The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
The SP feels quite perky to me all things considered. It's holding up around 29p, there have been a few nice rises after it has fallen back a bit, doesn't feel like the usual steady downward march that we've come to expect in the last few years when Solg keeps not releasing the news everyone expects day after day... and as you said, against a background of some nasty weakness in PMs, copper and miners the last week or so.
How else do you expect an exploration company with no revenues to carry on exploring if they don't tap investors for funds? It costs millions of dollars to drill these targets and prove up the resources. I mean, they could just not do the placing, run out of money and enter insolvency if you want. Then your shares would be worth the square root of FA.
Well yes exactly this is what I'm wondering... Where is this $430mm coming from and how does it fit into the overall funding package for Alpala? As we know the total capex is multiple billions so is this comment implying that Solg itself is contributing this as its own part? How will it get the money?
The quite apparently comes from the deputy mining minister so you would assume he knows what he's talking about.
I can't read the whole article cos you have to sign up. This is what I can see:
Canada’s Dundee Precious Metals is set to sign this month a US$340mn investment contract with Ecuador for the construction of the Loma Larga gold mine.
Government sources, requesting anonymity, told BNamericas the contract is in the final stage of review at the economy and finance ministry.
Deputy minister of mines, Xavier Vera, told radio station La Única that SolGold also committed to invest US$430mn in its Cascabel mine and Lumina Gold US$37mn in the Cangrejos project.
The investments will generate “a boom” of large-scale mines starting in 2023, he said.
Loma Larga, in Azuay province, has production potential of around 200,000oz/y of gold in the first five years, but faces local opposition.
The Cascabel copper-gold-silver project is in Imbabura province. The preliminary economic evaluation defines an initial capital expenditure of US$2.54bn, processing of 40Mt/y, and production of 142,000t/y of copper and 340,000oz/y of gold, during a useful life of 66 years.
And Lumina considers Cangrejos, in El Oro province, one of the 15 most promising independently-owned gold projects globally.
The Mirador copper and the Fruta del Norte gold mine are currently the only large-scale ones in the country.
https://www.bnamericas.com/en/news/dundee-to-sign-us340mn-investment-contract-for-ecuador-mine
How about we discuss this instead of identity politics? Thanks to Sam N for the link.
"Deputy minister of mines, Xavier Vera, told radio station La Única that SolGold also committed to invest US$430mn in its Cascabel mine"
Thoughts?
After going up 16% in a few days and nearly 25% in a month I think a breather here is to be expected and quite healthy, but it would be great to see 30p hold here. My pretty limited technical analysis ability tells me this might re-test 29p here and maybe down around 28p though. What would be even better is if they could blow away the TA by launching a volley of red hot news items in quick succession to launch the SP up to a higher level.
Btw did anyone catch Ingo's presentation at the Denver gold forum yesterday? If so was anything interesting said? Did he drop any nuggets of information? Or was it just a straight up repeat of the one he did last week?
Thanks in advance
When did Mather announce his retirement, February? And the official Solg line was that he'd already informed the board of his intention to stand down before Christmas. So they have had a lot of notice to get a replacement sorted.
The Alpala PFS will be the biggest milestone in Solg's history. Let's assume it's going to be good/feasible, because if not, what is the point of Solg anyway. Why would you want to allow the situation where a new CEO takes over and the company delivers its landmark PFS essentially at the same time? I would have thought they'd want the new CEO already well in place so they can "deliver" the PFS and very firmly take the helm of the company to guide it through the crucial post-PFS stage of its existence.
No CEO would want to join the company just after the board has essentially just set the course of the company and tied their hands as to what they can or can't do for the foreseeable future.
Really feel they need to get someone in place asap so there is some sort of gap between now and year end when the PFS hopefully lands.
Every few months there seems to be a rise in share price on anticipation of news. There's always some news expected with Solg obviously. But the news never comes at the peak of the rise, it always takes longer than people expect. And the rise always seems to falter and SP starts heading back down again into mid 20s and then news comes and doesn't do much. I guess the board just release it on their timetable and aren't paying that much attention to the SP but it would be great if just once they happened to release a really positive RNS at the peak of one of these rises, see if it pushes it up into mid 30s and get some momentum going and more people piling in. Solg always seems to catch the downswing.
https://www.mining.com/how-afghanistans-1-trillion-mining-wealth-sold-the-war/
This one is worth a read too, it basically demolishes the hyperbolic "$1trn of mineral wealth" story that keeps getting regurgitated by the press.
Also an interesting little cameo by our very own Jiangxi Copper...
"After a bidding process that included Phelps Dodge (now part of Freeport McMoRan) and Canada’s Hunter Dickinson, state-owned Metallurgical Corporation of China and its minority partner Jiangxi Copper struck a $2.83 billion deal in 2007 for a 30-year lease at Mes Aynak."