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This may not be massively popular, but IMO one of the key elements that emerged from the discussion yesterday afternoon was the potential pitfalls caused by the 2021 elections in Ecuador.
It is clear that SOLG (and any other company involved in large mining) require stability in order to execute an ambitious plan like the development of Alpapa. Such assurances are naturally in thin supply with the uncertainty caused by a looming election. Remember, Ecuador is a potentially precarious place to do business due to political upheaval. The election next year could feasabily be won by any party or coalition from the far-left, social democracy or centre right, all of which will have different plans for the future of the mining sector (and specifically the ownership of the sector). I fear that the mining sector will be used as a political football by those wanting to exploit the situation for their own political gain. For this reason I personally cannot see SOLG being taken over for large sums or commiting investment to the development of Alpapa until the political picture stabilises.
That said, other things are clear:
1, The Ecuadorian economy is up the creek.
2, The principle primary material of the economy (oil) is on its knees.
3, The IMF and the World Bank will be demanding the development of the mining industry.
4, The simple fact is that any future government will become reliant upon the mining industry for direct investment, the nourishment of foreign currency reserves and the revenues required to reduce poverty (especially in current times).
For me, the future is bright regardless of the outcome of the elections because 'needs must' for any future administration. The concern is that we will inevitably see some bumps in the road along the way which will be a significant 'turn off' for interested parties over the coming months.
If you want to see SOLG go it alone then the elections may provide the perfect smokescreen. However, if like me you are hoping for a takeover then my personal view if that we are around 12 months away from serious bids being made.
Discuss....
I'm pleased with the answer to that question to NM
Thumbs up
https://medium.com/@carloszorrilla_21574/a-brief-history-of-intags-resistance-to-mining-95fe332f616b
My Spanish isn't the best, but I see a monkey saying something like
'Hi, I'm here to destroy everything'
:) :)
Currently 2.11am in Brisbane
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Fair point!!! I rescind my comment
NM looks pretty bored
"mining is the next export icon"
:)
I'm impressed by how he is portraying the severity of the situation
oh good.... another zoom meeting :(
With respect (as always), this is not a feasable approach in my view. We are talking about a nation that has been hit particularly bad by CV19 and is seeing their export revenues slashed by the collapse in the oil price. This is a time when states like Ecuador need to decrease non-essential expenditures, not increase them.
There is also the moral aspect of seeking funds from developing nations in a financial, social and health crisis.
Finally, there is a history of leftist uprisings in Latin America, and the long term implications of state subsidies (at the expense of health/social investments during times like this) would be akin to firing up a powder keg.
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What about the idea or scenario of the Ecuadorian govt providing 100% of the development capital as debt or equity????
I and many others come on here to read info on SOLG. It's not particularly enjoyable sifting through pages of bickering.
This isn't very gratifying for anyone. Please either exchange emails and keep it off the bb or give it a rest.
just went up a nearly a whole penny in 2 mins
Iceberg - that's far too speculative for my liking!
How's she looking?
I can highly recommend this podcast: https://www.nytimes.com/2020/04/20/podcasts/the-daily/coronavirus-how-long-lockdowns.html
If you want the screencast then email me ASAP at sheffieldsteeler.iii@gmail.com
I'll 'bcc' the email to keep anonymity
Ok... Own up...
Who asked the DGR question? Haha
PFS end of q3
Def not buying that.