Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  AUSTRALIAN SECURITIES EXCHANGE LIMITED  >  Newcrest Mining Limited    NCM   AU000000NCM7

SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets 

Newcrest Mining : SolGold boosts budget to explore for copper, gold all over Ecuador

share with twitter share with LinkedIn share with facebook
share via e-mail
0
06/16/2017 | 07:00pm CEST

Copper and gold explorer SolGold (>> SolGold plc) on Friday said it was raising $41.2 million (32.25 million pounds), on top of more than $30 million announced in October, as it widens its search for resources in Ecuador after already finding one world class asset.

Copper and gold explorer SolGold (>> SolGold plc) on Friday said it was raising $41.2 million (32.25 million pounds), on top of more than $30 million announced in October, as it widens its search for resources in Ecuador after already finding one world class asset.

Ecuador has been increasing its profile as a country open to foreign mining and has shifted its resource focus from oil and gas as its reserves dwindle and oil prices <LCOc1> stagnate, analysts say.

The world's biggest miner BHP (>> BHP Billiton Limited) (>> BHP Billiton Plc) rated SolGold's mineral exploration prospects sufficiently highly to seek a deal but SolGold rebuffed it in favour of an agreement with Australian gold miner Newcrest Mining (>> Newcrest Mining Limited).

According to a share placement announced on Friday, Newcrest will pay a further $40 million to increase the size of its stake to 14.54 percent as part of a placing to raise a total of $41.2 million.

That adds to last October's agreement that Newcrest would spend $22.86 million buying new shares equivalent to 10 percent of SolGold, while private investment firm Maxit got 4.43 percent of the company for $10.1 million.

CEO Nick Mather said the new placement at a 15.5 percent premium to Thursday's closing price and a discount to SolGold's peak share price of 46.75 pence in May this year was a vote of confidence.

The share price rose nearly 10 percent on Friday and has climbed more than 64 percent this year.

Mather said Ecuador was underexplored, especially compared with Chile, the world's biggest copper producer, where miners have been complaining about dwindling ore quality and rising costs.

Abundant reserves of gold found in association with copper add to the appeal of mining in a more northerly country.

"The great thing about the North Andean copper belt is it gets increasingly gold-rich," Mather said.

"The copper miners will say the gold will pay for the cost of producing copper and the gold miners will look at it vice versa."

SolGold's flagship project in Ecuador is named Cascabel and exploration so far implies it is a major new high-grade copper and gold find to rival some of the largest existing mines, such as Grasberg in Indonesia, controlled by Freeport McMoran Inc (>> Freeport-McMoran), and Oyu Tolgoi in Mongolia, controlled by Rio Tinto (>> Rio Tinto Limited) (>> Rio Tinto).

With a market capitalisation of more than 500 million pounds ($639 million) on AIM, London's market for growing companies, SolGold is seeking to move to a standard listing on the London Stock Exchange.

It is also seeking a listing in Toronto, which will be considered by the Toronto Stock Exchange on June 21.

(additional reporting by Alexandra Valencia in Quito; Editing by Elaine Hardcastle)

By Barbara Lewis

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on NEWCREST MINING LIMITED
06/19 SOLGOLD : Newcrest investment in SolGold plc
06/16 NEWCREST MINING : SolGold boosts budget to explore for copper, gold all over Ecu..
05/19 NEWCREST MINING : Cadia expansion update
05/16 NEWCREST MINING : Update on status of Cadia operation
05/16 NEWCREST MINING : Offers Clarity On Cadia's Future
04/28 NEWCREST MINING LIMITED : - Update on status of Cadia operation
04/27 NEWCREST MINING : expects to hit low end of gold target after damage to flagship..
04/21 NEW TALISMAN GOLD MINES LIMITED (ASX : NTL) Quarterly Activities Report
04/18 NEWCREST MINING LIMITED : - Seismic event in the region of Cadia operation
04/18DJNo Major Damage Detected to Newcrest's Cadia Mine After Seismic Event
More news
Sector news : Gold Mining
06/15 FOSUN INTERNATIONAL : Polyus to sell up to nine percent of its shares in London,..
06/14 BARRICK GOLD : to hold talks with Tanzania over export row
06/12 TSX retreats as banks, tech stocks weigh
06/08 TSX gains as bank stock gains, Valeant jumps
06/05 POLYUS ZOLOTO : Russia's Polyus tests markets with London and Moscow share sales
More sector news : Gold Mining
News from SeekingAlpha
05/31 A Breakout Catalyst For Gold Miners
04/21 Which Gold Miner Is The Smartest Choice To Buy In April 2017?
04/12 Why The GDX Is Best
03/07 Big Gold Miners - The Sector Is In Trouble
2016 Silver Leads The Way In Precious Metals Stock Performance YTD
Advertisement
Financials ( AUD)
Sales 2017 4 475 M
EBIT 2017 993 M
Net income 2017 535 M
Debt 2017 2 216 M
Yield 2017 0,93%
P/E ratio 2017 31,17
P/E ratio 2018 21,06
EV / Sales 2017 3,97x
EV / Sales 2018 3,54x
Capitalization 15 553 M
More Financials
Chart NEWCREST MINING LIMITED
Duration : Period :
Newcrest Mining Limited Technical Analysis Chart | NCM | AU000000NCM7 | 4-Traders
Full-screen chart
Technical analysis trends NEWCREST MINING L...
Short TermMid-TermLong Term
TrendsBearishBearishNeutral
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 15
Average target price 22,5  AUD
Spread / Average Target 10%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
Sandeep Biswas CEO, Managing Director & Executive Director
Peter Algernon Franc Hay Independent Non-Executive Chairman
Gerard Bond CFO, Finance Director & Executive Director
John Menzies Spark Independent Non-Executive Director
Richard John Lee Independent Non-Executive Director
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
NEWCREST MINING LIMITE..3.65%11 900
BARRICK GOLD CORP-2.46%18 805
NEWMONT MINING CORP-2.94%17 618
SAUDI ARABIAN MINING C..--.--%15 300
AGNICO EAGLE MINES LTD7.49%10 762
SHANDONG GOLD MINING C..-20.10%7 997
More Results