Zanaga Iron Ore Share Discussion Threads

[knocknock] 19/12/2013 14:36

So , shares go up in a straight line right?

BPC10 filtered for comments suitable to his teenage years.

[tilly1987] 19/12/2013 13:45

Morriseyme, I've been in MARL a long time and it's massively oversold. Hugely misunderstood drill results which in the short term is causing volatility in the share price but long term it'll come good. If you have time nip onto the LSE boards and search back through my MARL posts, a chap called theoriginalyoda and stubbsy1. All with good knowledge of MARL, it's my main holding.

[bpc10] 19/12/2013 13:27

stock onboard?

[parvez] 19/12/2013 13:02

they are just trying to get some stock onboard here....

[morriseyme] 19/12/2013 12:42

Back to sleep again here.

In the mean time have a look at MARL. Very strong buying and a string of newsflow to come on current drill programmes which is believed to be TRANSFORMATIONAL for the company.

They hit 9p last month but got hit with sellers. Currently 4p and rising.

[bpc10] 19/12/2013 12:36

Back to 15p by the looks of it

[knocknock] 18/12/2013 15:52

45% is bird feed compared to what's coming DM


;;-)

[drunken monkey] 18/12/2013 15:21

Pretty quiet here seeing as we've seen a proper 45% gain over the last 2 days (a buy at 15.5 an a sell at 22.5).

...and just check out the chart.... Mouthwatering...

[knocknock] 18/12/2013 13:49

Only just begun! Sssshhhhhh




;;-)

[parvez] 18/12/2013 11:54

fill up your boots for when the action does start there will be no stopping

[knocknock] 18/12/2013 09:17

Peace ,perfect peace. ;;-)

[mykai] 18/12/2013 08:31

Very quiet here all hushed waitnig for the breakout!

[tilly1987] 17/12/2013 16:44

Well done all ;) quick visit from over on the LSE boards. Happy today but at the same time, a little gutted, I was hoping to keep this gem under wraps until January, I was hoping to get some of my MARL and BMN proceeds put into here but hey ho a profit is a profit! GLA And long may it continue! Level 2 was intersting all day with WINS constantly upping the ask consistently througout the day, something is happening in the background, well done for keeping the faith guys!

[knocknock] 17/12/2013 16:32

Amen!



;;-)

[knocknock] 17/12/2013 14:26

Many more to follow no doubt, and if the peace and quiet remains on the thread all the better as we head back towards a conservative 60p

[blueball] 17/12/2013 11:34

Good day today for once.

[knocknock] 17/12/2013 10:02

Considering the limited free float and tightly held stock by some PIs I assume it won't take much to rattle those on the short tac.

[knocknock] 17/12/2013 09:36

Who knows? Perhaps there might be a resource update coming.

[cyberbub] 17/12/2013 09:33

Why the volume spike yesterday?

[drunken monkey] 17/12/2013 09:03

Something afoot....Re-bought at 16.25p

[knocknock] 16/12/2013 18:49

Tick tock.

[yorkie52] 29/11/2013 10:56

it could be the case that the big four are making hay while the sun shines because they probably realise that the Chinese will be looking elsewhere for their iron in a the next 5 to 10 years and Africa is one of the only untapped areas with great potential. we will have to see though.

[extrader] 28/11/2013 18:13

Hi BPC10,

The quote in the second one jumped out at me "the larger mining companies have not wanted to waste time in west Africa, where a lot of these junior players are."

Fair comment - save that the co's you refer to are all Western and AIUI the likelihood in ZIOC's case is that it'll be a Chinese co that buys in......?

ATB

[bpc10] 28/11/2013 14:29

Not overly positive articles posted on the iii site:

Rio fires first shot in iron ore war
By Esther Armstrong | Thu, 28th November 2013 - 10:56

Rio Tinto (RIO) was the FTSE 100's best performer on Interactive Investor on Thursday morning after the company unveiled a plan to boost its iron ore production at a significantly lower cost than expected.

The mining major said mine production capacity from its iron ore business in Western Australia would rapidly increase towards 360 million tonnes per year (Mt/a).

In the first half of 2014 the base run rate will be 290 Mt/a and the mine production capacity will rise by more than 60 Mt/a between 2014 and 2017.

Rio said a series of low-cost brownfield expansions will bring on early tonnes to feed the expanded infrastructure currently being developed.

The majority of low-cost growth will be delivered in the next two years with mine production of more than 330 million tonnes in 2015, it added.

A combination of expanding production at existing mines and securing further low-cost productivity gains will achieve the ramp up.

Rio has approved $400 million (£245.28 million) of capital expenditure for plant equipment and modification to support the expansions.

