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Corporate Update and Investor Event

2 Jan 2025 14:55

RNS Number : 9711R

Zanaga Iron Ore Company Ltd

02 January 2025

2 Jan 2025

Announcement of Planned Corporate Update and London Investor Event

Zanaga Iron Ore Company Limited ("ZIOC" or the "Company") (AIM: ZIOC) is pleased to announce that the Company intends to provide an update to shareholders on the Company's strategic partner process whilst also providing further information on the Zanaga Iron Ore Project's development plans.

As a result of the planned corporate update the Company will be hosting an event in London on Tuesday 11 February 2025 to provide a briefing to its shareholders (the "Investor Event").

MORE DETAILED INFORMATION ON THE INVESTOR EVENT WILL BE ANNOUNCED SHORTLY.

> Now, about this detailed info coming 'shortly'? My reading tells me following updates and info on Strategic Partners and development plans.

The Pilbara grade depletion problem is hitting home. Rio can no longer maintain their benchmark 62% Pilbara Blend (ditto BHP with their Newman fines). Today:

1. "Rio is contending with the depletion of some of its main mines and has been maintaining production with higher levels of its low-grade SP10 product, which accounted for a quarter of its shipments in the fourth quarter. Elevated levels are expected to be sustained until its replacement projects come online towards the end of the decade. “We are reviewing our future product strategy, having regard to customer requirements and available ore grades,” Rio Tinto said.

and

2. "Along with other operators in the region, Rio faces a challenge in securing adequate grades across its iron ore business in Western Australia’s remote Pilbara region. Part of the solution is development of the Western Range mine which is set to come online this year. However, Rio has previously said it would need to bring a new mine into production every year until 2030 just to match current output from its iron ore business. “Productivity improvements of 10 million tons did not fully offset depletion, predominantly at Yandicoogina and Paraburdoo,” the company said Thursday. Output fell due to lower grades and rainfall five times heavier than that of historical levels.

Pilbara Plan

Rio is advancing its next tranche of Pilbara mine replacement studies, with ambitions to develop at least four new large mines. Its Rhodes Ridge project is targeting an initial capacity of 40 million tons. Away from Australia, Rio is on track to bring its massive Simfer mine at the Simandou iron ore project in Africa’s Guinea into production late this year. The project will ultimately export 60 million tons per annum, but initial exports will be marginal while the mine is ramped up."

(1) https://www.mining.com/web/rio-tintos-fourth-quarter-iron-ore-shipments-slip-amid-heavy-rains/

(2) https://finance.yahoo.com/news/rio-tinto-fourth-quarter-shipments-212744329.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAALYZxUhdxPBcSSRAgVGRCflsK3Coe9VfSfl1rRP1T3xsfaB6aUaojS6zzRasTRcjRbOsG3kp2YrnT1LY3fVLZwx8b3l6_dhae9_X-4qY6oLHNOqDYo1G88y4YHEIX1WrY3vXPdNeUQo2ECeQIoRGm9xAvBVv4Sa1qePrJKGEnPD5

Another positive for those who follow these things.

ZIOC on the point of a 'golden cross', with the 50-day average set to cross up and through the 200-day average.

"What is a Golden Cross? A Golden Cross is a basic technical indicator that occurs in the market when a short-term moving average (50-day) of an asset rises above a long-term moving average (200-day). When traders see a Golden Cross occur, they view this chart pattern as indicative of a strong bull market."

https://invst.ly/18ggni

If anyone uses Bollinger bands, my chart says we went from a huge overbought position at 12.00p before correcting (sharply!!) back to the centre of the trading band (red line).

We now look set to test back up to the top of the band again, currently at 10.23p but which would higher as we approached.

https://invst.ly/18g0dn

there's me wondering what kind of ****** would be short zioc on ig index, when up pops the moron at 13:27.

so suspension it is and they'll be closed out at the next offer....which will be £5++ per share.

Another great find, alwayshoping.....to be a 'leading global producer of low-carbon steel' the Saudis will be needing a leading global producer of DR-grade iron ore.

And there's only one mine that will let them be that, and that's the 67.5%Fe super grade of Zanaga.

"...Saudi Vice Minister for Mining Affairs Khalid Al-Mudaifer announced substantial progress and plans for the sector, describing a $100 billion mineral investment pipeline with $20 billion already in advanced stages of development.

He outlined the Kingdom’s objectives to become a leading global producer of low-carbon steel, aluminum, and aerospace-grade titanium while strengthening its capabilities in electric vehicle minerals.

These efforts, he said, are being driven by Saudi Arabia’s national industrial strategy and giga-projects, which are fueling unprecedented demand for minerals."

Much as I'd like to see our share price going from auction to auction, and rising in 10p chunks, I'm beginning to think that a suspension on news might be the way to go.

You're kidding!!! - 2-to-1 Shorts to Longs

That's going to hurt on news!

Thanks yogiananda - I have no account so cannot check myself. However I do note that HL have just lifted their bid from 7.52p to 7.87p with no visible trades showing.

Which, of course, would equally go for any short position - including our theorised uncovered call option, as per our spike to 12p last week.

Harking back to the 'Options' theory and 'hedging the upside', a conversation this morning with a fellow ZIOC investor.

Apparently the brokers are no longer offering CFDs and spread bets on ZIOC. This because they are concerned that ZIOC could be suspended on news and hence they would not be able to hedge their upside, i.e. buy to cover their exposure.

Just saying.

The other Congo but still:

CONGO COURTS SAUDI MINING INVESTORS TO HELP CURB CHINA DOMINANCE

Reuters | January 14, 2025 | 6:50 am Battery Metals News Africa China Middle East Cobalt

The Democratic Republic of Congo, the world’s top cobalt supplier, is courting new mining investors from Saudi Arabia to help it diversify and curb overreliance on companies from China, Marcellin Paluku, a senior government official, told Reuters.

