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hi again extrader. I dont think with the old structure it is same as now as in the past true glen had 50% and clifford 30% of zioc, but those 30% could not decide on an offer on zioc 50%, so no deal was sure even if a buyer convinced glen to sell, as zioc shareholder could still say no, even if clifford said yes
Hi extrader. Do you know in UK how many % need to agree on accepting an offer from third party? In the past structure zioc could not be sold without shareholders acceptance, as clifford only had 30% or so, but now clifford and glencore project has well above 50%, so guess we could wake up to a final deal, without any shareholder voting, which was not the case before. This also makes it more attractive for third party to make a takeover, as they dont need to expose themself waiting for shareholders to accept, but can do a deal directly, and we can wake up to a final deal
My take on this is a step forward. Glen never had a real interest in selling zanaga, as if they got 100 p a share they could post 300M profit, which is really peanuts for them. In my view they have always had an interest in some kind of royalty of cut of the prodit for the longer run for the lifetime of the mine, as this would grant them with the potential in the ground significant income the next 30 years, without having to develop them self. Jumelles could not make such a deal, without including ZIOC into the future royalties as ZIOC owned half. Why would glen want to share next 40 years profit with ZIOC, when they had the decision vote what to do with zanaga project. Lets say they have agreed they get 5-10% royalty for the lifetime. This would during the lifetime man billions of usd to them. Any buyer can insert this royalty into the calculation, when calculating the ROI on the zanaga project. I this case if a buyer wants to move ahead they can place an offer on zioc and probably all shareholders will sell of in the level of 40-100p, and zioc shareholder will be happy. Glen dont care much about getting 100-300M for the shares they have as again this is small for them, but the do care getting a fee of 8-10% (my guess) for the next 40 years of all the iron puled up.
why do you see they would sell it for peanuts? Now they can actually decide what direction in terms of private investors or big partners, vs before where they/we had no real saying because of Glem having 50%+1. I see this transaction as a brick to a larger plan to start production, and hopefully we will get more info soon.
Hi Minor. agree on the calculation but us as shareholders in ZIOC will hold 51% of the hole mine (minus marketing rights where we dont know details agreed), instead of 49.99%in the past. For me there is a reason for this action now and I expect they have other discussions with third party in the loop, and more details to come in next quarters.
agree with you beardozer. There is a reason that glen still supports Jumelles work and for sure they would not loan as much as a penny, if they had zero interest in this and did not want to move it forward somehow. For me they only loan the money because they have a plan to move ahead somehow, or else they would just wait for another 10 years to look at it and see if someone contact them to buy it..
I understand the frustration as shareprice has dropped and no real news. This has always been a very risky investment and we were all aware as there is no product to sell so no revenue and all the value is in the ground in Africa. On the other hand the award is so massive if they are able to kick this off, that the current drop in share price on low volume does not really bother me so much. I believe there are interesting things being discussed and happy to hear that we are still infrequent contact with Glencore. My hope is they are close to find some kind of agreement with investor to kickoff the the small scale or sell the hole lot. Also I dont think current value of ZIOC will have any saying on a selloff. I think we are lucky to have GLEN taking these discussions as they are know as a brilliant negotiator and live by doing trade. Without GLEN I would not have invested as much as I have in this. Time will tell, but I have trust that most of the waiting i over and with other activity in congo, this could very well be included into the planning.
hi Millerston. Yes my point is I see it positive that GLEN is doing this loan, without asking ZIOC to pitch in. In my view they would only do this, if they are interested in some kind of action to happen on the project, or they could just as well say, either zioc you need to sell another 30M shares (10% dilution) at 2p somehow to raise 50% of the cost, or we dont do any further work and just leave it in the draw for another 5 years and wait to see if someone address us some day with an interest. For me it seems even if pocket money for GLEN that they do want to explore and engage with other miners in Congo to see if some mutual benefits can be done together. In my view very positive
I actually see the report positive in many aspects.
1). they have enough cash for next 12-18 month
2). It is absolutely the right direction in my view, to engage with other miners in Congo and see if a common logistic setup can be reached for the whole area. Other miners includes China based investors, so for me positive to discuss in this direction
3). even if it is bucket money for Glen, I do see it positive that they are giving jumelles a loan to fund this years further discussions. 1.3M usd is not alot for Glen, but on the other side, I dont think they would just give it away, unless they had some intention to move this ahead one way or the other. Also in my view positive that they this way indirectly loan ZIOC 50%.
all in all I am still positive that this will come through one day, and I believe it is not many years away anymore
but in UK are they not obliged to answer simple questions from investors according to SEC rules? I write email also att Elphick (as AT does not answer) to get some answers on simple questions like when they expect to give an update to market on the shard placing announced last year, and no reply?
reading yesterday that G7 has agreed to invest a total of 600 B USD into new economies and development countries for infra structure etc as they fear China will become to strong in those countries in future. Who knows in the end it might not be China that buy Zanaga but could also be investors from other part of the world, as these investments will for sure also be in Africa