Member Info for extrader

Cutifani leaves Vale Base Metals

Gustavo Pimenta takes over the board of the base metals business

26 June 2025

GLA

Panmure Liberum is ZIOC's Nomad and joint broker.

Perhaps 'new ZIOC management' would consider making this research - paid for by the company ie ultimately, its shareholders - available to us?

Wouldn't that be a turn-up for the books!

GLA

I'd be interested to know what GROK makes of oreacom.

My exchange with Copilot :

Me : .."from scrolling through its articles, oreacom appears to be an elaborate AI experiment, generating boosterish and entertaining content with alliterative sub-headings...what do you think?

Copilot's reply : I think you’ve nailed the vibe. Scrolling through OREACO reads like wandering through a theme park of industry optimism—complete with cotton-candy prose and jubilant headers like “Ceremonial Celebration of Climate-Conscious Conduct” and “Genesis & Geography of the Green Gemstone.” It’s got that unmistakable ring of being written for maximum gloss and engagement, rather than for balanced reporting or peer-reviewed depth.

The consistent use of alliteration, rhythmically upbeat tone, and storybook narrative structure almost makes it feel algorithmically generated—or at least heavily stylized for a brand-forward, investor-facing audience. If it’s not AI-generated, it’s definitely playing in that aesthetic sandbox. It’s charming in its own way, but you’re right to treat it as boosterish rather than investigative..."

Ah well. We live and (sometimes) learn.

GLA

Re MPI and BSL...

https://www.discover.ukri.org/TFI-Challenge-Resilient-Recovery/projects/resilient-recovery-projects-showcase/novel-eaf-composite-feedstock/index.html

.."In 2024, they collaborated on a UKRI-funded project to develop composite pellet technology for Electric Arc Furnaces (EAFs)2. This innovation aimed to reduce the carbon footprint of steelmaking by replacing traditional high-temperature induration with a cold agglomeration process using chemical binders.

The project used MPI’s seven-tonne EAF to test BSL’s pellets at scale. Results showed promising reductions in energy use and nitrogen content in the steel produced—potentially enabling low-emission, high-grade steel production in the UK within a much shorter timeframe than conventional decarbonization pathways..."

Is MPI marking its own - and BSL/BSL shareholder PSEI's - homework ?

Regardless, ZIOC should consider using these folk for their press releases/tweets :

https://www.oreaco.com/news-1/zanaga%E2%80%99s-zealous-zenith%3A-zeroing-in-on-zesty-dri-grade-gains

What's not to like?

;->

GLA

"The Annual accounts to 31 December 2024 should be issued by the end of June."

Quite.

And should include an update (to date near publication) of post-balance sheet date material events.

Having one's homework 'marked' by Chinese PSEI (if/when 'outed') is one thing, esp. if it may be considered to have an interest in the outcome - the prospect of a lucrative role as lynchpin contractor. What happens afterwards is, to some extent, academic.

Many folk will be equally interested in finding out/being told who did/does the independent validation of PSEI's work/assessment.

In the circumstances - and unless there's a Chinese strategic partner/funding - wouldn't you?

GLA

And this bit :

.."The ability to consistently produce high grade DRI pellet feed concentrate, suitable for DRI pellet production to SUPPLY EAF steel customers, provides a clear competitive advantage and highlights the Zanaga Project's investment appeal to strategic AND FINANCIAL INVESTORS......"

reads to me as though ZIOC may be making a pitch for royalty financing.

Per copilot

Royalty financing for an iron ore project is a way to raise capital without giving up equity or taking on traditional debt.

💰 1. Upfront Capital Injection

A royalty investor—often a specialized fund or mining-focused financier—provides a lump-sum payment to the project developer. This capital is used to fund exploration, development, or construction.

📜 2. Royalty Agreement Terms

In exchange, the investor receives a contractual right to a percentage of:

Gross revenue (e.g. 1.5% of iron ore sales), or

Production volume (e.g. 1 tonne per 100 tonnes mined)

These payments continue for the life of the mine or until a certain volume or value threshold is met.

🔁 3. Repayment via Production

Once the mine is operational, the royalty holder receives regular payments based on actual output or sales. This structure aligns incentives: the more successful the mine, the more the investor earns.

🔄 4. Buyback Clauses (Optional)

Some deals include a buyback option, allowing the mining company to repurchase the royalty at a pre-agreed return multiple. This gives the miner flexibility if cash flow improves.

🌍 Example: Black Iron & Anglo American

In 2024, Anglo American invested $4M in Black Iron’s Shymanivske project in Ukraine. In return, it secured:

A 1.0–1.5% gross revenue royalty depending on iron ore prices

Offtake rights for up to 60% of production

A right of first refusal to fund 15% of construction costs for future expansion

⚖️ Pros and Cons

Pros for Miner: No equity dilution ; no fixed debt repayments; flexible structure; compatible with other financing tools.

