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Given Glens previous bribary issues in Africa I think they want to avoid any accusations in future. Inserting Zioc into the driving seat whilst still still retaining a share in the profits is a win win. They had every incentive to turn their back on this but they didn't. They are not a charity. They see $.
I think it means Glencore have first refusal to buy at market price. Why would that be off putting? If they don't want it or don't to pay market price they are under no obligation and can sell to someone else.
This is exactly the type of deal we want Glencore to strike for ZIOC. It's good that they recognise that they don't want to do greenfield sites but are happy to turn control over to those that are in return for a cut of future revenues. It's just a shame we don't know what assets are in the 15 being sold (14 now) and 10 being reviewed but ZIOC surely must be in there.
I think doing this will be a very profitable exercise for Glencore.
So Glencore are selling 10 assests and reviewing 15. It sounds like ZIOC may finally come to their attention.
"Those assets that are not fit for purpose or subscale we would look to move out of our portfolio," Chief Executive Gary Nagle said, without identifying the assets he was referring to.
So if we're not on the list they presumably have plans for us......
Thanks. So we are considerably in excess of that figure. The economic case is self evident. I'm not so sure that I'd bet against this ever happening.
Xstrata were a better partner, they actually wanted to mine the stuff but Glencore should see the attraction of offloading it before the licence is revoked.
https://www.theguardian.com/business/live/2021/may/07/iron-ore-copper-record-highs-global-recovery-china-trade-us-jobs-report-hopes-business-live?page=with:block-6094e0978f0838a44ae841b3#block-6094e0978f0838a44ae841b3
What was the price of Iron Ore that kicked this project off over 10 years ago?
https://www.mining.com/iron-ore-price-hit-record-high-fuelled-by-structural-supply-shortage/
Glencore? Hello?
https://www.bloomberg.com/news/articles/2021-04-20/iron-ore-giants-challenged-in-race-to-meet-soaring-china-demand
It would be nice if someone involved in Glencore saw this as an opportunity....
'There's something BIG coming from Zioc. End of year update isn't 7 weeks late without reason.'
They've forgotten!
But seriously the only game plan on the table for us is a sale. The idea of us driving the exploitation of the site was never realistic the only ones who could/should be doing that was Glencore and they gave no indication that they even knew ZIOC existed. It might finally be on their radar. So frankly, they can keep the updates on floating ports, pelletization etc and just tell; us when it's sold. My guess is when Glencore think there is a sniff of a disposal they'll want us out of the way and they'll make us an offer. I am guessing that a sale is what they want given their view on greenfield sites and iron ore.
Well that is a tiny glimmer of hope isn't it, haven't seen any acknowledgement previously. We definitely fall under the category of " other non-core assets within the Group.". As you say legacy/new broom.
Since you pointed out how many shares they are sitting on in treasury it feels like a no brainer to offer GLEN shares but I suspect they'd want a chance of a sale lined up before trying to nick it on the cheap! It's all like reading tea leaves but I always thought that market conditions drive actions and market conditions really couldn't be better.
Any sign that Glencore are awake and actually aware of ZIOC would be helpful! I really can't help thinking that we wouldn't be parked here if Xstrata still existed. Surely even this dozy lot must wake up to the opportunity soon.
I've done this on other shares with large spreads, even with a cheap fixed price trader like Selftrade (now EQi). I assume the shares are held by different dealers (if not, then it's even easier). Basically put both dealers in touch with each other, ask the dealer that holds the ISA (receiving) for contact details on who your holding dealer should call. Explain to them the situation and that you wish to perform a pre-arranged trade so that you can avoid spread losses when selling your holding to yourself. You will have to pay dealing costs and stamp duty but these are trivial compared to the spread. Call you holding dealer, explain the situation and give him the contact details and that should be it. If anyone says no ask to speak to someone else. The traders understand and will do it so I'd ask to speak with them first off.
The only issue is that you will have to magic up the money in your ISA to pay for the shares. If you don't have the money or you can't borrow it I suggest selling shares with a low spread to finance it and transfer the money back from the selling account when its all gone through. There is a risk here as transactions take 3 days to clear.Hopefully Lloyds or whatever you sold won't have taken off in that time!
Sentinent for Iron Ore is undoubtably bullish. Even without news I think people are starting to position themselves for the possibility of something happening and this will lift the SP from its dead parrot pricing.
We are near the price of iron ore that kicked this project off in the first place with masses of optimism. A finacial crash, a commodities downturn and prolonged slump all took the shine off but we now appear to be full circle. Running the numbers with these prices should make eyes light up and finally unearth a buyer (or two).
Thanks for the reply. So OK another tile in the puzzle and a positive.
I wonder if it will occur to the Australians to buy Zioc to prevent China acquiring it. Even without the benefit of developing it, it would make a lot of sense.