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There's never really been any volume before other positives RNS's, but I suppose not have been as earth shattering as something involving a Offer/Buyout ETC.
Think this story broke on the 16th .... if there is anything in it, the SP is taking time to gain traction.
I'm really not sure how this will play out .... guessing the less people in the know, the less chance of a leak .... so we could very well have an 'out of the blue' RNS and trading suspended. After that, who knows !!
atb
Like tapping the side of your nose and winking :)
Surely that is a subtle hint? Abit misleading if not.
Nice, wonder if the BOD will be meeting Baowu during their China trip
Nice, it does make one wonder...
I did email the company this morning asking them to comment on the link article..
Confirmation that there is something in this? Why else would AT post:-
https://twitter.com/Zanaga_Iron_Ore/status/1219194391597867011
From Efison research..."With an estimated FOB cash cost below the US$22/t level (including
contingency), ZIOP will be positioned in the first quartile of the global cash curve."!
https://www.google.com/url?sa=t&source=web&rct=j&url=https://www.edisoninvestmentresearch.com/%3FACT%3D18%26ID%3D6417&ved=2ahUKEwiEoNXolZDnAhVRiFwKHcUrBCwQFjABegQIARAB&usg=AOvVaw1EDDIqB5KA5CHI9DH_q60m
I think that makes sense ... $22 FOB plus transport costs would be around $40 CIF?
("CIF – COST INSURANCE AND FREIGHT (named port of destination): Seller must pay the costs and freight includes insurance to bring the goods to the port of destination. However, risk is transferred to the buyer once the goods are loaded on the ship. FOB – FREE ON BOARD (named port of shipment)")
https://www.google.com/url?sa=t&source=web&rct=j&url=https://www.morethanshipping.com/should-i-buy-cif-or-fob/&ved=2ahUKEwj0x9PxlpDnAhVZQkEAHfMMAPEQFjAHegQIDxAJ&usg=AOvVaw1NdIvyDpZoqWZVQz44UHm8
"Chen said the company would team up with other steel producers and jointly establish a fund to develop the mine, which would supply iron ore with an estimated cost, insurance and freight (CIF) price of roughly $40 per ton — well below the average price of imported ore last year."
Does anyone know enough about the Zanaga projections in the various RNS' to say whether our CIF price would be around the $40 per ton mentioned?
I think Simandou would be much more, so that may rule out Simandou as the mine they are looking for partners to develope.
Hi atg,
Taking a break from the olive harvest, a quick google brought up this snippet from 2018 :
https://www.miningglobal.com/investing/fortescue-metals-group-sign-eight-mous-leading-chinese-steel-mills
.."One of the world’s leading iron ore producers has significantly strengthened its Chinese relationships, singing a eight new partnerships this week alone.
Fortescue Metals Group announced in a statement this week that it is signing eight new Memoranda of Understanding (MMOUs) with major Chinese steel mills as it attends the inaugural China International Import Expo (CIIE).
Among the steel mills which Fortescue will sign deals with is Baowu Steel Group, the largest steel group in China and recipient of Fortescue’s first cargo of ore 10 years ago and its Echeng subsidiary, as well as Hebei Iron and Steel Group, China’s second largest steel group. …"
We're always being told how important relationships are to the Chinese...
All grist to the (steel ?) mill !
ATB
Hi extrader,
I am glad somebody is awake while the rest talk to the animals! I believe Baowu & Co are indeed our suitors and our time has come. This is going to explode upwards..
GL
ATG
Hi atg,
Thanks for this ! Another snippet from the same article :
.."Baowu Group has a stake in several overseas mines. In 2002, Baosteel Group formed a joint venture with Bao Ruiji Iron Mine and Australia’s Hamersley Iron Pty. Ltd., and it has also established projects with Australian ore company Fortescue Metals Group Ltd...."
Having recently missed out on Simandou, FMG may be a particularly 'motivated participant' in any upcoming project that Baowu is working on.
ATB
Oh yeah, what was the other news we had in December?
Steel Mill for ROC, see how that makes sense now?? China's largest steel prodcer!!!!
From the same article..
"Viewed from China, the world’s biggest iron ore importer, the global market is an oligopoly ruled by three giants — Rio Tinto, BHP and Vale SA — which together control about 70% of global exports.
Overseas iron ore mining forays by Chinese companies often fail due to lack of experience and local knowledge, as well as a failure to conduct sound risk analysis and plan accordingly, analysts say. They also tend to focus on lower quality mines because higher quality ones are controlled by global leaders."
#### Underlines the fact that China are desperate for directly controlled high grade iron ore. Zanaga fits the bill perfectly.
https://www.caixinglobal.com/2020-01-16/tired-of-high-iron-ore-prices-chinas-baowu-steel-sets-sights-overseas-101504961.html
"Tired of High Iron Ore Prices, China’s Baowu Steel Sets Sights Overseas
By Zeng Lingke and ***** Murphy
When the captains of China’s iron and steel industry met for their yearly industry conference in Beijing over the weekend, the cost of doing business appears to have been on everyone’s mind.
China’s largest steel company, state-owned China Baowu Steel Group Corp. Ltd., announced plans to expand its overseas footprint to boost its share of global iron ore mining operations, with Chairman Chen Derong revealing they had selected an overseas target.
Chen said the company would team up with other steel producers and jointly establish a fund to develop the mine, which would supply iron ore with an estimated cost, insurance and freight (CIF) price of roughly $40 per ton — well below the average price of imported ore last year."
!!!!!!!
####"revealing they had selected an overseas target."####!!!!
Something is going to go boom here soon, from one direction or another.