Pros for Investor: Exposure to commodity upside; diversified income stream; priority claim on revenue; often secured against project cashflows.

I'm still trying to work out where exactly GIS fits in to the equation and what exactly the 'consideration' involved in this bit is :

.."As part of the transaction AND AS A CONDITION of Greymont Bay's CORNERSTONE subscription, marketing rights over 20% of the iron ore products from the Zanaga Project will be allocated to Gulf Iron and Steel (GIS)....."

Hopefully, all (or at least, enough) will be revealed shortly.

GLA

Today's RNS was quite specific about what product it was expecting its high-grade DRI to address :

.."capable of supplying the rapidly growing low carbon Electric Arc Furnace ("EAF") steel sector..."

(1) So, which geographic areas are most relevant ?

Per Copilot

Here’s a snapshot of Electric Arc Furnace (EAF) steel production by region, based on the most recent 2023–2024 data:

Region EAF Share of Steel Production

North America 69.2%

China 9.9%

Other Asia 18.8% (Asia overall)

European Union 44.4%

Other Europe 63.8%

Middle East 95.5%

The Middle East leads globally in EAF adoption, largely due to its reliance on Direct Reduced Iron (DRI) and abundant natural gas, which makes EAF both economically and environmentally favorable. North America also has a strong EAF presence, driven by scrap availability and lower capital intensity. In contrast, China and much of Asia still lean heavily on blast furnace-basic oxygen furnace (BF-BOF) methods, though China is targeting 15–20% EAF by 2025...

https://www.steelradar.com/en/haber/usage-of-electric-arc-furnace-in-global-steel-production-reaches-286/

(2) But in absolute terms, the share of EAF is currently relatively low :

-N America: US 56/80, Mexico 14/16, Canada 5/12 mtpa, total 75/108 mtpa;

-S America: Brazil 6/30, Argentina 3/5, Chile + others 3.5/5 mtpa, total 12.5/40 mtpa;

-Asia: China 100/1020, India 75/140, Japan 22/87, S Korea 20/67, other 40/80 mtpa, total 257/1,394 mtpa;

-M East: Iran 27/31; KSA 10/10; other Gulf 13/13 mtpa, total 50/54 mtpa;

-EU: 47/126 mtpa

-non EU: Turkey 22/34; UK 1/5; others 2/4 mtpa, total 25/43 mtpa;

- Russia: 25/76; other CIS: 4/8; Ukraine: 1/6, total 30/90 mtpa.

- Africa: Egypt 10/10; other 8/9; S Africa 2/5 mtpa, total 20/24 mtpa.

Current total EAF-produced steel is about 417 /1892 mtpa.

The GIS 'Offtake agreement' said it was targeting the Americas and the M East.

North America has a developed scrap market supply, South America has existing DRI (Vale, etc), the M East current need is already met from existing sources (eg Foulath by Anglo).

Growth in DRI demand seems likeliest to come from China and other Asia.

AFAICS. Comments, other interpretations welcome!

GLA

Zanaga Iron Ore

@Zanaga_Iron_Ore

One of the largest iron ore reserves in the world with planned production of high grade iron ore with very low impurities #ZIOC

Congo Brazzavillezanagairon.comJoined June 2018

16 Following

729 Followers

Media

Zanaga Iron Ore’s posts

Zanaga Iron Ore

@Zanaga_Iron_Ore

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52m

⛏️ #ZIOC is delighted to announce positive outcomes from its recent metallurgical test work programme, confirming the ability to produce Direct Reduction Iron (DRI) grade pellet feed concentrate product from the Zanaga Iron Ore Project, and representing a significant improvement in planned quality against the 2014 Feasibility Study.

Highlights:

▶️ Hematite concentrate grade results: 68.5 %Fe, 1.05 %SiO₂, 0.47 %Al₂O3, 0.034 %P

▶️ Magnetite concentrate grade results: 69.1 %Fe, 1.96 %SiO₂, 0.40 %Al₂O3, 0.028 %P

These results mean that ZIOC is capable of supplying the rapidly growing low carbon Electric Arc Furnace steel industry, which gives the company a key competitive advantage.

Not only does it help ZIOC contribute to sustainable steelmaking and align with global efforts to reduce industrial carbon footprints, but EAFs are also a more cost-effective alternative to traditional blast furnace methods, requiring lower capital investment and maintenance.

The advantages of employing this production method give projects that can deliver DRI grade pellet feed concentrate a substantial market opportunity, which ZIOC is now well-placed to capitalise on.

