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Here you go Pad..............
The smart money is on a joint bid for London-listed Solgold by BHP and Newcrest Mining, as early as June.
Both miners have acquired minority stakes in SolGold which controls the enormous Cascabel copper-gold concession in mining-friendly Ecuador.
Sources say BHP CEO Mike Henry has been persuaded to go with Newcrest because of the latter's expertise in block caving.
An alliance would assuage investors' fears of ‘execution risk.' Block caving issues have hampered progress at Oyu Tolgoi in Mongolia where Rio Tinto is undertaking a tricky and expensive expansion programme.
Problems at Oyu Tolgoi haven't been lost on Henry who is said to favour an ownership model similar to Escondida, the Chilean copper operation jointly controlled by BHP and Rio.
Said one analyst: "It was initially going to be one giant block cave, and that was proved to be too ambitious. The trouble with block caves is that unless you have a nice vertical ore body, a nice regular shape, you're going to have huge amounts of dilution, as it wanders up and down, left and right etc."
It's rumoured Henry and Newcrest boss Sandeep Biswas have recently held talks to cut a takeover deal. The two companies are expected to bid following the release in May of the long-delayed Alpala preliminary feasibility study.
The Alpala deposit is the main target at the Cascabel concession, located on the northern section of the heavily endowed Andean Copper Belt.
SolGold is one of the largest holders of mining concessions in Ecuador, but Cascabel is the most advanced. The Cascabel-Alpala property contains a resource of 2.6 billion tonnes at 0.53% copper equivalent. Annual metal production in the first 25 years was estimated in the 2019 preliminary economic assessment (PEA) at 207,000 tonnes of copper; 438,000oz of gold and 1.4Moz of silver in concentrate. The estimated mine life is 50 years.
The PEA assumed lower copper and gold prices than we have today, but at the time, analysts were concerned by a capex number of close to $3bn.
A scaled down PFS is expected from new SolGold CEO Darryl Cuzzubbo, a former BHP executive, appointed at the end of 2021.
Some analysts expect the 2019 forecast of Alpala's net present value (between $4.1 billion to $4.5bn) to be cut by up to 30% - keeping initial capex within tight limits.“
Nice DBW..............
Goldman highlighted "an extreme fundamental turn" for copper, as for the first time in a decade, global copper stocks on exchanges declined through March "instead of rising during what is the metal's main seasonal surplus phase."
Afternoon Red.
I acknowledge your points and suggest you are a top contributor (mostly positive) to this BB - a point which I have made several times over the last 6 months.
To be honest I was a bit peeved at a lot of the negativity over the last week. For example on Tuesday we had a lynch mob demanding clarity from the BoD as to the way forward. If as you say they read our posts, they are not going to be jumping with joy.
We must remember that every move SOLG makes has been analysed & strategized to the hilt. For example the process of appointing of a new CFO must have taken a good 6 months or more.
I have every confidence that whatever vehicle is used to fund SOLG for the next 6 -12 months will the best option for us shareholders. The new team has not let us down to date, so let’s give them the benefit of the doubt and give them the time to action.
I am absolutely delighted with the appointment of Ayten Saridas. By all accounts a bit of a Rock Star in her field of expertise. The number one question I ask myself is not what she can & will bring to the table (which of course is pertinent), but why has such a high flyer joined the team?
The answer (as with Cuzzubbo) is that she knows Cascabel will be realised and her services will be pivotal to the project success.
The futures bright Solgers (despite the SP!!)
Damers.
Flamin Galah, I se the de-ramping anti-Solg & 1p warriors are out in force.
True Solgers don't give a flying Fcuk about your 1p's, 2p' & 10p's.
£1 - min for Cascabel
£1.50 - min for SOLG
.............nothing else matters
WE WILL RECEIVE A BID THIS YEAR.............. you heard it here first!
Morning David.
I agree with you sentiment, but surely all options (& now additional ones US IPO) are on the table.
- it's just been 20 days since PFS
- does this new appointment add further pressure to Majors to bid for Cascabel sooner rather than later?
-there is still the subject of the regionals (sell of or JV's).
Still all to play for IMO.............
The Board of Directors of SolGold (LSE & TSX: SOLG) is pleased to announce the appointment of Ayten Saridas to the position of Group Chief Financial Officer (“CFO”) of SolGold.
Ms. Saridas, who will assume her new role on June 27, brings over 30 years of international corporate finance experience with a proven track record in delivering results and creating value. Ayten is a high-impact executive who brings a compelling blend of strategic and capital allocation discipline, well-honed finance skills, and transformational leadership abilities.
Ms. Saridas previously held the position of Group CFO for ASX listed and US based Coronado Global Resources where she led the company through the largest global IPO for a metallurgical coal company in 2018. Prior to this Ms. Saridas held a number of CFO and executive roles with major ASX listed companies across the energy, resources and infrastructure sectors, including Santos, AWE Limited and Woolworths.
