RE: Lessons from Solgold history24 Jul 2024 20:56
Risehall1
29 Sep 2019 17:59
Posts: 2,058
Price: 21.60
Solgold is not another Sirius Minerals, although it does show how difficult it is to raise billions in finance to build a deep mine without the backing of a major with billions in assets to secure lending against, know how and an income stream. The problem with Sirius is that since the mine was proposed several years ago the potash price has fallen and the market may well be oversupplied. There is an existing potash mine further up the coast at Boulby which has stopped mining potash as it isn’t profitable, it is now mining the same type of ore as Sirius, polyhalite, but there are rumours it may still close as not profitable enough. There does not seem to have been any interest from majors and there was a point prior to planning where they could have acquired the project for a few million, had they wanted to do so. The mine is deep, costly to build and part of the project involves building a very long tunnel under the national park between the mine and the port at Wilton. It is not as long as the Channel tunnel, but not far off.
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Looks like someone has been warning about funding just like Sirius.