Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Pretty blunt that :)
I missed the first 8 mins. Guessing that was just boring into stuff?
Anyone else having issues with the feed?
I'm recording a screencast of the NM update for those unable to watch. Email me at sheffieldsteeler.iii@gmail.com if you want me to email it to you.
Good! You fared well!
My situation wasn't too bad. In 2018 I sold around 85% of my SXX stock at in the low 30's and brought SOLG in the low 20's. Could be a hell of a lot worse.
Yes!! That's me! Long time ago now! Hope you didn't get too badly burnt by SXX.
I actually stayed at that hotel (it's recently changed names) around six weeks ago with work. I spent most of the first evening trying to figure out why is was so familiar! : )
sheffieldsteeler.iii@gmail.com
Very welcome.
If anyone ever needs access to paywalled articles/resources just give me a shout. I have free access to most things thru work
Australian rival Newcrest Mining, SolGold’s second-largest shareholder, did not respond to a request for comment. On April 17 SolGold said it had received “material offers for funding” from global commodity traders and smelters in exchange for guaranteed supplies of metal concentrate from the Ecuador mine once it starts producing.“Offers included the provision of both short-term and longer-term capital with proceeds available for studies, mine construction and cost overruns as well as working capital during ramp-up,” it said.
For those who cannot access it:
Copper group SolGold has strengthened its defences against a takeover, appointing Citi for advice and fundraising as big rivals eye acquisitions amid the global economic downturn caused by coronavirus. The London-listed explorer is a prime target due to the potential of its undeveloped copper and gold project in northern Ecuador, people familiar with the company said. Last month SolGold said it was in talks to secure the $2.85bn it needs to develop the Alpala project in Ecuador, including an immediate $150m for a definitive feasibility study of the project. The company says the mine will start production in 2025. Citi has been hired to help with the fundraising and also act as a defence adviser, a person familiar with the company said. “We’re building a company that’s as important to the development of Ecuador as BHP was to Australia. I think that's just beginning to sink in to the world’s majors and financiers,” said Nick Mather, SolGold chief executive. The world’s biggest mining companies are all looking for opportunities to expand in copper because of its use in clean energy technologies such as wind turbines and electric cars. BHP, the world’s largest miner, is SolGold’s top shareholder but under a standstill agreement is restricted from buying new shares and going beyond its 15 per cent stake until October unless there is another bidder. In February BHP’s new chief executive Mike Henry said the miner needed more “future-facing” metals such as copper. A month later BHP’s chairman Ken Mackenzie said the company was in a strong position to make acquisitions if there were opportunities because of coronavirus.“I’m not sure if there will be any opportunities that will come from this, but if there are, we are actually in a position to act,” Mr Mackenzie said, according to Reuters. Coronavirus business update in SolGold have fallen 48 per cent over the past year, giving it a market capitalisation of £381m. That compares with a 30 per cent fall for the FTSE 350 Mining index. Copper prices have declined 16 per cent this year — to trade at $5,211 a tonne — due to a collapse in demand because of the spread of coronavirus. BHP and Citi declined to comment. Australian rival Newcrest Mining, SolGold’s second-largest shareholder, did not respond to a request for comment.
My fag packet calculations are that WTI oil is now worth less than water from your kitchen sink.
Any luck finding the article?
If nobody has found it by Sunday I'll have a try.
More4Less, I certainly agree with the cash burn and the necessity for additional funding.
That said, in the grand scheme of things I think that this is a minor issue. Good projects attract significant funding (even in situations like this).
What is your reasoning? Not being an a-hole, just curious.
Interesting couple of sections in the report:
'Despite Ecuador's challenging local environment, highlighted below, we expect the country to continue to hold an opportunity for copper and gold miners looking to expand operations. Exploration in the country has so far revealed a fairly large amount of mineral reserves and resources which highlight the country's potential for further discoveries. For example, the Miradormine has an estimated 3.2mnt of copper reserves while SolGold estimates its Cascabel project has indicated resources of approximately 2,050mnt grading at 0.41% copper (8.4mnt in contained copper metal). We expect Ecuador to continue to be an investment hot spot 2020'
Sheffield.