The additional production will be achieved at a cost of $120 - $130 a tonne, including the cost of infrastructure growth and mine capacity.

Sam Walsh, Rio's chief executive (CEO), said: "Expanding our world-class, low-cost, high-margin Pilbara operations represents the most attractive investment opportunity in the sector and is in line with my commitment to be totally focused on only allocating capital to opportunities that will generate the best returns to shareholders."

In the first nine months of 2013, Walsh cut expenditure on exploration and evaluation by 48.5%, in a bid to please shareholders looking for higher dividend payouts.

"The breakthrough pathway we have identified, combining brownfield expansions and unleashing low-cost productivity gains, means we will deliver the expansion at an estimated capital cost of more than $3 billion below previous expectations," Walsh added.

Analyst view

Shares in the miner were up 2% on the news, although the iron ore market is not without its fair share of challenges; primarily balancing supply and demand in a lower-growth world.

Earlier in the week the world's second most accurate metals forecaster forecasted the iron ore price would plunge to $110 per tonne (/t) by the end of the year, according to Bloomberg.

Roger Bade, mining analyst at Whitman Howard, said: "The report did not indicate what the top metals price forecaster was saying, but a move from $135/t to $110/t in just over a month suggests a collapse over the Christmas holidays, which at the moment looks unlikely."

Find out how mining analyst Roger Bade thinks the mining giants are squeezing smaller companies out of the market in: How the mining giants are suppressing your AIM stocks.

On today's announcement, Bade added: "Although investors are fearful of excessive iron ore expansion, news that Rio can get to its long-stated target rate of 360 Mt/a $3 billion cheaper than previously planned, will be taken as positive.
"This expansion is still not positive for the iron ore price, particularly if it now looks as though expansion will go ahead."

Meanwhile, Investec analyst Hunter Hillcoat said the ramp in production should not be a surprise to the market: "Rio's CEO had always indicated that 360 Mt/a would go ahead - it was just the timing of this that was under question and today's announcement provides both confirmation and clarity.

"While promoting a flood of new supply is not encouraging for the iron ore price longer-term, the reality is, in our view, that if Rio didn't do it, others would and Rio is in the best position to capture market share through its low-cost, world-class assets."

The stock is listed as a 'buy' with a price target of 3,668p.

How the mining giants are suppressing your AIM stocks
By Esther Armstrong | Thu, 17th October 2013 - 16:01

The "big four" mining giants have been accused of ramping up production in a bid to "squeeze out" juniors and prevent their prospects coming on stream.

Despite fears of oversupply of base commodities as Chinese industrial demand wanes, mining majors such as Rio Tinto (RIO) and BHP Billiton (12TR) continue to increase production rates.

Earlier this week in its third quarter update, Rio said it had boosted production in all but one of its shipments, with a record quarter for iron ore production and copper production up 23% year-on-year.

"Chinese demand is pretty good at the moment," said Roger Bade, mining analyst at Whitman Howard. "Whether that can continue to grow in the way it has depends on how the Chinese economy changes."

Either way he thinks there is a "power play" in action with mining giants keeping production high and impacting sentiment towards junior companies, making it harder for them to raise money to bring projects on line. "It is a psychological battle to prevent them coming on stream," he added.

Apart from BHP's project in Liberia and Rio's "extremely problematic" project in Guinea, the larger mining companies have not wanted to waste time in west Africa, where a lot of these junior players are.

Even farm-in agreements in the area seem unlikely after rubbishing the region for so long, Bade said.

Unless the mining prospects in Australia become less attractive or there is a change in the demand scenario Bade thinks it is more likely Rio and BHP will reverse any exploration attempts in more speculative areas.

Pressure from shareholders to return capital rather than splurge it on risky exploration prospects is driving many of the actions by Rio and BHP, which are gradually transforming into value and income plays rather than growth shares.

"They will now focus on sweating what they have and cutting back on anything unnecessary - that includes exploration expenditure," Bade concluded.

James Sutton, a member of the JPMorgan Natural Resources team, agrees that exploration costs will continue to be cut, but does not think the majors are ramping up production to purposefully hurt smaller companies.

"I do not know that they need to overproduce to squeeze some of the other iron ore producers. The big four companies that dominate the seaborne mining sector would be reluctant to overproduce because of the downward pressure that would have on price," he said.

Alongside Rio and BHP Billiton, Australian-listed Fortescue Metals Group and multi-listed Vale (VALE) are the miners Sutton terms the "big four".

"There are still huge barriers to entry and nobody is likely to get the skills these companies have acquired. It is an oligopoly and I cannot see that they would try and produce each other into oblivion."

The quote in the second one jumped out at me "the larger mining companies have not wanted to waste time in west Africa, where a lot of these junior players are."