Member Info for cherryburn

No doubt that all ministers and the current president and incumbent president are well aware of the importance of having BAO pig iron and vanadium for use in either an Indian, Japanese, Korean or Chinese steel mill. Depending on how low the opex for pig iron (net of vanadium) becomes this MozSteel will be able to compete in many markets especially sub sahara Africa.

And when did you actually send an email to the BOD and what was its content. I am hoping for an RNS in next month but quite relaxed at present .

Marshal you seem to be vey mixed up if I may say so. From your previous posts I see that you sold your last lot in BAO on 9 July 2014. You thought that this company was once called River Diamonds but NEVER WAS. River Diamonds was renamed Vatakoula Gold (VGM) and a complete disaster since never got anywhere near production guidelines. Never mind.

And whilst we are spouting numbers AMED holds 121 million , IFC 11 million, Dowler just under 9 million , BJ just under 2 million. Would be good to see some of Frank's connections buying in the market.

Very interesting development and possibly indicates that quite a lot is going on in the background ?

As a holder I am also disappointed at the share price performance and hope that we get the bulk tests out of the US and South Africa in the not too distant future. I am not sure that the board has CHANGED the production levels but merely looking at the OPTION of starting at a lower level for first couple of years. Different strategic partners will surely be looking at different scenarios. One thing is for sure and that is that Mozambique and neighbouring countries will welcome a local steelmaker. Any saving in the capex on 1 million tonnes pa would be welcome obviously.

Interesting that you have only posted on BAO for the past 30 days (16 times) and although you might be exasperated by this share you should perhaps take a look at AMC (Amur) waiting for a licence for umpteen years in Russia, BEM (Beowulf) hardly any activity on the ground in Sweden, BHR (Beacon Hill) problems getting up and running in Mozambique, NYO (Nyota) bailed out by KEFI in Ethiopia , VGO (Vatakoula) a David Lenigas company utterly failed to produce gold targets over many years to name just a few.

I agree with you trbw since discussions have apparently been ongoing for some time and my guess is that interested parties are waiting for a couple of things namely test results from the US and Mintek in South Africa and various capex scenarios. BJ latest interviews indicate that partners will not ALL want the same level of production start up and 1 million tpa leveraged on a MAJOR balance sheet is still a probability ?

Strategic partner might want to lock out opposition before DFS completion especially if contemplating steel production in Mozambique to compete with steel production in South Africa riddled with strikes, power outages etc at present.

I expect that the government of Mozambique will be glad to se the back of RIO. Arrogant expectation that they would be able to barge coal down the Zambezi river (environmental disaster waiting to happen) piling up cheap waste coal (environmental hazard) and having to relocate large number of locals.

Go to www.minesite.com and just log in with your email and set up password.

Interesting allusion to dance partners......August is not far off now.

Empirical......I think that the interview stated that he was looking at all options. In my view starting at say 500,000 tonnes in year 1 building up to 1 million tonnes in year 3 and in blocks of 500,000 tonnes thereafter in 2 to 3 year timescales could make a lot of sense. Naturally if BAO is to be a lowest cost producer of pig iron globally (net of vanadium credits) then DEMAND is going to be there. I believe that Brazil produces at an FOB cost of $385 per tonne and that is after destroying rain forest to make charcoal....hardly green economics. BAO using waste thermal coal on its doorstep seems preferable in every sense.

According to latest presentations available at www.baobabresources.com BAO can produce at cost of $225 per tonne but circa $165 per tonne net of ferro vanadium credits. I think that Brazil pig iron costs circa $385 per tonne (using charcoal) and Chinese pig iron about the same.

I see that you are predicting that BHR will be 10p in two years time so good luck on that one. I prefer BAO at this time with the newsflow that is expected in near future.

Might need quite a bit of rebar or steel for the new airport plus other infrastructure in Tete and Nacala including infrastructure for gas.

This gives BAO option of using Nacala corridor or Beira long term. Beira tariff should be cheaper as shorter distance and does not have to go through Malawi.

Morphine , you are doing a lot better than many on here if your average is only 10.75 p. Some of the so called sales could be T10 and T20 trades being liquidated.

Will also be interesting to see any further news on the railway line to Macuse near Quelimane since this will be the shortest route from Tete to the coast and therefore cheaper transport......after all the resource supports such a long mine life for pig iron /vanadium.

You make a very interesting point re high valuations on consumer companies and with pig iron/vanadium prices stable , the BAO margin in the DFS will be of paramount importance but we need to be patient.