George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
Love the last paragraph Jiving 🙌
After all, many major mining assets that are not listed, change hands at prices based around project valuation that can reach $ billions - Simandou being one example in the same sector as Zanaga. Its also noteworthy that the 50% of the Zanaga mine that was listed in the IPO in November 2010, was for an exploration asset that was in a far less developed state than it is currently. That was listed at 156p a share giving a market cap of £437m or double that for the entire 100% of the mine ie £874m - at the then FX that gives a valuation of almost exactly $1.4 billion. The all-time high (from a brokers report, maybe intraday) for the share is 222p or a market cap of £621m, double for 100% so £1243m & a USD valuation of over $2 billion. So historically the Zanaga mine (in a pre development state) has already been valued by investors as high as $2 billion! This surely leaves open the possibility that major global investors could value it at or above those levels today & that the 2 key holders/negotiators of 58% of the share capital would seek a valuation at or above that level?
We are looking at a reduction in capital and operating costs of 20%+.
As per the annual results RNS:
Guidance provided by Chinese EPC Partner that potential capital and operating cost savings of more than 20% could be achieved.
Great post MM.
FWIW I think Zanaga will have the EPC costings by the time of the AGM in November.
Things are moving fast. $$$$$
Not sure why people would be selling at this point, but I get everyone has a risk/reward profile, but after many false dawns we are finally on the cusp of something special.
Stock is being bought in chunks and is squirrelled away for the main event.
These are shares that are not coming back to the market.
Big volume days ahead with a few lulls whilst we churn through shares.
Thanks Alwayshoping.
Africa front and centre.
Lots to look forward to with next weeks interims.