Extract: " That nations Mining Minster Javier Cordova told local press over the weekend that numerous major mining players are streaming into Ecuador...specifically named 2 of the world*s gold miners, Barrick & Newmont. Noting that BHP Billiton, Fortesque Metals & Newcrest have all established a presence in-country in recent months."
"The gold story here is further boosted by recent discoveries like Cascabel gold-copper porphyry -being drilled out by Solgold in Northern Ecuador."
Comment:
I have not yet found any NEW discoveries by the Majors in Ecuador ie those named in the above article.
Extract: " Cascabel has prompted a modern rush of sorts into Ecuador. Aussies that have made their way to the country include Newcrest and BHP. The pair had a bit of a scuffle over Solgold last year, with Newcrest emerging with a now 14.5% Solgold stake for a cash injection of US$63 million. Other Aussies to move in Ecuador include 2 Aussie billionaires-Andrew Forrest*s Fortesque & Gina Rinehart*s Hancock Prospecting. Among all the exploration action sits little Avalon...."
<><> Nicholas Mather Interview with Hot Copper at IMARC, Melbourne [top of this page] in recent days. Mr Mather said that Ecuador could produce 20% of GLOBAL COPPER supply (Please check).
Ref: "Global demand for copper projected to advance 4.2% through 2019 to 36 million metric tons valued at $261 million."- Freedonia group.com
Comment:
So 20% of $261 billion = $52 billion.
Ecuador*s GDP = US$97.8 billion.
One can see why Ecuador wants to enter into the mining industry. Please check.
Conclusion: I agree with Waiken*s post - it is a very sophisticated game but one that will take in many factors like:
(1) Berenberg View {Solgold tweet of 1 Nov 2017 already posted) that "Following years of under-investment in exploration many of the majors hold very thin project pipelines", "
(2) "Goldman says market not fully appreciating what*s sending copper higher, as it ups forecast." Nov 5, 2017
(3) In an earlier BHP article of recent days, they said they are going into Ecuador to look for big discoveries at surface (Please check as it has already been posted).
Mining majors are guided by Management Reports. The last report advised majors to do JV*s with junior miners. Majors have had to strengthen their balance sheets during the mining down turn. As such, majors have not entered into mega takeovers and bidding wars etc.
Hence, why majors are entering Ecuador to do exploration themselves.
Whether that will change or not, one has to wait to see.
Suffice to say, that should Solgold enter into production for Cascabel, Northern Ecuador & La Muerca, Southern Ecuador (either or), the co may become a mid-player themselves given Cascabel appears to be a mining district [see Berenberg View as earlier posted].
It is encouraging to see that Solgold is readying for the time ahead via the £45 million private placement with a syndicate led by a leading Canadian bank @25 pence (8 Nov 2017)
The copper situ is helped by: " Bloomberg Market starts talking about copper*s return to record prices." - 15 hrs ago, 9 Nov 2017
Sol1, Hot Copper poster, Thur 9 Nov 2017
Please check, DYOR.
DGR Price at posting:
9.9¢ Sentiment: None Disclosure: Not Held
(20min delay)
