Zanaga Iron Ore Share Discussion Threads

[extrader] 05/5/2021 09:18

'Absence of evidence isn't evidence of absence'.

The re-costing exercise seems to have taken an inordinate length of time to conclude pretty much 'as you were'. Given inflation in a lot of inputs elsewhere, that's something , I suppose, but hardly 'game-changing'. They've used high quality consultants, which provides an element of 'bankability' to the numbers.

As others have commented , the RNS's are notable for their deafening lack of update on 'approaches' ; current relationship with COIDIC; and the radical offshore port concept/Yantai group's involvement.

There's a smaller procedural/admin issue that remains unaddressed AFAIAA : the 2020 element of ZIOC 'team's Retention Fee package


.." Retention Fee Package
...This consists of an additional amount (the "Retention Fee") to be determined on a one-off basis in both October 2019 and December 2020. .."

The 2020 amounts haven't been disclosed. When I asked AT about this a while back, he replied that they were 'too busy with other things' - which seemed just about believable at the time.

This may be a hobby-horse of mine - and I may be kidding myself (confirmation bias anyone ?) - but THAT argument doesn't hold any longer, if it ever did.

Taken all the above together, I'm on balance inclined to kick my own investment can down the road for another spell.

All IMO. NAI, DYOR etc etc

[the count of monte_cristo] 05/5/2021 08:34

emptyend, I agree with your timelines.

[davidlloyd] 05/5/2021 08:21

Tranch 2 got away at circa 8p a share it would seem.....
DL

[emptyend] 05/5/2021 08:17

Lets be clear: if this project is going to progress, then one of the steps along the way will involve Zanaga getting taken out. Anyone who thinks that RNSs will give them any clues in that regard needs their head examining.....The macro picture is unchanged. Iron ore is in high demand, this project is a very low cost source and, when China (or some other party) decides it will happen, it will. My guess is that will be in the next 6-9 months.

[the count of monte_cristo] 05/5/2021 08:15

probably for due diligence required by a Chinese investor, 2014 is a long time ago, prudent to go through the process if you are going to spend billions of dollars on a brand new iron ore project for the long term.

[robertjbeck] 05/5/2021 08:13

I suspect there must be some reason for restating the costs and resource. May be there is third party interest under NDA.

[the count of monte_cristo] 05/5/2021 07:55

I suspect that there is a lot going on now in the background, with a massive up tick in Chinese interest accelerating due to a) the increasing IO price b) the need to diversify away from Australia and c) the continued long term strategy to invest in and basically monopolies Africa's resources through the carrot and stick.

[gismo] 05/5/2021 07:44

How can they if they are in negotiations?

[mertymcs] 05/5/2021 07:10

Well that was a waste of time.Nothing given as to what they plan to donaoart from more can kicking of what they might do.

[yorkie52] 04/5/2021 21:15

Revised coatings etc. due end of April so maybe an rns this week?

[the count of monte_cristo] 04/5/2021 13:56

Yes, and if we are correct with our view and opinion on ZIOC then we stand to make considerable returns here. Patience is required, but the clock is ticking on China getting serious with Africa to diversify away from Australia. These resources are strategic and critical to China's growth and long term future, for the moment they have to play ball with Australia, to some extent. Australia are currently making 500 billion $ AUS a day from IO exports.

Copper and cobalt are the key metals for China, I think we will see increasing investments and takeover activity in the next few years.

I would estimate that there are more constructions cranes in the city of Changsha than in all of the UK. Most people have never even heard of Changsha:)

[greenelf] 04/5/2021 12:51

You are so correct! Unlike many of those worrywarts posters on the LSE.

[the count of monte_cristo] 04/5/2021 09:41

Whatever the delay, the stock is extremely cheap, sitting on billions of tonnes of IO, one of the largest resources in Africa, with a 51% backer in Glencore and the market cap is just 25m GBP, should be more like 100m GBP. Back in 2011, stocks like AAAM and BEM went to the moon on the basis of an increasing IO price and their potential IO resources. In the end AAAM was taken over, I was a shareholder in them and it was an exciting time. This period feels even more exciting because the demand is even stronger and so are the prices and the strategy of the Chinese is now 10 years advanced since the 2011 bull run.

[extrader] 30/4/2021 08:53

No idea. GLEN manages the Project, so they're presumably the client who's commissioned the review of project costings. Ultimately, the reviewers are answerable to GLEN.

ZIOC has been allowed to 'front' things up to now, maybe GLEN's getting more interventionist.

