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Unfortunately, we’ve got to dig through the hematite to get to the magnetite. At some point in Stage 1 it would become a blended product once we reach the magnetite. And then onto pure magnetite further into Stage 2.
Interesting thing about Zanaga is they only ever drilled about half of the resource. So you could potentially double the NPV because it’s costed around $90 per tonne, and then double that due to the resource being twice the size.
“Significant resource remaining to extend life or expand magnetite operation”..
Hi extrader,
The 2019 presentation had us at 66% for Stage 1, and 68.5% for Stage 2, as a blended product 67.5%. Perfect for the ME..
There are mentions of new technologies:
“Chinese EPC Partner possesses a proprietary new processing technology for iron ore processing, with the potential to provide further capital and operating cost savings beyond the results of the FS Update.”
Always good news for us if the price is going up. If 62% Fe is $125 then we should get around $40-$60 on top of this for our premium 66%-68% product. Looking at a potential $165-$185 per tonne. If you look back on the presentations Zanaga have always been extremely conservative when working out the NPV of the project and projected earnings. The last presentation used $90 per tonne.. you could almost double our projected earnings..
To me that doesn't seem as though Vale's current operations is going to cut the mustard in regard to the quality the ME are looking for. Zanaga will absolutely meet those demands of iron ore content/quality..
Interesting the ME need 67.5%+ iron ore. As the presentation I have for Vale and their mega hubs shows they're looking at up to 64% by 2030 for Southern operations. For Northern operations it's showing up to 64.7% to 65.8%..
We already have an EPC partner.. specifically one who builds iron ore mines and slurry pipelines. Do we think they walk away once their work is done?
No, of course not. They will be building the mine.
Although we need to wait until Q1 2024 for the ‘MOUs’ for the hydro power, port, and strategic partner. We know who is doing the port, there’s a likely partner with hydro power, and equally the strategics are very likely already chosen.
Everything is 99% chosen already. The MOUs will just be time at which they can announce it.
Https://ieefa.org/sites/default/files/2022-06/Iron%20Ore%20Quality%20a%20Potential%20Headwind%20to%20Green%20Steelmaking_June%202022.pdf
Was on the look out for green steel articles, found this one from June 2022. Our restructure came a few months afterwards.
When people say ‘what’s different now’. The push for green steel and net zero is huge. And most of the current producers can’t get anywhere near the desired ore percentage.
There’s a chart in the article showing that only 3% of iron ore supply is 66% or above. We have 66.5% for Stage 1 and 68.5% for Stage 2.
Even the 64%-66% is only predicted to grow by 6% by 2030. It’s not enough for the green steel initiative. They will absolute NEED Zanaga up and running to help meet targets.
This is our likely strategic entities who are desperate to meet these green steel and net zero targets. They NEED Zanaga. There is zero chance that Zanaga doesn’t get mined.
NotSoBrightStar, can you explain your reasoning that £1.5bn for the 5th largest iron ore resource is 'deluded'?
To put it in perspective, SMB-Winning paid $15bn for two blocks of Simandou. The CAPEX for Simandou is in the region of $15bn-$22bn (assuming this is all blocks 1-4)
CAPEX for Stage 1 is around $2.2bn, and we're looking to shave 20%+ off this figure.
And another little nugget is the fact ZIOC only drilled 25km of the 47km orebody to get a 2.1bn probable ore reserve. You could be looking at nearly double this when you factor in the 10km+ north and 10km+ south of the area drilled to date.
If we take the other 22km of orebody into account you're talking top 1 or 2 iron ore reserves in the world.
Driving, happy to be nice and get along, but when someone posts something completely different over on ADVFN and speculates there could be 50m-100m shares issued, their motives are very clear, I’ve just called him out as he was way off the mark. We had a mere 27m shares issued yesterday to pay for 4 years of management fees, board fees etc at a 65% discount to the monetary amount. The discount perhaps to take into account the rise yesterday. They certainly know where the SP is headed over the next few days/weeks/months and got those shares sorted yesterday. AGM in November, news could drop anytime in Q4 about the EPC partner, and likewise in Q1 for hydro power partner, port partner, and our selected entity from multiple entities that we’re choosing to be our strategic partner..
The ZIOC Board of Directors and management have determined specific milestones and objectives until the end of Q1 2024. This strategy intends to leverage recent discussions with potential partners in order to progress the Zanaga Project through specific work programs to derisk the project and enable the financing and ultimately the construction of the project in due course.
You obviously don't get the sarcasm in my post from the 7th September..
No apology needed as I'm not the one writing on other boards there might be 50-100m shares potentially to issue. You've obviously tried to put off people buying in today and it's gone tits up for you massively and made you look a right idiot
Extrader is writing his deramp as we speak.. wonder whether he'll continue the same deramp that he had going on ADVFN earlier..
Extrader
02/10/2023
15:06
Speculation elsewhere is that there might be 50 to 100 million issued as a result
Unfortunately, for Extrader, but fortunate for those of us actually invested here.. he's way off the mark..