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Hi Driving

My guess FWIW would be Elphick's sub-radar 'core ' investors from the JPM days, Garbut etc....

Elphick makes the point that the updated FS enables discussions with NEW potential strategic investors...another 'nudge'?

GLA

No clarification (yet) re AD's commitments re port...and resurrection of EPP (not mentioned in last update, AFAICS) as a 'we have a plan B'....

Is this a 'put up or shut up' moment ?

The 'anti-dilutive' steps by GLEN / Elphick signal 'we're in lockstep' (at least for now!) to outsiders, IMO.

GLA

Well, in all the kerfuffle re the Shard Facility update, the Glencore Loan facility 'tag-on' was pretty much overlooked by ZIOC's most avid followers, the boards, so a pretty low-key 'head's up', I'd say.

AFAICS, GLEN has been free to BUY shares in ZIOC at any time and /or to SELL post expiry of those restrictions set out in the 22 Nov 2022 Acquisition RNS, viz.:

.."under the terms of the Relationship Agreement, Glencore Projects has agreed that it will not dispose of any of the Consideration Shares in the Company in the six months following Admission without the consent of the Company (not to be unreasonably withheld or delayed) other than in certain limited circumstances and to comply with orderly market provisions in the following six months...."

With the important caveat that it can't use its shareholding (whether increased by BUYING or not) to force a de-listing motion.

..".." Glencore Projects has also agreed to certain restrictions regulating the manner in which Glencore Projects exercises its voting rights in the Company including restricting Glencore Projects from using its shareholding to requisition a general meeting of the Company for the purposes of proposing any resolution to de-list the Shares from trading on AIM..."

AIUI

Of greater significance is the rider that - notwithstanding any accumulation of shares, GLEN can't/won't table a de-listing motion...

As ever, 'consider the source' : you'd expect BRICS to be keen on enlargement, its raison d'etre, and appears to have got ahead of itself.

Big Den himself appears to be pretty diffident/non-committal.

The issue is presented differently by RT.com and - since Putin (and Xi ) would presumably have a say in any decision - probably more accurately :

https://www.bignewsnetwork.com/news/274436780/congo-keen-on-joining-brics-president

.."The president of the Republic of the Congo, Denis Sassou Nguesso, has expressed his country's interest in becoming a member of BRICS. The African leader arrived in Russia this week, where he met with President Vladimir Putin.

In an interview with Russian media on Thursday, Sassou Nguesso stressed that the African country is interested in developing ties with the bloc.

"I've also heard about the BRICS+ format. So, if all these opportunities are available, why not? Congo would be interested," Sassou Nguesso said.

Big Den's diffidence may also be plain realism : C-B doesn't have the economic, political, demographic or strategic clout (yet !) of the other Bric+ countries - Egypt, Ethiopia, Iran and the UAE.

ATB

Hi MM,

The 'non-denial denial' notion was first raised by Catbert on 26th June in t'other place and there's quite a lengthy thread discussing its interpretation.

HTH

Hi Jiving,

Thanks for this analysis of how Shard tranche proceeds were applied, as evidence of the 'strictly needs must' utilisation of the Shard facility.

In fact, on re-reading the Acquisition RNS of 23 Nov 2022, it would seem (if I'm reading correctly) that there are/were restrictions on the PURPOSES for which Shard proceeds might be used AND additional restrictions for as long as the GLEN Loan is outstanding.

For both points, see Loan Amendment (c) :

.."(c) Jumelles will repay in full the outstanding US$1.8 million debt owed by Jumelles to Glencore Projects following any equity raise (or raises) by the Company which result in net proceeds to the Company GREATER THAN OR EQUAL TO US$1.8 million (determined on a ROLLING twelve month basis).In addition, the Company has agreed to become a direct party to the Loan Amendment and has undertaken to transfer to Jumelles such equity capital raising funds that Jumelles requires to repay the outstanding debt under the Loan Agreement.

The additional funds received pursuant to the Loan Agreement, as amended by the Loan Amendment, are intended to be applied towards the retention of the Project's mining licence, community work, engagement with technical consultants in connection with the Project and general costs and financing in respect of the Project and the Company. .."

It's also worth noting under Relationship Agreement (b) [ typesetting error : not listed separately, in the body of Loan Agreement] that GLEN can't use an increased shareholding (whether by subscribing to Shard or otherwise) to force a de-listing motion.

.." Glencore Projects has also agreed to certain restrictions regulating the manner in which Glencore Projects exercises its voting rights in the Company including restricting Glencore Projects from using its shareholding to requisition a general meeting of the Company for the purposes of proposing any resolution to de-list the Shares from trading on AIM..."

GLA and ATB

Hi Mitch984,

.."All I can think of is that any strategic partner who has showed interest is ONLY willing to pay for FEED, and not the general running costs of Zanaga..."

That seems reasonable !

