Member Info for seanhunter

Economic EvaluationThe PFS investigated multiple scenarios in order to identify an initial base case to take forwards, with additional resources and upside to be investigated, supporting the next phase optimisations, and confirming the application of block cave mining to the Alpala underground resource. Attractive initial cave project, potentially delivering:?Initial 26-year operating life and 25Mtpa process plant throughput?Total ore production of 558Mt, containing 3.3Mt Cu, 9.4Moz Au and 30Moz Ag?Process plant producing 2.8Mt Cu, 7.6Moz Au and 21.7Moz Ag over the initial 26 year life of the project?Average annual production in five years following initial cave ramp up of 190ktpa Cu, 680kozpa Au and 1.3Mozpa Ag?Average annual production7 for initial cave of 132ktpa Cu, 358kozpa Au and 1.0Mozpa Ag ?All in sustaining cost of US$0.06 /lb Cu over the initial 26 year mine project?Estimated initial capital expenditure of US$2.7bn for the initial cave development, first process plant module and infrastructure?Payback of 4.7 years from start of operations?After-tax NPV and IRR of US$2.9bn and 19.3%, respectivelyAn initial Mineral Reserve estimate for the Cascabel project of 558Mt, with 0.58% Cu, 0.52 g/t Au and 1.65 g/t Ag for 3.3Mt Cu, 9.4Moz Au and 30Moz Ag.Exploration success and future potential with unexplored areas identified for future drilling and extension of additional reported resources.The PFS underpins the Mineral Reserve estimate and further optimisations of the mine and process plant are expected to deliver additional value.The availability of low-cost hydropower, on site water resources, the use of targeted underground mining, process plant configuration, the potential use of an electric mining fleet, concentrate transport via a pipeline are expected to deliver a lower carbon footprint compared to projects which do not have these benefits.The Cascabel project DFS is planned for completion in H2 CY23, with additional optimisations including:?Further investigations into process plant feed rates, including additional resources such as the Tandayama-Ameríca resource?Capital cost reduction opportunities?Alpala underground mine design optimisation, mine sequence and scheduling, application of macro blocks ?Process plant design optimisation, following additional test work?Hydropower project development

Economic EvaluationThe PFS investigated multiple scenarios in order to identify an initial base case to take forwards, with additional resources and upside to be investigated, supporting the next phase optimisations, and confirming the application of block cave mining to the Alpala underground resource. Attractive initial cave project, potentially delivering:?Initial 26-year operating life and 25Mtpa process plant throughput?Total ore production of 558Mt, containing 3.3Mt Cu, 9.4Moz Au and 30Moz Ag?Process plant producing 2.8Mt Cu, 7.6Moz Au and 21.7Moz Ag over the initial 26 year life of the project?Average annual production in five years following initial cave ramp up of 190ktpa Cu, 680kozpa Au and 1.3Mozpa Ag?Average annual production7 for initial cave of 132ktpa Cu, 358kozpa Au and 1.0Mozpa Ag ?All in sustaining cost of US$0.06 /lb Cu over the initial 26 year mine project?Estimated initial capital expenditure of US$2.7bn for the initial cave development, first process plant module and infrastructure?Payback of 4.7 years from start of operations?After-tax NPV and IRR of US$2.9bn and 19.3%, respectivelyAn initial Mineral Reserve estimate for the Cascabel project of 558Mt, with 0.58% Cu, 0.52 g/t Au and 1.65 g/t Ag for 3.3Mt Cu, 9.4Moz Au and 30Moz Ag.Exploration success and future potential with unexplored areas identified for future drilling and extension of additional reported resources.The PFS underpins the Mineral Reserve estimate and further optimisations of the mine and process plant are expected to deliver additional value.The availability of low-cost hydropower, on site water resources, the use of targeted underground mining, process plant configuration, the potential use of an electric mining fleet, concentrate transport via a pipeline are expected to deliver a lower carbon footprint compared to projects which do not have these benefits.The Cascabel project DFS is planned for completion in H2 CY23, with additional optimisations including:?Further investigations into process plant feed rates, including additional resources such as the Tandayama-Ameríca resource?Capital cost reduction opportunities?Alpala underground mine design optimisation, mine sequence and scheduling, application of macro blocks ?Process plant design optimisation, following additional test work?Hydropower project development

SolGold's MD & CEO, Darryl Cuzzubbo, commented on the PFS:

"I am extremely pleased to announce the results of the pre-feasibility study for the proposed Cascabel mine in Ecuador. In essence, it supports what we have believed all along - that this project is no ordinary mining asset. Cascabel will be a significant, multi-decade and very low cost producer of copper that can help enable Ecuador's emergence as the next copper frontier at a time when the world needs copper the most as we transition to a net zero carbon emissions future.

