weeks. Plus PDAC new updates..."
Why would these contractors sign agreements with Solgold if they had any doubt regarding the project proceeding.
Can't wait for the big reveal re funding the capex will ! its coming
I'm not sure it works that way BBG. I thought the RNS was more desiged to give the Green energy firm a plug ahead of PDAC.
Yes there are benefits in mutual agreements, but I think the green energy firm needs to prove it has project pipeline so it can secure funding to execute upon it. So more PR for the energy firm than SOLG but agree that the fact they are in discussions with these types of firms bodes well.
Ultimately... if the majors are sitting on their hands, then it is going to take a multi consortium style group to take Alpala forwards. Bit of brazillian... bit of chile.. alot of china and a bit of canadian perhaps via PE firm.
It may well end up being a tale of two stories whereby we exit to these type guys and then further down the line... BHP enter into it but end up paying double what they owuld have done had they gone for solg in first place.
That's the idea of it... and BHP and other majors will be well aware of those scenarios.