SolGold plc (LSE:SOLG) is a copper-gold-silver mining exploration and development company and is the biggest licence concession holder in Ecuador. SOLG is dual listed on both the London Stock Exchange and the Toronto Stock Exchange.
SolGold was admitted to AIM in February 2006 when it raised £5 million in before expenses by placing 10 million ordinary shares at a share price of 50 pence each.
Following the placing, SOLG had c. 26.8 million shares in issue and the market capitalisation of the company was c. £13.4 million.
In November 2020, SolGold had c. 3.001 billion shares in issue and SOLG share price was 15.54 pence giving a market cap of c. £468 million.
Overview of the company’s assets
SolGold’s flagship asset is the Alpala copper-gold-silver project, located in the highly prospective Andean Copper Belt, in which it currently holds an 85% interest. The Life of Mine is expected to be 55 years.
In May 2019, a Preliminary Economic Assessment (PEA) indicated that the project had an estimated Net Present Value of between US$4.1 billion and US$4.5 billion. This was on the basis of an 8% discount rate and the price of copper was assumed as US$3.30 per lb; price of gold at US$1,300 per oz; and price of silver at US$16 per oz. Pre-production capital expenditure was guided at US$2.4 billion to US$2.8 billion.
In April 2020 an updated Mineral Resource Estimate for Alpala indicated a 30% increase in Measured and Indicated resources which currently stand at 9.9 million tonnes (Mt) of copper, 21.7 million ounces (Moz) of gold and 92.2 million ounces (Moz) of silver.
In addition to Alpala, SolGold holds 100% ownership in 75 concession areas in Ecuador where they have identified 13 priority copper-gold resource targets, all at an early exploration and evaluation stage.
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