RE: “Rumours Swirl” - Solgold - Mining Journal article today18 Nov 2025 21:41
“Canaccord tips 130% upside for SolGold as rumours swirl
Key investor protection agreement rumours buoy price
Richard Wachman
18 November 2025
Once again, Ecuador-focused SolGold, owner of the hugely prospective Cascabel copper gold project in the north of the country, is in the spotlight following a massive shares spurt since July.
In the last week, Canaccord Genuity, SolGold's newly appointed broker, has reiterated a speculative buy on the shares that have staged an impressive recovery in the last six months – up 170%, despite the company being four years away from production. Cannacord's price target is 46p/share, 130% above the current price of 19p/sh.
Market enthusiasm comes despite SolGold's weak financial fundamentals, marked by persistent losses and negative cash flows, which some fear could lead to future liquidity challenges.
But what's behind SolGold's recent rebound? No-one is suggesting a bid is imminent despite the presence of BHP, Newmont and Jiangxi Copper on the share register.
SolGold confirms open-pit potential at Tandayama
SolGold shares rise on Tandayama drill results
SolGold early works coming as feasibility advances
A big catalyst landed four months ago when SolGold collected a second tranche of $33.3 million of funds under a streaming accord with Franco-Nevada (FN) - part of a broader $750m agreement.
That news was followed by a series of encouraging drilling results from Tandayama, now slated for production in 2028, hopefully furnishing cash flow for the much bigger and more challenging underground mine to be built at Alpala, due for completion in 2031. Both properties are part of Cascabel.
Something else is at play here. Rumours are swirling that an announcement is imminent of a key investor protection agreement with the Ecuador government. That agreement would bulletproof $4 billion of construction capex needed to get the project into some form of production.
Vujcic is determined to see through early production at Tandayama which would be "a fantastic legacy" for the newly re-elected president Daniel Noboa, he told media recently.
A big challenge for SolGold revolves around funding.
Outside the FN streaming funds (representing about 40% of the estimated start-up costs) SolGold needs another $900m, so the risk of share dilution is still there. But project financing should become less of a problem as further derisking of the project unfolds (the signing off of permits, for instance).
Lundin Gold has shown western miners can be reap rewards in Ecuador, successfully developing and funding its Fruta del Norte mine (502,029oz gold in 2024).
SolGold has a robust longstop in the form of China's Jiangxi which owns 12% of the company and is one of world's biggest copper offtakers. The Chinese firm provided key financial and offtake support to First Quantum after Cobre Panama mine was forced to close.
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