Zanaga Iron Ore Share Discussion Threads

[topazfrenzy] 09/3/2016 13:18

Anything over 70000 shares is being referred to broker, no shares available once again, so tightly held these.

6 to 8 p base coming here in my opinion.

[topazfrenzy] 09/3/2016 12:11

Articles on the New Silk Roads -








("For example, last week’s agreement signed by Standard Chartered and other banks with the London Metals Exchange reflects the increasing demand for commodities from OBOR projects.")

Get in now, this is what investing is about, not just punting on shares that may have something or not - Zanaga has the biggest iron ore mine in the world not fully owned by a major, and it's all ready to go once the money to build it is committed.

[topazfrenzy] 09/3/2016 11:58

Loverat, I am happy to be in this for sure, Glencore is on the up again today (and lately) and iron ore is one metal that will recover strongly as it is needed for everything in infrastructure.

I'm not sure if people are aware but a new silk road is in the planning, from China to the Middle East, which will launch a new super commodities boom. Massive infrastructure projects will be unleashed. See the big money scramble to get their hands onto projects like this one.

Investing for me is buying an excellent project at cheap prices, Zanaga is one of them. With Glencore on board third parties will be found before long, when Iron Ore stabilises around $60 to $80 most probably. Then see this share rocket, and I mean rocket, you saw how 100% + is achieved with paltry numbers, within an hour.

[nash81] 09/3/2016 11:54

Iron ore prices jump 21% :

-Iron ore producers to gain from sudden jump in iron ore prices
-China watchers are looking for pro-stimulus statements coming out of the China National Peoples Congress which is going on this week

[loverat] 09/3/2016 11:13

topazfrenzy

This stock largely depends on the price of iron ore. Not sure what other news could push this.

Are you sure you've not got yourself locked in here?

[topazfrenzy] 09/3/2016 11:13

Crazy to think that in 2011 a hundred thousand shares would have cost as much as £200,000 and now they can be picked up for £3,000, with the project all set up to roll once funding is forthcoming.

This is a super strong buy in my book, a real recovery play for when commodities start to boom again, and they will.

[topazfrenzy] 09/3/2016 10:56

A very good and clear interview with Head of Corporate Development at Zanaga. Albeit from 2012 (when they were in partnership with X-Strata before Glencore took over X-Strata), it still explains the project in some detail; it really is a compelling mega-project, with very low production costs once it has been set up. Since then I believe the cost of setting up the project has been brought down much further, to only $2bn.

When Iron Ore really picks up again then this is the one they will all want due to high quality.



A further interview from 2014, with the same chap

[topazfrenzy] 09/3/2016 09:44

The big difference between the Zanaga deposits is the quality of the iron ore, as summed up in the presentation from their website:

• Australian product quality decreasing
• Fe grade declining and impurity levels rising
• China needs higher quality ores more than ever before

• China’s domestic pollution problem will improve with higher quality ore supply
• Evolution of Chinese steel industry to higher quality steel products requires high quality ore feed
• Pellets (and pellet feed) will play an increasingly important role

• Resulting impact on product premiums/discounts has been significant
• High quality products receiving significant price premiums
• Price penalties increasing for low quality material

[tomboyb] 09/3/2016 09:30

Commodities have had a woeful few years -

If Iron does recover to a meaningful level, ( not current levels) then there could be significant interest -

Cash rich plays include AEY 1.5P ( CASH around 3p i think) SRO 4P ( CASH around 10p?)

[topazfrenzy] 09/3/2016 09:22

Anyway pauladrew, if you want cash in the bank then get a cash ISA.

[pauladrew] 09/3/2016 08:07

Richie666 it is not end of as you put it, because you omitted to inform people that your figure of 3p was based on last years cash position at end of June 2015 and the 3p meant an increase in that figure from around £6.8m to over £8m based on the current m/cap. I can't understand why you did this!

[richie666] 09/3/2016 08:05

Paula - 2.4p - 3p v close. 0.5p way out. End of.

[loverat] 09/3/2016 07:49

I think if someone looks at previous accounts and RNSs over the last year, the cash figure could probably be reasonably estimated.

