Member Info for 99icecream

I think the idea is/was that the EPP was using the small amount of DSO (high grade ore) that did not require improvement.

Jiving - I'm just pointing out that the EPP at Belinga does not look at all straight forward. But FMG has been given a free option here so they will do the best they can, whilst in my view this will be a small thing in the FMG portfolio.

As for Glencore they want to get a high return here (me too). I think they prefer a straight sale (at an approprite price) but 2nd choice would be to see it developed at scale.

Jiving. My point is that Glencore will either sell the project or allow a 3rd partner (e.g. FMG) to come into the fold to do the mining. Glencore seem to be happy to take the back seat at HZM (for example). I am confident that they will veto anything that makes realising their investment more complex (e.g. the EPP).

Belinga EPP. So Belinga is about 50km north of the N4 road (quality unknown) at Ivindo. Ivindo to Booue (nearest to the railway) is over 250 km by road on N4. Say 3 days for a return trip (600 km) in a 40 tonne truck. For 2 million tonnes using 40 Tonne trucks at 365 days per year would involve about 450 Trucks ?

And by the way - I doubt Glencore is interested in small deals !

"Glencore profits hit record $34bn driven by soaring coal demand"

https://www.ft.com/content/114298bc-f965-4e80-91ad-75b16987955e

OK - IMHO - Zanaga needs funding and someone prepared to do the mining. Typically some of the funding will come from whoever provides the hardware (in the form of export finance. The rest can easily come from borrowing against the Glencore offtake i.e. borrowing against the fact that any ore is already sold (called a streaming deal). So I am confident that the deal with Glencore should facilitate the 12million tonne scheme.

For the time being the whole industry is focused on what happens at Simandou. I'm very sceptical that development will restart and convinced that when it does it will take at least four years (not two) to have the railway completed.

FWIW - IMHO One of the many advantages of Glencores investment in Zanaga is that Congo will never threaten the Zanaga licence so long as SNPC owes Glencore money. Glencore could respond by putting SNPC into bankruptcy, at which point the true debts and the financial history of SNPC would become public.

Belinga is not on the same development time scale as other projects (Zanaga, Simandou) it needs a railway across Gabon (Belinga to Port Gentil, probably 700 km) and the resource needs millions spending to determine the size of the resource and development stategy. Shipping a small amount of iron ore by road etc. will be very expensive (and not in anyway "green"). Fortescue now has its foot in the door here - but little will happen unless iron ore prices remain at high levels long term. IMHO etc.

Interesting that UK Export Finance is taking such a key role in this. I would be interested to know the logic here.

IMHO the ASX announcement has no implications for a future RNS stating that the EPC is done, come into force or whatever. It just means as the time of the notice it has not happened nor have they had any information that it will happen. They can expect that it will happen very soon, but until it has happened - no RNS.

Usually when these things are done there are conditions that must be met before an agreement comes into force. In the case of KP2 / SEPCO each would have to come up with their share of the funding.

FWIH > 5 million shares traded on ASX (not many) - but highest number since 20 Oct 2022.

Kore has had to respond to an query from ASX

https://www.moneycontroller.co.uk/finance-news/kore-potash-plc/response-to-asx-price-query-1119043

If is our Carlsberg moment it would happen after the stock markets shut.

Personally, I will not be holding my breath.

Rust or Rush ? Welcome back to MinorMiner always good to hear your view.

The blending comment really is nonsense. I suspect spin for the Australian audience. The future will be entirely high grade ore to feed new low carbon methods of steel production. China know this and will be keen to own (dominate) the high grade stuff. See how China have come to dominate in many other key commodities (Aluminium, Lithium, Rare Earths etc. etc.). If China want to blend their ores, they have plenty of the own rust to use.

LT, Security would be top of my list of the most difficult things to budget for.

LT - The point is that everything that is required for the Kola project (plus a % overrun) should be included in the project budgets. 100% of the funds for Kola, should be raised before it begins. So no additional funding should be required from KP2 for Kola.

No doubt there will be some resources necessary, for planning what might come next (DX or whatever).

The RNS implied that the COO would not be replaced, as Ryan would report directly to Brad.

LT - Anything to do with the mine construction will be funded as part of that project. Most hiring would be done by SEPCO etc. not KP2. Also, in the project budget there should be funds to pary for third party engineers to ensure what is done is up to standard etc.

No. Not all of the sells are your trades.

LT - Do you ever sleep ?

LT - If there is real news we'll know before Happy Valley.