Member Info for scottology

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? ;)

I believe the 5 parties to the letter of intent for the port project are:

Zanaga Iron Ore

Sapro Iron Ore

Cominco Phosphate

Kore Potash

and Evergreen Potash

These are the main and most feasible mining operations in the area.

So we've got an asset worth an estimated £3 per share for an all cash offer at this stage in development i.e. before port announcement.

Once port finalised and export route agreed, we are looking at £7 - £9 per share.

Cold palletisation success and this jumps to £12 per share.

Evergreen (potash)

Remember that there is a certain Chinese mining company already clearing the way for their land at the new port site.

Don't forget to scale the project over the full iron deposit.

(Figures below exclude capex)

770 MT proven = $62.37 billion

2.1 BT probable = $170.1 billion

6.9 BT resource = $558.9 billion

$22.65 premium for 3% higher grade = $7.55 per %

66.6% FE = 4.6% above 62% benchmark = $34.73 + $67.44 = $102.17/ton

Revised $103.14

Stage 1 Opex costs reduced to $24/ton (top end estimate)

= $79.17/ton profit potential

12Mtpa = $938,040,000

9 years = $8,442,360,000

Stage 2 Opex costs reduced to $22/ton (my estimate)

= $80.17/ton profit potential

30Mtpa = $2,405,100,000

21 years = $50,507,100,000

Total profit over 30 year life = $58,949,460,000 ($59 billion)

Less $4.4billion capex

= $54,549,460,000

ZIOC share = $27,274,730,000 (£20.5 billion)

283,201,033 shares = £72.23 per share

And remember this is only the 770 MT proven so far, we have further 2.1 BT probable and 6.9 BT resource.

Hold onto your knickers everyone.

I'd suggest Keith Everitt has always been a holder here, and was likely one of the original holders under Garbet which was distributed to individuals (majority being under the 3% threshold).

Seems he's been buying recently on the ridiculous fall below 10p

Whats not to like though...

$60 billion proven resource
$170 billion probable
$550 billion total resource

independently proven 67.4% iron ore fine.

pellets actually produced and being tested as we speak that could blow the above profit figures even higher!

Sorry but don't think that answered my question. I'm not currently invested but have been watching a while.

It's a good story but I don't understand what process they have to go through to apply and be granted a full production licence on individual structures or how long that application process takes etc.

Indeed, all progressing as planned with no obvious objections to the transfer. Once complete workaround to sanctions should be finalised.

Looking to then use profits and current cash balances to buy more assets.

The question is, how long does the application process take to move to a full production licence and what potential barriers are in the way of it being approved. i.e. can it be refused and on what grounds?

Two main iron ore producers likely to use new Port are Zanaga and Sapro

The three main potash producers are likely to be Cominco, Kore and Evergreen

But remember that ZIOC is the biggest iron ore producer here and should take priority with any discussions with CRBC

So if we can achieve $103/ton for our high grade fines and EPP is the low opex option. Stage 1 costs are $24/ton so presume we can EPP for $20/ton that gives $83/ton profit.

x 1mtpa = $83m

ZIOC 50% = $41.5m

= £31.125m

/ 283,201,033 shares = £0.1099

x 10 P/E = £1.10

plus your 67p below gives £1.77 just from EPP

Total profit potential here is massive and remember that the resource extends deeper than they drilled, so could be even larger than currently stated.

Proven 770 MT x $80/ton = $61.6 Billion
Probable 2.1 BT x $72/ton = $168 Billion
Resource 6.9 BT x $72/ton = $552 Billion

Buy and hold.

So we had the rumours from inside the Congo that Rio might be buying their 10% share to help restructure their debt. Today we have notice that Rio are in the process of selling another asset for a mere $3.5bn with their CEO stating their focus will be on a few key high quality assets. They have already earmarked $3bn for iron ore and now this... Taking them to $6.5bn The question is, will they take a slice of ZIOC and are discussions already underway?

Paul Obambi is Congo-Brazzaville's leading private sector entrepreneur. His Sapro group, with its 14 subsidiaries, covers most of the country's key business sectors, so he has his fingers in a lot of pies. They own an iron ore mine that is being developed albeit much smaller than Zanaga's offering so could be an early indication of final sign-off for the new port.

Piet Viljoen Mine Manager SAPRO GROUP Oct 2017 � Present (8 mos) Mayoko, Brazaville, Congo open, operate Mayoko Iron ore, 3mtpa mine ---- Looks like its only recently opened and begun operations?