Has anyone actually done that yet, or are you all arguing about this based on your personal positions on the stock - which you probably only took up yesterday?

I don't think cash burn can be estimated based on previous periods activities. Read the RNSs

[pauladrew] 09/3/2016 07:49

Richie666 you stated 3p per share = around £8.5m cash position, when in fact the cash position at June 2015 was only £6.8m minus cash burn to date. Yes you were trying to pull the wool over people's eyes.

[tomboyb] 09/3/2016 07:47

This is either a monster of a share or not -

"Together with Glencore, the Company is jointly exploring funding options with a view to attracting third party debt and equity financing for project implementation."

If they get it with Glencore then this looks like a monster of a share price -

[richie666] 09/3/2016 07:42

And with respect I believe it is YOU trying to pull the wool over people's eyes here for whatever reason that may be...

[richie666] 09/3/2016 07:42

Paula - CALL THE COMPANY and ask yourself. If the company has 0.5p per share I'll personally buy stock off you for £1 per share. How's that?

The company itself relayed they have 3 years cash left at the new burn rate.

[pauladrew] 09/3/2016 07:36

Despite what you say the accounts are in black and white and the cash position was around £6.8m at June 2015 minus 8 months cash burn to date. Based on the current cash position and burn levels, how can you make such a sweeping statement that 'they have another three years' worth of cash to keep things going as they are.' I think richie666 was trying to 'pull the wool over people's eyes' when he stated that the company had 3p per share cash value. 8 months down the line and based on the cash burn between June 14 and June 15 the cash per share at end of June 16 could be down to approx 0.5p per share.

[richie666] 09/3/2016 07:17

Spot on Nash

[nash81] 09/3/2016 00:52

regardless of whatever cash position it, so far, market has given almost NIL value to the zanaga projects, despite JV has spent around 100m to the project.

thats in itself tell that ZIOC is hugely undervalued and obviously worth much more than cash position of around 3p

compare that to for eg, BEM which also has iron ore but only a fraction of ZIOC proven reserves and still far away from production and they are valued around 20m mcap. thats around just below 10p ZIOC.

[richie666] 08/3/2016 21:48

Paula - call the company and ask them to settle the speculation.

[topazfrenzy] 08/3/2016 21:38

Pauladrew, with less than $3 million dollars in total spent in 2015 and a reduction since then, you can expect from the $9.7 Million to have another three years' worth of cash to keep things going as they are.

I hope this calculation clarifies the matter.

Of much more importance is the price of Iron Ore and how tightly these shares are held with just under 74% of the total (of 280 million) not in public hands.

The share price where it stands is pretty pathetic and therefore anyone interested in a recovery play could make a killing here as the share price moves very fast on very little, and I would say that most now holding at this level are not interested in letting them go until they leap up much further. I am not referring to day traders btw.

[pauladrew] 08/3/2016 21:20

Richie666 your revised figure of 2.4p is based on the cash position last year at end of June 15. 8 months down the line and based on the cash burn between June 14 and June 15 the cash per share at end of June 16 could be down to approx 0.5p per share.

[richie666] 08/3/2016 20:18

Paul - $9.7m/1.42 = £6.83m / 279m shs = 2.4p.

Take a look at their last a/cs - cash burn has been cut dramatically.

"Following the reduction of the cost base at the Zanaga Project, as well as the costs associated with the management of ZIOC, we are now well positioned to support our operations going forward. As at 30 June 2015, we had cash reserves of US$9.7m and continue to be prudent with our cash."

[pauladrew] 08/3/2016 20:11

topazfrenzy I note what you say but the cash position is not 3p a share as that would equate to over £8m. The cash position on 30th June 2015 stood at £6.8m minus 8 months cash burn to date.I asked richie666 how he arrived at a cash position of 3p a share (based on the current m/cap at 8.67m calculated on 3.1p per share).

DYOR and work out your own figures but if you work on the same cash burn over the last 12 month period, the cash left at 30th June 2016 could be down to £1.3m.