Norges - Boliden20 May 2022 16:23
Part 2
6. Although not stated, it is reasonable to assume that the seemingly increasing Norges Bank stake in SOLG was made on behalf of the SWF. If correct, then that vindicates the worth of SOLG’s design and implementation of its own ESG programmes over many years and, most importantly, vindicates the credibility of those programmes, and SOLG, to the Ecuadorian Government.
7. It also goes without saying that the current SOLG funding requirements are trivial by comparison to the worth of the Norwegian SWF, such that the current relatively small stake in SOLG could act as a springboard for further investment in SOLG, not only to fund development of Alpala, but also advance exploration of its portfolio of prospecting licences regionally. That would allow SOLG to resume operating on its previously very successful “mine finder” principle, while retaining some sort of stake in Alpala production, and associated cash flow.
8. Much comment has been made about the delayed delivery of the DFS, which does however work to the advantage of Cornerstone (CGP) as it delays the time when it will be called upon to commence payment for its costs which have been carried by SOLG to date. That provides a context for the curious comment made by “bdminefinder” (Warren Irwin) on the ceo.ca CGP BB on 4-5-2022: Americans (SolGold) will do the right thing once all other available options have been exhausted... Winston Churchill. Peace seems to have broken out between SOLG and CGP, for which there could be many reasons, of which one could be that the two companies have agreed that the onward development of Alpala, and/ or Cascabel, be offered to interested parties by the two companies acting in full cooperation with each other. Pure speculation, I know…….
9. Finally, all public statements to date (of which I am aware) state that concentrate will be shipped by pipeline from Alpala to Esmeraldas for export to overseas smelters. I would be surprised, however, if consideration has not been given to retain some or all of that concentrate for smelting in Ecuador, as that would add value to the end product, create more jobs in Ecuador and provide a further boost to the Ecuadorian economy and development of the mining industry. Boliden could bring appropriate smelting expertise to the table as it operates 5 smelters, including the Cu-Ni Boliden Harjavalta smelter in Finland.
All the foregoing are just purely personal thoughts and speculation. As always DYOR etc.
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