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China vacuums up global iron ore amid disquiet over price rally

https://www.reuters.com/article/column-russell-ironore-china/column-china-vacuums-up-global-iron-ore-amid-disquiet-over-price-rally-russell-idUSL4N2FC0DX

djryan777 -

I am interested in your assertion that "its also about battery storage". As things stand the cost of running an EV vary significantly depending on the cost of electricity. EV's are interesting from a running cost point of view, but only if you can get cheap electricity. Based on my own experience (I pay 7.85p Night Elec / 13.68 Day Elec and charging at Tescos costs 24p per KWh). Charging on cheap electric is the key. In fact at 24p per KWh is currently the same cost as Diesel.

So my question is, in say ten years time when the will be more EVs (and more Wind Farms) - will there be any spare cheap electricity for your battery storage ? - Or will we all be paying 24p regardless on when we charge ?

The point was simply that BooHoo fell from £4.10 to £2.10 in the space of a few days. In hindsight £2.10 was a terrific buying opportunity, but it did not appear to be so at the time. It could so easily have been BooHoo's Ratner moment (i.e. the clients could have walked away).

I guess you are pleased that you did not hold BooHoo at £ 4.10 in June !

The accounts of Zanaga imply that it has zero employees. There are 3 non-exec Directors and 3 non-employees. I suspect that each non-employee will have their own personal companies (what you would call self-employed consultant here). Obviously the bulk of persons employed on the project will be employed by Jumelles.

Ask yourself why Zanaga does not have brokers publishing "research" stating that the Zanaga project is worth £ X pounds * a share on unrisked basis and £ Y pounds * a share on a risked basis if they intended to develop (rather than sell).

In August 2019 the Group entered into a new incentive plan which granted share options in the Group to
two non employee individuals and Harris Geoconsult Limited

---- Harris Geoconsult is Colin John Harris

I'm not sure where you have been in the last six months. In the wider context (thousands dead, millions, unemployed etc.) the lack of action at Zanaga is understandable, as M&A activity has clearly been on hold for most of the world economy. But, the news for Iron Ore (and hence Zanaga) is very positive. China and western governments are keen to rebuild their economies by Keyenisan policy (new infrastructure), which means (eventually) lots more demand for Iron Ore, Copper, Nickel, Cobalt, etc. etc.

China iron ore, steel futures rise on government stimulus hopes

https://uk.reuters.com/article/asia-ironore/china-iron-ore-steel-futures-rise-on-government-stimulus-hopes-idUKL3N2F10WL

Chinamax ships used by Brazilian mining giant Vale, as well as miners in Africa, can carry half again as much cargo as normal ore ships.

But such large ships are not without problems.

https://www.mining.com/brazil-navy-monitors-stellar-banner-sink-site/

A very naughty boy who has had his toy confiscated (Falcon 7X jet).

China's iron ore strength cancelled out by world weakness

https://uk.reuters.com/article/uk-column-russell-ironore/column-chinas-iron-ore-strength-cancelled-out-by-world-weakness-idUKKCN24N0ZR

This time next year Roddney !

At this point it would appear that the Iron Ore mining industry will be very positively impacted by the Covid crisis with China and other countries resorting to (Keyensian) infrastructure spending to stimulate their economies. This, together with an increased interest in higher quality ore (for environmental reasons) and a reluctance to buy Australian ore (for political reasons) can only be positive for the value of the Zanaga asset. It would appear that the Chinese in particular are starting to do deals in this new environment. An example being the recent interest in the BHP / Chalco part of Simandou.

https://www.mysteel.net/article/5016868-0501/FEATURE--Simandou-iron-ore-deposit-back-on-China-radar.html

At Zanaga, Glencore (who are in control of the asset) must decide if they will mine or sell. Many think they will sell, although selling their coal mining assets might be a better alternative way forward. Either way I do not see Glencore selling this mine cheaply, they know what it is worth and what the Chinese and Fortescue were prepared to pay for Simandou.

The possibility of a floating offshore port means that Zanaga can proceed without the New Port of Pointe Noire a key issue if either Glencore develop or sell the asset. It seems an interesting coincidence that this new concept was being developed at the same time as Simandou was being sold (i.e. H2 2019).

TTNYR

"It is said that Australians will want to fight for gigantic compensation, up to $ 3 billion. .............. money of the order of 0.5 billion dollars could by now fully satisfy Prairie's shareholders."

https://www.parkiet.com/Surowce-i-paliwa/307169919-Prairie-Mining-Australijczycy-przejechali-sie-na-polskim-weglu.html

The future trade and foreign policy of Chinese iron ore imports

https://www.hellenicshippingnews.com/the-future-trade-and-foreign-policy-of-chinese-iron-ore-imports/

Iron ore price jumps to year high as Chinese imports soar

https://www.mining.com/iron-ore-price-jumps-to-year-high-as-chinese-imports-soar/

Looks like Sooty may be back in profit by the end of the day.

"The iron ore boom powering the profits of the world’s biggest mining companies is showing no sign of fading thanks to stronger-than-expected Chinese steel demand."

https://www.forbes.com/sites/timtreadgold/2020/07/14/iron-ore-boom-generates-700-gross-profit-margins-for-big-miners/#2b7ab4a3494b

.....iron ore imports jumped to the highest in 33 months in June, the trade data showed, fuelled by rising shipments from miners and robust demand.

https://www.reuters.com/article/us-china-economy-trade/china-posts-first-import-growth-since-pandemic-exports-also-up-idUSKCN24F0C1