Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
They already announced that these are made from 67.4% iron ore fines. That drops slightly once they bind the fines into pellets, same as with conventional pellets.
As below, test was conducted to prove commercial acceptability in the steel process, which was positive.
"Test work was then commissioned with the intention of ascertaining commercial acceptability in the steel production process. Two further 20kg samples of Zanaga cold pellets were sent to a European steel mill as well as an accredited European laboratory servicing the steel industry.
ZIOC is pleased to confirm that the tests conducted by these independent laboratories have returned positive results within the industry acceptable limits for conventional pellets."
Further testing will be with the other interested parties that they are in discussing with. Remember this is a new product to market, so all steel mills will need to do their own tests with their own processes. It's how business works, you get a sample to trial before placing your order.
I've said all along, this is on track to becoming a TRILLION dollar asset.
Once the full resource is tested, it should exceed this.
So we're potentially looking at $131/ton profit MM
That gives us potential profit of...
770 MT (proven) $100.9 BILLION
2.1 BT (probable) $275.1 BILLION
6.9 BT (resource) $903.9 BILLION
Split half with Glencore, you can forget the pennies when you're talking about hundreds of billions
Nice to see that Keith managed to buy 5% of the company just before the commercial acceptability of the pellets was announced ;)
As always, follow the big money!
So we are now in commercial negotiations with the European steel mill to agree a suitable price for the cold pellets.
They stated that if they were successful, that they would be interested (particularly if we give them a discount compared to normal pellets)
And, we are in discussions with further customers GLOBALLY!
The last data I had averaged 16,059 bopd with 3 interruptions, but regularly exceeded 20,000 bopd
Erskine averaged 2,800 bopd but again this regularly exceeded 3,800 with quote a lot of interruptions.
Add in the new 4,700 from BK
So should be 26,000 in total with scope for more. My calculations are further below.
Remember that a 10% retained free carry stake in the project would still be worth £3-4 once producing.
Sure, it only adds £36 million profit per year which would underpin a share price of over £1 on its own.
Sounds like someone didn't load up while it was cheap.
So BHP has just agreed $3bn investment into its Australia iron ore mines to increase grades. Clearly targeting growth in this area of mining.
They also just offloaded their shale assets in the US for $11bn
Now a key BHP executive joins ZIOC board to join Clinton with his close BHP connections.
Is BHP going to be one of our key partners along with the Chinese and Glencore to get this up and running?
That's 26,000 boepd excluding new developments and exploration
Those figures were based on the 35p therm base agreed with BP, so MINIMUM value we will receive.
Current costs are around 57p therm, so even better than this.
Calculation as follows:
57p therm selling price x 55 per boe = £31.35/bbl
Production costs $14/bbl (£10.5) = £20.85/bbl profit
Combined assets will produce 9,115,500 bbls per year
= £190,058,175 profit per year
Divided across shares in issue = £0.72
P/E 10 = £7.20 per share.
very very good news indeed.
So at £9.50 profit per boe and the BK deal adding 4,700 boe/d
that gives us an additional £16.3m profit per year.
Combined with BKR deal puts annual profits at £86.5m or a 32p per share dividend
P/E 10 gives £3.28 per share price
Sorry, that's a trillion dollar asset (not company) we only get half of that!
Indicative selling price of $102/ton
Average LOM (Life Of Mine) Operating Costs of $30/ton
Profit potential of $72/ton
Proven 770 MT x $72/ton = $55.4 Billion
Probable 2.1 BT x $72/ton = $151.2 Billion
Resource 6.9 BT x $72/ton = $496.8 Billion
This is for our ore, add in cold palletisation and we could be a TRILLION $ company
never should have fallen. on the brink of a takeover worth billions and yet we dropped to sub 10p
Zioc is one of the few shares in the history of AIM to never dilute shareholders and have actually reduced shares in issue through share buy backs between 20p and 40p so management at the time agreed that 40p spent on reducing share in issue would add even more to their net worth at buy-out.
IPO 2010 at £1.56 per share with MarketCap £437 million
Original Mineral Resource of 3.34 BT (Billion Tonnes)
25km of 47km strike length tested
>178,000m of drilling complete
Magnetic Survey showing key areas of resource further North & South
50/50 Joint Venture with Glencore
$350 million spent to date on project.
Glencore spent $106 million on PFS (Pre Feasibility Study)
Glencore spent $150 million on FS (Feasibility Study)
Proven Iron Ore Reserve of 770 MT (Million Tonnes)
Probable Iron Ore Reserves of 2.1 BT (Billion Tonnes)
Total Mineral Resource of 6.9 BT (Billion Tonnes)
5th Largest Ore Reserves Globally
Benchmark Iron Ore Product 62% iron, 2% alumina and 4.5% silica, among other gangue elements.
Zioc offering 67% iron, 0.8% aluminia and 3% silica – higher grade, fewer impurities
$22/ton premium for 65% iron, approx. $35/ton premium for 67% iron.
Indicative selling price of $102/ton
Average LOM (Life Of Mine) Operating Costs of $30/ton
Profit potential of $72/ton
Proven 770 MT x $72/ton = $55.4 Billion
Probable 2.1 BT x $72/ton = $151.2 Billion
Resource 6.9 BT x $72/ton = $496.8 Billion
Stage 1 Capex $2.2 Billion
Stage 2 Capex $2.5 Billion
ZIOC 50% share = $27.7b ($97 per share), $75.6b ($267 per share), $248.4b ($877 per share)
Platts Iron Ore Index, or IODEX, is a benchmark assessment of the spot price of physical iron ore. The assessment is based on a standard specification of iron ore fines with 62% iron, 2% alumina and 4.5% silica, among other gangue elements.
ZIOC will be offering a premium product, initially 66% FE ramping up to 67.5% FE in stage 2.
Impurities are expected to be low, silica (3.0%), alumina (0.8%) and phosphorus (0.04%). So more iron and fewer impurities than the IODEX price benchmark.
Recent comparison with the high alumina content in Australian ore (2.5%).
So Zioc is expecting approx. $103 / tonne which could move higher once you factor in the alumina content, thus compensating for the increased shipping costs from Africa to China compared from Oz and making us more competitive in the global market.
That's what will entice a bigger player to buy-out ZIOC
Nearly £3 per share (equivalent) dividend for stage 1 and 2 which is volumes based on only half our asset having been drilled, it actually goes deeper even in those areas drilled so there is significant upside to these figures.
If they sell-out for 5 years earning, that would equate to £15 per share.
Obviously not expecting this, but take this back to £7- £9 for the capex involved and that seems fair.
Yep, exactly what we were saying all along.
Trump playing hard ball to get Iran back to the negotiation table.
Deal progressing well with SQZ on the verge of becoming a true north sea operator.
For the conspiracy theorists out there, will Trump's inner circle have been quietly buying into Iranian assets during this period? ;)