Member Info for allthatguff

Get real! Glencore do not run a charity and will not chuck a globally strategic asset for peanuts. A said, a JV offers a cheaper way for partner to get in, take the risk of financing out it and everybody wins. A buyout unlikely I will reiterate.

What does Glencore want out of this remains the real question! I don't think they would let this all go for below £5bn at very least (ie their share about 2.5bn).? Otherwise is not worth their while. My suspicion is they are taking a longer term view with JV and multi decade returns. As for the original IPO and investors I do not back the belief that 'they have already made their money' and are happy to let this go cheap. They are not stupid and will want realistic value or returns. What was the rumoured cost of Simandou (£$16bn??), £5bn is still cheap here, imo. This resource is becoming more valuable over time, not less. Premium high grade is rare in these amounts.

Or, more flannel to hide the impasse? Not sure.

Not enough, absolute fire sale that would be. This monster has global significance within a world crying out for high purity iron ore. Don't let the passing years dull us into stupidity :-).

On another note, it still seems absolutely ludicrous that Glencore cannot fund this pittance £2.5bn ( in global context) for Stage 1 itself, a company swimming in billions of profit annually. Crazy crazy crazy

Farmout / JV far more likely than buy out, imo. The marketing percentage argument and cheaper sale as described only benefits Glencore, not Zioc. A farm out allows acquirer cheaper route in by funding stage 1 (eg getting 50% share of project), either then self funding stage 2 with it or adding another farm out percentage incentive. The farm out also sits well with marketing arrangement. A win - win for all concerned.

Hmm, I have no idea how correct that speculation could be? A lot of assumptions. Problem is we know little about ZIOC's (ie Glencore's) actual strategy and the requirements (nature) of a potential buyer. Also, how far is Glencore willing to shift after all this time?

...spread change..

Cheap days may be over soon!

"Performance Rights awarded under the Company's Short Term Incentive Plan."

What performance?

Turds don't have original thoughts, only an aroma.

While we are at it, the other elephant in the room is financing deal that will be offered eventually. Kore basically will basically have to accept what is offered. Not a great negotiating position.

The issue is we have one viewpoint of all four parties involved in this. The hope is the other three are dealing in good faith. That with ongoing delays keeps the sp down. Risk is still very high, unfortunately.

This could get very exciting over the next 12 days (weeks?).

Ps. hate to be out over the weekend loltz.

A correct and balanced overview of yours, LT. On paper it is a generally a good update. I suppose my problem is the lack of trust in Power China and especially the ROC government (random arrests and dissatisfaction). Trust is not easily fixable except by results, which are not currently forthcoming.

The DX options is good news and welcome. This should be favourable in market,?

Not really. SEPCO seem surprised by what should be in a standard contact, guarantees etc. And they are redesigning the project yet again ("optimising"). All very odd. And the years and months roll by. Any late twist is possible, imo. I know LT will think this update is wonderful. Hmm.

Love your ever present optimism LT.

If there had been good news already they would have to have divulged it. So no.

Simply hearing 'ongoing discussions' is bad news in my book.

"As at 31 December 2022, the Company held US$5.0 million in cash." They can last a bit longer if they are prudent without needing a cash raise, imo. But is starting to bite..

There is no evidence for DX moving soon or partial sale? So probably not. However there could be other surprise news,eg flog the whole company (it seems the engineering company, financiers and government have Kore by the scruff of the neck). Cheap sale or get nothing? Would not surprise.

I am not hopeful, but hope to be wrong against the odds.

Pray for a good outcome!

Well spotted, batman :)

https://www.theafricareport.com/292220/kanga-potash-plans-fertiliser-partnership-for-republic-of-congo-project-ceo-says/

"Kanga Potash plans fertiliser partnership for Republic of Congo project, CEO says
By David Whitehouse
Posted on Tuesday, 14 March 2023 13:18

"Kanga Potash is in partnership talks with a fertiliser industry operator over its project in the Republic of Congo, CEO Achim Strauss tells The Africa Report.

The partnership will “bring industrial know-how” in building and operating the planned facility in Kouilou province near Pointe Noire, Strauss says. It would involve the unnamed player taking an equity stake which may be between 20% and 50%. Agreement may be secured in the next three to six months, he adds."

The confiscation of Kore Potash's mining license would scupper and deter other companies from investing in the RoC, such as for Kanga above. A crumb of comfort. But the continued silence is definitely concerning. They have had ample time to sort this out!?

Also, I have the sneaking suspicion that Arise IIP are probably not that interested in the minerals port? More on the SEZ's themselves. The iron or port is a huge specialist undertaking and most likely a standalone project in itself. Arise may be happy to give that off and simply integrate with partners. This speculation is fanciful but passes the time :-). Could be faaaar off the mark lol.