Zanaga Iron Ore Share Discussion Threads

[petebarnes1] 09/3/2018 13:04

that is very enlightening tidy !!!

[aja5] 09/3/2018 12:56

Extrader......I think your comparison is a strange one in any event.
The NHS is spending public money,something the public sector has never been very good at!

It is relevant because of any potential taxes as and when they appear,a shell company with decent recorded losses has value.....

[petebarnes1] 09/3/2018 12:56

thanks tidy

[petebarnes1] 09/3/2018 12:53

i actually think glencore will want to sell & also zioc to a third party. And are just advertising the asset and its quality to the market. Rio tinto would be a prime buyer. I think the small development is just to show whats for sale. not glencores thing really

[petebarnes1] 09/3/2018 12:53

Great news mate, wish you all the best , i to feel we will multi bag this year

[aja5] 09/3/2018 12:52

Pete.....just a few months.
I hope I have chance bed and isa some of my holding and will increase in the new tax year as well.The wife will all so become a share holder too in April

[tidy 2] 09/3/2018 12:50

Glencore back to profit in iron ore trade for 2017London (Platts)--21 Feb 2018 1039 am EST/1539 GMTCommodities group Glencore said Wednesday iron ore trading volume increased marginally in 2017 as it rebounded to profit for the business among a widening in pricing by grade with less low grade demand in China expected.Glencore traded 47.7 million mt of iron ore in 2017, up from 47.1 million mt in 2016, the Swiss trader said in a report. Glencore booked adjusted EBIT of $7 million for iron ore, from a loss of $9 million in 2016 on the same basis.Iron ore reference prices averaged 22% higher at $71/dry mt CFR China in 2017, on 2016. While the benchmark rose last year, higher quality grades such as 65% Fe fines, some concentrates and feeds, pellets and other products won higher relative price premiums, especially through to October, while lower quality ore discounts widened.Glencore said while the overall supply of iron ore may increase in 2018, a decrease in low grade cargoes exported to China may be seen, as steel margins incentivised purer less-polluting grades."In 2017, we believe iron ore prices decoupled from iron ore fundamentals, by following steel margins instead," Glencore said."Iron ore split further into different market segments: the price of low grade iron ore continued to decrease throughout the year, while higher grades benefited from improving steel markets, hence overall prices remained at fairly high levels," the report said."Discounts for lower grade and high silica cargoes have now reached a level that is starting to elicit a supply response."Glencore's prepayments to iron ore suppliers to be repaid through future iron ore deliveries over two years as of December 31, 2017, totalled $1.172 billion, down from $1.571 billion in 2016. A total $1.092 billion of the amount prepaid is provided by the bank market. "The repayment terms of which are contingent upon and connected to the future receipt of iron ore contractually due from the counterparty."--Hector Forster, [e-mail]--Edited by Jonathan Loades-Carter, [e-mail]://www.platts.com/latest-news/metals/london/glencore-back-to-profit-in-iron-ore-trade-for-26895783

[extrader] 09/3/2018 12:49

Hi aja5,

Whatever.

The historic 'spend' is irrelevant to the buyer, tho' obviously the seller would like to get at least his costs back.

To show you why this is the case, consider the following (I'm approximating the numbers, but the principle holds) :

Two organisations spend £ 6 billion on hardware and £ 6 billion on software, for a total 'investment' of £ 12 billion.

One organisation - Google - developed a thing called a search engine. It was only one of a number on the market at the time, remember HotBot, Excite, WebCrawler, Ask Jeeves, Ask.com, Yahoo, Dogpile, AltaVista, Lycos, MSN Search, Bing, ...?

The other - our beloved NHS - invested in a system ( 'SPINE') to automate accessibility to patient records. It was a complete failure, ended up costing £ 20 billion and is considered one of the worst IT investments ever.



Google's investment of £ 12 billion was worth every penny and would be worth many multiples to a buyer. The NHS investment was written off.

Moral of the story ? Amounts already spent are completely irrelevant to the investment case.

HTH and ATB

[petebarnes1] 09/3/2018 12:47

aja5 hope your well, looks like we could have a blue end to today al being well who knows. But the future is very bright. How long have you been invested here

[aja5] 09/3/2018 12:43

Yes 2014
Either way it’s in the past!

[petebarnes1] 09/3/2018 12:38

aja5 Extraders comments are out of date and wrong IMHO the rns was a game changer for us. Lets deal with the now and the future not the past.

[aja5] 09/3/2018 12:14

I think your wrong.....but it’s really irrelevant in the long run,but I am of 5he opinion that glencore have spent $350 million to date and your saying $100 million

[extrader] 09/3/2018 12:11

Hi aja5,

No, I'm not : GLEN never invested $350 million (at least you're not stating £); GLEN acquired Xstrata, picking this project up in the process; Xstrata and ZIOC state this as their combined figure.

The ZIOC presentation I've already shown you re 'project costs' make this quite clear.

Quoting as your 'proof' another BB poster relaying an alleged comment by AT (of ZIOC) about the accounts of GLEN is laughable by comparison.

ATB

[aja5] 09/3/2018 11:42

Extrader......your coming round !!
Glencore have in their accounts the monies they have invested circa $350 million,then add on Jumelles/zioc costs into the mix......guess what it’s in excess of $700 million

[1fox1] 09/3/2018 11:37

The very thing that sunk the share price was the decline in iron ore prices. The project was mothballed for this very reason. What we are seeing now is a shift to higher grade ore to help clean up the pollution in China. This is pushing the price of high grade ore ever higher. How long before India have to follow suit? It's called progress. As these large countries become more affluent then people demand better living standards. It's only 60 years ago our main cities especially London used to get smog due to pollution

[topazfrenzy] 09/3/2018 11:27

tidy, I agree, the project value has increased in value due to 84% premium being paid for 65% grades, and Zanaga has 66.6%

Also, the cost of Stage One has decreased quite a bit.

[topazfrenzy] 09/3/2018 11:26

Who cares what people think, this project is progressing again and Glencore are fully on board, if people fail to see this then it's their problem, the real money will flow in here soon enough. PIs are lucky in the sense that they can get in now at this silly share price

Some are hoping it will go down further for them to buy back cheaper but it's looking like it may move up again by end of day, see them scramble to get back in if this suddenly moves up 20% lol

[tidy 2] 09/3/2018 11:24

Surely the value of the asset hasn't decreased in value in fact yesterdays RNS states its value is increasing in the current climate.

[petebarnes1] 09/3/2018 11:15

with a much improved ore price

[petebarnes1] 09/3/2018 11:13

fox todays price is barmy IMHO , we are going to production of high quality resource with the big boys. !!!!

[extrader] 09/3/2018 11:13

Hi tidy2,

Talking to AT he says Glencore still have Zanaga at the ipo price fwiw.

If true, they must have a different auditor to ZIOC, which took significant impairments - about $158.5 M worth - in 2014, the year their equity fell from US$ 230 M to US$ 60 M.

ATB

[1fox1] 09/3/2018 11:09

Extrader. Yes I accept your point. The main news for me though is the project was mothballed three years ago due to the decline in iron ore value. The company made the correct move to conserve money doing the bare minimum to keep the project open. What we are seeing now is the project commencing to the original plan. Let's not forget the company floated at 160p late 2010 rising to 210p in early 2011. The difference is the project has since come a long way from the float. Hence in my view at today's price it is very undervalued.

[topazfrenzy] 09/3/2018 11:06

The clock is ticking