Clear Leisure Share Discussion Threads

[temmujin] 29/9/2017 10:33

stupid idiots could have sold at 1.5p instead of 1.2p

[temmujin] 29/9/2017 10:29

oh dear price collapsing...might buy some at 1p

[mylands] 29/9/2017 09:23

Can't remember which posters to this thread have previously contacted the company. Perhaps they can contact the company again to find out when the court decision is going to be?

[knigel] 29/9/2017 09:16

Strange, I am currently in Jersey. Still perhaps we can all calm down and wait for the news..

[mylands] 29/9/2017 09:15

Taken from the RNS on 22nd August 2017:

'The Company will provide a further update to shareholders when material
settlements are signed and/or the findings of the Court are received after 29
September 2017.'

So, it could be that we won't hear any news for some time as, if I read it correctly, the 29th is the earliest date for the Court decision.

[temmujin] 29/9/2017 08:45

city boys dont like it when we expose them..lol!

[knigel] 29/9/2017 08:40

Still waiting for bullet ant to make a post that is not a personal attack! Grow up and get back to the nest with your other worker ants

[bullet ant] 29/9/2017 08:37

Can this MONG stop polluting afn?


KNIGEL29 Sep '17 - 07:57 - 2613 of 2615 0 0
Do you understand the words "fake news"?

[longshanks] 29/9/2017 08:33

If this gets to 20p I'll buy a bit of Zanaga. Somehow though I doubt I will ever own a slice of Congolese iron ore.

[daicaprice] 29/9/2017 08:20

Brisk start ahead of the Court decision.

DC

[knigel] 29/9/2017 07:57

Do you understand the words "fake news"?

[temmujin] 29/9/2017 07:47

rkb..how do you work that out? its your words im just the messenger..get over it,grumpy old git

[mylands] 29/9/2017 07:44

Simple solution which I use is the FILTER!

[rkbeekeeper] 29/9/2017 07:29

Temmujin you may think it is funny but before you posted the above we thought you were stupid but now we know you are.

Enjoy your day as you must lead a very lonely life.

RKB

[rkbeekeeper] 29/9/2017 06:50

Fake news

RKB

[temmujin] 29/9/2017 06:27

off topic but report by mrbeekeeper...maybe worth a side punt?

RKBeekeeper Investment Case: Zanaga Iron Ore Company (ZIOC)
Wednesday, Sep 06 2017 by Ash Deans 0 comments
3
Every now and then I come across a share that I was not expecting to find and that I’ve never heard anything about before, this is a classic example of one of those shares.

Yesterday Zanaga Iron Ore Company popped up on my radar due to a very strange action in the share price and some very large trades moving through a stock that typically sees very few trades per day.

This much un-loved stock may actually prove to be one of AIMs biggest movers this year!

Let’s start with the fundementals

Shares in issue: 279m
Free Float: Approx: 75m (27%)
Current MCap: £17m
52 Week High: 212p
52 Week Low: 4.6p
All-time High: 212p (No dilution since this high!)
All-time Low: 1.35p
Cash in Bank: Approx $4.5m

Zanaga Project Details

The bare fact is that the company sits with a mineral resource situated in the Republic of Congo that is one of the world’s largest with up to 6.9bn tonnes and of which 2.1bn is iron ore at a 66% fe. These figures have been produced in compliance with the key JORC code and the iron ore NPV (after financing and net of production and transportation) has been valued at anywhere up to $966m net to ZIOC based upon the current iron price of approx $55/tonne. (If the price of Iron Ore moves back closer to the $80 range then this puts the value up to $1.4bn!!)

The project is a 50/50 collaboration with Glencore ($40bn Mcap), with Glencore hold 1 share more than Zanaga to give them control of the project.

Zanaga management have been playing the long game this last two years, steadily progressing the project through, in the most important instance, the ratification of its Mining Convention and the lodging of the Environmental Permit that is now VERY OVERDUE and that will be another potential major milestone in the progress towards exploitation of this world class ore resource.

