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Just saw that in Globo! Chinese Foreign Minister wished Lula well and say they want the visit to happen as soon as possible.
Visit postponed due to Lula's ill health.
When BM gave that interview, the Iron Ore price was $149. it peaked shortly afterwards but I can see how the 50% reduction in price from the $161 peak on early April hampered negotiations. Currently at $126 so let's hope we stay around/above that. Brazil seems to be betting on a much stronger Chinese economy this year with a huge delegation led by President Lula to meet Xi for a multi-day visit this week.
Been almost a year since this interview with BM...would be good if he did another one. It's noticeable that Jangada rarely tweets about iron ore but tweets way more about the graphite market
https://total-market-solutions.com/2022/04/jangada/
Wow. Brazil has the attention of majors. Brian please get this done!
Now Anglo American are signing offtake deals for iron ore in Brazil..
Deals being done elsewhere Brian, hope you’re busy sorting something for Jangada!
https://www.bnamericas.com/en/news/brazils-bamin-signs-iron-ore-sales-contract-with-anglo-american
Rock Assay Vanadium Highlights:
6 chromite-rich rock samples ranging 0.15% to 0.20% V2O5, 12 to 19% Cr2O3, 1.4 to 1.8% TiO2, and 22 to 26% Fe2O3.
https://ceo.ca/@GlobeNewswire/valore-reports-high-grade-pge-trado-auger-and-rock
Opex
Mining/processing (non-logistics part) works out at circa $30 per tonne.
Trucking to port pecem $10 per tonne
Shipping to China Inc port services $34 per tonne.
So if selling locally as they’ve said hoping to the opex is circa $40.
Vanadium credits are supposed to be $45 per tonne, which if selling locally covers all the opex including logistics.
The project economics produced 100% post tax IRR. It’s hardly a marginal project, just needs the financing of capex!
Really dropping now. Logistics costs are I think more than half the opex - not sure what oil price they’d be based off though, but lower oil price has to help the financials quite meaningfully. Might also bring the capex cost down assuming there’s a fair bit of energy cost embedded in the construction, who knows. Iron ore price seems to be holding.
Must be getting closer to ‘pushing the button’, surely!
Not going to post for while now, hasn’t done one iota of good since starting. Think time for the company to do the talking.
Mesb, no worries mate. With Brian we’re used to poor communication almost designed to reduce any excitement or positive expectations!
SP reflects that in last 12-24mths company hasn’t done anything to draw Jangada to attention of potential new shareholders, newsflow has been light and communication poor. Net result is value accrued to pitombieras by market is now just circa £5m.
In regard to advised progress and newsflow there really is only room for improvement. SP should respond positively then as is often the case with companies that been a sleep starting to wake up.
And yes, my cash number was probably too low. I was really just going for a conservative round number although by the time you turn my £ number to $, it’s maybe not a big diff. If there’s been less physical activity, and it’s been mainly phone calls and meetings, then perhaps the cash burn has been lower than recently too.
Dcat, yes my binary comment was probably not the right way to express my feeling. There have been hints of other aspects but they’ve not yet shown their hand.
Trying to express it in a different way then, I was trying to say if there was confidence in the viability of the project, but it was just subject to the usual uncertainty around permitting, financing etc., then we wouldn’t be at 3p. Obviously it works the other way around too. 3p is just the wrong price. Something relatively small could swing this either way, e.g. another clip of Luis at the mine site to say guys were still on the case would shift sentiment straight away, or something like that. I don’t really care about the share price today, but I do care to know the project is moving forward.
Good to see they’re bumping up the price for new investors. Expect higher still for any IPO..
My own estimates is circa $1.8m-$2m cash, with expectation we sold the last of our Valore shares as not mentioned in latest update..
Also add it’s not binary on pitombieras. We’re supposed to be getting a new project, as working on for a while I’d hope more than just an unworked tenement… Can’t assess until we know details, but pitombieras was a new project 3 years ago and got us from 2p - 10p SP in 12mths…
Much better to be using cash on own projects. Fodere and Bres might be great investments, but more value should be added on own projects.
Interesting that the latest addition at Companies House says Fodere issued shares last summer at £645, decent jump from the previous issues.
So if that’s used to value our stake, it’s worth £1.1m. Add £800K from BRES, probably still north of £1m cash by my back of packet calc, that means I get to about £5m for Pitombeiras within a £8m market cap. Even without any titanium benefits, that leaves a decent risk/reward certainly compared to others I look at, factoring how disgestible the capex bill is likely to be. So the question I keep asking myself is whether the radio silence means Pitombeiras is really alive or not. It’s almost binary now at 3p.
https://twitter.com/AusVanadium/status/1635879928792256512/photo/2
Nasdaq article on it now.
Note the commentary about Ceara green energy/hydrogen ambitions as an attraction and how could help Arcelmittor ESG credentials.
You know something else that helps on ESG? Buying local raw materials which aren’t be transported far…
https://www.nasdaq.com/articles/arcelormittal-mt-acquires-brazil-based-slab-producer-csp
Seems like this is what Luis has been waiting on.
Finally takeover of largest steel mill in Ceara completes. Come on Brian/Luis, this beast of a mill at full capacity spoof go through 5m tonnes of iron ore PA. Hopefully just what you’ve been waiting for….
https://finance.yahoo.com/amphtml/news/arcelormittal-completes-acquisition-csp-brazil-211500178.html
It’s be good to get proper update from fodere, or even company presentation/IPO prospectus. At the moment it’s just little bit here and there through occasional LinkedIn post. They don’t even put the LinkedIn posts/announcements on their website!
Am guessing it would also need to have the environmental approval for the Highveld plant expansion to 15 tons/hour. Comment period finished in September so the report has hopefully already gone in some time ago to the relevant authority. For the original 3 tons proposal, there was roughly a 3-4 month approval timeframe. So that could be soon with any luck.
Thanks Mesb. I’ve been expected Fodere IPO for sometime and suspect the reason it hasn’t already occurred is challenging market. Would certainly be nice if they could say pilot plant is operating to those in any IPO.
And another correction just now. Which is helpful because I’m pretty sure this is saying Jeffry Quinn did put cash in at £412 per share which has to be a massive vote of confidence in the tech being likely to work. The announcement last summer said…
“Finally, Fodere also announced that in addition to the formation of the joint venture, Titanium North America has made an equity investment in Fodere and Mr. Quinn will join the board of directors”
Thought the share issue wording left open possibility was some sort of signing on bonus but looks like it was cash now, to me at least.
https://www.businesswire.com/news/home/20220720005068/en/Fodere-Titanium-Limited-Announces-Construction-of-Pilot-Plant-and-Formation-of-North-American-Joint-Venture-Fodere-America
Have to be positive or investing in this space can drive you nuts!