But if there were an announcement re FEED, I would hope that the s/p would respond and the Shard facilities (T3 + (part) ESA2024) provide the necessary...

Or am I misunderstanding something ?

ATB

Hi atg

.."T3 12m plus 2024 36m equals 48m.."

Yes. I'd mentally accepted that the undrawn 12m WOULD be drawn, so only see 36m as 'new news'.

As with so many things in life, it's about managing expectations ! ;->

ATB

I see there's been no comment on this part of the RNS, which I'm not sure how to interpret :

.."The Company's cash balance at 27 June 2024 was US100k, with US$740k of drawn debt and accrued interest under the Glencore Facility and the Company continues with its prudent cash management. The proceeds received by the Company from SMC pursuant to the 2024 ESA if and when entered into, are intended to be applied to general working capital, including the provision of further contributions to the Zanaga Iron Ore Project's operations.

Glencore loan facility:

The Company is also in discussions with Glencore regarding the Glencore Facility which falls due for repayment on 31 July 2024 (the "Due Date"). Such discussions are ongoing but could include the extension of the current facility or a subscription by Glencore to part settle the Glencore Facility prior to the Due Date. At this point there is no certainty as to whether the Glencore Facility will be extended or partially settled in shares and a further announcement will be made in due course..."

Para 1 tells us what's o/s, which T3 would barely cover, leaving no WC going forward. At any rate, insufficient for 'going concern' going forward, never mind FEED.

Incidentally, the 2024 Facility is 36m 'above and beyond', not 48m, as some commented.

Para 2 tells us that - at this late stage - ZIOC/GLEN have introduced optionality into the mix : a further extension (can-kicking ?) or a further part-extension/part settlement (with settlement by GLEN subscribing for shares , thereby reducing the otherwise dilutive effect of the ESA).

It would seem that - whilst GLEN was willing to go along with the implied dilution of the first 2 Tranches, when nothing was in prospect- it is at the least less reluctant to see more, going forward.

Elphick has been strongly anti-dilutive todate (see the repeated messaging re phased drawdown and buyback rights - repeated in the new ESA) which has been a major factor for me that ZIOC ISN't a 'lifestyle company'.

It now seems that GLEN MAY be seeing things the same way...and that -under certain scenarios - it might prefer ZIOC shares to cash.

It may not be material in the scheme of things, but this optionality wasn't there before.

What do others think ?

Maybe we'll get a steer with the results.

GLA and ATB

Amazing!

Out of 72 Billion votes available, only 4 billion were cast at the AGM...and on the key share issuance resolution, 2.8 Billion prevailed, with 1.2 Billion against.

So 4% of votes were cast FOR the dilution that will now take place.

Remind me how many shares AZ and others claim to speak for. Did the Board say how IT intended to vote on the issue (which it recommended)...and how many votes IT cast ? And -if not- why not?

Does AZ actually own or control the shares that he declares?

GLA and ATB

Sebastian Maril

@SebastianMaril

15 hours ago.

🔴Judge Preska has permitted Argentina and the judgment creditors to file additional briefs regarding the creditors’ attempt to take possession of YPF shares owned by the Republic. Argentina will submit its brief on June 28, while the creditors will file theirs on July 8. In my opinion, this move by the judge suggests that there may not be any oral arguments and that she will rule on the turnover motion based on the written submissions.

Ashmore's latest :

.." Under International Monetary Fund (IMF) guidance, Argentina is pursuing measures to stabilise its economy and bolster foreign exchange (FX) reserves. This includes raising real interest rates to positive levels and eliminating currency controls.

As part of these reforms, the government plans to phase out a mechanism allowing exporters to sell 20% of their dollars at higher exchange rates by the end of the month.

However, inflation remains a significant challenge, projected to stay high at 69% over the next 12 months. This situation may require interest rate hikes from the current 40% levels.

President Milei's fiscal austerity measures have shown promising results, with monthly inflation reduced for five consecutive months to 4.2% in May, down from a peak above 25%.

President Milei is seeking additional IMF funding to facilitate the removal of currency controls and capital restrictions. This move aims to reintegrate Argentina into international debt markets following its recent debt restructuring in 2020."

GLA

24th : POst mortem re Red Devils football :

.."SENIOR RED DEVILS MANAGEMENT

Jean Guy Blaise Mayolas speaks his mind

The points that have long given rise to confusion, namely the appointment of the coach, the choice of players, transport,

transport, accommodation and bonuses for the national team's training camp were on the agenda of the press conference held by the President of the Congolese Football Federation (Fécofoot). .."

https://clgglobal.com/clg-launches-new-office-in-congo/

Mainly O+ G expertise, but all adds to 'business infrastructure' and local upskilling (MK pls note)

25th Russian oil pipeline back on the agenda .."the major topics that will be examined by the two parties during visit of the Head of State. These include the project to build a pipeline from the Atlantic Ocean to the Northern Congo. "Long in the pipeline, this project resurfaces as we move towards concrete decisions"

26th FOCAC conference in China 6th/7th Sept, Congo-B will Co-Chair...