Next Catalyst

This project is waiting on the Environmental Permit to be obtained, this was expected at the end of the 2016 fiscal year which means it is now several months overdue and can land any day now!

Once the permit has been agreed this could spark a chain of events that will send this share price on a crazy journey.

With the permit in place I would expect ZIOC to look at selling their stake in the project and due to Glencore’s huge success over the past couple of years they are now in a cash rich position and according to their chairman they are looking to buy out projects that they already have a stake in.

“We are looking for opportunities around,” he said, adding Glencore was particularly interested in assets where it already had stakes or partnerships.

This would put ZIOC firmly on their radar, the only outstanding issue being the Environmental Permit which should land very soon.

My View: What happens next

Based on my research I strongly believe that once the Environmental Permit has been obtained ZIOC will look to sell their half of the project, either to their partner Glencore or to another party, potentially a Chinese interest as there have been rumours of interest from China in the past.

This is backed up by the share transfer announced on the 3rd April 2017, which I believe was to get everything ready for the sale of the asset.

I also see the directors holding a huge percentage of the shares in issue here which is a sign of confidence in my mind that they know what is coming.

It would not surprise me if the deal is already in place and the permit being obtained is the catalyst to finalise it.

In regards to the price for the sale of the asset, based on it being one of the world’s leading iron ore assets I would be surprised if it were to sell for less than $100m (fire sale price), with my estimate being somewhere between $200m-$300m.

When you compare this to the current Mcap of £17m you can see the huge value here!

The Mcap appears to only be this low as it is so far off people’s radars at the moment and the overdue nature of the Environmental Permit.

Downsides?

Are there any risks here? Of course, as with all shares there is a potential risk here that there will be further delay in the Environmental Permit, or that it might not be granted. However, given that all other permits and licenses have been obtained I see this as extremely unlikely.

The risk to reward here is huge in my mind. Very low risk, massive reward.

Targets

The movement in the share price here is going to be driven by the Environmental Permit being obtained… On that news I would expect the share price to move to around 50p per share (600%+ Rise)

I would then expect the share price to continue to rise up to the point of the asset sale, which would likely be over £1 per share (1300%+ Rise)

Due to the Very Low free float in this share it moves incredibly quickly which will make it very difficult to by once the RNS lands so this is one you want to be in before the news lands.

If you wish to check the figures here in this post then I suggest you take a look at the most recent investor presentation here to get an understanding of the size of this asset:

hxxp://www.zanagairon.com/pdfs/ZIOC-Investor-Presentation_21-Sept-2016.pdf

The share price at the time of writing this post was 6.125p

Note: I have emailed the company to obtain answers to a couple of outstanding questions. I will update this post once I get a reply.

[daicaprice] 28/9/2017 12:32

With the time difference we could hear something tomorrow afternoon but I'd rather it come 7am Monday morning personally so that the outcome can be digested before the bell.

DC

[longshanks] 28/9/2017 10:51

Doubt we will hear anything before end of trading tomorrow and I wouldn't be surprised to see the process extended another month. And if the winding up order is withdrawn they still need to monetise the Mediapolis asset which is still not a given. How much should a field of corn truly be valued at. All in all I think this is still a basket case investment proposition.

[mylands] 28/9/2017 10:07

The downside here if the court ruling goes against the company will be horrendous, hence the lack of upward movement.

Also the market wouldn't like another postponement, though that might bring out speculative buyers who would read into the delay a positive slant.

[daicaprice] 28/9/2017 09:56

I can't believe we've got to 10am Thurs and we're still only 1.55p temm.

DC

[temmujin] 28/9/2017 09:46

last chance sub 2p today...tomoro 3p to 10p

[daicaprice] 28/9/2017 09:40

1.59p paid for close on 500k, buyers returning.

DC