Blencowe Resources: Aspiring to become one of the largest graphite producers in the world. Watch the video here.
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Thanks Picked and 100% agree with. As mentioned I have had 2 terrible experiences there-all down to local corruption and croneyism. Only bought ACP because I thought it was a unique situation, just wish it was in Botswana or Uganda.Only have a few and it will stay that way!! Appreciate your comments.
Incidentally my Mother was married in Dar in 1952,but it was Tanganikya then-a far better place!!!
also you can argue the toss about graphite v nickel both have plenty of industrial applications but a 'risk off' aspect of Horizonte is that the first mine is targeting very established industries. Sure, EV is exciting, and sure we don't have a better solution for batteries yet, but just as a risk quantification measure the fact that stainless steel isn't going anywhere, grows very well yoy on demand side, and no short term prospect of substituting nickel just means risk is low. And the volume of demand means you can't just turn on loads of new capacity, or more importantly, you can't turn it on at Horizonte C1 costs. So surely Araguaia not getting financed is a vanishingly low probability in that context.
O/T reply///
Bwana - Tanzania is right now just about my least favourite jurisdiction to invest in, its a close race with Zimbabwe. Petra Diamonds has had terrible problems there. A consignment of mined diamonds seized was the start of the downfall of Petra. https://qz.com/africa/1074700/tanzania-has-seized-15-million-of-diamonds-from-petra-diamonds/
Petra now has its Williamson mine in Tanzania mothballed and on care and maintenance only. This is a struggling company and finding it not worth the effort to run one of the world's largest diamond mines.
Beyond the seizure they are now in court facing human rights abuse charges, the individuals behind the case are anonymous https://www.mining.com/petra-diamonds-accused-of-human-rights-abuses-in-tanzania/
Its a hard jurisdiction to do busi t looks on the surface to be business friendly, but isn't.
I suppose one aspect of ACP worth mentioning on the Horizonte board is one of risk reward because that is relevant to Horizonte. Personally, and each of us judges this differently, for me it's a more risky play. But IRR is huge. So reward _could_ (and I say could because I don't know) be higher.
What I find amusing about Horizonte in a way (though it will get less amusing if it stays this way another couple of years) is that the risk is relatively low (fully permitted, lowest quartile cost, and we have suitors with deep pockets so you imagine financing as a formality) and yet the upside is huge. So, the market isn't valuing it correctly. For me, perhaps, ACP is correctly valued for risk/reward at the moment but Horizonte certainly is not. Again risk judgement is subjective so all only IMO etc.
Hi Bwana (apologies for the O/T) I'll be truly honest and say I understand Africa little to invest in, so my stake is very modest and will stay that way. I am in touch with people who have contact with Matt Bull so the opportunity was recommended to me, I like the idea of graphite (even if it may not get used by all companies for e.g. Tesla trying to factor it out of their battery) as I don't think all manufacturers will go exactly one route with chemistry. As for the licence other miners have been granted licences recently I think, I know that's no guarantee, but it's at least one reason I keep my stake modest (my biggest miner loss was lack of permitting so I too learnt the hard way)! Just to put it into context I have 250k shares there for my 23m+ here so as I said v. modest stake.
That said I might be interested in scaling into opportunities like that as they progress. Clearly financing and permitting are risks (and not complete yet) but when they are, even at a higher price, it might be very investable.
Here of course at Horizonte just to bring it back on topic, we have all permits for Araguaia and surely would be a formality for Vermelho. Bigger mine build of course so financing is a bigger deal here. But permitting (at least while Bolsonaro is in charge) is hopefully a non issue for Horizonte.
Apologies for asking this on HZM board, but Wasa I have also been buying ACP and saw your name on the Board. I really like this situation at ACP but hate Tanzania-I have been shafted there twice now-very corrupt and difficult country to do business in. Mega Fool we clearly be re-elected, but do you have any view on the licence application? Is there any worry we will not get it?
Any thoughts greatly appreciated-only have 1m shares and not buying anymore there because I am so scared of Tanzania.