As seriously as seasonal flu.
https://www.gov.uk/government/statistics/annual-flu-reports
_____________________________________________________
OK.
Prof of Epidemiology: The is the greatest public health emergency in the last century
Avatar on internet bb: 'seasonal flu'
I'll leave it there.
Have a great weekend everyone. Stay safe.
Apologies for the tangent, but anyone refusing to take COVID19 seriously should look at this:
https://mcusercontent.com/c4876cb152fa1983ef265ad1b/files/646cdd81-d6a3-492f-a367-6cca7fdf4a82/Covid_19_IH_Conference_2020_1.pdf?mc_cid=d436d36ee8&mc_eid=c5c49d5f96
Apologies, the last sentence didn't copy n paste. Its a fairly important sentence:
SolGold's cash on hand declined from $US27 million to $US23 million between December 2 and December 31, and the company has typically consumed more than $US20 million per quarter over the past 18 months. But SolGold said it was working to reduce its cash burn and had temporarily halted drilling at its Cascabel project.
FULL ARTICLE:
BHP's exposure to thermal coal has continued to shrink, with the miner quietly selling a portion of its port capacity and shareholdings at one of Australia's biggest coal export facilities.
Confirmation that BHP has reduced its shareholding in Newcastle Coal Infrastructure Group (NCIG) comes amid expectations that BHP will soon seek to exit its thermal coal assets, and as new chief executive Mike Henry presents half-year profits on Tuesday.
NCIG has a major coal export terminal at the mouth of the Hunter River, and BHP last reported its shareholding in NCIG at 35.47 per cent.
But that stake has since declined, with BHP confirming it sold a portion of its shareholding to Whitehaven Coal for an undisclosed sum.
The transaction in September is estimated to have reduced BHP's stake in the port to below 28 per cent.
Aside from shares in the infrastructure company, BHP has also transferred some of its port capacity to Whitehaven. BHP's willingness to sell Newcastle port capacity highlights the company's lack of interest in growing its NSW coal business, which is centred on the Hunter Valley's Mt Arthur mine.
The company has been studying ways to exit Mt Arthur and its stake in Colombia's Cerrejon coal mine, but the process is complicated by low coal prices, a limited number of suitors and the value of tax assets linked to Mt Arthur.
The divestment of Newcastle port capacity also suggests a plan to upgrade the energy content of coal produced at Mt Arthur will be permanently adopted, with those upgrades set to dramatically reduce the volume of thermal coal produced by the mine.
Mt Arthur's coal output in fiscal 2020 was forecast to be 18 per cent lower than last year, but the decline may be larger because of operational disruptions from bushfires and heavy rain.
The strategy to reduce production volumes at Mt Arthur in favour of producing coal with higher energy content means the mine is producing barely half the volumes permitted by the NSW government.
While thermal coal shapes as the most obvious divestment during Mr Henry's time at the helm of BHP, copper explorer SolGold could be an acquisition, with BHP building a 14 per cent stake in the junior over the past 18 months.
SolGold has been working on a major fund-raising in recent weeks, but has looked beyond BHP and its other major shareholder, Newcrest Mining, for the funds. Some shareholders fear SolGold may seek high-cost finance in a bid to avoid giving BHP and Newcrest too much control of the company.
SolGold management broke their silence over the weekend, saying they were considering "alternative" financing options.
"SolGold is in advanced negotiations on a number of traditional and alternative financing options and continues to engage proactively with its investor base," the company said.
SolGold's cash on hand declined from $US27 million to $US23 million between December 2 and December 31, and the company has typically consumed more than $US20 million per quarte
https://thumbs.gfycat.com/CalculatingSerpentineEquestrian-size_restricted.gif
Come on people. It's Friday. Surely you must have something more constructive that you could be doing, pub maybe?
I'm off for a pint of Tonka Bean Smoked Porter.
Ta-ta