Rainbow Rare Earths Phalaborwa project shaping up to be one of the lowest cost producers globally. Watch the video here.
That is an interesting one eh Satanclaus...he stepped down as Chairman for IRR a few weeks ago as well...
https://hotcopper.com.au/threads/ann-appointment-of-alternate-director.4265922/#.WzFG-1MvwWo
It is such a short period of time though..only until 6th July that seems a bit odd?
Found a current article in Spanish from EY dated June (link below) which summarises the original and amended wording of some of the paragraphs in the law that was passed which included the abolishment of the windfall tax. Using good old google translate (hence why it is difficult to interpret) the relevant section (page 53, articulo 93) comes out as:
https://www.ey.com/Publication/vwLUAssets/ey-tax-alert-comparativo-proyecto-ley-fomento-productivo-estabilidad-fiscal/$FILE/ey-tax-alert-comparativo-proyecto-ley-fomento-productivo-estabilidad-fiscal.pdf
"For this purpose the mining concessionaire, as well As the profit plants, they must pay a royalty equivalent to a percentage on the sale of the main mineral and minerals secondary, between 5% and 8% on sales, additional to the corresponding payment of the tax income, from the percentage of profits attributed to the State in accordance with this Law and the Value Added Tax
Aggregate determined in the tax regulations valid. To establish the royalty rate to be paid progressivity criteria will be observed, Production volumes of the mining concessionaire and / or type and price of minerals, as
establish the Regulation to this Law. The present Calculation formula will be applied as of the effective date of the Organic Law for Productive Development, Attraction of Investments, Employment Generation, and Stability and Fiscal Balance."
So it sounds like they are proposing to use a clear and transparent formula to calculate a tax between 5-8% based on sales of minerals and potentially a royalty payment based on the size of the project and mineral resource? No mention of windfall tax....
Is that how others read it? Anyone speak spanish please?
GLA and DYOR
Apologies my Spanish is...well...non-existent but have been looking online and would be grateful to others to check as well but it looks like the proposal to abolish the windfall tax that was presented to the Ecuadorian National Assembly has been passed? Now it just needs to be signed into law by President Moreno?
This is the bill that was presented on 24th May - see link below for high level details:
https://www.ferrere.com/en/news/ecuador-urgent-economic-bill-of-law-project-presented-to-national-assembly/
And then found this which suggests it was passed with 73 votes for and 28 against - is this the same bill?
http://plenglish.com/index.php?o=rn&id=29989&SEO=ecuadorian-parliament-approves-urgent-bill-on-productive-development
Tried to find some mention on the major international news networks but can't find it. GLA and DYOR
Hi TheItalian, I wouldn't like to say but certainly the high grade core (which will make this economic or not through paying for initial development costs) looks to have significantly grown outside of the existing MRE footprint and would assume that a lot of the inferred tonnage will have been transferred into indicated to show a growth in confidence. DYOR and GLA
Hi Unic, from what NM said a month or so ago with regards to the Cornerstone arrangement I get the impression (everyone DYOR of course) that the strategy is to fast track to Feasibility as soon as is possible, we know that Cornerstone (or Cascabel Gold and Copper as it will be called) doesn't have the money or income streams to cover what may be close to $20m repayment under the debt arrangement, let alone what is required to contribute to ongoing development costs unless it dilutes the hell out of existing shareholders or manages to get debt funding....All they have are their other tenements and their c10% of Solgold shares (which they could sell to realise one of capital). So they will need to cough up money to cover the costs or dilute to a 0.5% Net Smelter Return that Solgold can buy out for a mere $3.5m.. The reason that they are spinning out the 15% of ENSA and Solgold shares is that they need the company to be taken out, they can't merely sell their stake in ENSA (as Solgold has the pre-emptive rights over any sale of ENSA) to realise the value.... It's a bit of a race with Cascabel Gold and Copper (as it will be called when they finally complete the spin-out of all Non-ENSA and Solgold assets) racing to get taken out and Solgold wanting to get to feasibility so it can buy the 15% of ENSA for peanuts!!! That's my take on things anyway...would be interested in other's thoughts... DYOR and GLA
Hi DG1, nothing in particular. Think focus is on what an extension to Trivinio may bring to the Alpala deposit... It's very similar to the London 121 presentation you can see on Youtube that Anna gave last month. GLA and DYOR
