The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
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I like the " During recent engagements with RoC Ministries, communities and potential strategic investors, the burden of being the first mover in the region of high grade, low impurity iron concentrates for green steel production, is strongly supported and makes for an exciting future for Zanaga"
Seems to me they could potentially be very far in the plans and nice to see the strong support from RoC officials/ministries.
lets see
Marty Knauth, CEO commented:
"A large volume of work has been completed during the recent six months by ZIOC, MPD Congo and our consulting Partners, which I am very satisfied with. This detailed re-costing study further demonstrates that the Zanaga Project provides extremely robust returns for investors and significant infrastructure assets and positive legacies for the Government and people of the RoC. During recent engagements with RoC Ministries, communities and potential strategic investors, the burden of being the first mover in the region of high grade, low impurity iron concentrates for green steel production, is strongly supported and makes for an exciting future for Zanaga.
Stage1-Net updated value-
$3,681bn= $ 5.70 per share.
Stage2-Net updated value- $7,357bn= $11.40 per share.
The figures are much more detailed in the report, and are absolutely staggering..
Clifford Elphick, Chairman of ZIOC commented:
"I am delighted with the results of our 2024 Feasibility Study update, demonstrating the attractive economics of the Zanaga Iron Ore Project in today's market environment. It is exciting to have secured updated pricing for the development costs of the project from experienced Chinese partners with extensive experience in iron ore process plant and slurry pipeline design and engineering.
We look forward to presenting these results to the various strategic partners we have been engaging with and advancing our discussions further with them as we look to progress towards front end engineering and design of the project"
I don’t see any reference to the crucial iron ore price used in the 2024 FS figures. But looking at the latest updates to the 2014 FS figures contained in the 2019 Zanaga Presentation, if you take $110 as the base for FE 65% then the same NPV figures are
12m pa NPV (2014) $2085m
30m pa NPV (2014) $3943m
So the 2024 FS NPV figures: 12m is 1.76x 2014 FS; & 30m is 1.86x 2014 FS. Showing how the market has moved rapidly in our direction financially. Add to that our project has immense scarcity value as the only major high grade iron ore mine at an advanced stage of development literally ‘ready to go’.
To illustrate the central part NPV plays in Elphick’s thinking, whether its buy-in or buyout its always based on NPV. Here is the key section from the very first Zanaga presentation in April 2011. P.1 Investment Highlights:
ZIOC has complete flexibility in funding obligations
• Takeout at NPV; or
• Dilution at NPV during construction;
NPV is huge and even with the large capital investment needed there is literally billions of dollars to be made by strategic investors into Zanaga. Interesting Knauth finally spoke. He is obviously fluent in French and you would think leading conversations with RoC ministers. We are all set up now. Just need that big fish to bite and the share price would be in the £s.
Let’s see who takes positions today
Exactly nibj, we know for sure the Chinese have had them for some time - as they are doing the majority of the FS & have provided the power (& already know port details from past involvement). AT has acknowledged they were talking to the Saudis so it is v likely they have been aware of them for some time. But now the world can see them so if FMG, the Japanese etc want to act now they can see the basis for their bids. So we must be rapidly approaching the crunch point in negotiations, Elphick is Mr NPV & has always stressed all strategic investor negotiations revolve around NPV, the more competition the less any discount!
Incidentally I was specifically referring to NPV when I said the 2024 FS figures were nearly twice 2014 FS.
Agree, really solid results. I am sure these figures has already been in the hands of potential interests for some time, so going to be interesting to see what they can land here
Well they came through & the figures are stunning. First take, they are almost twice the 2014 FS figures:
12m pa NPV = $3681m IRR = 26%
30m pa NPV = $7357m IRR = 28%
This is what we have been waiting for & this is going to be the basis for any buy-in or buyout partners.