Read the full announcement here ➡️ https://londonstockexchange.com/news-article/ZIOC/positive-test-results-confirm-dri-product-quality/17102315...

V low readership still, but at least /last something to chew on.

GLA

Looks to be a late-reported (from 20th) chunky 850K 'informed' buy just in...

AFAICS

...while Cameroon seems willing to defy/ignore ongoing ICC arbitration and consider allowing the new Chinese concessionaire, Cameroon Mining Company, to export first ore (by truck) from Mbalam - Nabeba in September.

https://www.africaintelligence.com/central-africa/2025/06/17/chinese-operator-eyes-september-for-first-iron-ore-shipment-from-mbalam-nabeba,110466311-art

Sundance, through its Cameroonian subsidiary Cam Iron, has initiated international arbitration proceedings at the International Chamber of Commerce (ICC). The dispute centers on Cameroon’s decision to grant the Mbalam exploitation permit to Cameroon Mining Company SARL, despite an interim ICC order prohibiting such action while the matter was under arbitration.

Sundance alleges that this move violates both the ICC’s emergency arbitrator ruling and the terms of its original agreement with the Cameroonian government. The company is also pursuing related legal action against the Republic of Congo and AustSino Resources Group Ltd in connection with the broader Mbalam-Nabeba project.

Cameroon hasn't paid its lawyers and was a 'no show' at the last hearings in Jan 2025, see

https://www.sundanceresources.com.au/irm/pdf/13e69a89-09e8-49ca-916c-8f0ea63ee93e/Update-on-Cameroom-Proceedings.

Sundance has commented : .."we have now established that Cameroon Mining Company SARL is part of the same group of companies as Sangha Mining, the Congolese entity that somehow obtained our Nabeba project after it was expropriated by Congo, it is still far from clear who is ultimately behind this group and how they are obtaining these valuable mining rights despite not meeting even the most basic requirements of the mining laws of Congo and Cameroon..."

This cavalier attitude won't help prospective (Western/ Gulf) investor sentiment.

This is Stock Gumshoe's take...

.."The risk, of course, is that their entire business model COULD be blown up by this one change in the law, which could effectively at least double the tax rate for litigation finance profits, and there may not be a lot of folks standing up for them (other than the trial lawyer lobbying groups), because many people consider litigation finance to be part of the “social inflation” problem that companies and insurance firms face..."

Goes on to argue that ..' part of the reason for investing in Burford is that the trends which are good for them — higher value court settlements, more litigation — are bad for the property & casualty insurance companies I own, so in some ways Burford is a bit of a hedge on the “social inflation” that insurers worry about..."

.."we shouldn’t whistle past the graveyard and assume all will turn out fine… but it’s also true that this company is otherwise extremely appealing — high profitability, somewhat hidden assets in the form of their YPF litigation awards that should come through in some kind of compensation from Argentina, eventually, and a pretty shareholder-friendly structure… including that they are quite transparent with their share-based compensation, they actually buy the shares on the open market to give them to employees and directors, helping the share count to be quite static for the past ~7 years..."

Notes that the tax .."would dramatically shift the playing field, with taxes twice as high for those suing as for those being sued, regardless of the merit of the case..." and feels that .."It’s hard to see it as anything other than a transparent attempt to destroy a popular financial product in the service of special interest politics..."

Quotes 2 x Nobel prize-winning economists .."The view of enforcement and litigation as wasteful in whole or in part is simply mistaken. They are as important as the harm they seek to prevent.’ If we are against breach of contract and intellectual property infringement, then we can’t be against the lawsuits that enforce those rights.

“So what’s really behind this bill? Special interest lobbyists for big businesses. They have been against this financial product for many years. Big businesses don’t need investors to help them pay their lawyers, and they don’t want smaller businesses that sue them to have the same advantage; they want them to have to take the low-ball settlement offers.

“The government shouldn’t be picking winners and losers like this..."

.."Still, it’s quite easy to imagine that some combination of big business lobbyists, insurance companies, and Senators who enjoy hating lawyers could put their fingers on the scale, in a pretty big way..."

Concludes : .."That’s not enough to make me sell right now, but it is enough to make me wait for a little more clarity before I buy more, even with the stock at a drool-worthy valuation right now..."

GLA

...and has now hot-footed it to Russia, to chivvy the Russians about progress on the oil pipeline they've agreed to construct/finance.

Job done (?), he's now taking in a side-visit to the St Petersburg Institute of Mines.

.."Founded in 1773, this institution embodies excellence in the fields of energy, natural resources, applied geology and mining technologies, with a close link between academic training and the demands of the industrial world.

During this visit, I was able to discover the extent of the institute's cutting-edge infrastructure, its roots in innovation, as well as its network of partnerships with major Russian and international industrial groups. This immersion reinforced my conviction that the development of our country requires sustained investment in specialized education and applied research.

