Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
https://twitter.com/bigdude6669/status/1369663229295697932?s=21
https://www.australianmining.com.au/news/newcrest-credits-company-resilience-to-copper/
BBG I don't think that is the reason but it is a likely outcome that metals prices will be higher by the time the PFS is ready. I got the feeling that the problem with the project is that it is simply too big and complex in terms of size for the likes of Solgold to adequately manage by themselves and they probably didn't have the right people working on it hence the delay. It is probably a better strategy to start off smaller if going it alone and or leave it to the big boys to manage the execution risk via a sale or JV type arrangement.
I think common sense is prevailing with the likely new approach to be more collaborative and to involve both BHP and Newcrest which will likely produce a better outcome in terms of a better mine plan and project for all parties involved. Sure the Capex probably goes up but if they can get production albeit at a smaller scale ready earlier and or get at some high grade stuff from one of the satellite deposits and optimize the infrastructure to suit then the delay will be more than worthwhile in the longer run. i.e. a higher NPV compared to just the Alpala block cave case even factoring in the likely 6 to 9 month delay for the further studies.
Copper currently above $3.80 USD / lb and going much higher. Plug that into the PFS along with higher gold and silver prices and improved recoveries from the latest metallurgical testing and a reduced discount rate and watch the Alpala NPV skyrocket!
Just goes to show that for BHP to stump up 1 to 2 bill to buy Solgold and secure the best exploration assets in Ecuador is chump change for them relative to the amount of coin their other operations are spinning at the moment. Mostly driven by Iron Ore at present but I suspect in a few years time Copper will be a much larger part of their business. They even put ads on the TV about it.
Copper prices hitting multiyear highs and more to come.
https://www.mining.com/copper-price-lifted-by-us-stimulus-china-inventory-squeeze/
Despite the PFS delay the story here is still intact. Solgold have loads of Copper, will find more and BHP and Newcrest and potentially others are still very interested in the assets. About time for an up day as it is not all doom and gloom.
Silver stocks are pumping on the ASX here today. Which company has potentially the worlds largest silver mine................ that would be Solgold, maybe it gets a boost from the Silver effect playing out this week.
It was in the CRUX report.
Exploration commitments for the 75 concessions that are not Cascabel are likely to be around three hundred million dollars in the next 2 years, possibly more. Under article 38 of the Ecuadorian mining law, if the Committed exploration budget that won the concession in the bidding process is not spent within the 4-year exploration cycle, the Company needs to pay the government a minimum of 80% of the uninvested total. Red Flag alert, Solgold is facing exploration and development study requirements of possibly US$340M in the next 2 years (estimates of US$360M of promised Exploration Commitments less estimates of US$20M completed). The company is faced with the choice of either diluting the capital structure, or selling exploration projects as they mature to fund the Company. Cash on hand as of 30 June was US$47M.
From a DGR ASX announcement on Dec 14.
"On 1 December 2020 SolGold advised the market that it is now expecting to report on the Pre Feasibility
Study in January 2021, following a number delays associated with COVID-related site and laboratory
restrictions, and the knock-on effects associated therewith."
Looks like Gina is running into a few problems.
https://www.news.com.au/finance/business/breaking-news/ecuadorean-mine-owned-by-gina-rinehart-has-been-swarmed-by-illegal-gold-diggers/news-story/d06110875a43d4741e72912724832ef2
Plenty of dirty tricks going on in the background here, they will release reports like this, leak to the media about the CEO / attempt to cap the price / manipulate the trading etc to attempt to shake out PI's and or make any take out cheaper for them. Hold strong