NYSE MKT: XPL (20 min. delay)
Last Trade:
[Most Recent Quotes from www.kitco.com]

Join Email Alert



Email Addres:

Telephone w/ country code if outside USA:

(This number will only be used in case of transmission error.)

Search Site

This website (including drill hole information
and mineral reserve and resource numbers)
has been reviewed for accuracy by Mr. Walt Hunt,
COO for Solitario Exploration & Royalty Corp.,
who is a qualified person as defined by
National Instrument 43-101. 

2015 Review & Outlook for 2016

Solitario (NYSE MKT: XPL; TSX: SLR) is embarking on a fresh start for our company and shareholders. We are excited about our newly defined corporate strategy presented below and the opportunities that abound in our financially stressed industry. We want to share with our shareholders our plans and objectives for 2016.

Mt. Hamilton Sale Paves the Way for a New Chapter
With the recent sale of our 80% interest in the Mt. Hamilton gold project to Waterton (see Solitario news release dated August 25, 2015), Solitario is now in a position to redefine its corporate goals moving forward. We received $24 million in cash from the transaction and paid-off $5.0 million in corporate debt to become debt-free. We begin the fourth quarter of 2015 with approximately $18 million in cash.

As a note of interest, we invested approximately $14 million into the Mt. Hamilton project since its acquisition in August 2010. We have estimated we will report a gain of approximately $10 million on the transaction. This is an exceptional outcome during this period of nearly universal losses reported by most other mining companies that have sold assets within the past two years. Clearly, we acquired the right property under favorable terms and successfully enhanced its value in these challenging times.

We should also mention that Solitario’s management team executed a similar strategy in 2006 when we sold our parent, Crown Resources, owner of the Buckhorn Mt. gold project, to Kinross Gold for proceeds in excess of $150 million, benefitting Crown’s shareholders. Solitario was a major beneficiary of this transaction netting approximately $25 million in Kinross stock within the framework of that transaction.

A Strong Tradition as a Project Generator
Prior to the Mt. Hamilton acquisition, Solitario was historically a very successful project generator. We identified and acquired new properties, conducted early-stage exploration that demonstrated mineral potential and then joint ventured many of these projects with major mining companies, while retaining a significant carried interest. Over the years we have partnered with over a dozen intermediate to major mining companies on a number of projects involving multiple commodities (gold, silver, zinc, copper, lead, and platinum-palladium). One of these projects, our Bongará zinc project in Peru, remains under a carried joint venture arrangement with Milpo Mining, one of Peru’s largest zinc producers. In total, Solitario’s partners have expended over $100 million on our joint venture projects.

Recapping Our Strengths and Defining Our New Direction
• Solitario is in a very strong financial position with approximately $18 million in cash and no debt.
• Solitario is a proven project generator that has attracted major mining company interest and investment under favorable joint venture arrangements on multiple projects.
• Solitario management has taken two projects through resource expansion, feasibility and permitting, resulting in attractive transactions to the company and its shareholders.
• Solitario retains a fully carried 30% interest in the high-grade Bongará zinc project.

Our Future
Our future plans and objectives are simple - Solitario will continue its battle tested strategy of identifying and acquiring attractive, high-potential precious and base metal projects where we can add significant value through additional work. We believe that this is the best path for generating significant new shareholder value. With the current depressed commodity price environment and stressed balance sheets for both senior and junior mining companies, we believe it is an optimal time for the company to judiciously deploy its new found financial strength.

We want to remain flexible in our approach – we will focus on gold, silver and zinc, but will not rule out other metals or corporate opportunities. Our targeted geographic range will be the safe jurisdictions in the Americas, but with an emphasis in Peru, Mexico, Canada and the U.S. We plan to focus on relatively early-stage exploration projects that have some drilling and potentially a defined resource, but we will also look at select greenfield projects and/or advanced exploration projects where our feasibility and permitting experience may be beneficial. We will continue to evaluate royalty opportunities on advanced projects, but we believe current royalty acquisition costs in the industry are generally fully valued and do not offer the opportunity for multiple returns on investment.

We will be patient in not only finding the right project, but also the right terms for transactions that fit our technical and financial capabilities. Finally, we will be vigilant in maintaining a strong balance sheet and a low number of shares outstanding.

What's New at Solitario

Solitario Exploration & Royalty Corp.
4251 Kipling Street, Suite 390; Wheat Ridge, CO 80033 | Tel: 303-534-1030; Fax: 303-534-1809

Copyright © 2013 Solitario Exploration & Royalty Corp.

Website Powered by Pite Creative