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I believe we are getting down into the nitty gritty parts of the project. The ‘Steyn Reddy’ type companies that will be in place to allow this project to start at the drop of a hat.
There’s only a certain level of detail we can get to and give for free, before we say to those strategic investors ‘if you want the next level of detail’ you’re going to need to starting paying.
No squeaky bum time for me. If you’re feeling that way, have a little read of the RNS again and about the FEED stages of projects.
Looking again at costs, the $22m FEED costs are part of the Stage 1 CAPEX.
Little bit of info about the work being done now:
Front-End Engineering (FEE), or Front-End Engineering Design (FEED), is an engineering design approach used to control project expenses and thoroughly plan a project before a fix bid quote is submitted.[1] It may also be referred to as Pre-project planning (PPP), front-end loading (FEL), feasibility analysis, or early project planning.
Overview[edit]
FEED is basic engineering, which comes after the Conceptual design or Feasibility study. FEE design focuses the technical requirements as well as rough investment cost for the project. FEED can be divided into separate packages covering different portions of the project. The FEED package is used as the basis for bidding for Engineering, Procurement and Construction contracts (EPC, EPCI, etc) and is used as the design basis (or Basis of Design).
A good FEED will reflect all of the client's project-specific requirements and avoid significant changes during the execution phase. FEED contracts usually take around 1 year to complete for larger-sized projects. During the FEED phase, there is close communication between Project Owners and Operators and the Engineering Contractor to work up the project-specific requirements.
Under 4% P/Al/Si impurities.
Combined with a JORC compliant reserve of 2.1 bt, Environment Permit, Mining Licence and Mine Operating Agreement all in place and legislated, proximity to port facilities and very supportive Government and community, Zanaga is readying itself for the world stage
Marty has some great commentary on the RNS on LinkedIn. Looks like Zanaga also have their own page/account now..
Zanaga Iron Ore Company's recent cost update Study represents a firm foundation from which to progress the Zanaga Project.
A comprehensive market inquiry was completed for the long list of identified materials and services for both construction and operating phases, culminating in detailed estimates of capital and operating direct and indirect costs.
Once producing, Zanaga's concentrates are expected to be some of the best globally available for low carbon steel feed, with qualities between 66.0 - 68.5% Fe and
I suspect a large amount of those FEED costs are attributed to the infrastructure access. There's not much else that would cost anything that's listed. We've got the planning, approvals, licenses etc. Realistically, our strategic would need to come in at this point. Any 'deal' would likely include these costs during the FEED stage. That's part of the ramp up to construction.
As announced by Zanaga on the previous RNS, we are in the preparation stage. Although some of our initiatives i.e. engaging strategics, likely goes into the 2nd part of the FEED stage as links in with finance.
I assume a lot of the $22m would go into 'infrastructure access'. Basically getting the area set up to build-out the mine.
Big question remains, who is going to invest that $22m..
Front End Engineering (FEED) Stage 1 - $22m
Preparation for Front End Engineering (FEED)- 6 months
FEED (including finalisation of necessary licences & approvals, infrastructure access & user agreements, and financing) - 12 months
Construction Phase - 3 years
Loving this:
The two parties, during this meeting, discussed several current and future Sino-Congolese cooperation projects...
It’s got to be impossible that they’re not talking CMEC / Zanaga..!
As ATG mentioned below.. read the last RNS..
''A major Project update is underway to freshen historical studies in light of changes in the world's economy and growing demand for low-carbon steel production, for which the Zanaga resource is highly suited, with the potential to become one of the largest producers of high grade premium pellet feed iron ore.''
In that time since the Edison report the development costs reduced from $7.6bn to $4.7bn. The most recent work on the FS was to reduced by around 20%, so we could be looking at a further $940m to come off the staged development costs.
In 2012 we had a huge increase in the mineral resource
· 57% increase in the overall Mineral Resource to 6.8 billion tonnes at an average grade of 32.0% Fe
· 74% increase in Measured and Indicated resource category to 4.69 billion tonnes with an average grade of 32.5% Fe
And my personal favourite:
· Mineral Resource defined from only 25km of the 47km orebody identified
We could easily be looking at double the Edison figures when you start to factor in the above, let alone green steal and the move to higher grade ore..
This needs a post on here.. MM posted on the other bb
That phrase from the RNS: '...a near-final report has been received from the Company's Chinese EPC Partner...'
Why 'near final' not 'final'? The answer must be something outside of the EPC's hands. Given that securing African iron ore is a Chinese State-directed imperative (and the amounts involved so big (think 'Simandou')) then the Chinese EPC 'final report' is very likely waiting on official sanction. That official sanction is going to be the official thumbs up from CPP representative(s) for the country andits investment conditions.
So what did the Chinese Ambassador and 5 of her colleagues do last week? She toured the country, travelled the length of the RN1 (Chinese built), and visited 4 Chinese-Congo projects which significantly included a copper and a zinc mine.
At the end of it Mde l'Ambassadrice pronounced that, 'La coopération sino-congolaise aura un #avenir encore plus radieux ' 'The future of China-Congo cooperation will definitely be more radiant!
> Sounds like the country got her thumbs up and, I reckon, that near-final report can now be signed off.
LI Yan @LIYanChine Ambassadeur extraordinaire et plénipotentiaire de la République populaire de Chine en République du Congo
5:40 PM · Mar 27, 2024
The first copper plate and the first zinc ingot in the history of Congo (Brazzaville)! Today I visited the Soremi Mine invested and operated by a Chinese company. This is not only a modern highland for Congo’s mining industry, but also the cradle of local professional and technical talents.
https://twitter.com/LIYanChine/status/1773042314380018067
7:29 PM · Mar 28, 2024
It lasted 4 days and visited 4 China-Congo cooperation projects in three provinces of Congo! From Mengo to Lifoula, I drove more than 500 kilometers through the Mayombe forest, and I completed the entire National Highway 1. ( )
I would like to pay tribute to the friends who participated in the construction of Road No. 1 and the cooperation between China and Congo in various fields! The future of China-Congo cooperation will definitely be more radiant!
https://twitter.com/LIYanChine/status/1773432229911498891
Impossible to bring in a strategic investor without the updated FS, as it likely holds an updated NPV. That’s down to PSEI. And whether we can bring in a strategic prior to port MOU.. who knows. Over the next 3 months I expect we’ll be trading much higher.
First time company has mentioned being in the FEED stage. We seem to be deep into the 2nd phase now.
Activity
Preparation for Front End Engineering (FEED) - 6 months
FEED (including finalisation of necessary licences & approvals, infrastructure access & user agreements, and financing) - 12 months
Construction Phase - 3 years
Can you state your sale on here before selling, then sell, then we’ll all know you’re out. If you don’t do this then shut the f**k up.
If anyone doesn’t think that’s a good RNS then set your sells to Tuesday morning. There will be plenty of mopping up with buys.