Which could be a Good Thing , or a Bad Thing.

Hopefully, we find out before too long.

[gismo] 30/4/2021 07:32

Still no RNS which was promised before the end of the month. What's the hold up?

[extrader] 27/4/2021 16:50

A 9.50 - 9.66 spread at the close, about as tight as I can remember seeing.

Hmmm...

[the count of monte_cristo] 24/4/2021 10:59

The Chinese are going to be planning long term on how to reduce their IO imports from Australia as they try and secure decade or 100 year plus IO plans. Increasingly, West Africa will see the benefits of this strategy.

ZIOC are sitting on a world class IO resource, one of the largest untapped IO deposits on the planet, it's just a matter of time before we see some movement in the sp, my opinion is that the market cap should be £40-50m GBP soon.

During the last bull run, over a decade ago now, some of the small cap IO exploration and development companies went on tremendous runs, multi bagging many times over.

[extrader] 22/4/2021 15:15

This was mainly a PR job, IMO, as reflected in the Q's, rather than the dirty business of how do we actually make money for our shareholders....

But doing something constructive with a hitherto dormant/stranded asset that was potentially a big emissions-reducer might be another bone to throw at the ESG lobby....

It's worth reminding ourselves that the 'good' isn't the enemy of 'the best' : there's a need to manage the transition !

See the wrangling in Brussels right now over a 'green policy' : can they still look at natural gas (as Poland wants : 'it's better than coal' ) and nuclear (as France wants : 'it's better than solar/wind with intermittency issues') ?

Ivan could really milk this if he put his mind to it .

IMO

[extrader] 22/4/2021 13:56

GLEN pre AGM webinar snippets

Hosted - audio only - by Tony Heyward , Chair , and Ivan (retiring CEO).

Overview by Tony re 2020 outcome and more detailed run-through by Ivan (who basically read out the content of the slides).

Tony (who answered all the Q's) keen to burnish GLEN's environmental credentials, saying GLEN was [ ed.: so far] alone amongst its peers in committing to net zero Scope 3 by 2050, in line with Paris agreement.

Questions were on climate (x4); labour rights; and remuneration policy. Tony smooched everyone, welcoming the opportunity to engage.

One questioner asked about 'nationalisation risk' in an environment where everyone would be scrambling for 'green commodities - Cu, Ni, Cob, Zinc - etc.

Heyward's reply was an interesting 2-parter :

(1)re crude nationalisation ? "generally, we see that as behind us ";

(2)but " we see an increased risk of host govts wanting an increased share of the 'rent'" : as an example, he then referred to an Oz exPM proposal to introduce a windfall tax on IRON ORE
hxxps://www.crikey.com.au/2021/01/28/mining-super-profits-tax/.

Tony wrapped up with praise for outgoing CEO Ivan's positioning the Company for the future and reminding everyone of his mantra of 'value over volume'.

E & OE, HTH

[deanmatlazin] 22/4/2021 09:32

RNS Number : 4715U

Zanaga Iron Ore Company Ltd

06 April 2021

6 April 2021

Update on timing of 12Mtpa Project Re-Costing Exercise

Zanaga Iron Ore Company ("ZIOC" or the "Company") (AIM:ZIOC) announces that the re-costing exercise on the Zanaga 12Mtpa Staged Development Project ("FS Cost Review"), announced on 29 September 2020, is being completed and is expected to be concluded around the middle of April 2021.


The Feasibilty Study result will come out any time. I am sure the numbers will be great. Hope Glencore will give full finance and this should rocket. Get in now

[extrader] 22/4/2021 09:23

If round figs 'sells' of 100K multiples are Shard - which seems likely - someone's posted elsewhere that they've run through 2.5 million in the last few days.

Shard started Tranche 2 of 7 million around 8th Jan, so I'd think likely.

If they have exhausted (2), we should be told (I know, I know), the interesting thing would be what ZIOC then had to say (if anything) about Tranche (3), which is optional :

.."Further, ZIOC has the discretion to elect to issue up to a further 7 million shares by way of the Third Tranche..."

We know mgmnt don't like unnecessary dilution, so any comment would be a useful (not necessarily welcome) 'smoke signal'.

IMO

[the count of monte_cristo] 22/4/2021 09:03

This board is surprisingly quite, during the last bull run in commodities 10 years ago the IO exploration and development companies did exceedingly well. This potentially has a long way to run, sitting on a world class IO resource, with Glencore as a partner.