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The borrow line is that Zanaga's IRR (26.2 - 28.2%) is more than twice Simandou's upper IRR figure of 13% - and that's annual and cumulative.
From previous company release, as I remember them, ZIOC build the portside infrastructure, mainly a dewatering yard, storage and reclamation plus associated conveyors etc.. A 3rd Party is responsible for the port itself - think AD PORTS as the most obvious.
Sorry - just noticed the predictive text. Apologies.
I will disregard the unkindness. Does port infrastructure equate to a "deep water" port or is it the jetty variation or is it simply ZIOCs warehouse and processing plant at port established by someone else. The detail is important, long time since I read the original.
Guessers, the FS report:
'In 2023 the Company partnered with a Chinese iron ore technical expert engineering firm ("Chinese EPC Partner") as part of a process to update the economic evaluation of the Zanaga 30 Mtpa staged development project.
Using the 2014 Feasibility Study's ("2014 FS") infrastructure designs, flowsheets and material take off lists, direct and indirect cost estimates were updated to current market pricing using Chinese major equipment and contractor pricing for both phases of 12 Mtpa Stage One haematite ("Stage One"), plus 18 Mtpa Stage Two magnetite expansion ("Stage Two") projects, inclusive of buried concentrate pipeline and port infrastructure.'
I assume Simandou IRR includes deep water port costs and Zanaga does not. I don't know enough about Simandou specifics.
Compared to Simandou, Zanaga will be cheaper to build, have higher grades and be more profitable.
Zanaga's Stage 1 CapEx is now below $2bn. Simandou's is somewhere north of $14bn.
Rio Tinto report Simandou's grade as 66.1%. Zanaga's staged average will be 67.5%.
The final and most compelling metric is the relative Internal Rates of Return between the 2 projects. Simandou's IRR is 11-13%. In ZIOC's FS reworking at the end of last month Zanaga's IRR was stated as 26.2 - 28.2% (increases of over 60% on 2014 figured). The IRR is the ultimate litmus test for any mining project.
Thus Zanaga scores a convincing 3-0 over Simandou in the Champions League final of high grade mega mines.
Now, if the likes of Rio Tinto and Baowu Steel think Simandou is worth investing in, then Zanaga is absolutely compelling. Zanaga's IRR went under the radar on April 30th, but it won't have gone unnoticed by the Strategics who received the FS under NDAs. Of note, Manara Minerals state that: Our Investment Mandate - (is to) provide long-term capital to investment opportunities that offer both access to offtake as well as attractive returns on investment.
Hold that thought.
RioTinto 2023:
An IRR in the low double digits (12) is anticipated for the combined Simfer mine and the co-developed infrastructure through ownership of CTG. (12) 11 to 13% (post-tax, real basis). Based on Wood Mackenzie and CRU average pricing for iron ore (65% grade), with a premium applied for DR product.
Rio Tinto is also reporting Mineral Resources exclusive of Ore Reserves for the Ouéléba and Mineral Resources for Pic de Fon deposits at Simandou of 1,360 Mt at 66.1% Fe, 1.5% SiO2, 1.5% Al2O3 and 0.06% P consisting of Measured Mineral Resources of 153 Mt at 67.0% Fe, Indicated Mineral Resources of 460 Mt at 66.2% Fe and Inferred Mineral Resources of 746 Mt at 65.8% Fe.
https://www.riotinto.com/en/news/releases/2023/simandou-iron-ore-project-update
Yesterday's news that Manara have appointed a new CEO (replacing acting CEO Bob Wilt) will assuredly be good for future deals. However there remains the huge blind spot in coverage by the MSM, Bloomberg et al..
They all focus on the in vogue energy/green/transition metals such as nickel, copper, cobalt, lithium, PGMs and so on.
Manara have been securing much with their 30th April 2024 closure of the deal with Vale Base Metals (**note that date** - hint) such as the nickel and copper. The next Manara investment will be Reko Diq in Pak'istan which is copper and gold (lots of both).
However, and this is the collective myopia of the MSM and even industry press, Manara Minerals was formed in January 2023 with a specific mandate for iron ore, copper, nickel and lithium. The Saudis are looking at South America for their lithium (plus Aramco research lithium from the sea water they pressure their wells with). This leaves iron ore, the giant elephant in the room, the base metal of all industry including the Saudi green steel industry, and of which Manara has yet to secure a single ton.
Manara needs to get a move on....