This project is economically attractive and based upon assumptions that we believe can be delivered upon. There is further upside that will be explored over the coming months and the next phase of the project as we seek the necessary Government approvals to move into early works and execution.

Such a project will create over 6,000 indirect and direct jobs, not to mention will bring significant royalty and tax revenue benefiting all Ecuadorians."

SolGold's Chair of the Cascabel Project Steering Committee, Keith Marshall, commented on the PFS:

"I am very encouraged with the pre-feasibility study. It offers, what I consider to be, a robust but flexible solution for the development of the underground mine at Cascabel. The study focused on the "right sizing" of the project, with the objective of reducing the technical and execution risk. It also provides a straightforward approach to mining the deposit that optimises selectivity, without compromising any of the resource and maintaining optionality.

I am confident that the study lays the solid groundwork for the next steps in the Cascabel project. I am particularly looking forward to progressing the study work and being able to expand our operational activities in Ecuador."

Former CEO and now Non-Executive Director and a direct and indirect shareholder with 12.9% of SolGold Nick Mather said:

"The various upsides at Cascabel offered by additional mineralised porphyry systems still being outlined and assessed, potential for additional production and treatment plant capacity, refinements to the mine plan, continued low cost of capital and what I see as the opportunity for long run higher copper prices as the world electrifies, suggest that this project indeed has considerable further upside to be evaluated.

More importantly, SolGold's comprehensive exploration footprint and ongoing exploration success will, in my view, establish not just one project of significance but a string of them throughout Ecuador, defining a globally important copper province and the potential to have a significant impact on Ecuador's economy. In a world of visionary enterprise looking to address escalating metal demand to facilitate global electrification and limit global warming to 2oC in an economically, socially and environmentally just manner, SolGold's position is unique."

KEY HIGHLIGHTS

Estimated US$5.2bn pre-tax Net Present Value ("NPV") and 25.3% Internal Rate of Return ("IRR")
Estimated US$2.9bn after-tax NPV, 19.3% IRR and 4.7 year payback period from start of processing[2], [3], [4], [5]
After-tax NPV would be US$4.1bn (US$7.9bn pre-tax) and IRR 23.4% (30.5% pre-tax) at current spot commodity prices[6]
Estimated average production[7] of 132ktpa of copper, 358kozpa of gold and 1Mozpa of silver - 212ktpa copper equivalent ("CuEq")[8] - with peak[9] copper production of 210ktpa (391ktpa CuEq8)
Initial project Life-of-Mine ("LOM") All-In-Sustaining Cost ("AISC") of US$0.06/lb of copper, placing Cascabel well within the first decile of the copper industry cost curve1
On achieving nameplate capacity, average of approximately 190ktpa of copper, 680kozpa of gold and 1.3Mozpa of silver (>330ktpa CuEq8) over initial 5 years at an average negative AISC of US$(1.38)/lb
Estimated pre-production capital expenditure of US$2.7bn for the initial cave development, first process plant module and infrastructure
Initial Mineral Reserve of 558Mt containing 3.3Mt Cu @ 0.58%, 9.4Moz Au @ 0.52g/t and 30Moz Ag @ 1.65g/t over an initial 26-year mine life
Potential mine life upside in excess of 50 years following initial LOM[10]
Annual after-tax free cash flow ("FCF") to average US$740m5, 7, peaking at over US$1.6bn5, 9
Average annual EBITDA[11] of nearly US$1.2bn5, 7, peaking at over US$2.4bn5, 9
Additional optimisations being progressed for a PFS Addendum planned for completion in H2 CY22
Cascabel project Definitive Feasibility Study ("DFS") planned for completion in H2 CY23

Just to clear that up,lol.