Mining : Niger withdraws uranium mining license from France's Orano

Niamey has withdrawn the mining license for the Imouren deposit, one of the world's largest uranium

deposits , following the rejection of the new development plan proposed by the transitional government.

Transfers Somair mine from France to Rosatom. Niger has 5% of world supply, provided 15% of French requirements, behind Kazakhstan and Australia.

GLA

PS Which the Min of Cooperation tweet amplifies to.."the establishment of storage, processing and logistics facilities at the port of Pointe-Noire..."

And today...see snippet re Pointe Noire port logistics. Where is AD Ports as Port Concessionaire n all this proposed activity?

.."On June 26 in Beijing, I signed a memorandum of understanding with China CAMC Engineering Co., a leading Chinese company in the field of construction and engineering. Our partnership will cover strategic areas.

In the hydrocarbons sector, we will collaborate on oil and gas work, both onshore and offshore, to modernize this industry. We will also develop petrochemical projects, including refineries and fertilizer plants, as well as initiatives in the power sector. These projects will increase the added value of our natural resources and strengthen our energy independence.

This partnership also provides for the development of forestry and agro-industrial factories, as well as the IMPROVEMENT OF LOGISTICS INFRASTRUCTURE AT THE PORT OF Pointe-Noire. These initiatives, all of which will be carried out in the form of public-private partnerships, will stimulate our industrialization, create jobs and strengthen our economic competitiveness..."

GLA

Yesterday's tweet

.."I am currently on a working mission in #Chine where the 11th session of our large joint commission for bilateral cooperation will be held on June 26 and 27. As a prelude to this important meeting which aims to consolidate our global strategic partnership, I had the opportunity to meet several leaders of Chinese companies, both those already present in Congo and those considering setting up there.

With Huawei, we took stock of the progress of the National Telecommunications Coverage Project (PCN). I also spoke with China Railway Construction on the modernization of the Congo Ocean Railway, then with Startimes, about the establishment of a new partnership for TNT aimed at modernizing our audiovisual landscape.

China State Engineering Construction, for its part, presented to me its prospects for future investments in Congo. Finally, I discussed with Aviation Industry Corporation of China (AVIC) on two ongoing projects: the creation of an aircraft engine maintenance center in Brazzaville and the acquisition of three ARJ-21 aircraft for the airline national, ECAir..."

GLA

Here's another (post-run) thought.

Marty's 'recruitment interview' was heavy on the 'softer' ESG issues , leaving some to interpret this as a pitch to an important , but perhaps non-Strategic (defined term) partner market/target.

Could it be that ZIOC is making progress on THAT front - allowing Marty to talk with confidence on FEED timing , whilst at the same time giving 'plausible deniability' to the status of things with potential Strategic Partners ?

I say this because this angle is one he's been pursuing from the get-go :

From the CEO's comments in the 30th April 2024 RNS :

.." This detailed re-costing study further demonstrates that the Zanaga Project provides extremely robust returns for investors and significant infrastructure assets and positive legacies for the Government and people of the RoC. During recent engagements with RoC Ministries, communities and potential strategic investors, the burden of being the first mover in the region of high grade, low impurity iron concentrates for green steel production, is strongly supported and makes for an exciting future for Zanaga.

From this foundation, the upcoming FEED phase will not only seek to validate and enhance our technical confidence but critically, develop Zanaga's management plans around environment, community, training, health, water, mine wastes and ultimate closure. We believe these are equally as important as safe and reliable engineering, and financial viability."

That looks like a targeted pitch to me.

And, building on alwayshoping's link today, perhaps there's a role for these people :

'..20th June

(2) Who is the message aimed at - the 'bien pensants' and / or ESG community?

Or to 'soften up' PI's for a 'realistic' offer ...perhaps from the likes of these people

https://www.greeninitiatives.gov.sa/about-mgi , with a 'nudge' from Ma'aden/Manara minerals?.."

$ 22m would be chickenfeed as implied 'earnest money'.......

Feel free to shoot down!

GLA and ATB

Hi 99icecream

Thanks!

I had to look this one up.

Turns out the most used example of what you're suggesting is Bill's denial re Monica ..'I did not have s*xyal relations with that woman'.

In the extreme, an RNS at 5pm saying we're not currently in active discussion could be an acknowledgement that it's midnight in Asia and everyone's asleep, I suppose ?!

And I thought I was the cynical one ...;->

That would be pretty devious....

My nerves are a bit frazzled atm, I think I'd settle for Bill's alternative ...

TMI

GLA

'Success has many fathers,...'

GLA

PS

From (2) above .."We’re maturing agreements (with the 3) AND A PARTNER IN BRAZIL for further assessments..."

I wonder who the Brazilian partner is? Another ore supplier...or an EPC manager ? ...or someone else?

'More questions than answers...'

GLA