Zanaga Iron Ore Share Discussion Threads

[kitcomet] 06/8/2014 14:16

Gues the only way forward would be for ZIOC is to sell itself on to either GLEN, or another miner then (chinese)? ... or just liquidate itself and return cash to the shareholders

[frogboy11] 04/8/2014 10:41

West Africa's iron ore tough to crack

Today, 10:40 AM
Investec's Hillcoat said in a pure equity perspective, there is an almost "zero chance" of financing a large project.

[21traader] 28/6/2014 10:18

Today, 10:11 AM

Zanaga Iron (LON:ZIOC) played down the impact of weak iron ore prices on its flagship project in the Republic of Congo, saying it would still be attractive at US$80 per tonne.

[pugugly] 22/5/2014 18:42

LB;> I stand corrected -

Maybe though we are both correct -

Maybe the liar is saying to the mug : Put on these rose tinted glasses and you can see the money !!!!!

Have a good evening.

[little beaker] 22/5/2014 17:10

I thought the definition of a mine was "a hole in the ground with a liar on top"?

Two if you include a certain ramper on this bulletin board.

[pugugly] 22/5/2014 16:42

hold your horses everyone -

This is now very much dependent on the financing costs and the level of interest required PLUS capital amortisation PLUS sustaining capital. Cash costs may be in the lower quartile BUT just look what the debt financing charges are doing to London Mining (LOND)

Before even considering investing suggest you construct a financing spreadsheet at various levels of interest, debt repayment and sustaining capital at various spot purchase prices of IO delivered China.

This could just become the standard definition of a mine" - i.e. A hole in the ground with a mug at the top.

All imo & dyor.

[paulypilot] 21/5/2014 18:14

Hi BPC10,

On funding, they said that ZIOC & Glencore are jointly pursuing funding options, and that there are various attractive deals available along the lines of Govt backed export financing for overseas contractors.

So it sounds as if the bulk of the capex can be financed using debt. However there will be an equity requirement too, most likely to be done by bringing in a new equity investor perhaps.

The fall in iron ore price is concerning, but ZIOC are so far down the cost curve, with a premium product (low impurities, and finely ground), that production will be cut by high cost producers before ZIOC becomes uneconomic. It still stacks up at current iron ore prices apparently.

Regards, Paul.

[bpc10] 21/5/2014 11:18

https://twitter.com/instutrade/status/469004122185035776Institute of Trading (@Instutrade)21/05/2014 07:37 COMMODITIES: Goldman says iron ore in early stage of structural surplus; China won't act as iron ore 'safety valve' much longer

[bpc10] 20/5/2014 14:46

Paul - what did mgmt say about progress on financing when you met them last week at their offices?

[laserdisc] 18/5/2014 15:19

Thanks paulypilot this link is very good for tracking iron ore daily prices along with other articles on iron ore

i continue to add this stock to my portfolio hopeful that zanga will still have a good % position once mining starts

[paulypilot] 18/5/2014 14:35

Hi bendar1,

Important to remember that ZIOC is right at the bottom of the cost curve, especially when you factor in that its iron ore is very low in impurities, hence will command a premium price. It will also be ground down so finely that some buyers may be prepared to pay a second price premium over and above, to reflect the fact that no additional grinding is required at the customer.

Factor all this in, including shipping costs to China, and Zanaga is around the cheapest iron ore production in the world. Therefore even if iron ore drops further in price, the project will remain viable.

Higher cost producers will reduce/stop production and hence tighten supply at prices still above the level where Zanaga stacks up.

Regards, Paul.

[archboldus] 15/5/2014 12:36

Been a bit quiet on here recently....anyway ZIOC mentioned again today by Paul Scott. Love the 2% fact!

"A staggering $330m has been spent on a highly detailed feasibility study, and once in full scale production, this project will account for 2% of global iron ore production, at the bottom of the cost curve.

When you look at the economics of the project, which is in the smaller, more politically stable Congo, in West Africa, it's hard not to get excited about it. The only question is how the capex funding of $2.2bn will be structured, as that is likely to lead to significant dilution for ZIOC, although there are safeguards in place on that front.

It's a long term project, and there is still a big uncertainty over project financing, but once in production Zanaga will be producing 2% of the entire world's iron ore, right at the bottom of the cost curve, and also crucially with very low impurities - extremely important where the largest producer of steel (China) is experiencing such terrible problems with pollution - a great deal of which is apparently created by steel and cement factories. So it's a speculative, but potentially very exciting share, in my opinion. The project has very strong economics, and is almost certainly going ahead, the only question mark is what percentage ZIOC will own of it once it's funded."

[dharmesh2979] 14/5/2014 07:11

15p is what id wait for for a good entry price, charts looking for it slide some more.

[tricky1000] 08/5/2014 09:00

I'm continuing to hold these waiting for further good news in the coming weeks!

[bpc10] 08/5/2014 07:41

Come back in 2016 when something is actually happening and the $2.2bn is sorted!!

[debz2] 08/5/2014 07:36

Wakey wakey everyone.

[debz2] 08/5/2014 07:08

Great RNS

[toolsmoker] 07/5/2014 07:51

Back to 52 week high today ?

[themadstork] 06/5/2014 21:05

I took a few just under 24p

Short term catalyst:

Always important for resource stocks IMO, and in this case we have the imminent and eagerly awaited feasibility study for the Zanaga project.

Assets:

50% of 2.5 billion tons of extremely high-grade iron ore, currently valued at just 6p/ton in the ground, which is extremely low compared to peers at this stage of development.

Funds:

$35m cash as of June 2013. Given approx $5m cash burn, ZIOC should have approx $30m remaining. Extremely strong cash position and no need to go to the market in the near future.

Partners:

They don't come much bigger than GLEN. It's extremely significant that GLEN stuck with the Zananga project when it has been disposing of development projects left and right recently.

Chart:

Looking extremely strong with a definite uptrend confirmed and buys posted a BB and Barchart.

Overall I am extremely pleased to have got in under 24p and expect a significant return short term and will reassess for he medium/long term

[toolsmoker] 06/5/2014 20:52

We'll someone other than me likes it down here .about time everyone woke up