The latest Investing Matters Podcast episode with London Stock Exchange Group's Chris Mayo has just been released. Listen here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
"jay12, so why is the market failing us ?"
Indeed. We have to ask, what is the wider market seeing that we are clearly missing? Answers on a postcard.
But seriously, have we missed something very significant here? With the prospects here market makers should be fighting buyers off. So why are we a pathetic 11p?
I'm looking for clever, thoughtful, considered answers please. Personally, I haven't a clue why these aren't 50 or 60p by now with all the bits of news we've had since enviro permit was granted.
If I had to guess, I'd say Glencore intransigence is playing a major part. They are scaring of any potential buyers because they know Glasenberg plays hard ball.
All I know (for sure) is that one fine day I'm gonna wake up and watch these going absolutely berserk.
Hi all, let me brainstorm with you
Forecasts turning negative on world economy -> BIG players (pension/state funds ) hesitant to explore zanaga
Small amount of guys who have done their homework and can undesrtand what zioc is
Mms that try to slowly accumulate by manipulating above (let me get fancy, maybe akso government officials wanna get rich out of it? )
My view -guess is that when we talk for a 0 earnings aim listed company the 'average prudent investor' would see no value . Also traders just checking their ratios can easily be fooled by this
Let me try put a quiz (actually too tired to do the maths/ factcheck but i know ppl here can help)
https://www.thebalance.com/using-price-to-earnings-356427
Based on above what should be the price on a base scenario of stage 1/2 bss earnings of say usd100 per metric ton?
How does it compare to average miners p/e ratio?
Thanks in advance to the one who solves this
My view
So the directors think this is worth billions yet the market cap is not even £100m. Why?
Value investors will look at the trailing PE ratio and strength of the balance sheet.
Mutual funds will not invest until the market cap is over £100m.
That leaves people like us who see the mind blowing opportunity to accumulate. Problem is, until the big boys come in the price will not rocket over 100p. We need Glencore to do a bit more and publicly state their intentions for Zanaga in my opinion.
How do we know a deal isn’t about to be signed off? Why didn’t the Chinese buy us instead of Simandou? Or have they? All will be revealed soon. Those who are waiting for snippets of news to elevate the sp will be out of luck. Suspension and it’s all over.
It's all purely speculative though isn't? A buy out could happen next week or in 2 years time, who knows? People obviously aren't willing to tie up their capital until there is more definite news.
Hi Veteran10,
.." We need Glencore to do a bit more and publicly state their intentions for Zanaga in my opinion....".
I agree, FWLIW, but why should they ?
If they DO want to develop/exploit, they're better off not showing too much keenness, since that would weaken their bargaining position. Let others make the first approach
If they DON'T intend to develop/exploit (they're not under shareholder or other pressure to do so, as far as I can see), why advertise the fact ? That would only invite C-B (guided by the Chinese ?) to invoke 'use it or lose it' arguments re concession entitlements, whether legal or not.
Better maybe , from GLEN's perspective to keep schtum....and keep others guessing.
Until they're made an offer/presented with an opportunity they can't refuse...
We can but hope. I'm minded to think that Glasenberg and co know what they're doing !
ATB
Why would China want Simandou AND Zanaga? That has always been my take on it. I think China want to control the project, and the presence of Glencore has driven them towards the higher capital cost of Simandou. Now they have Simandou, I just cannot see them needing another huge green field resource in the near future.
While the Simandou bid can only be positive for placing a value on Zanaga, I think it therefore rules out a Chinese bid for Zanaga. However there are several other mining companies that have the resources to buy Zanaga - if Glencore will agree of course.
Hi Mitch984,
I can see the Chinese being wary of GLEN , but …" the presence of Glencore has driven them towards the higher capital cost of Simandou…" seems to be over-egging things : they could offer GLEN $2, 3, 4 billion for their 50% and still make a massive saving on Simandou reported costs...
$ 3BN would be between 1 and 1 1/2 years net profit.....
ATB
I have never known a company being valued at £30m to open the next day, suspended and being valued with a buyout offer of billions of $dollars$.
Is that a real expectation, I personally think not ! it just doesn't happen ..... there has to be a build up in SP and that is when the investors will chase it up. How rapid, how long and how high a rise before suspension is another question.
aimo