Gold prices just lower; monthly gains on track
Investing.com - Canaccord Genuity initiated coverage on SolGold (LSE:SOLG) (OTC:SLGGF) with a Speculative Buy rating and a price target of GBP0.46.
The research firm highlighted SolGold’s 100% ownership of the Cascabel mining concession in northern Ecuador, which contains two main economic deposits: Alpala and Tandayama America (TAM).
Canaccord noted that SolGold’s upcoming Definitive Feasibility Study (DFS) is expected to include a TAM starter pit operation designed to generate early cash flows before the development of the larger Alpala deposit.
The firm forecasts construction of Alpala to begin by 2027 with production starting by 2029, followed by strong cash flows beginning in 2030, which would be the second year of production.
Canaccord also mentioned SolGold’s plans to monetize some of its concessional value by spinning out and selling a stake in its entity called ExploreCo, which holds high-priority southern Ecuador concessions including Porvenir, expected in 2025.
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