Worries around the fate of SolGold鈥檚 (LON, TSX:SOLG) projects in Ecuador escalated this week after President Lenin Moreno, whose austerity measures set off violent protests, fled capital Quito and sought refuge in the southern port city of Guayaquil, triggering rumours of a coup d鈥櫭塼at.聽
The miner聽has seen its value halved since May, when a聽proposed referendum on mining聽casted initial doubts on the future of its projects and assets
The Australian miner聽has seen its value halved since May, when a proposed referendum on mining casted doubts on the future of its projects and assets. From the 37.60 pence its shares were trading on May 1st in London, they have fallen 17.20 pence as of Thursday morning, leaving it with a market cap of only 317.57 million pounds (about $393 million).
The copper and gold explorer, which holds 72 mineral concessions in Ecuador through four subsidiaries, tried calming investors on Thursday its operations remain unaffected.
鈥淭he safety and security of SolGold employees is of paramount importance, and the company has taken all necessary precautions and actions to ensure this is maintained,鈥� it said .
While SolGold expects protests to continue in the short-term, it also believes the government will be able to restore order soon.
Eyes on Alpala
The company noted is on track to finish a third mineral resource estimate for the Alpala deposit on Cascabel copper-gold project, which will be published before year-end. A pre-feasibility study, in turn, would be ready in the first quarter of 2020.
鈥淭he Cascabel project聽is聽a key project in Ecuador鈥檚 developing mining industry and a critical driver for the future of Ecuador鈥檚 economy in the view of the government,鈥� the company said.
Major miners seem to agree. BHP (ASX, NYSE:BHP), the world鈥檚 largest mining company, last year acquired聽, as a way of boosting its exposure to copper.
The move pushed Australia鈥檚 largest gold producer, Newcrest Mining (ASX: NCM), to聽, consolidating its position as SolGold鈥檚 top shareholder.