With demonstrated experience in raising capital for major projects, financial reporting, mergers and acquisitions, sustainability reporting and investor relations, Ms. Saridas brings a wealth of financial and commercial experience to the SolGold team.
Darryl Cuzzubbo, SolGold Managing Director and Chief Executive Officer said: “On behalf of the Board, I am delighted to welcome Ayten as CFO of SolGold. Ayten brings extensive international experience funding capital intensive and complex industries and is also recognised as a proven listed CFO with outstanding integrity and commitment to strong governance. Her strategic insights, leadership and experience will greatly assist SolGold to realise its full potential as an organisation that enables Ecuador to supply the copper crucial for a net zero emissions future.”
Incoming CFO Ayten Saridas said: “It is a privilege to join SolGold at such a crucial time in its journey. SolGold has a tier one asset with global significance and I look forward to working together with Darryl and the Board in delivering on the company’s growth plans and reaching the next critical milestone.”
Mr. Ingo Hofmaier will continue in his role as interim CFO until Ms. Saridas’s appointment and will remain as Executive General Manager, Project and Corporate Finance of SolGold. We are very grateful to Ingo for stepping into the role and thank him for his hard work, commitment and dedication over the last 18 months.
By order of the Board
Dennis Wilkins
Company Secretary
Happy Monday folks.
The latest Ambrian Report rates Cascabel as the most likely Copper prospect IN THE WORLD to be taken over.
https://www.orocoresourcecorp.com/_resources/blog/RFC-Ambrian-Copper-Projects-Review-2021.pdf
The first Analyst rating post PFS was from Bank of America: BUY – 70p (only rated Cascabel and valuing PFS addendum @ £500k).
The Ecuadorian Government & the 600 people who have moved to the Cascabel area are convinced this project will be realised.
BHP / Newcrest / DGR Global / Cornerstone / Blackrock / Tenstar / Norge Bank are all stakeholders – for good reason.
Franco Nevada funding of $100 million for just 1% royalty share of Cascabel (before release of PFS) only proceeded after due diligence.
Darryl Cuzzubbo’s link with BHP cannot be ignored – he is the ‘mediator’ as TwoPorkChops has suggested.
The SOLG hit rate for finding Tier 1 prospects in Ecuador is incredible – already we have two (inc Porvenir). Of the 13 ‘priority prospects’ could we see a further four or more Tier 1’s?
What treasures are hidden within the next Rio drill results?
Precious metal shortage pinch point ETA 2030 – Cascabel’s scheduled payback start period.
Mining Journal 15th March ’22:
‘It's rumoured Henry and Newcrest boss Sandeep Biswas have recently held talks to cut a takeover deal. The two companies ARE EXPECTED TO BID following the release in May of the long-delayed Alpala preliminary feasibility study’.
Tick, tick, tick, tick..................BOOOOOM.
Damers.
Tks Col. Drake for your input today - informative as ever.
I for one would be delighted if Boliden joined the party - this would further guarantee that Cascabel will be realised. Your comment regarding Porvenir is also very interesting and that outcome would be a positive.
I am super chilled regarding Solgolds prospects. Will they be realised this year? I hope so, but if next year the sale value will only increase and the Majors will be fully aware.
The futures bright Solgers (even without the rose tinted glasses on!)..............
Copper. Not a childish comment, but a little little light humour on a BH Monday.
You have suggested previously that you a a farmer ('up @ 5am to milk the cows'), so I make no apology for a little Neil Parish related sledging .
'but leave my missus out of the conversation' - get a grip sunshine.
What is the chain
That binds us together,
The links invisible
That intertwine our simple lives
Into complex webs
Of experiences that are, were,
And are yet to have been?
It's Solgold you bunch of muppets - so have a beer chill the fcuk out....................
20th April:
We had the PFS presentation where it was stated that: ‘what drives the critical path for the overall project is the ESIA’.
The timeline shows this as a duration of 2 ½ yrs. It was repeatedly noted at presentation that the ESIA (Environmental, Social, Impact Assessment) is on the critical path. The ESIA will also include Tandayama feasibility.
30th April:
Move forward just 10 days and……….’Ecuador Cabinet changes reflects the Government wants to accelerate results’
https://www.bnamericas.com/en/analysis/ecuador-cabinet-changes-put-spotlight-on-strategic-sectors
(compliments of DBW).
If the Government is wanting to push the subject forward (which it clearly is) then the sooner a bid WILL land.
PFS Presentation:
https://www.youtube.com/watch?v=1cbttbDjKjs
19:10 – Caves 2, 3 & 4 @ Alpala (as previously discussed)
25:18 – Timeline
39:36 – ESIA critical path
40:20 – ‘what drives the critical path for the overall project is the ESIA’
Damers.