Member Info for Mynytho

Zanaga could be producing for 50+ years, market price fluctuations get smoothed out on this time scale. Mining projects are always a complex mix of volume, grade, access, political stability, cost of capital etc. Zanaga has huge volume, high grade, low impurities, and better access than many projects. Yes it's in the ROC not Canada but there are many listed Canadian projects that will never get developed because they are in the middle of nowhere in the Northwest Territories. Fortunately rates look like they are coming down now. Such a pity Ivan made Glencore sit on this and do nothing when we had a decade of 0% money. Hopefully it will be the Saudis, looking to diversify, that will buy in with their petrodollars!

It reiterates what a bargain Zanaga is by using a slurry pipe and offshore de-watering/loading vs billions on a rial line over very difficult terrain.

It hasn't even been a year since Glencore's Investor Update (02/1202021) where they outline there plans for disposals of non-core assets. Given that miners seem to plod along with development plans measured in decades the fact that they have not yet disposed of their non-core Iron assets does not mean they won't, this is still early days measured in 'Glencore time'.

Hi DealBreaker
Fundamentally this is all about Glencore. The plus points are that since Ivan retired and Gary took over they have had a change in strategy, as set out in their December 2021 presentation. The good news, and why I think it it worth sticking with the bet, is that they are following through and have recently sold some assets as set out in the plan. Iron is not on their preferred list which is why all ZIOC holders keep hanging on, hoping Zanaga is on the 'for sale list' and not just going to be 'reviewed' for the next ten years! So I think a sale is more likely now where as previously hopes were hung on various development scenarios. If you can't resist Chariot take half your money off the Zenaga table and split your risk?

Hi pickedpeck
Telsa will need a lot of stainless steel when they start fulfilling the 1 million+ pre-orders of the cybertruck. Their suppliers,Steel Dynamics are investing ~$1.7 billion in a new mill at Sinton, Texas. They have to get the raw materials from someone and Elon has previously stated he wants Tesla's inputs to be as clean as possible

Hi All
Any thoughts on Glencore offering to buy us out with an all share offer?
From today's Glencore RNS.
"The Company will hold the repurchased shares in treasury. Following the above transaction, the Company holds 1,373,568,731 of its ordinary shares in treasury and has 14,586,200,066 ordinary shares on issue (including treasury shares). Therefore, the total voting rights in Glencore plc will be 13,212,631,335. "

I had hoped Gary would review things sooner, see post on 22/07/2021, but I guess this review is 'quick' for Glencore. In their 02/12/2021 Investor Update there is no mention of Iron, it would seem that Glen is only interested in a future in Copper, Nickel, Zinc and Thermal Coal!!! So perhaps the worst case is that the joint venture is one of the 15 projects undergoing "internal review" and we stay on the shelf for another 10 years. However, like everyone else I'm hoping Glencore have finally seen the light and will dispose of their 50% to a miner or buyout Zanaga before selling it as a 100% project.

Since the merger with Xstrata, Glecore has effectively traded sideways as you could argue inflation has negated any gains from dividends. Equally, during this period Glen has not had a good press and increasingly fails to fit investors ESG requirements that have gained significance in recent years. As a company Glencore does not look very 21st Century with it's large holdings in thermal coal, it's not a Peabody, but it's certainly not a Tesla. Glencore is trying a bit of 'greenwashing' talking up it's copper holdings and the 'new economy' but these are very average and since the merger nearly a decade ago have suffered from reducing grades like many producers. If you look at the grade and size of Ivanhoe Mines copper deposits you will see the difference between World class and average.

With the recent heatwave on the USA/Canadian west coast and floods in central Europe and central China the climate change challenge is in sharp focus for the developed world, not just drowning Pacific Islanders. The combination of PV, wind and battery storage now makes this the lowest cost energy solution without the need for subsidies. Coal is being priced out of the equation on economics alone, no help needed from Greenpeace or Extinction Rebellion.

So I think Ivan has left Gary Nagle with a big problem, particularly if his bonus payments are dependent on substantially increasing Glencore's lackluster share price. Sooner or later, hopefully this second half of the year, Glen's management team will have to initiate a major asset review and decide what their future will be. There has been a lot from Glencore recently about "managing the coal assets responsibly.." but they are a problem that is only going to get worse with the prospect of becoming a balance sheet write down destroying more shareholder values. They are going to need another source of revenue or risk further decline.

Hi Mitch
"Personally I still think we need to get Glencore out of the picture completely. That to my mind is the only way this project will move forward."
As I have said before, it's Ivan's last day, it might make a difference, form Gencore's site under news.

