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China iron ore futures rise for 5th day, spot prices hit 11-month peak

https://in.reuters.com/article/asia-ironore/update-1-china-iron-ore-futures-rise-for-5th-day-spot-prices-hit-11-month-peak-idINL4N2EG1H2

Hi Probably they traded on Aquis not LSE

http://www.nexexchange.com/member?securityid=18138

Nobody thought to weigh the "gold" then (real gold weights more than twice the weight of copper).

Full output from Simandou will not make a huge impact on China's imports (e.g. from Australia) which total over 1 Billion tonnes per annum.

https://www.reuters.com/article/us-china-economy-trade-ironore/chinas-2019-iron-ore-imports-rise-to-second-highest-ever-idUSKBN1ZD09H

Edison have a paper on the potential impact of the Covid19 / US Monetary expansion on the future price of Gold. It came out on 11 June 2020.

https://www.edisongroup.com/sector-report/edison-gold-report/

Maybe China Road and Bridge are waiting until there is sufficient demand (I think they had 5 expressions of interest, including Jumelles and KP2). But Jumelles have been backing the project since mid 2018. Maybe China Road and Bridge had to wait until the IFC were happy with Congo B's debt restructuring. But clearly Jumelles cannot wait any longer. This is the last major thing that makes the project saleable. The value has always been the 30 Million tonnes per annum, not EPPs or Cold Pellets.

CODIC are developing the Special Economic Zone, China Road and Bridge Corporation have been planning the port.

Just received dividends less 25% tax at AJ Bell. Have messaged them to find out when they will resolve this issue.

Zacks note on the current Iron-Ore price drivers and impact on Vale, Fortescue, BHP, Rio

Note that Fortescue Metals has recently reached its 5 year high in share price (US$ 20+) - having been about US$ 6 in late 2018.

https://www.zacks.com/stock/news/963133/ironore-prices-surge-on-impending-demandsupply-imbalance?cid=CS-ZC-FT-analyst_blog|industry_focus-963133

Extrader - I don't think there is a worry about accounting implications (if you take a write down it would cut your taxes) and we are not talking about abandoning working mines - only replacing old worked out mines with better new ones.

https://stockhead.com.au/resources/why-iron-ore-grade-is-now-more-important-than-ever/#:~:text=Higher%20grade%20%3D%20less%20impurities&text=The%20main%20impurities%20in%20iron,made%20from%20expensive%20coking%20coal.&text=Impurities%20reduce%20the%20productivity%20of,energy%20consumption%2C%20especially%20coking%20coal.

Extrader - I think its the other way round. The Aussie miners are well aware that their product is lower grade than Vale and the Chinese will pay higher premiums for better grades. All are trying to replace their old mines withe newer better grade iron-ore. Fortescue has the worst problem in this regard.

Fortescue had offered $9 billion for the blocks but did not formally promise to build the railway dubbed the “Transguinéen”, two government sources told Reuters on Wednesday.

https://www.reuters.com/article/us-guinea-simandou/china-backed-consortium-wins-14-billion-guinea-iron-ore-deal-pipping-australias-fortescue-idUSKBN1XO09B

Do you think the market understands the value here - I don't ! The price is driven not by short term speculation. The longer term investors bought at much cheaper prices.

Still the Fortescue offer for 50% of Simandou sets a minimum price for 50% of Zanaga. Zanaga is cheaper to develop and similar size.

Jiving - Why would Glencore or Zanaga sell the whole mine for as little as $2-$4 billion when Fortescue would pay $9 Billion for half of Simandou ?

The offer was oversubscribed, but it does not follow that there will be further demand from those that were scaled down. Shares will first be offered to existing holders plus any clients that are known to be potential long term holders, after this they will be offered to any who are prepared to buy cheap shares. These short term holders will sell before settlement for a quick profit (and probably keep the "free" warrants). The short term holders ("flippers") will participate in any placing were there is a prospect of a quick profit and need little capital to do this.

For, Condor this implies that prices will climb slowly until the overhang of cheap shares is cleared.

Not a new idea then - used in NZ nearly 50 years ago !

Paterson & Cooke floats new port concept by Zanaga Iron Ore

https://im-mining.com/2020/05/28/paterson-cooke-floats-new-port-concept-zanaga-iron-ore/

The 30% rule does not stop Mr Tang exercising his options. However, he might have the obligation (with Polo) to bid 11p** for the remaining shares in GCM. ** 11p being the highest price paid by Tang/Polo (Polo paid 10.45p recently).

https://qz.com/africa/1842981/nigerias-future-without-oil-looks-bleak-time-to-diversify/?utm_source=YPL&yptr=yahoo