SAUDI’S NEW MINING VEHICLE PICKS INDUSTRY VETERAN AS FIRST CEO
Saudi Arabia’s Manara Minerals Investment Co. hired veteran dealmaker Pierre Chenard to be its first permanent chief executive officer, as the mining investment firm searches for more assets.
Manara, backed by the Saudi sovereign wealth fund, is spearheading the kingdom’s ambitious plan to become a major player in metals and mining. The vehicle has been tasked with snapping up stakes in mines overseas and funneling the raw materials back to Saudi Arabia for processing.
https://www.mining.com/web/saudis-new-mining-vehicle-picks-industry-veteran-as-first-ceo/
“N'interrompez jamais un ennemi qui est en train de faire une erreur."
Amazing. There's no helping some people, I guess.
Let’s hope so. Thanks for sharing Alwayshoping 👏
Alwayshoping, excellent thanks for sharing.
brilliant spot, alwaysontheballandpositive!!
manara minerals getting serious
mining investment firm searches for more assets
archie hunter and thomas biesheuvel
wed, may 15, 2024, 2:00 pm gmt+22 min read
(bloomberg) -- saudi arabia’s manara minerals investment co. hired veteran dealmaker pierre chenard to be its first permanent chief executive officer, as the mining investment firm searches for more assets.
manara, backed by the saudi sovereign wealth fund, is spearheading the kingdom’s ambitious plan to become a major player in metals and mining. the vehicle has been tasked with snapping up stakes in mines overseas and funneling the raw materials back to saudi arabia for processing.
chenard joins manara after heading corporate development and strategy at anglogold ashanti plc, according to people familiar with the appointment who asked not to be identified. he previously held a similar role at rio tinto’s aluminum unit.
a representative for manara declined to comment.
bob wilt, head of maaden — the kingdom’s state-backed miner focused on domestic projects — has been acting manara ceo since its inception in 2023.
chenard is arriving just as manara concludes its first major transaction — paying $2.5 billion for 10% of vale sa’s base metals business, comprising of copper, nickel and cobalt producing assets.
and there are other deals in the pipeline. bloomberg reported last month that manara is moving closer to investing $1 billion in ****stan’s mega copper project reko diq. it’s also in talks with first quantum minerals ltd. about buying a stake in its zambian copper mines.
manara’s emergence as a major player in mining has created a new dynamic in the industry, where traditionally western miners have vied with chinese companies and japanese trading houses to secure access to the best resources.
for western producers, the kingdom offers access to deep pools of capital at a time when chinese funds are becoming less politically palatable and as some institutional investors turn away from mining over environmental concerns.
https://www.mining.com/web/saudis-new-mining-vehicle-picks-industry-veteran-as-first-ceo/
Https://finance.yahoo.com/news/saudi-mining-vehicle-picks-industry-120031806.html?guccounter=1
As usual....alwayshoping
“N'interrompez jamais un ennemi qui est en train de faire une erreur.”
Hm. That didn't end particularly well for le petit caporal, did it ?
More apropos, surely, is this:
"I mistrust the judgment of every man in a case in which his own wishes are concerned"
Duke of Wellington
;->
Salut!
“N'interrompez jamais un ennemi qui est en train de faire une erreur.”
Well, I did try Guffers.
Just chill, ZIOC is in a good place. Peace and love 🕊️
It's now beyond doubt that a number of ZIOC holders are trading in it and out. You only have to read their two-faced and disingenuous posting history for that be clear. Imagine, for example, trying to make out that NPV is not the basis for mine project valuation when this is the universally accepted norm within in the industry - indeed it was/is the basis for any Xstrata/Glencore buyout of ZIOC. Meanwhile an updated NPV was the ultimate goal of the whole FS reworkings - yet some tried to show shade on it. Muppets, and very obvious. The latest attempt is 'Shard' clearing house. No matter that the FT wrote that no blame was attached to Shard corporately and that Shard later forwarded evidence to the FCA as and when it emerged. Said 'trader' posted multiple times across both boards while including libellous fabrications. Sure, he's invested......Right. Whatever.
While we are on the subject, accounts may want to take a look at the chart of Gem Diamonds (GEMD). GEMD started a 3-day surge higher ***immediately after*** our 30th April RNS with the FS results. Over that day and the next 2 a sequence of sells on ZIOC was mirrored by buys on GEMD. Purely coincidentally I'm sure, this sequence was accompanied by a larger (claimed) ZIOC holders posting gibberish about Rights Issues, dissing the NPV methodology, and claiming it was 'squeaky bum time' for ZIOC - before taking to posting on GEMD. It's a racing cert that is was their sells that help stall ZIOC
Of course it's a free world and anyone can trade in and out of whatever they like whenever they like. However such obvious charlatans try and take others for fools while actively undermining investment cases.
