The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
Well, I want one last discounted placing, a lurch down in price and mop up with cheap stock...it's not a deramp but a ramp as I know any placing will be gobbled up now Ecuador's situation is improving
NEW YORK, March 7 (Reuters) - The International Monetary Fund said on Thursday that Ecuadorean authorities officially requested "a few weeks ago" to begin discussions on a potential new program with the IMF, but gave no details.
"Staff are actively engaging with the authorities to assess the economic situation and support the reforms to address the challenges facing the country," fund spokesperson Julie Kozack said in a scheduled press briefing.
"The recent wave of violence has come at a time of a challenging macroeconomic and fiscal outlook for Ecuador," she said.
Ecuador’s international dollar bonds rose on Thursday, with the 2040 and 2035 up 2 cents each while the 2030 added 1.75 cent, according to LSEG data.
The Ecuadorean government did not immediately respond to a request for comment, but President Daniel Noboa said earlier this week the government is "working also on a deal with the IMF which will be done in the next two to three months."
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Stabilise Ecuador's economic and fiscal situation, work from there to encourage external investment into mining.
It's now a matter of waiting. Once investors can see their investment will be safe then I suspect you'll see real movement of funds into mining companies like Solg
Https://www.mining-technology.com/newsletters/ecuador-enters-mining-investment/?type=Analysis&utm_source=&utm_medium=&utm_content=Other_Daily_News_Articles&utm_campaign=type3_mining-market
A tad more detail about the rather opaque CIPA or IPA.....
March 6, 2024, 5:04 PM GMT
Bonds from Ecuador were the biggest gainers in emerging markets Wednesday on a report that negotiations with the International Monetary Fund are likely to begin soon. Barclays strategists also upgraded their recommendation on the notes to overweight.
Bonds due in 2030 rose 1.2 cent to 45 cents on the dollar, the highest in 13 months, according to indicative pricing data collected by Bloomberg
Debt due in 2035 jumped 1 cent to 51.2 cents on the dollar
The IMF is currently preparing for negotiations with Ecuador that are likely to begin formally within weeks, news site Primicias said, citing Western Hemisphere ...
https://news.bloomberglaw.com/bankruptcy-law/ecuador-bonds-jump-on-imf-official-remarks-barclays-upgrade
The Ecuador government has committed $3.2-billion to the Cascabel copper and gold mining project, London- and Toronto-listed SolGold said on Wednesday, announcing a complementary investment protection agreement (IPA) for the Cascabel project.
The signing took place in Toronto at the Prospectors and Developers Association of Canada (PDAC) convention, representing a major advancement for the project and SolGold’s partnership with the Ecuador government.
In addition to the $311-million investment addressed by the current IPA, under the complementary IPA, there is a commitment to invest a total of $3.2-billion over the subsequent years in activities related to the Cascabel mining concession.
The complementary IPA embodies the biggest investment in Ecuadorian history.
"The complementary investment protection agreement not only reinforces the protections for our key investment in Ecuador, but also symbolises a deepening of our relationship with the Ecuadorian State,” said SolGold president and CEO Scott Caldwell.
Caldwell, on behalf of SolGold, signed the agreement with Ecuador Production, Foreign Trade, Investments and Fisheries Minister Sonsoles García.
Caldwell said President Daniel Noboa's attendance and speech at the PDAC convention were warmly welcomed by the mining community. “ . . . [it] underscores the significant support of his administration for responsible mining in Ecuador,” he said.
SolGold last month announced the results of a new prefeasibility study (PFS) for the Cascabel project, which supports a phased block cave mine development that substantially reduced the initial capital expenditure (capex) required.
The PFS puts an initial capex price tag of $1.55-billion on Cascabel, which the company noted was a $1-billion saving on previous estimates.
The initial block cave will achieve a production rate of 12-million tonnes a year, extracting high-grade ore of about 1.45% copper-equivalent for the first ten years of production.
