Zanaga Iron Ore Share Discussion Threads

[extrader] 04/7/2023 10:28

Well, I'm wary of 'confirmation bias' but there's a lot of work been done over on lse that suggests that 'maybe, just maybe' this time it's different.

hxxps://www.adportsgroup.com/en/news-and-media/2023/06/20/adpg-signs-a-30-year-extendable-concession-agreement-with-republic-of-the-congo

for example.

NAI, DYOR etc etc

[pugugly] 04/7/2023 10:08

It s apparently in the pipeline - Enough to get jittery holders to get out and lock in profits after the (imo) the very speculative rise. Down 58% in 5 days (ADVFN Fallers for 5 days)
NB Used to hold but sold at 19p many years ago during the last mad spike in IO prices. However never re-entered as logistics never seemed practical given lack of infrastructure and massive costs of creating them.

[extrader] 04/7/2023 10:00

The subscription agreement isn't available yet...and there's no obligation to dump.

Which you'd know, if you bothered to read the RNS.

HTH

[pugugly] 04/7/2023 09:59

Appears to be a classic pump and dump -

[johnjames876] 04/7/2023 09:57

So the fake rise was to ensure the holders of this subscription agreement could offload at profit

[kirk 6] 04/7/2023 09:57

This is probably one of the worse stocks for this type of financing as they will have to dump a certain amount of shares each day which will drive the price down hard

[801710245] 04/7/2023 09:52

Was that 279,361 trade made just now, or delayed from earlier?

[aja5] 04/7/2023 09:16

“And shareholders have lost faith” ?? Two fairly newbies have over on LSE ,I have not seen a LTH indicate that just the recent arrival of what I call pondlife!

[extrader] 04/7/2023 09:14

.."If they did a placing it would have been done at a massive discount..."

and would have required a measure of disclosure that I don't think they want to give.

And though in some respects this resembles death spiral, ZIOC has some discretion/say in when and how much they tap of the facility.

Unlike most AIM co's, Elphick to his credit has kept the share number pretty static

Shares in GEMD in 2017 141m, today 142m

Shares in ZIOC in 2017 275m, 'today' ie pre RTO 307m

It is what it is.

[terminator101] 04/7/2023 08:27

If they did a placing it would have been done at a massive discount. The only alternative is to go to the bucket shop death spiral finance providers. The end result is generally worse, it just takes a bit longer to get there.

[extrader] 03/7/2023 18:50

Elphick's obsession with minimizing dilution (normally commendable) may have back-fired this time.

OTOH, anyone wanting to buy in now can go to Shard and will have the satisfaction that their money is actually going into the Company's coffers and not the pockets of (likely as not) a trader...

[babbler] 03/7/2023 17:01

Unfortunately there was a failed break of 18.5 long ter resistance here then the company decided to do death spiral funding

[chesty1] 03/7/2023 15:12

CHESTY129 Jun '23 - 09:07 - 2301 of 2319 Edit
0 0 0
On no news either! great if you've made money here but some will be stuck in now.



Bang on the money!

[extrader] 03/7/2023 11:07

Where's the beef?

Or, in this case, the 'green ore?

(1) Thanks to Jiving for the Economist 2014 info re Exxaro>Sapro Mayoko's substandard resources at Mayoko Lekoumou, which makes it unlikely (famous last words) that they're the intended primary target of the 'Gulf consortium's attentions.
hxxps://country.eiu.com/article.aspx?articleid=1531975337&Country=Congo%20(Brazzaville)&topic=Econ_1

So, who else is there?

(2)That article also mentions Equatorial Resources' project at nearby Mayoko Moussondji, which appeared to be still viable then (2014).

ER obviously feel they have something worthwhile, since they've JUST STARTED litigation, taking "its investment dispute with Congo to arbitration at the International Center for Settlement of Investment Disputes (ICSID), in the US, claiming that unlawful measures had been taken against its Mauritanian subsidiary EEPL at two of its investment projects in Congo. " ie Badondo (upcountry, near Belinga) and Mayoko Moussondji.

See



"The Congolese government has until August 2023 to respond to the claims."

Furthermore .."Equatorial has meanwhile told shareholders that the company is evaluating the merits of a litigation funding agreement, which would provide the company with non-recourse funding to cover the legal fees and other costs of the arbitration against Congo.."

This would probably be Burford Capital (BUR), a specialist funder that has just won an award (final size shortly to be determined , USD 4Bn to USD 8 Bn) against Argentina, also for expropriation.

It only takes on abt 10% of the cases offered to it, where it sees a high chance of success, it's key yardstick for declining a case is

"Your motivations are insufficiently economical."

(3) Burford is already behind the other big 'known' iron ore deposit in Congo, Sundance Resources (as was) at Mbalam-Nabeba, up-country, straddling the border with Cameroon.

hxxps://www.miningnews.net/politics/news/1409378/sundance-attracts-legal-funding-backer-for-case-against-congo

Sundance are seeking US$ 8.76 Bn damages, for cancellation of permits (and handover to a Chinese company).

Quite apart from the logistical issues, I can't see the 'Gulf consortium' taking the commercial and reputational risks of getting involved with (2) or (3), when there's 'live' litigation in progress.

And not a good look for Big Den/Little Den, if they're trying to attract foreign investment later this year.....

So, unless there's another deposit out there (pls advise !) ZIOC = TINA, IMO.

AFAICS

GLA

[greenelf] 03/7/2023 09:12

10%???"In the event the maximum number of Subscription Shares are issued by ZIOC and subscribed for by SMC, the share capital of ZIOC will be increased by c.5.9% on a fully diluted basis, based on the 593,374,746 ordinary shares in the Company in issue as at today's date."

[aja5] 03/7/2023 09:02

10% dilution??
😂😂😂

[kimchi1] 03/7/2023 09:01

Clifford Elphick, Non-Executive Chairman of ZIOC, commented:

"I am pleased to report that ZIOC has launched a process with its Chinese EPC Partner to secure Chinese contractor pricing and to update the cost estimates of the 30Mtpa Feasibility Study, while also considering the application of new iron ore processing technology to reduce estimated costs further.

Furthermore, port infrastructure discussions are underway with a large port infrastructure development firm seeking to expand the existing port of Pointe-Noire. Consideration is also being given to potential development solutions for a large bulk mineral port capable of supporting the 30Mtpa staged development project.

2022 was apivotal year for ZIOC, with the controlling shareholding of the Zanaga Project being acquired from Glencore in exchnage for shares in ZIOC. The streamlining of the ownership and control of the Zanaga Project enables ZIOC to now engage with strategic entities interested in participating in the Zanaga Project going forward, and ensures a single unified voice engaging with collaboration partners on the ground. It is pleasing to have secured the support of Glencore for this initiative and I look forward to working with the Glencore team in unlocking value from the project for all stakeholders going forward. "


--

Just for a bit of fun have taken a punt at under 10p, knowing full well it could be a loooooong-term investment, lol.

[highly geared] 03/7/2023 08:40

So, around 10% dilution, assuming at or around current share price ( now the froth has well and truly come off the top). I suppose it depends how and when a deal is done for the iron ore assets ( whether “ imminent “), versus c. £3m of new shares to be offloaded into the market and whether sufficient retail to absorb them.

[kimchi1] 03/7/2023 08:33

Wow - Been watching the rise (and subsequent fall) - I'm sure I saw a 100k @ 18p buy trade go through a week or so ago ...

[kemche] 03/7/2023 08:20

Institutional Investor now in.

GLA LTHers!

[aja5] 03/7/2023 08:17

I see more pondlife is around