We see you.
Well done, alwayshoping - always on the ball!
I think I have figured out what lead to our Strategic Partner 'delay' at the end of March and, if I'm right, then it is super positive for us. All eyes on Reko Diq progress for further clues.
Au contraire.
The encouraging last para reads :
.."Despite the current economic crisis, building the two dams mentioned above is a necessity if Congo really wants to diversify its economy, notably through industrialization within the SEZs. This will, however, require the mobilization of funding, particularly from financial partners such as the World Bank and the ADB...
It's a rare, but welcome admission that C-B needs international (not just Chinese) finance, even if it comes with strings and oversight.
If Washington is indeed in a 'hearts and minds' battle with China for influence in Africa (see Kenya Pres Ruto's upcoming visit to the US), this - or other investment - would be a good way to proceed.
www.barrons.com/news/biden-to-host-kenya-s-ruto-for-state-visit-in-may-white-h…
"US President Joe Biden will host his Kenyan counterpart William Ruto on May 23 for a state visit aimed at boosting ties with a key East African ally, the White House said Friday. Ruto, who will be accompanied by his wife Rachel, will be the first African leader to receive a state visit at the White House since Biden took office in 2021."
He'll also get to address Congress, on the 2 countries' 60th anniversary (coincidentally, like China / C-B).
Maybe too little , too late for Biden/the US, but shows that they're aware that they're losing ground.
OOps article wasn't what i thought it was
Https://vox.cg/la-construction-des-barrages-de-shole-et-sounda-comme-solution-au-deficit-en-electricite/
The electricity deficit throughout the national territory remains a worrying issue despite the colossal investments made by the government in the energy sector, with the construction of several hydroelectric dams and gas power stations. The construction of the Sholé dams, in the Sangha and Sounda dams, in the Kouilou department, presents itself as a lasting solution to the problems of electricity supply in the Republic of Congo.
National electricity production is estimated at 713 megawatts including 19 megawatts for the Liouesso dam, 120 megawatts for the Imboulou dam, 74 megawatts for the Moukoukoulou dam, 450 megawatts for the Congo power station and 50 megawatts for others. gas power plants in Pointe-Noire. Note that Congo also receives around 50 megawatts from the National Electricity Company of the Democratic Republic of Congo (DRC).
Considering the problems of load shedding and untimely electricity cuts in the two largest cities in the country, namely Brazzaville and Pointe-Noire, this production is insufficient; since the question of electricity continues to arise acutely.
According to figures from the Société Energie Electrique du Congo (E2C), Brazzaville consumes 200 megawatts and Pointe-Noire 180 megawatts. For example, with a production of 500 megawatts, load shedding and power cuts in Pointe-Noire are justified by the defect of the distribution network.
Based on this deficit which penalizes households, businesses and even industries in these large cities and the entire country, and in the perspective of the establishment of Special Economic Zones (SEZ), the construction of the Sholé dams in the department of Sangha, with an estimated production of 600 megawatts and that of Sounda in the department of Kouilou, for which World Bank estimates indicate 545 megawatts, is essential.
In addition to the construction of these two hydroelectric power stations, the construction of transmission lines, with the interconnection of these two electrical infrastructures, would contribute to resolving the eternal question of the deficit in the supply of electrical energy to the Congolese population, plagued by problems of power cuts since 1997.
While awaiting the completion of construction work on the Sholé and Sounda hydroelectric dams, it is imperative to reinforce the electricity transmission line which has existed for several years between Pointe-Noire and Brazzaville with a second line for which the cost of the work would be estimated. at around 60 billion FCFA.
As for the Special Economic Zones under construction, the demand for electricity is enormous and is distributed as follows: 700 megawatts for the Special Economic Zone of Pointe-Noire, or the current electricity production of the entire country; 300 megawatts for the Oyo SEZ; 200 megawatts for Ouesso and 100 megawatts for the Maloukou industrial zone.
You're toast.
.."I look forward to bringing them up with Elphick and Knauth..."
I've no feel for Knauth, but Elphick strikes me as a straight shooter who will, if anything, be embarrassed by this.
Hence my concluding observation
" And unfortunate timing, to say the least."
Squirm worm