Guess the peeps waiting to buy in under 27p shouldn't have been so greedy.

Looks like those looking to get in just a bit lower, just a bit lower, just a bit lower.... have missed the bus.

All references to the Mail On Sunday article are gone... was the entire thread deleted.

Anyway, I had hoped the SOLG mention would have given us a little bounce this morning.

I suppose the old dears reading it would need to phone up their broker and try to sell their Alliance & Leicester shares first.

I'm beginning to fear a deeply disrerspectful placing at 25p. If so, let's just rip that bandage off as quick as we can and get it out the way.

Um... I think we don't refer to anyone from China like that anymore. And I'm from Glasgow.

Zoros, fan of yours too, we have always been on the same page I just happen to think the endgame is upon us now. If it's not, and we have another 5 years of 25p to 40p cycles, and boat buying stories , and Bnc predicting what happened last week, then I may give up before you do. But I do think the endgame is near.

Once this placing is out the way - the placing the market clearly knows about (and yes, they always know way more than us armchair experts) - this sp will fly again mate.

As long as they haven't screwed us with a 25p placing when they had the opportunity of doing one at 35p for a good few weeks.

For the record I don't think I've joined the silly gang. I've always felt we were lions led by donkeys here. My faith is in the vast resource and the price tag the PFS allows the market to put on it.

Just wait till there's the first sniff of a bid. Booooom!

...because I think there is a placing RNS arriving very early next week.

However... once that's out of the way... BOOOOOM!

"Do not want a capital raise to happen."

Neither do I, good sir. I hate dilution.

However much I'd like SOLG to sit tight right now waiting for a bid, they've got to pretend that they are serious about "paddling their own canoe" to use that disasterous term (playing hard to get to use another term). I agree that we should not start to look desperate, so I will take this (hopefully last ever) placing on the chin.

I believe the big boys are tired of the drawn out mating dance now: the PFS is a watershed beyond which a bid could come in any time, and I firmly believe sooner rather than later.

Probably. Probably done and dusted. Not too shabby if not down in the 20s... a very good starting point for another climb.

To whoever kept asking why we think we know more than the markets - we certainly don't. They ALWAYS know these things well before us. Hence the SP mysteriously adjusting itself. We shall see...

Very proud of this board tonight, some sage voices of now and yesteryear turning up to speak sense. The sp drop threw a curve ball, that is all. We know what we have here. It's not our fault if others don't.

Guys the pessimism wouldn't exist if the price was still 40p - it has collapsed on small volume and the fear of a new imminent placing. But the fundamentals have not changed. Do not forget that PFS. Don't forget either the extreme likelihood of a bid this summer.

Brave hearts!

Agree 100%

All sober points Zoros.

But having digested it - and you know I am not the rose tinted glasses type - I really think the PFS is a stonker overall.

Remember, BHP was desperate to get chunks of us way back when all these PEST and SWOT factors were much more negative than they are today, and what is in the PFS was just guesswork.

No major player is going to look over keen if they can help it.

Meantime, the real risk is our management burning cash if they don't have to and dilute us poor bloody infantry again. I think we've done enough to sit pretty for a while, regardless of what noise we make about production etc.

The real fear kicking in now is another placing, which though it won't mean much in the long run if we go for a good price, we still pay for in the short term.

I personally have become very optimistic, but it's becoming almost impossible to have a sensible conversation on this board with the likes of Bubble going on about "green posters" he's filtered but won't ignore and assumes wrongly what they are saying. I'm going to start reporting the idiot everytime he does it.

"PFS was going to be the big event that was going to put a rocket under the price"

No. It might have. Maybe it was factored in. In the end, you can't stop the day traders and get rich quick brigade rushing for the door. the PFS was always going to just set the stage for big news later this year.

Hang about for that big news and you'll see an SP rocket.

https://www.thetimes.co.uk/article/exchange-faces-anger-over-retail-investor-support-for-russia-ntjprr72b

Decent people everywhere disgusted by the shameless support on here for the biggest act of aggression since Operation Barbarossa.