Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
TBTT To be honest, with whats happened with SXX, I was worried with financing. But with today's commodity prices, that risk is now lowered in my opinion. I actually think NM has much more leverage in terms of building shareholder value (via financing or takeover). The other positive in the Ex-BHP HR appointment, is she should be able to tap into BHP's talent pool (and hopefully Newcrest)
I think this is all in line with NM's plan to production (and financing). To hire executives takes 3-6 months, so this was already in train before Cornerstone's request to change the board. I still don't know which is more beneficial (take over or production), but I don't think there is merit in sacking the board (unless solgold stuffs up financing, meeting his major milestones or run out of cash)
With regards to block caving, I can tell you its not that easy... You need to hire a whole block cave organisation, not just a few experts. We are talking about specialised explosives, safety, design, constructions, crushing, conveyors, maintenance, shotcreting, social license to operate etc. A major place people in secondment from producing mines, a start up don't have cash-flow and the luxury. If SOLG has a open pit operation to fund a block cave, it may be doable, but until then its tricky to fund and to develop.
Sorry, pressed the send button a little early... What I meant to say is, over the past 12 months, the majority of Craig Jone's time is spent in PNG. So I doubt if there were much value in keeping him on as board member. This move is all optics.
Community issues in the mining industry is normal. It happens from time to time, and unfortunately it may result in short term distractions and may slow down progress (temporarily).
The fat cats miners understand this, hence why they've started exploring themselves in Ecuador.
Look at Newcrest, they operate in PNG and had issues with the locals in the past, but they've always manage to work things out with the locals via jobs, business opportunities, investment in infrastructure and community relations.
The key thing here that the Gov is pushing hard to develop the mining industry and have plenty of time to sort things out until production (by Solgold, BHP, Newcrest or other), so it’s business as usual for Solgold (for now its exploration, conducting feasibility, PR etc).
This should not impact the fundamental valuation (resources in the ground) of Solgold in the long run. The interim share movement is all due to fear from small private investors.
Of interest to me is: What is the strategy to unlocking value? Lone wolf approach to production, forming a JV, selling some assets, selling to fat cats, finding more funding, more discoveries/drilling results?
I may be over thinking it.
But as Newcrest is an Australian company, you think the Pound to AUD & Brexit will pose as a short term risk/opportunity for Newcrest? Eg No Brexit deal may decrease the Pound, making Solgold a more valued acquisition?
In other words, even after the PEA by the end of this year, potential suitors will still wait till after Brexit?
Or can the potential suitors strike a deal at a different currency (or trade in the TSX, probably not...)?
I suppose it doesn't matter if another global player makes a bid.
Just found this post. Should this be a concern for feasibility?
http://angrygeologist.blogspot.com/2018/06/aguinaga-initial-results.html?m=1
What are the potential next steps following the PEA/MRE results/ scenarios? ( Feel free to add to the scenarios):
1) Results are mediocre
2) results confirms its a tier 1 asset and economical to mine
Eg if no bid, is funding required for additional exploration activities? Wil solgold carve out and sell some of its assets , will it enter into JV etc And If funding is required what is the recommendation share trading strategy? Eg ride out the dilution or trade out
Not sure if this is old news. Seems like Newcrest is slowly buying more shares under the radar.
http://www.newcrest.com.au/investors/market-releases/fy18-carrying-value-update