..., in my opinion, between May presentation and June presentation (yes I've got too much time on my hands, lol). https://static1.squarespace.com/static/560a5feee4b0a63bf47c76f5/t/5b2a212e1ae6cfec30bd7efd/1529487677057/SOLG+121+New+York+Presentation.pdf - $110m now spent ($100m in May) - 10 new exciting regional discoveries (8 in May) - all listed are: La Hueca, Rio Amarillo, Cisne Loja, Porvenir, Timbara, Cisne, Blanca – Nieves, Machos, Salinas, Chillanes. 2 Epithermal Gold projects and 8 Prophyr projects. - $70m in the bank ($80m in May) - They've removed the statement from the May presentation that talks about Newcrest having a non-blocking stake, perhaps to do with the expiration of some of their anti-dilution rights? - Looks like they've streamlined the presentation to the "good bits" (and removed a few slides) as they kept running out of time from watching previous presentations. - They've included more detail about the debt funding arrangement with Cornerstone and included this juicy bit: "SolGold holds pre-emptive rights over any disposals by Cornerstone"...hmmm..... - They confirm that Alpala NW extends to Trivinio and that Tandayama-America is to be drilled this year (slide 8) - They've included updated models for the Alpala resource and the high-grade core on slides 10 and 11. Both look significantly larger than that announced in the MRE.... - They've updated the diagram outlining the twin decline tunnels to get under Aguinaga and Alpala, stating 5.5mx5.5m tunnel...suggests to me that progress is being made on the PEA and PFS - Geophysics and Drilling is planned for some of the priority regional projects elsewhere in Ecuador - Additional details and photos updated in the 4 priority projects slide - La Hueca, Timbara, Blanca Nieves and Provernir (slide 16) It's a good read with new info so would suggest a look. GLA and DYOR
The high grade core estimated update from slide 11 does look pretty tasty I have to say.... PDF version now on the site instead of the original PPT version. https://static1.squarespace.com/static/560a5feee4b0a63bf47c76f5/t/5b2a212e1ae6cfec30bd7efd/1529487677057/SOLG+121+New+York+Presentation.pdf GLA and DYOR
...is up on the site. Think Nick is presenting this one. Apologies if already posted. http://www.solgold.com.au/presentations/ GLA and DYOR
Hi Unic, his mobile number is published in a number of the presentations that have been put out on the last slide, but don't believe that someone text NM and he replied telling them to average down. Sorry Hammy.
Thanks to @pob on CEO.ca for spotting this. It's the presentation from the recent 121 mining conference in London. Anna Legge presenting. https://youtu.be/Xzr0_DmirTs
Hi Richy they hired a study manager in March so I think that's the official start time for the clock on it :) Luckily I think there is a lot of work that has been done.... Unfortunately Solgold haven't been great at setting deadlines and keeping to them (understandable and infuriating) so am hoping that they now just get on, and drop the news whenever it is done rather than promising timelines. NM said in an interview that Craig Jones from Newcrest (i.e. block cave specialist) took a look at the MRE (which would have been December I reckon) and said "that's a mine." He then went on to start drawing out what a mine could look like. They've been slowly developing their thinking for a while so I think there will be plenty to plug in for Eduardo Valenzuela :) GLA and DYOR
Hi Ludeck, disagree about the PEA. They've continuously said they're using a "live model" to enable them to plug in assay results as they get them, I know they will still need to crunch the figures with SRK again but they'll have a good understanding to start the PEA before the official update is published. I don't think it'll be done in the next 3 weeks though. I do agree about the PFS though, I don't think this will be completed till towards the beginning of next year. GLA and DYOR
Hi Smickster, no worries. Yes there has been various reports in the press that a suppressed price may make both CGP and SOLG tempting... To be honest the new share structure for CGP post-split is enough to give anyone a headache with voting and non-voting shares and the consolidation, some 100-1 and others 10-1.... CEO.CA has some good conversations about it if you're interested. The article (from February this year) below talks about how Solgold may be more tempting at this surppressed price: http://www.afr.com/business/mining/solgold-opportunity-knocks-for-newcrest-20180212-h0vyoq
Hi Smickster, Cornerstone either have to repay and cover no less than 10% of the ongoing costs or they dilute to a 0.5% Net Smelter Return that can be bought out by Solgold for $3.5m (from memory). I think there is a race on with Solgold trying to push through the process to get to Feasibility sooner rather than later and Cornerstone are trying to get maximum value for their share through T/O (as indicated by the spin out). Cornerstone would never be able to afford to cover their part of the costs. Their spin out is meant to be completed this month.... so will see what happens when it's done.... Could see Newcrest going for them, would take them to c25% of Solgold and 15% direct interest in ENSA (plus the indirect interest via Solgold)... think the mandatory offer threshold is 30%... not sure if there are any thresholds for Ecuadorian companies..?