Rainbow Rare Earths Phalaborwa project shaping up to be one of the lowest cost producers globally. Watch the video here.
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Do they not have some shares via Valuestone (their investment company)? Assume the two are linked
Jiangsu own Valuestone...this is not entirely unexpected.....
My take is that they dont want to sell the CGP stake pre merger, so they have issued these shares and the CGP shares will be taken into Treasury and then cancelled.
Otherwise they could not be voted. And of course Jiangxi will vote for the Directors who wish to remain because they are favourable to a Jiangxi bid.
But...the Chinese wont get the prize...neither the Ecuador government nor the other major players will want a major Chinese player with a foothold in Ecuador (look at the armlock they've had on the oil industry there) nerve significant increase in the global supply of copper.
Next...
Morning MM, yes they do. Valuestone is the investment arm of Jiangxi.
Worth noting that the Chinese through ExplorCobres, owned by Tongguan, lost out in court the other day on the San Carlos Panantza project in another part of the country, after the indigenous people voted against mining on their land.
A few days later, we have another Chinese firm increase their stake substantially in a Tier 1 elsewhere in Ecuador that is not at risk from the indigenous community.
Whilst the two firms are separate, they are ultimately all controlled by the CCP, who are not messing about when it comes to securing copper supply.
I wonder how much Lasso cares about who builds the mine? The West or the Chinese?
So here is my take...
The Board, aided by Sangha, are doing as much as they can to annoy BHP...first Oanother streaming deal and now a placing, both of which exclude ZBHP and dilute them.
So the Strategic Review is an invitation to interested players to 'sharpen your oencils'
RK1 we are selling the CGP shares, the RNS specifically metions 155m investment shares.
No, they're not. While the West has been asleep at the wheel for the past decade, China had been working hard putting its reserves to use on the BRI and buying up copper assets everywhere it could because a government that expects to be around for 50 years, looks 50 years ahead. Ask Robert Friedland who he'd rather be in bed with, the Rio Tintos and BHPs, or the Chinese? And many of you in the West may be very shocked to hear this, but the answer is exactly the same if the question was posed to heads of states in Africa. I am a bit uncertain about South America (because it is an ocean away from China), but when the Chinese sniff a bargain, they don't wait at all.
Oops pressedit too early.
So the SR says "we are up for sale" the merger gives you time to ready your bids and you will be buying the whole of Cascabel.
For Sangha to be so unprofessional, he would have to be certain there were bidder(s) waiting in the wings. Jiangxi didn't buy their initial stake through Valustone just as a bauble.
So I believe they are a 'stalking horse' and we know Mitsui ( Sumitomo ) are very interested as well ( look at what they're doing with a significant stake in Atlantic Lithium, another in the DGR stable).
So Nick and Bob have at least two bidders/ counterbidders lined up.
Meanwhile there is no way BHP will walk away without a fight. Ingo told me 2 years ago that BHP had all their best mining engineers in Ecuador looking at the whole of SOLG.
So....all the key personnel are gone...we have an Interim CEO...Elodie and Kevin are going..its only a matter of time before the starters gun fires in a bidding war.
Buckle up...
Oh and sorry Stack...you're wrong...not a BHP apologist are you...?
Sire F...
CGP own 157 million...the issue is 180 million of which 155 million are going to Jiangxi...
Red you are correct buckle up ,this mining rubbish being spouted is becoming more and more pathetic by the day imho
They're new shares...CGP own 157 million which will be redeemed post merger but in the meantime the temporary dilution and the threat to issue another 1.6 billion forces ZBHP and NCM to make a decision...
We could even start the bidding war before the AGM..
And surely we're due a TR1 for all the recent buying...?