SolGold points out that the extraction of high-grade material will not sterilise the surrounding lower-grade ore.
In the second phase, the mining operations will be expanded by an additional 12-million tonnes a year, increasing the yearly production rate to 24-million tonnes in year six.
Over an initial 28-year mine life, Cascabel will produce 4.3-million tonnes of copper equivalent, comprising 2.9-million tonnes of copper, 6.9-million ounces of gold and 18.4-million ounces of silver.
At peak production, the mine will yield 216 000 t/y of copper, 734 000 oz/y of gold and 1.16-million ounces of silver a year.
BHP owns 10.36% of SolGold and Newmont acquired 10.31% when it took control of Newcrest.
7 March 2024
https://www.miningweekly.com/article/ecuador-commits-32bn-to-solgolds-project-2024-03-07
'Cascabel (1% royalty) – In February 2024, SolGold announced the completion of a new pre-feasibility study, which outlined reduced initial capital costs and a 28-year mine plan containing 3.2 million tonnes of copper, 9.4 million ounces of gold, and 28 million ounces of silver (540 million tonnes grading 0.60% copper, 0.54 g/t gold, and 1.62 g/t silver).'
https://www.prnewswire.com/news-releases/franco-nevada-reports-2023-results-302080649.html
I'd wait for events, I suspect as yet undisclosed, to be reported. It is obvious the train is now in motion.
Let's see how the majors act in response to yesterday's agreement..Im sure news will slowly filter out into the public arena without warning
Argonaut has initiated on London and Toronto Exchange listed SolGold (SOLG) with a Speculative Buy and Price Target of 11.6p per share. SOLG’s flagship asset is the Cascabel project in northern Ecuador. Cascabel is a world class copper and gold project an impressive potential production profile. The Cascabel Project PFS was recently updated to reduce upfront capital expenditure. A reduction in the capital hurdle increases investment attractiveness. Argonaut visited the Cascabel site in the fourth quarter of 2023. Project economics could be further improved through integration of the Tandayama-Ameríca Resource and optimisation of surface infrastructure including tailings facilities.
To access the full report please log in under the Client Area at the bottom of this page.
Argonaut’s Client Area allows you to view delayed share prices, access Argonaut’s wealth of Research as well as create custom portfolios and set up company watch lists.
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https://www.argonaut.com/solgold-lsesolg-initiation/
A deal with the IMF and today's BMO arrangement may point to a risk on investment move towards Ecuador. The mining capital tectonic plates are shifting towards Ecuador. Is this finally the time the mineral riches of Ecuador are exploited?
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1 March 2024
(Bloomberg) -- Ecuador bonds jumped on Friday after President Daniel Noboa met with investors in New York and told them his government expects to reach a deal with the International Monetary Fund in about two months, according to a person who attended the meeting.
Notes gained across the curve, with those due in 2030 rising 2.7 cents on the dollar to around 63.7 cents, the highest level in more than a year, according to indicative pricing data collected by Bloomberg.
Noboa told money managers that talks with the Fund were ongoing, according to the person, who asked not to be identified describing the private meeting. The 36-year-old leader was making the rounds in New York after raising taxes at home and pledging to narrow the deficit in the 2024 budget.
Representatives for Noboa, the Finance Ministry and the IMF didn’t immediately reply to messages seeking comment about the remarks.
Noboa was meeting with local officials and investors to pitch economic reforms and discuss his efforts to fight drug gangs, according to a statement from his office. He planned to speak with Ecuadorian migrants before making stops in Toronto and Ottawa over the coming days.
The heir to a banana fortune, Noboa has tried to leverage his popularity since taking office three months ago to wield support to tackle dual security and fiscal crises.
His efforts have caught the attention of the market, with debt from the South American nation handing bondholders returns of 36.5%, according to a Bloomberg index. Still, the notes trade deep in distress, with investors pricing in an 80% chance of a default within five years. '
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