Baar, Switzerland
30 June 2021
Glencore plc notifies that in accordance with its announcements on 4 December 2020 and 23 March this year:

1. Ivan Glasenberg will retire today, 30 June, as the Group CEO and as a Director of the Company; and

2. Gary Nagle will succeed him as CEO and Director with effect from tomorrow, 1 July 2021

By "direction" should have made it clear I was interested in strategic approach not short term SP volatility.

Anyone got any thoughts on Glen's direction after Ivan retires at the end of June and Gary takes over?

Nothing will happen until Ivan retires and only then if there is a change in the overall culture of the Board once Ivan has gone.

"23 March 2021 - Further to the announcement of 4 December 2020 regarding the CEO succession process, Ivan Glasenberg will retire on 30 June 2021."

Hopefully Gary will want to establish himself with a new strategic direction but one that is still in keeping with previously stated aims.

“Each step in the evolution of the business has been informed by the needs of the customer and reflected the changing dynamics of the global environment and commodity markets. Underpinning all this is Ivan’s simple mantra of value over volume.... Ivan hands over to Gary, he does so at a time of huge change. As the world moves to recover from the impacts of the COVID-19 pandemic, while also addressing the challenge of climate change, our industry has a significant opportunity to contribute to the economic recovery by providing commodities essential to the transition to a low-carbon economy. Glencore and its portfolio of future facing commodities is uniquely positioned to meet the needs of today and the demands of tomorrow. "

Quotes from Glencore's site.

party/ perty!!!

Eric Sprott on taking a contrarian view and waiting years for it to pay off.
" You've got to be in a room having a perty by yourself, that's when you're accumulating large possitions of stock. Everybody else is partying in the other room. It's an awful lonely place to be, to be sitting by yourself. When everbody in the other room decides to party in your room it'a an awfully small door to get through. That's when stocks go up hundreds of percent."

DrR - I just left it. I knew they would never reveal the 'Master Plan' but was just interested to see if they woud A) answer at all and B) what they would say if they did.

Bored on Sunday I thought I would poke Glencore with a pointy stick and see what happend.

To info@glencore.com
Hi
Glencore is not involved in the Iron Ore market, as a producer or significant trader. Given the consistent profits generated by this commodity for other majors, BHP, Rio Tinto, Vale and FMG why has Glencore made this strategic decision?

Got the reply -

Martin.Fewings@glencore.com
Tue 18/08/2020 11:54

Dear Sir
Thank you for your email.
We are involved in the iron ore market as a trader. We currently trade approximately 50 to 70 million tonnes of iron ore every year. We also own a number of iron ore projects in the Republic of Congo and Mauritania – which remain undeveloped.

The difficulty Glencore has in building/acquiring a material competitive iron ore business, is that the majority of the remaining iron ore resources in the world cannot compete with the scale and cost advantage that the Australian and Brazilian iron ore regions.

That said, we believe we have one of the best portfolio’s in the industry of future facing commodities – those needed to enable the world to decarbonise the global economy. Demand for these commodities (copper, cobalt, nickel, vanadium) will grow significantly in the coming years.

Rgds
Martin

From the FT Weekend.

Glencore, the miner and commodity trader, has emergered as a big winner from the oil market turmoil sparked by the price war and corona virus pandemic.....a very strong first half performance, the company said it now expected the unit to deliver earnings before interest at the top of a $2.2bn to $3.2bn guidance range in 2020. .... Glencore's marketing and trading arm generated about 40% of group EBIT last year. .....This year, it will also compensate for the fact that Glencore does not produce iron ore and has missedout on the soaring prices that benefited some rivals such as Rio Tinto.

The Saudi/Russia price war, coronavirus price plunge and May's negatively priced oil contracts are not likely to be repeated. If Glencore want solid, reliable earnings they are going to have to look at the performance of all their units and assets.

From Tesla's Q2 2020 Earnings Call -Jul 22, 2020, 6:00 p.m. ET

Elon Musk -- Co-Founder and Chief Executive Officer

Well, I'd just like to reemphasize, any mining companies out there, please mine more nickel, OK? Wherever you are in the world, please mine more nickel, and don't wait for nickel to go back to some long -- some high point that you experienced some five years ago or whatever. Go for efficiency, as environmentally friendly, nickel mining at high volume. Tesla will give you a giant contract for a long period of time if you mine nickel efficiently and in an environmentally sensitive way. So hopefully, this message goes out to all mining companies.

I hope someone at HZM has Elon's number and can Tesla a call on Monday

"pain" / paint , I wonder why I made that mistake?

Hi All
Talking of "waiting for pain to dry..." do you think we will have to wait for Ivan Glasenberg to retire before this finally moves? In the same area, does anyone know who his likely successor we be, a quick Google has not turned up anything obvious.