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testing the 4p floor of Bao now, and we need some positivity on progress during this waiting period from the BOD. All very patient since the AGM, so the PIs here deserve some information on the state of play on Chinese investment and the intended route to eventual steel production.

Understand your concern mambo, also here a long time, and although the quoted 18p would get me out of trouble, it is truly a pathetic price to pay for this company with this resource in this location. Imagine an equivalent oil explorer with a proven resource and the ownership rights to 759m. barrels under the ground in an underdeveloped region. As of now, the price is on the floor, there is over-supply through fracking and giant resources in OPEC- so the explorer is struggling to attract the finance and clout he needs to get the black stuff out of the ground and processed. Trbw's point is that this scenario will not last forever, as the wheels of the world will get thirsty again for oil (and hungry for ore/pig iron/steel) - and this change can occur within months rather than years if you look at cyclical patterns in both commodities. Admittedly, there are a number of hurdles to cross for BAO at this point - but a shift upwards in the global picture will certainly make them easier to jump. Without a crystal ball we cannot put a time-frame on the much-desired transition - but looked at this way, it does put the emphasis for fellow investors here on the need for patience. I rest my case!

It is much needed reminder of the long term strength here. Too much hand-wringing taking place over current low prices and lack of ready investment. History tells how all these commodities undergo cyclical highs and lows. I have one other major investment which has been in the doldrums just like BAO - it stirred a little earlier this week, then shot up by 20% in a single day just now! No special reason - but it does prove the merit of patience.

Many thanks Steel -your reference to the flexibility of grades dependant upon demand and the high quality ore content was a positive. Just meant the potential for downsizing cost and size of the operation in tandem with financial input was all included presumably because of the depressed global demand and price of ore.

I did air this point several posts ago i.e. As an underdeveloped nation with a growth forecast of 8/10% over the next 10 years, that there would be huge demand for steel in construction and industry in Moz - especially the home made and cost-effective variety. Had a strong affirmation of this from BJ at the AGM - and confirmation of Steeltrader's point that there is no market for pig iron. Iron ore makes pig and pig makes steel - Bao has the base material in spades, and the potential JV partner's sole natural interest is the production of steel. Size of plant and all the other factors are included in this report, which is an update with adjustments that respect the current and future global picture - with the long term focus as you have identified upon serving the certain local demand for steel. As a layman I would appreciate from Steeltrader an idea of the style of production and grades that such a mill would effectively produce?

Earlier research revealed a shedload of cheap coal in the vicinity of Tete - remind me, was it Riversdale who bought at a distressed rate? I would say that the PFS price of US$30 per ton was on the high side at present, but it all contributes to the cost-effectiveness of pig production when it arrives.

Interesting reality check from Steeltrader, and one has to pay attention to his posts as he is so close to the current scenario in pig iron and steel trading. No doubt the very depressed prices in pig are holding us right down but they cant have a foot on your neck for ever. Its been said before, but although it has been a long journey for nearly all of us in BAO, I am kind of pleased that there is no present rush to do deals. Firstly the Chinese will not be easy negotiators, especially with their own domestic demand slowed down, and secondly the base value of the ore mountain in Moz would be at its lowest level just now. I see the slowdown in China as merely a pause, bearing in mind the future demands of an extraordinary number of new cities still under construction there - another reason why this project is almost certainly heading towards steel production in the long term. These are the hard yards for BAO investors - but IMHO the long term benefit will justify the short term pain.

anyone was getting over concerned with all the red on the screen, I have a colleague and fellow investor who gets the real time trades record - and of the 14 trades today, 8 were actually Buys with 403k shares bought and 165k sold. Not massively significant I know - but it does hold the SP whilst we await news!

Another nice top-up at 4.35p before news arrives - and recorded as a Sell!

Could Buy 100k at 4.35p on dummy trade - and sorely tempted at this price with news of Chinese sample testing due very soon.

Well done Sparkie - and so have 4 others at 4.35p. Great price - and all recorded as Sells!!

Surprising yes - but nobody is earning at these prices, so must be distressed sells from probably the same source as it was 100k x3. Picked up a bit during trading, and as the neutral was probably a Buy at that price, not a bad finish. Great price around 4.3p for a top-up if you are a believer!

Thanks for that post trading! Even more encouragement and some media confirmation of the roadmap planned by the BOD, with Sinosteels emerging as clear favourites for the JV.

