The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
True, but where's the notification of them originally going above the 3% threshold? I can't see it?
Was it linked the Guava share transfers?
Takes 3.41% of Zanaga
Oh and just to point out, I bought in here on ZIOC simply providing pellet feed.
The margins available on feed ARE impressive and cannot be matched anywhere else in my opinion.
Pelletsation is the cherry on the cake, giving us even better returns.
The preference for holders (subject to the final cost of the tech) is cold given the perceived cost savings and increased margin available, thus leading to a higher share price for us all.
As stated in my initial response, unless cold tech pellets are readily accepted by the market (which will likely take significantly more testing) I am now starting to lean towards conventional tech (hot - which IS accepted) as being the way forward. This could be used for EPP but in the main this is leading up to full phase 1 production.
I suppose the other consideration would be whether they could get the target steel mill to take a guaranteed offtake for the full phase 1 production (12mtpa) using the new cold tech. Then I think it would be a go-er and would signal that cold really is the only way forward.
Without that sort of commitment it's likely to be hot pellets.
But what do I know...
Sounds as if there are ongoing issues/delays with acceptance of the cold pellets. Wording here suggests to me that given the considerations of gaining suitable market acceptance, it may actually work out better (i.e. more profitable) if conventional hot pelletisation is used, opening our product up to a much larger market than the niche "cold" pelletisation. Suspect every/any steel mill(s) considering our product would need to comprehensively test it before committing, which may not actually be worth the cost savings achieved by the new technology.
Either way they have sent 3 tonnes of ore (which has been beneficiated using the kit that could be installed at site) and is now awaiting final verification of grades.
If this continues to achieve the high grades anticipated then it will be another big step forward.
Remembering that pellet feed still offers a very high margin and return to shareholders from this level.
everyone loves an update once you've logged off for Christmas.
Will SQZ be sat on the biggest discovery in 2019 as early indications seem to suggest?
2018 is the year of the dog but 2019 is the year of the pig.
Give me some bacon ZIOC!
There's something bulging in his sack for sure!
Just needs a little Christmas magic.
;)
With the Congo agreeing a debt deal with China, comes likely finalisation of the IMF bailout.
Land expropriation underway to release the land needed for the SEZ and new port.
Glencore taking increased role in operations and looking to utilise their iron ore network.
Strong developments in iron ore pricing metrics, particularly around ZIOC’s premium grade products.
M&A activity in mining space with focus on securing high grade supplies for the future.
Innovative cold palletisation technology to drive further price premiums achieved.
Thats the whole point, based on current production we should be around £5 per share in 3 years time when SQZ keeps 100% of revenues from the BKR assets. So expect gradual rises from here on in.
Not to mention that production figures for the last 2 reported months also significant exceeded expectations. If the trend continues then it will drive the price higher.
Rowallan could double our reserves again, so that will be a massive driver above the £5 target above which could easily head over £8 if resutls are as anticipated.
Columbus should add £1+
Rhum3 should add £2+
So share price of £11 based on current targets.
Remember that they also drew down the loan so are now sitting on a decent pile of cash to potentially buy more assets.
Don't forget that there is likely (100%) to be mutual non-disclosure agreements in place between the parties involved in these discussions. Usually these also prohibit revealing that an NDA is in place in the first place.
I think ZIOC have told us what we need to know, with most big companies you're lucky if you get a quarterly update.
Keep calm and carry on.
Thanks
From the Sep/Oct production figures plus Erskine we should be on 31,000 boepd net
Should give £5+ once SQZ keeps 100% profits over next few years.
Excludes Rhum3 and other key exploration targets.
Happy to hold.
The article you're quoting states
The price of 65% Brazilian fines... $94.40 a tonne
While you're trying to state the 62% prices as being 65%.
Remember we're 67% iron content
Also remember that the current feasibility study is based on the 770mt resource, giving a life of 30 years.
If you extend production over the full 6.9BT resource, you'd get over 90 years life out of this.
770 MT (proven) $95 BILLION
2.1 BT (probable) $275 BILLION
6.9 BT (resource) $900 BILLION
$161.50 / tonne for 65% pellets
Stage 1 opex $24/ton
Cold palletisation $10/ton
= $127.5/ton profit
12Mtpa = $1,530,000,000
9 years = $13,770,000,000
Stage 2 Opex costs reduced to $22/ton + $10/ton cold pellets
= $129.5/ton profit potential
30Mtpa = $3,885,000,000
21 years = $81,585,000,000
Total profit over 30 year life = $95,355,000,000 ($95 billion)
Less $4.2billion capex
= $91,155,000,000
ZIOC share = $41,019,750,000
0.78 exchange rate = £31,995,405,000 (£31.9 billion)
283,201,033 shares = £112.98 per share
25km of 47km strike length tested
Over 178,000m of drilling completed to date.
Magnetic Survey showing key areas of resource further North & South
Zioc confirmed that they drilled depths to only about 1/3rd of the resource, as it was bigger than they ever imagined and provides enough "incentive" for a buyer to finance.
Zioc don't need to try and drum up support for their proven asset, that's the whole point.
All those other tin-pot companies on AIM that do, are purely doing it to raise funds to continue trading and keep their directors in jobs. Raisinga few million here and there to do some drilling or exploration work etc.
ZIOC is fully proven for the purpose of a sale (albeit only over half the asset - which still makes this one of the biggest global iron ore deposits to date).
The asset isn't going anywhere.
Finance for stage 1 will come from a 3rd party in a farm-in type transaction similar to the oil and gas sector if Zioc chooses to retain an equity stake in the project.
If not, full sale and we can all trot off into the sunset for early retirement.
Looks like I missed some of the fun here as comments have since been deleted.
I never said there is a bidding war right now. The pieces are still being manoeuvred, but that is the end game.
Multiple parties have been engaged in the past. Everyone in the industry will want a piece of this once the port and logistics routes are finalised.
Do you really think any of the key players in the iron ore space are going to sit back and let one of them take this over without any sort of competition? Nonsense!
The Zanaga deposit will dramatically disrupt the market, giving significant cost advantages and improved profitability to whoever ultimately takes this on.