Member Info for 99icecream

Coal Power Generation Company of Bangladesh is Govenment owned - see Wiki entry

https://en.wikipedia.org/wiki/Coal_Power_Generation_Company_Bangladesh_Limited

Unfortunately the link does not work, could you tell us the name of this Iron Ore co. ?

Sorry that should be after June 2021.

Simandou - a note I just found implies that key decisions will be taken after June 2022.

"Rio said it wanted to complete a review of the infrastructure requirements – including 650 kilometres of new railway – for the project before June 30."

That review will help inform Rio’s negotiations with neighbouring iron ore aspirants in the Simandou mountains.

https://www.hellenicshippingnews.com/rio-reaches-for-record-exports-profits-as-iron-ore-booms/

Hi Extrader

Thanks for that. If China is really keen to impact the pricing of Iron Ore by 2025 then (in my view) Zanaga should by number one on their list of projects. I have read that some think that Simandou could take as long as 10 years to develop. Certainly the construction of the rail link would be very challenging.

I somehow doubt that China are much concerned by the shortcomings of local politicians, notice how vocal they have been about the situation in Myanmar.

Does anyone have a view on how quickly Simando and Zanaga could be developed (to a significant scale)? My view is that Zanaga can be done significantly faster than Simandou.

https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/china-looks-to-diversify-iron-ore-supply-amid-price-rally-trade-tensions-62233289

I doubt that Jumelles has a role in any sale negotiations, Glencore has access to any information it needs and has the relationships with potential buyers. Also we know that CODIC will have looked closely at costs of logistics etc. (pipeline, FPSO etc).

I share your view that £5 would be very cheap, and I am sure that Glencore will want a good price.

assets !

"Unless Auntie Glenda wants a 100% toyboy on the cheap"

They might want to buy asses on the cheap, but that is only possible if the key shareholders (Elphick and the remainder of the Garbet / Guava guys) are too stupid to know the value of Zanaga to the Chinese -- unlikley in my view.

Actually (when you take account of shares that Zanaga would issue to staff and Directors) it is about £1 / $Billion atm.

"Easier for negotiations when you can offer 100% of something, rather than 50% + 1 share."

If Glencore were to sell its stake in Jumelles, the same offer must be made to the other shareholders in Jumelles (Zanaga) ("so called "Tag Along Rights" in the original deal) so Glencore can offer 100% of the shares in Jumelles with the knowledge that Zanaga BOD would agree to any reasonable deal.

"As at 12/19, GLEN reported 1.26 billion shares in Treasury, twice what it was the year before. Which suggests that they feel or felt that the shares are undervalued."

With the dividend suspended it is the only method of using any surplus cash.

FYI CUSM are planning to list on AIM in February

https://finance.yahoo.com/news/cornish-metals-announces-intention-float-133000596.html

“We cannot also afford to exclude coal, which is still the most affordable primary fuel. But we have to decide what would be its contribution?” he said. He added that the Mosharraf Committee had prepared and submitted a comprehensive report, but was not discussed about it. The reports of Phulbari mining need more reviews. IWM gave a report on open pit mining. That report was also not discussed. We have already observed challenges of transportation and price in case of imported coal.

https://ep-bd.com/view/details/article/NTcxNA%3D%3D/popular-article/title?q=boosting+power+demand+immediate+challenge

Hi Longlad

If I understand this correctly, it suggests that China should avoid "minerals for infrastructure deals" where the state gets roads and hospitals and schools as a reward for mining rights. The paper below suggests that these infrasturcture rewards were often badly built and provided also little in the way of skills transfer to local labour. The implication is that a Zanaga type arrangements where the state gets a profit share in cash might be better.

https://qz.com/africa/1586753/china-and-dr-congo-sicomines-cobalt-mine-deal-is-flawed/

Hi Mitch984, extrader

If a buyer of the Zanaga project had difficulty raising all of the money, then the seller might consider taking some of the money at a later date either in fixed amounts/dates or as a royalty $X per tonne mined (giving a higer PV overall). If China is the buyer I doubt the upfront cost would be a concern.

When Glencore get their money for Zanaga I am sure they will be able to find more attractive offtake deals (Nickel etc.).

Iron ore price turns higher again after record China imports

https://www.mining.com/iron-ore-price-turns-higher-again-after-record-china-imports/

The threat of a Chinese-funded competition from new mines in Africa effectively guarantees that there is little incentive for big Australian miners to expand, preferring to harvest the strong cash flows from existing operations.

https://www.forbes.com/sites/timtreadgold/2021/01/08/chinas-trade-attack-on-australia-is-producing-perverse-results/?sh=647ef752533a

There were several trades on the Aquis exchange today, including one of 45,619 shares.

I still have the Cazenove note and they were using a valuation of £11.30 per share, although they did talk about much higher prices 7 or so years forward when in production. My reference to the ramping team was simply that near £9 the talk was of much higher prices much sooner.