Congo, which is also rich in copper and other critical minerals, wants more partnerships with the new investors to limit the risk of relying solely on Chinese investors, Paluku, who is a deputy cabinet director in the ministry of mines, said.

https://www.mining.com/web/congo-courts-saudi-mining-investors-to-help-curb-china-dominance/

Interesting

https://free.flightradar24.com/data/aircraft/p4-bfh

An interesting pair of tweets today. MBS speaks with Lula over 'several topics of mutual interest', and Saudi Mines Minister Bandar Al Khorayef speaks with his Brazilian opposite. FMF started today...

AlEkhbariya News @alekhbariyaEN

HRH the Crown Prince (MBS) receives a phone call from the #Brazilian President; during the call, they review relations between the two countries and ways to enhance them in various fields, in addition to discussing several topics of mutual interest.

https://x.com/alekhbariyaEN/status/1879110076679721307

and

وزارة الصناعة والثروة المعدنية @mimgov

HE Minister of #Industry_and_Mineral_Resources, Mr. Bandar AlKhorayef, and HE vice minister for Mining affairs Eng. Khalid AlMudaifer met with the Brazilian Minister of Mines and Energy HE Alexandre Silveira to discuss strengthening bilateral cooperation between the two countries.

#FMF2025

https://x.com/mimgov/status/1879093746605621282

'At what price will Glencore give up its stake in Zioc? '

NPV ***plus*** to account for the huge amount of Resource that has yet to be proved up to Reserve confidence levels.

(note the current NPVs are calculated off the Reserve alone).

Glencore's empty seat on the ZIOC BoD is perhaps a sign that they are OK with the Strategic Investor Process (Strategics acquired), and also a signal that they are prepped to be bought out.

Just 4 weeks to go until the 'Investor Briefing' - note 'briefing'.

Ahead of which the company have announced, '...an update to shareholders on the Company's strategic partner process', as well as, '...further information on the Zanaga Iron Ore Project's development plans.'

Those could be 2 RNSs before 11th Feb.

They would tie in with this from Trahar, 'very very well-positioned (for) a string of announcements', from his Proactive interview following the Port MoU in December:

'We are very, very well-positioned now to move forward on a number of execution milestones that we've lined up in the early part of next year ... we now have a string of announcements planned for the early part of next year that we are going to be hitting milestones on and getting into the public domain for our shareholders.'

Rock solid messaging from the company.

Simultaneous announcements from ZIOC and our Strategics.

Imagine parallel messaging from ZIOC and also from a Rio/Vale/BHP/AA and a Baowu/Nippon/Manara...

Imagine where the SP would open...

Imagine...

And any day between now and 11th February.

ZIOC have reached the point where any step forward for Zanaga is hard development of the mine. That means money, and that means Strategic Partners. ZIOC cannot either receive money and/or allow a claim on future production without specifically detailing it to shareholders, which means the names of Strategics and contract details.

Development means the Strategics must now come out of the shadows, and that has huge implications.

The main one for me is that the Strategics will have to do a PR blitz. After all, Zanaga is huge with the potential to reach to 50mtpa for 50 years. This woulds rival Simandou and look what publicity and media coverage Simandou has received.

Then we have Zanaga's grades which reach 67.5% of DR-compatible super grade, whereas Simandou falls short at 65.3% average.

So that PR from the Strategics will be quite something - corporate and multi-decade strategy defining stuff.

So, we're promised a Corporate and Project Update ahead of the Investor Briefing this coming 11th Feb - (Hold the thought for a moment that a 'briefing' is info provided to aid decision-making ahead of an event or action).

The last ZIOC-styled Corporate and Project Update was in March 2024. Here's what it said:

28 March 2024 - Corporate and Project Update

Zanaga Iron Ore Project update (the "Zanaga Project")

The Company is pleased to provide an update to shareholders on the timing of the Company's FS update process with its Chinese EPC Partner.

1) FS UPDATE PROCESS

a) The review and re-costing phase of the 2014 FS has been completed and a near-final report has been received from the Company's Chinese EPC Partner, and this has progressed to peer and ZIOC board review.

b) The final results of the 2014 FS update are expected to be announced during April 2024.

2) FEED PHASE PREPARATION

a) Preparation for the Front End Engineering and Design (FEED) phase of the Zanaga Project is underway, including solicitation of cost and schedule estimates for the various workstreams associated with the FEED phase.

3) OTHER STRATEGIC INITIATIVES

a) In September 2023, the Company outlined its strategic objectives, including the intention to secure MoUs with a number of potential partners to progress the Zanaga Iron Ore Project. An update on each MoU workstream is provided below:

i) Hydro power MoU: signed with CMEC (announced on 29 December 2023)

ii) Port MoU: Significant progress has been made in securing interest from large scale port development companies interested in participating in the development of port infrastructure for the Zanaga Project. In parallel with the 2014 FS update process, these discussions are progressing.

III) STRATEGIC PARTNER INITIATIVE: the Company is pleased to have received, interest in the development of the Zanaga Project from a number of parties. Discussions continue and the Company will provide further updates in due course.

https://www.lse.co.uk/rns/ZIOC/corporate-and-project-update-tyunv7n1432hny5.html

Just FEED and Strategic Partner Initiative unticked....

STRATEGIC PARTNER INITIATIVE: the Company is pleased to have received, interest in the development of the Zanaga Project from a number of parties. ****Discussions continue and the Company will provide further updates in due course.***

>'In due course': Sounds like we will be getting the results of those SPI discussions...