We would love to hear your thoughts about our site and services, please take our survey here.
Https://www.nasdaq.com/articles/solgold-lse:solg-price-target-decreased-by-9.48-to-53.55
Grazie Shippy, always a collaborative and useful poster, taking the right initiatives and not wasting time with pointless speculations. In terms of content of you chat with SC, I think the actual positive is that there is just slow progress given the landscape rather than mysteries and conspiracies and alleged incompetence. Anyone running a company would know how much time and effort is spent on the daily grind to move things forward, and things often move slowly.
Https://www.pngreport.com/mining/news/1458921/why-mining-is-on-the-decline
Comments welcome
Personally, having stated this before, I think that given the country risk and the need to prove economically how the resource can be extracted, simply there are no unconditional buyers who just look at the size of the resource to pull the trigger. So management is forced into a corner, where it needs to bring the project to a more advanced and derisked stage. My take is that this is what Scott is aiming for, which also supports why he had to move to Ecuador. I don't think there is a big mystery here, or incompetence, or any other conspiracy. NM thoughts he could sell and for the same reasons he could not, DC tried to reduce the project profile to make it more palatable but he failed, SC is giving it another go and from what I see he seems more pragmatic about it. The price can only behave as it does for these reasons, until the eventual big news come out.
One point being, when this BB starts complaining about the missing new website, lack of news, no buyers, management this and that, this is the background where SOLG operates, and it's a systemic risk and cause of delays for the company, and also the reason whey it invests so much in the local communities.
https://www.echo.net.au/2023/08/ecuador-referendums-vote-to-save-the-environment/
relevant extract:
director of local environmental and human rights organisation apt-norte, peter shear, said seventeen metals mining concessions are affected by this referendum victory. ‘six of these do not have existing environmental licenses, and have now been completely annulled –including two gold concessions owned by hanrine (gina rinehart), lorena02 and lorena03.’
hanrine, a 100 per cent owned subsidiary of han**** prospecting, has alarmed human rights groups since 2019 for its violent repressions towards citizens of buenos aires, a town sitting within the company’s imba two mining concession, north of the chocó andino region.
friends of the earth spokesperson anthony amis said hanrine has had a very difficult time since entering ecuador over five years ago. ‘community groups are still in shock about what has occurred in the imba mining concessions after violence and excessive government force. the north of ecuador is an extremely risky proposition for mining companies such as hanrine, bhp and solgold’.
@Forte, seems sensible as a speculation, you might be right...
Rio Tinto and First Quantum complete La Granja joint venture transaction
29 August 2023
Rio Tinto and First Quantum Minerals ("First Quantum") have completed a transaction to form a joint venture that will work to unlock the development of the La Granja project in Peru, one of the largest undeveloped copper deposits in the world.
La Granja is a complex orebody located at high altitude in Cajamarca, Northern Peru, that has the potential to be a large, long-life operation, with a published Indicated and Inferred Mineral Resource totalling 4.32 billion tonnes at 0.51% copper.
Https://www.vistazo.com/enfoque/proyectos-mineros-impulsar-desarrollo-comunitario-CL5782224
Just been published, just one mention of Ecuador and one of SOLG in the footnotes, plenty of other copper-related investments elsewhere. Just for the background....
https://www.londonstockexchange.com/news-article/BHP/bhp-fy2023-results-announcement/16092464
For as much as I would like to see a higher price, I doubt that we will go beyond the 30-40p range. I would love to be wrong of course, and get the big sale followed by the 60ft sailboat.
Luca, do you know how to use punctuation, or for that matter, how to actually write? Then we can approach the topic of what you write.....
Between the two, there is a description and analysis of the deal with the government and it's given as a fact that SOLG will build the mine and start paying royalties from 2025. To state that must imply there should be a path to funding otherwise SOLG could not commit, but that's just my guess.
Given that we already know that SOLG is not affected by the Court del8beration about the environmental consultations, it would seem that the only thing missing is the 2.7-3.0 bln to build the mine, hence the strategic review that should reveal how Cascabel will be funded (buy, jv else).
But this is the fundamental question we have been hoping answer for years to get our exit.
So, all in all a good report of progress but not one that moves the dial decidedly.
GLA
...if you take the 0.12/lb average of all deals, or half if you take the 0.06/lb average for non production assets, equal to 0.488 price
Based on M&A valuations posted in that article, Cascabel alone (including copper, gold and silver) should make SOLG share price worth around 0.975, not shabby if we can get anything remotely close to that.
I don't see so much contradiction to be honest.
The intended strategy has never changed in my opinion, as in let's tell the market we are going to develop but of course if the right offer comes through we will consider selling.
What has changed, gain in my opinion, is that where NM went for the bigger resource numbers in order to attract the prospective buyers but did not actually advance the project because he overestimated the buying interest, SC is doing the practical things that had to be done in order to make the project sellable.
Of course they want to sell and monetize, but equally until a buyer shows up they need to advance the project in case a different financing solution needs to be put in place.
Plan A and Plan B have never changed in my opinion.