Member Info for scottology

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.

Should do, expecting to surpass that figure easily once confirmation of deal completes and we receive the cash.

Seems to be lots going on in the background here.

Wouldn't surprise me if there is a bidding war at the end of this tunnel as chess pieces are beginning to move.

WOW! Rodders74 you're using those numbers to try and pump this stock?

On you're assumed 20 x P/E ratio you'd get a share price of 3.9p based on them achieving 1,700bopd

And yet they only announce an average rate of just over 300?

Even if they got you 1,700 rate, the market is unlikely to value this at anything near 20 x P/E

A 5 x P/E is generous at that would give a share price of 0.9p

Yikes! Sounds like this still has 50% to fall

Simple really, it's grossly overvalued.

Decent results for UK onshore, but production is poor in the grand scheme of things.

There are major oil producers our there with 10,000 to 20,000 bopd that are valued less than UKOG.

The reality is most UKOG investors swarm around the same poor performers with the dream of getting rich quick.

They don't benchmark UKOG against the rest of the oil stocks out there which would open their eyes to the valuation discrepancy.

Going back to June this year we had confirmation that Evergreen were already developing their site within the new port area. Actual shovels in the ground.

You can see it on googlemaps and actual area photography from a well known potash producer that will also be taking a spot at the new port.

So a well connected Chinese firm is happy to commence the building process BEFORE official news is released on funding from that well known Chinese bank.

Short term it should double easily.

Then over the next few years we should climb to £4 - £5 based on existing production.

As stated by others, good satellite prospects exists that are worth exploring. It's all about cash flows and timing from here.

Tiny volume

I think the MM's are scared this is going to shoot to many £ per share once port news is released.

Very true, but they could be doing the prep-work ready to make that decision once it completes, so should hopefully move quickly. Albeit maybe not by year end, but who knows!

They need to spend the cash somewhere.

mmmm 300% bacon, now that's what I'm talking about.

I'll be happy with either a straight takeover or free carry with special dividend (latter preferred)

Most value will out over the longer term so 10+ years if you go by their phased approach.

But who knows, if the big guns come knocking, they could fast track stage 2 to 5 years. That would be wonderful!

I take it they offered no information on Rhum#3 Rellim?

On that basis I'd suggest news is imminent (before year end).

Apparently Sooty wants to sell our 50% stake of a $1 trillion dollar asset for £1 per share.

So that's £280 million for a £352.56 billion iron ore mine leaving the majority £352.28 billion for the buyer. of course they have to fund the $4 billion capex, but that's small change for this project.

Actual value over the life of the asset is £1,244.92 per share.

£19 for that is achievable and realistic.

So with 1,760 additional boepd at £29.57 profit per barrel we get £52k per day which is £19million per year profit

That adds 7p per year to the annual dividend and supports a share price on a 10 x P/E ratio of £0.72 just on this new deal announced today.

Add in the old BKR deal and Erskine at £8.70

Total deal at £1.91

Columbus at £1.61

You get £12.94 per share.

if you even half that to a 5 x P/E ratio you get a share price of £6.47

and this excludes the mighty Rowallan

Jinkar, £2 special dividend would cost a buyer just over £500million which is absolute peanuts for a share of an almost $1 TRILLION asset and life expectancy of around 90 years.

My proposed share target of £19.26 per share is once we are at full production for Stage 2 and being paid an annual dividend of nearly £1 per share which is based on current premium pricing and pellets and is reflective of ZIOC only holding 20% of the project at that point in time.

Obviously the market will value this on a P/E basis but I feel 20 x P/E is achievable for such a strong asset with a life that spans several generations.

If they prove up more of the resource beyond that already tested (remember we've only sufficiently tested half) then it could go even higher

Ah yes Rellim, I was just looking at the top level of my calculation forgetting that 50% had been deducted further below.

40mcfpd / 5,800 boe = 6,900 boepd

0.7326 x 55 per boe = £40.29

6,900 = £278,000

1,150 condensate ($70/bbl) = $80,500 * 0.76 = £61,200

50% = £170,000 * 365 = £62 million per year

4,025 bopd net * £29.57 profit = £120,000 * 365 = £43.5million profit per year

Divided by shares (264,757,820) = £0.16 dividend

X 5 P/E = £0.82

So I was assuming 4,025 boepd, which is slightly higher than the figures they have now posted.

Either way, should give a possible share price range of £0.82 - £1.60 just on Columbus alone!

I suspect that they have now optimised flow rates from Erskine and that they are now in excess of 4k bopd thanks to the new pipeline.

Expect bigger boost to share price once final figures confirmed for this.

Indeed all mines require billions in investments to get them up and running. Nothing new here to industry majors and not a problem for their deep pockets.

Remember that all the major producers have to continentally review their future production forecasts and bring online new assets to replace those that are approaching end of life.

World populations continue to grow exponentially which requires exponential growth in key commodities such as iron ore to keep pace with urban development.

Literally the only way is up for Zanaga!

£2.00 per share to buy 30% of ZIOC and fully fund our remaining share to full production.

Stage 1: 12Mtpa = $1,530,000,000

x 0.45 = $688,500,000

x 0.2 = $137,700,00

x 0.78 = £107,406,000

/ 283,201,033 = £0.38

20 x P/E = £7.59 per share

Stage 2: 30Mtpa = $3,885,000,000

x 0.45 = $1,748,250,000

x 0.2 = $349,650,000

x 0.78 = £272,727,000

/ 283,201,033 = £0.96

20 x P/E = £19.26 per share

so that's £21.26 per share if you hold out until the end.