Monday 20 May 2019 7:19 pm

Solgold chief executive encouraged by new study

The chief executive of a London-listed company that runs a promising gold and copper mine said he is encouraged by a new study showing the project will cost between $2.4bn (£1.9bn) and $2.8bn before it starts to produce.

An assessment, released today, shows the president net value of Solgold’s Alpala project is estimated at between $4.1bn and $4.5bn.

The Ecuadorian mine, which is the company’s first project, has allowed Solgold’s valuation to grow from £20m in 2015 to around £700m today.

“Even though we’ve got a $2.8bn capital start-up cost our, low global costs of capital, high internal rates of return, short capital payback period and very long mine life means this project is outstandingly financeable and that’s why we’re getting a lot of interest in it,” chief executive Nick Mather told City A.M.

The mine is set to extract between 40,000 to 60,000 tonnes of copper a year, the company said today, bringing the project’s lifespan to anywhere between 49 and 66 years.

“The future is bright,” said chief executive Nick Mather, “copper has a great price, and on top of that we’ve got 12 other projects.”

Both BHP and Australian miner Newcrest have bought into Solgold, becoming its largest shareholders with stakes in the teens.