Elphick "We look forward to presenting these results to the various strategic partners we have been engaging with and advancing our discussions further with them as we look to progress towards front end engineering and design of the project"
https://www.londonstockexchange.com/news-article/ZIOC/feasibility-study-update/16446302
Driving I have zero influence on deciding publication dates & we may well get the FS tomorrow as you hope. My point is I dont 'need' to know tomorrow what the FS figures are, yes it would be interesting & would likely confirm our valuation hopes. But if there is tactical/negotiating advantage to be gained holding back the publication date, then I want the ZIOC negotiators to have every advantage, small or large, they can have.
The point is all to do with competition, as ZIOC investors we theoretically want the most competition we can generate for the project, in order to drive the highest price. But the exact opposite is the case for the bidders, they want the least competition & the public release of the FS figures would potentially maximise competition. Often in these situations the two parties agree to limit competition for an agreed period via an Exclusivity agreement that typically lasts 30 days+. A less legalistic, more informal approach might be for ZIOC to simply hold the FS release back whilst negotiations are positive & leading towards a satisfactory deal. Just a thought, it may all be irrelevant conjecture if we get a 7.00 RNS tomorrow.
Jiv- I am a current shareholder, my interests(should) trump future “potential” shareholders.
I agree with you that the delay until the last day in April(unless we get a RNS today), maybe due to “other” behind the scenes activities, but I still, as a loyal shareholder “EXPECT” to be updated before end of play tomorrow.
Even if that is to be an update, that they cannot provide the updated costings.
I also note that since the restructuring of the company in late 2022, the board has been adhering to informing shareholders of developments quite stringently.
Gla.
We will see tomorrow Driving how it pans out, for me its not a big deal whether they come tomorrow or another date.
The publication date of the FS could well be a negotiating point with potential investors.
Jiving-
“The final results of the 2014 FS update are expected to be announced during April 2024”.
Therefore I “expect” to be updated.
Gla.
We hope they are in detailed negotiations with one, or even better two, serious bidders (China vs Saudi/Gulf?). If that is the case should we definitely expect news tomorrow - the RNS only stated they "expected" to update us in April, that is not a firm commitment more an aspiration.
I don’t think you and shrewd count as everyone. I’d say the minority think that.
Everyone appears to be expecting more disappointment here and fully expecting to be let down be the board once more-Chinese calculators must be on a go slow.
With luck Elphick and Co descendants will make some progress by 2150!
I’m still very optimistic that news will be with us soon that substantially lifts the sp.
You say that Shrewd, but BHP’s £31bn offer last week for Anglo American didn’t leak and there would have been a lot of parties involved.
*sphincter*
The fact is, nothing appears to be leaking here at all. So either there is nothing happening or the process it is tighter than a Platypuse's sphinxter 😄. Sp means boogerall, imo. Market is absolutely broken.
Tuesday it is then 😬.
Let's face facts.....if there was significant, material news imminent, the market would have sniff of it (too many entities involved not too) and the price would be 15-20p on insider buying.
I hate saying that but I'm not one to fool myself.
7p suggests it'll be an "as you were" RNS (when it eventually drops 🙄).
Please prove me wrong Zioc 🤞🏻
Got to hand it to you beardozer, you made me smile 😄. Cheers 🍷
Ps. Don't worry about Zanga, you are in the right place at the right time (finally!).
What do I care - I'm a pensioner! Just got caught short racing to the toilet - very messy! Must buy a bungalow! I look forward to reading DANNYBAREY's comments about anything other than me. Meanwhile, I hope I can stay sober enough to watch the documentary about Syd Barrett on Sky Arts tonight @ 2100. And yes, the world DOES revolve around me (and you).
LOL spoke too soon :)))
Look on the bright side, no one has called you a twat this week.
Quite possibly the biggest load of nonsensical twat talk I have ever read. No one cares about your bloody house that you want to buy, or what you are listening to. There is a time and a place and this is not it. Believe it or not, but the world does not revolve around you, you bloody twat.