Following the visit, we held a working session with the university's rector. Together, we expressed our shared desire to explore concrete avenues of cooperation between the Institute of Mines and Denis Sassou Nguesso University, in order to train the engineers that the Congo needs, and to promote the transfer of strategic skills for the sustainable development of our country...."

Getting a few mines up and running would provide useful 'on-the-job' training.

Maybe that'll be the theme of ZIOC's next tweet.

Https://lesechos-congobrazza.com/economie/11402-gabon-le-manganese-brut-sera-interdit-a-l-exportation-des-2029

In Gabon, the government decided on 30 May to ban the export of raw manganese from 1 January 2029.

In three years' time, therefore, Gabonese manganese will have to undergo at least initial local processing before leaving the country.

Gabon wants to create more jobs and industrialise this key sector of the country's economy.

With production of 7.4 million tonnes of manganese ore in 2023, Gabon is the worldᵉ s 2nd largest manganese producer.

GLA

...."My advice - Buy your shares, stick them in the bottom drawer, subscribe for their emails and check in every now and again (2 or 3 times a year).."

It's a pity you don't follow your own advice.

Coherence doesn't seem to be your strong suit.

AFAICS

It's a

.."On the spectrum covers a multitude of fins..."

This phraseology shows sloppy thinking!

We're ALL somewhere 'on the spectrum'.....if NOT there, where the h*ll are we ?

Hi wibblewobble, hi 99icecream,

Thanks both for the explanation(s) clarifying reason for the somewhat convoluted flow of funds and documents.

If I understand correctly, doesn't that suggest that - apart from / in addition to any marketing role, OWI sees itself (or perhaps its JV with Record - Switzerland, not Germany) as SPV/Security Agent, fulfilling the role described by 99icecream ?

Cheers both.

GLA

Seb tweets, pointing out that Argentina's argument doesn't hold water :

https://economiadigital.es/empresas/milei-ibex-ypf.html

Translated from Spanish by

YPF Case:

"The case is in court, there are still appeals..." Pablo Quirno commented in a brief conversation with this newspaper last Thursday, before his speech at the forum organized by Europa Press and Estudio de Comunicación in Madrid. "Until there is a final ruling, Congress will not allow these payments," he stated.

OK, but the GDP Coupon Case in London already has a final ruling and Argentina is not complying..."

This relates to an Argentinian roadshow in Spain seeking to attract new investment.... that would be the same Spain that is home to Repsol and the Madrid liquidator of the Petersen cases....

GLA

Christel tweets

.."On June 12 at #Changsha , as part of my official mission to China, I had a working meeting with Ms. Sun Ping, Vice Governor of the #Exim Bank China group. This meeting provided an opportunity to take stock of the state of financial cooperation between our country and this important partner, with a particular emphasis on the financing of structuring projects in the priority sectors of infrastructure, energy, agriculture and industrialization.

We shared a common desire: to strengthen our strategic partnership based on innovative financing mechanisms that are more agile and better aligned with national priorities. I reiterated the commitment of the Government of the Republic of #Congo to maintain a climate of trust with its partners, to respect its contractual commitments and to ensure the sustainability of public debt, in particular by favoring public-private partnerships ( #PPP ).

For her part, Ms. Sun Ping expressed her willingness to examine NEW bankable projects, while emphasizing the need to prioritize investments aligned with the green economy and digital technologies. We agreed to maintain a sustained technical dialogue in the coming weeks to identify shared priorities and effectively ADVANCE ONGOING PROJECTS. "

I'd sleep sounder with Sunda...

GLA

Christel tweets

.."On June 12 at #Changsha , as part of my official mission to China, I had a working meeting with Ms. Sun Ping, Vice Governor of the #Exim Bank China group. This meeting provided an opportunity to take stock of the state of financial cooperation between our country and this important partner, with a particular emphasis on the financing of structuring projects in the priority sectors of infrastructure, energy, agriculture and industrialization.

We shared a common desire: to strengthen our strategic partnership based on innovative financing mechanisms that are more agile and better aligned with national priorities. I reiterated the commitment of the Government of the Republic of #Congo to maintain a climate of trust with its partners, to respect its contractual commitments and to ensure the sustainability of public debt, in particular by favoring public-private partnerships ( #PPP ).

For her part, Ms. Sun Ping expressed her willingness to examine NEW bankable projects, while emphasizing the need to prioritize investments aligned with the green economy and digital technologies. We agreed to maintain a sustained technical dialogue in the coming weeks to identify shared priorities and effectively ADVANCE ONGOING PROJECTS. "

I'd sleep sounder with Sunda...

GLA