Zanaga Iron Ore Share Discussion Threads

[1fox1] 01/3/2018 16:22

This is an old note taken from 2011 but the fundamentals still apply.

file:///C:/Users/david/Downloads/Zanaga121211outlook.pdf

[dark energy] 01/3/2018 15:56

Who's going to give them £15m?

who do you think they will tap?

FFS get a brain

[aja5] 01/3/2018 15:55

He is filtered 😀

[1fox1] 01/3/2018 15:54

Dark energy. Sorry mate the point you make isn't worth a reply. Utter tripe

[aja5] 01/3/2018 15:46

Extrader.....again you are comparing apples and oranges !!!
They haven’t even started a BFS they need to finance circa £15 million for that oh and it will take near on two years!
FFS.....who is paying you ???

[dark energy] 01/3/2018 15:45

Fox

what Bob said meant for a small project e.g Pilot. You really do not think they go large right?

why would someone put £500m instead of putting a low ball offer for this sick puppy?

Most long terms holders will be happy of 15p, getting rid of this dead weight off their books


Low ball offer of 15p to take it out of its misery

[1fox1] 01/3/2018 15:36

Extrader. If there is a rights issue and the project is a 100% goer I should imagine the price will be at a much higher price than today

[1fox1] 01/3/2018 15:33

Bob are you seriously referring to Zanaga as a small project? The funding will of course come from either a company buying the whole project or a third party taking a large slice of the company for a slice of the cake

[extrader] 01/3/2018 15:16

Hi all,

Here's a link to another high grade iron ore project - Hawsons in Oz - to give an idea of typical (Ist world) project costs/structure for a 10 mtpa plant producing 68% + ore. It is current (Dec 2017) and includes a sizeable rail and port infrastructure cost, so has some read-across to ZIOP. See especially pages 20 and 21 (project economics)

hxxp://www.carpentariares.com.au/uploads/files/articles/1512966512Presentation%20December%202017%20Final.pdf

Their cost is est. USD 1.4 billion, financed 35 equity/65 debt (10 years).

Let's suppose ZIOP is much smaller scale (5 Mtpa ?), but will have some costs lower and others higher because of location.

Say, for the sake of the maths, it costs half or USD 700million, at 1.4 = £ 500 million.

Assume the same D/E split and ZIOP has to raise £ 175 million. GLEN has to agree to stump up its share. Loose change for them. We have the other 50%, so have to raise £ 85+ M in equity

This is the pilot project, proving up the concept and barely scratching the surface of the resource, we wouldn't want to give away the big follow-on prize.

At today's price, we're worth barely £ 35M and have minimal cash. To raise £ 85 M, we'd need a rights issue (with 100% takeup) in which EVERY investor was offered and took up 85/35 = 2.5 x their existing holding at the current s/p. Those who didn't / wouldn't/couldn't would, effectively be diluted by 60%, not just for the 'baby' pilot project , but the bigger follow-on project(s), Phases 1 and 2. Since 100% takeup is unrealistic (and the offer process costly), I'd expect some significant underwriting, which means automatic dilution of PI's.

I've got no idea what the returns on 'pilot' would be, but have to say that on a risk / reward basis they're unlikely to appeal to me. On a cash call basis, this is a 'big ask' of our major shareholders, who are in it for the end-game.

Maybe they'll think that 40% ( = 20%)of something is better than 100 % (= 50%) of nothing ?

Feel free to shoot down my numbers and assumptions. It's given me something to do indoors on a wet and windy afternoon !

ATB

[b0bdown2] 01/3/2018 14:58

So fox which third party will lend them £500m?

Ok lend them £50m?

Do you think Glencore waste their time on small project just for the sake of it.

[b0bdown2] 01/3/2018 14:55

a 300K delayed sell?

Why oh why not sell yesterday when there was no rns? I suppose mug punters are plenty about.

[1fox1] 01/3/2018 13:24

If they had a dilution policy sandcrab they would have had a couple of fund-raises already. No I honestly believe it isn't their policy. Anyway if they chose this route it would be at a far greater price than today.

[sandcrab2] 01/3/2018 13:11

Only issue now outstanding is how the small scale project is to be financed

Mention has been made of dilutory equity funding ,together with debt

I imagine working out the balance between the two is what is causing the delay

I pray we are not talking about massively dilutory equity funding

[1fox1] 01/3/2018 13:09

Nope I'm still here and still in profit. Who's the idiot writing in large red letters. Please write smaller then I don't have to scroll to far down the page. Your post was rather silly anyway

[the greedy labrador] 01/3/2018 13:05

Wouldn't even surprise me if we end up blue. Pete and Topaz hope you didn't bottle it on the drop? Just a thought Ant that little workout could have cost you more than you think.

[glenbo1] 01/3/2018 12:54

BulletI shall put you forward for the Nobel peace prize..........

[the greedy labrador] 01/3/2018 12:49

Good workout I hope Ant?

[uen_investor2] 01/3/2018 12:47

UEN marked down yesterday on a positive RNS Take advantage...

Another positive article on UEN published..

www.branduk.net

Summary

"Summary: Although the UEN share price drifted lower for the majority of 2017, the developments at the South Dagi oil prospect has seen shares double in value in a very short space of time. As I would expect with oil E&P stocks, the low VectorVest RS rating may see cautious investors look elsewhere, but nonetheless, UEN fundamentals, earnings growth and current valuation gap all add up to a highly attractive oil sector play at this moment in time. Buy.

Dr David Paul"

[the greedy labrador] 01/3/2018 12:44

I really can't believe I have had two bites at the cherry. 10.5p or 11.99p I'm not really bothered. Risk/reward now clearly to the upside. If anyone can't see that they must be blind. Nash I didn't ask him. That would be insider information. He did and I repeat say they were having to get through a hell of a lot of work. Hence the delay. Let me say one more time. THANKS AGAIN ALL YOU SELLERS. Your shares are safely tucked away in my cupboard now. Do yourselves a favour don't come back in a couple of months time and look at the share price.

[sooty snipes] 01/3/2018 12:36

Duck and dive. I'm still here. Topped up few more too. You guys really are over the top. Instead of trying to scare people you should have been buying yourself. Never mind you probably frightened people into selling. My mate the Labrador loves people like you. Well done Lab you greedy greedy dog ha ha

[nash81] 01/3/2018 12:34

did you guys check chart by nictrades in voxmarket?

[nash81] 01/3/2018 12:32

LABRADOR

did AH gave indication on why delay (apart from waiting for third party etc) and also whether the result so far is encouraging?