The vultures can circle as long as they like - but there are no dead bodies here, so if there is to be a kill, much more likely to be a Chinese eagle. My crystal ball is a little cloudy at present, but if the funding comes the way we expect it, Sino will be actively involved in protecting their investment along the path to pig iron production - and if they like what they see and have the first Steel Mill in Moz in their long-term plan, a t/o on mutually acceptable terms is not out of the question. Timing of course, and the hoped-for upturn in global ore prices will be key factors IMO.

Nice show of confidence there Trade, and a good post for those who may still harbour some doubts. Taking all of the history and the recent tumble of events into account, I share exactly the same view. Steeltrader great for his updates on the market picture and the technical preferences - has to be Rebar and I am sure the BOD and BJ will be taking that route. I can see a long haul ahead, but much happier to tackle the marathon after crucial recent developments.

Yes, mood was good after the morning news and convivial throughout. Some searching questions were asked - especially by Tuckman from a rival board - but all well tackled by BJ with no ducking or excuses. And, there was general disquiet at our low current SP, but a general view that we have touched bottom now. There was one larger sell today at 4.27p, but still no tick-up on the Bid to at least 4.25p? Most Buys at the top end of the spread which the MMs seem determined to preserve for some reason. Did some topping at 4.40 prior to the AGM and will go in again on Monday morn! Thanks for all your posts - and good luck all Baoists (with respect to our Chinese colleagues)!

Bit lengthy, and ran out of space there! Just wanted to add, even if you are not a topper-up you now have full permission to kick all the doom merchants into touch.

Morning fellers - very good AGM yesterday, with attendance estimated as 50% of accredited shareholders, which is way above average for an AIM company. Gavin has touched on a few points raised, and I heartily agree with his optimism for BAO's future- especially with the revelation of the developing interest of Sinosteels as a senior JV partner. This for me has an especially relevant impact, as the State-owned Chinese giant has a huge appetite for pig iron to mass produce steel of multiple grades - so not just an investor but a ready made customer at hugely competitive prices for pig. Asked BJ about the local market - and for pig in such an underdeveloped country it is zilch, so all product would be exported eastwards and seabound. But STEEL? ....a different matter of course, and it does not require a huge leap of the imagination to see a Sino-funded Steel Mill alongside the pig iron plant to serve Moz and the region's anticipated growing demand for construction and industry. Long term thinking here, so I can understand the feelings of piconet and others who want to see a more immediate reaction in SP for their investment. We have good news, so for this aspect we need the MMs to tick us up half a penny, and the reaction from observers on the sidelines with investment cash could then be interesting. Have learnt one thing from AIM investment and this share in particular - that speculation is a far more powerful tool than hard facts, viz our two historic spikes based on far less evidence than we have now! Very solid presentation from BJ after the official AGM business confirming the resource and mining concession for 25 years (does this answer the question about terms of license?). Also the capex on the pig iron project being scaled down to 2/3rds of the original estimate to around £800 million with 65% investment capital required and offered by prospective JV partner. Test results on the 450 tonne sample sent to China expected next week, cash burn was reduced in 2014 and likely to be held at this level for 2015. AMED were represented at the meeting and remain enthusiastic supporters, also importantly the Moz government with political stability returning after a long pre-election slumber (aren't we in one ourselves at present?) also the IFC with finance due to be released this year as required. Some BJ time scales - DFS by mid-summer, with finance in place work on the project to begin by the end of this year and a 24/27 month construction period to completion. If there was a disappointment I would say that the company brokers when questioned for a recommendation remained stumm and played the Rules and Regulations Card when a little encouragement would have done no harm for our market position. Overall, if not a game-changer it was certainly an important stake in the ground for BAO investors - especially the younger variety. Hold on if you can pic, there will be a string of news items in positive mode to keep our pot boiling in the coming weeks

Lots to report from the AGM today with some very relevant questions posed and confidently answered by Ben and Frank. Well attended meeting with not enough chairs to go round. Ref: DFS Ben's comment was that there was no hurry anyway with the general slump in commodity prices - but it is well under way now for a mid-summer completion to match pending agreement on financial support as reported this morning. Lots more and will expand more fully in a post tomorrow for trbw, pigeons and the gang.

All relevant and legitimate questions - some for clarification I would say. Lets hope that we get some good answers!