Thanks BNC, for once the charts are not so much of a mystery (I hope!) thanks for sharing. Hope you’re keeping ok :)
The company directors that is, not me!
Interesting ;)
Nothing here yet :(
Ha! If it helps, I feel about 80 after putting up a fence yesterday
I may have to retire to the shed after all :)
BNC, what happened? I went to sleep last night and seem to have woken up in a care home!
You old buggers!
Mid 40s here. A relative yoof compared to some of you coffin dodgers ;)
My dad used to say ‘if a girlfriend ever cheats on you, screw her best mate’.
Not sure it’s relevant here, just thought I’d share :)
He knows where he wants to look :0
Funded (incl possible mine development cost share) via gold stream. V interesting...
Highlights:
SolGold and Franco-Nevada have entered into a binding NSR Financing Agreement for up to US$150 million.
For the first US$100 million, Franco-Nevada will receive a perpetual 1% NSR interest from SolGold calculated with reference to Net Smelter Returns from the Cascabel licence area.
The NSR Financing Agreement can be upsized at SolGold’s election by US$50 million to a 1.5% NSR interest within eight months from the date of the Agreement.
For clarity, neither Exploraciones Novomining S.A. (“ENSA”) nor the minority shareholder in ENSA will be liable for the royalty.
Key features of the NSR Financing Agreement include:
A 50% buy-back option exercisable at SolGold’s election for six years from closing at a price delivering Franco-Nevada a 12% internal rate of return;
A NPV neutral option in favour of Franco-Nevada to convert the NSR interest into a gold-only NSR interest, available for six years from two years after operation start;
Franco-Nevada is entitled to receive certain minimum royalty payments of US$10 million from 2028;
The inclusion of a NSR interest top-up mechanism in the event that actual mine production (measured on a copper equivalent basis) is less than 85% of planned production, as stated in SolGold’s most recent publicly filed technical report.o
Conditions precedent to the NSR Financing are expected to be satisfied soon after COVID-19 related travel restrictions are lifted.
Franco-Nevada has indicated its interest, subject to further studies, to participate in the financing of SolGold’s share of the mine development at Alpala via a gold stream. SolGold expects that, due to the gold-rich nature of the Alpala porphyry, the project can support up to US$1 billion of precious metals stream financing.
Received notification via email. Message header:
SolGold Agrees a Royalty Financing Package of US$100m with Upscale to US$150m from Franco-Nevada for the Alpala Project
The Board of Directors of SolGold (LSE & TSX: SOLG) is pleased to announce that SolGold has entered into a US$100 million Net Smelter Returns Financing (“NSR Financing”) Agreement with Franco-Nevada Corporation (“Franco-Nevada”), with an option to upsize the financing to US$150 million at the Company’s election, with reference to the Company’s flagship Alpala copper-gold project and the remainder of the Cascabel license in northern Ecuador.
Concurrently with the entering into of the NSR Financing Agreement, SolGold and Franco-Nevada have also entered into a US$15 million secured Bridge Loan Agreement (“BLA”) of immediately available funds as an initial advance (the “Advance”) prior to closing the NSR Financing Agreement. The full amount of the Advance will be disbursed by Franco-Nevada to SolGold today.
The Advance provides SolGold with short term funding at an interest rate of 12% per annum for a four-month period, with an option to extend the maturity for another four months. The Advance is in any event repayable with interest upon closing of the NSR Financing.
Franco-Nevada and SolGold have each received all required corporate approvals for entering into the transactions.
Franco-Nevada. A small advance from $100US package possibly extending to $150m...
Interesting
Tick ups all morning :)
Cheers BNC, that is interesting, looking forward to seeing now how this plays out.
Keep those crayons handy!
6 years! Blimey. Thanks for sharing BNC.
The bit I’m struggling with, is I can see little at this point that would take it south of the recent low. Baring complete catastrophe of course.
But by your count we are due one more big dip to at least that level. So often it’s hard to see what is likely to unfold, until after the fact, so I’m perfectly prepared to seem like a complete wally when we’re sat eventually sat on 9p a share! But it just seems quite unlikely at this point.
A pull back is v likely as you say, but so low again? The model suggests it
Jerryspaniel: “the one positive”...? Really.
What a negative nelly you are.
Quady, beat me to it!
I think I probably agree the copper price is likely to prove conservative, but as per my post, if you are seen to inflate a price forecast you leave yourself open to increased scrutiny and perhaps criticism.
I think the current price forecast for copper by SOLG is probably low, but if you start saying $4/lb copper you’re nearly double today’s price - however likely that may be, it wouldn’t be taken well I suspect and would undermine the analysis
Good spot BNC. I think it just reflects two different set of price drivers - short to medium term economies will contract due to impact of Coronavirus, traditionally bumping gold prices and reducing copper demand.
By the time production might start the price drivers are likely to be very different, so price forecasts are different. That’s all. I think!
Copper is at a fairly low dip historically so should over time return to the historic mean price, and gold is likely not to stay at this high point, post-crisis.
Can you see any other reason why they’ve gone with the prices they have? Seems fairly straightforward, and probably sensible (altho the market will always question projected price increases, now matter how logical, but won’t question a more conservative forecast).
Well done cookie, stay safe!