SolGold releases “cash cow” plan for copper mine
Investors in mining hopeful SolGold (SOLG) will have seven years to wait for revenue to arrive, under the new prefeasibility study released this week for the Cascabel copper and gold mine in Ecuador. Now a decade into development, the new project timeline sees production arriving in 2029, at a capital cost of $2.7bn (£2.1bn).
SolGold chief executive Darryl Cuzzubo said the block cave style of underground mine, in which the orebody is blasted from below, would create a “cash cow” for investors, even if it took longer to build than a traditional underground operation. Average yearly production over the mine’s initial 26 years of operation is forecast at 132,000 tonnes of copper, 358,000 ounces of gold and 1mn ounces of silver.
Cuzzubo said the copper market was headed for an even tighter supply/demand dynamic than is currently seen, as forecasts of energy transition demand for the metal would “inherently underestimate” the tonnes needed, pushing prices even higher than the current $10,000-per-tonne-level. SolGold aims to update this study later in the year and then release a definitive feasibility study next year, often a final step before financing. SolGold’s major shareholders include BHP (BHP) and gold miner Newcrest Mining (AU:NCM). At the time of publication, SolGold’s shares were trading at 34p, down from over 40p earlier in April.
It'll be great to see this share above 200p again. I'm looking for it to hit 240p in the next 8 months, perhaps when special divi is confirmed.
Been in and out of TW since 2008 and it's been great overall - bit of a rollercoaster.
Also in PSN which I find tends to drop less and recover more quickly than TW.
Redknight. Nothing wrong with posting your successes. There's a cultural issue in this country - we hate others' successess.
I spent time in USA in my career and they have a much better attutude in this regard.
Keep posting successful trades but also you unsuccessful ones. Sometime more can be learned from those!