Member Info for Mitch984

Peterfal is 100% correct - and shows Pro Trader's total lack of understanding of charts.

You cannot apply charts to such a low volume of transactions. The "results" are meaningless.

Pro Trader - your opinion please?

"Does China need Zanaga, if it already has Simandou and Belinga?"

I think the question is more why have China done Simandou when they could have developed Zanaga at a fraction of the cost.

That has always puzzled me, and slightly concerned me.

"The company in its investor presentation of 7 December 2022 in its review of their portfolio noted "Zanaga Iron Ore - sale pending'. "

Just to clarify on this, Glencore have since confirmed to another board member that the "sale pending" in fact referred to the share transfer deal with Zioc, and not a pending sale to a third party.

I do agree though that there must have been some reason behind the Glencore deal, although my thoughts are more towards Zioc bringing in a finance partner to start development, rather than an outright sale. Glencore's long term rights to distribute the ore will, again in my view, lessen interest from another established miner (like FMG for example).

Concur that it is good to have MM back!

Not sure I like the look of the delayed publication 3million share sale this morning though.

Who would sell at this time? Crazy.

I'm not so sure ATG. Personally I would be overjoyed with a sale at $1bn, and agree that looking at the life of the mine etc, it would be a bargain at that price.

However if it really was such a bargain, it would have been snapped up by now. The biggest factor against a high selling price in my view is Glencore's rights to distribute the ore. That reduces the profitability for any third party that wants to buy Zanaga outright and develope themselves.

Personally I think a partner will be brought in to develope the mine, starting with the much mooted small scale project. However my hope, like it is for all of us, is still a buyout.

I thought it was a very poorly written RNS, and much more explanation should have been included to stress that the DX extension is years down the line, and the current emphasis is on financing Kolo.

But then poorly written RNS' are par for the course with KP2 unfortunately.

Lots of people ready to sell though, as its dropping back now unfortunately.

"That’s me sold out here, nice profit…. I’ll look back in a few months when at 0.45p…ish.."

Albi - this must have been the 658 share sale at 09.01 this morning. Value £5.12?

You must be pleased!

LTR. Yes, that makes perfect sense. Thanks for that.

As you say, there would be no point in mentioning recruitment if everything else was not in place.

Hi again LTB,

I remember that now, but read it more that then would hire mining specialists to draw up plans for the construction, rather than expecting actual spades in the ground.

I may of course be wrong though. However the funding announcement I think will have to come first.

Hi LTB,

I am not doubting you as I may have missed this, but can you point me towards the source of:-

"the Co saying, for the first time EVER (2 days after meeting the Minister), that mine construction starts during H1 23."

If true, that would definitely cheer me up! :)

Typical lazy "research" by Zak Mir. As if Glencore were not already part of Zioc.

And as for "this puts Zanaga on the runway to production, without having the headache that so many of its peers may have in terms of funding."

Why? Glencore will not fund the mine after all. All they want is to distrubute the ore if it is developed.

I certaintly don't take any pleasure about being correct. My main reason was that if a true sale was in the pipeline, there would have been no need for the Glencore/Zioc share deal.

However, as others rightly say, the share sale was clearly done for a reason. My feeling is that a partner will be brought in to finance the early stage small scale construction. And I do not think it will be another big mining company - only because Glencore have the distribution rights.

A true sale may then be several years down the line. In meantime there is still plenty of potential upswing in the share price as and when Zioc bring in partners and/or sign financing/construction agreements.

The pressure I think will be on Zioc to make some definite progress soon - certainly judging by the government's letters and comments to KP2 (Kore Potash). It looks to me as though the government is running out of patience with companies who have mining licences. However Zioc may avoid much of that due to their debt to Glencore.

Lets all hope 2023 is our year!

"Of the 3 business' Glencore listed as "Sale Pending",

Unfortunately I have a feeling that "sale pending" meant the sale to Zioc that concluded last Friday. I'm not at all sure that a sale to a third party is what Glencore meant in their update.

Loose wording I realise, but that is typical of many RNS releases. We have had plenty of ambiguous ones from Zioc over the years!

... plus someone is now dumping shares in 500k batches.

That is also not good as KP2 leaks like a sieve, and always has.

Yes. Definitely new news, and not good news. There was no mention of a "task force" in the reporting of the government letter sent last month, so this new press report definitely does not relate to last month's letter.

KP2 need to urgently get their act together and take the government's concerns serious. Brad's reply to the government letter clearly did not contain enough detail to satisfy the minister. The government would not risk going to arbitration if they thought they would lose!

It was most likely his accumulation of shares back in 2017/18 that drove the price up to 20p. To get there again we probably need another big buyer, private or institutional, to start building a large holding.

Whatever the news, its only demand for a share that triggers a rise after all. Plus Zioc will be issuing new shares as I understand it to "finance" the Glencore "purchase". So I assume that will be the same as a dilution.

However any announcement related to a finance partner for developing the mine should create the share buying interest that we need for the share price to rise.

20p will definitely test my resolution. Eventually it will be a lot higher than that, but at my age I'm not sure I can afford to wait!

I also would never invest based solely on an Align report.

While the reports do contain some excellent factual information, I just cannot ignore that Align are paid for publishing a research document by the company the report is about - either through an allocation of shares or in cash.

That to me means you can use their basic factual information, but you must do your own extensive research before deciding to invest. Just as 99 and ATG have said.

...I know it was just idle dreams about a teakeover offer of that level, but who is going to make any sort of takeover offer now that Glencore have the rights to distribute the ore?

The only practicak way forward it seems is to bring in a partner with the financial resources to develope the mine. But even then the ongoing profit for that partner (and for ZIOC) is only now going to be whatever mark up they can achieve by selling the ore to Glencore. Which will of course be far less than selling it on the open market.

Having said that, ZIOC would not have done this deal without having confidence that they can find a development partner, so something must be afoot.

"Personally, I think it’s the sale of Glencores holding - but I hope I’m wrong ?? "

I think jv123 has got it right. Glencore's new shares in Zioc possibly being sold to some outside party coming in to partner Zioc in development of the entire project.

If it was a sale of the whole project, I just can't see any reason why Glencore would first "sell" their share to Zioc. I am happy to stand corrected, but I just don't see any logic in that.

Alternately it could just be really poor and lazy use of words by Glencore in describing the "sale" of their shareholding to Zioc as an impending sale. It would not be the first time an RNS has been vague, lacking in clarity, and therefore open to interpretation.