The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
There was a lot of buying yesterday afternoon, seems to be a fair amount today also. Someone taking 50k chunks still. Price will come down because the company has pretty much announced no news until Q4. We'll get interims at the end of September. Problem is news could drop at any time now in the next 6 months. I'm not selling a bean!
Vet, my thoughts are that Zanaga have been asked to get this level of detail for investors. Whether that’s one or several. It will put in place exact costings/quotes from the firms that will provide the building of infrastructure for the mine. I think the 20% off is a red herring, because it makes it seem like this is the cost exercise we did 2 years ago.. I think we’re in the FEED phase for Stage 1, part of this stage includes financing, which I think could drop at any time if the right approaches are made..
I believe we are in the FEED stage:
FEED (including finalisation of necessary licences & approvals, infrastructure access & user agreements, and financing) - 12 months
Whoever is looking to invest wants firm cost estimates from the actual companies that will build the infrastructure. I think China build it, SA/PIF pay for it..
We already did cost estimates two years ago:
o Initiative completed to update the cost estimates associated with Stage One, as outlined in the 2014 Feasibility Study (the "FS Review")
o External independent technical expert engineering firms engaged by Jumelles Limited ("Jumelles"), the joint venture company between ZIOC and Glencore, to oversee and provide input into the FS Review
o Successfully ascertained potential capital and operating costs associated with the construction of Stage One in the current market environment
o FS review indicates that capital and operating cost estimates for Stage One remain approximately within the guidance levels outlined in the 2014 Feasibility Study ("2014 FS")
§ No change expected to operating cost, significant NPV and IRR improvement
June 2021:
“External independent technical expert engineering firms”
June 2023:
“Partnership launched with Chinese iron ore technical expert engineering firm”
They were hardly going to start name dropping PIF, Vale etc.. although surprised they didn’t mention AD ports.. can we use the mole port, or are we engaging with a different company on expansions? It’s a very muted RNS, the Shard subscription was needed to satisfy the ‘going concern’. I still think PIF/Vale seems the most obvious move.. are Zanaga playing hard ball so they don’t get low balled..
If there is no annual results RNS before 8am then we have to suspend, this would likely mean there is no point doing the report/results because a deal is imminent. That would be my preferred scenario, locks out all the sellers over the last few days..
You only need to look at the drop at 2.50pm to close yesterday, 0.40 to 0.29.. then RNS at 4.37pm.. some were obviously in the know and it’s happened before with this share prior to bad news RNSs. Haven’t been in this share for a long time, but have in the past. I’ve made money and lost money here. Ultimately I made the decision to never invest in the share again with GR at the helm. The only reason GR got this far is because of the asset itself.. but the amount of f*** ups along the way, severe dilution, and company loans that lined GRs pockets were a joke. He really needs to consider stepping aside and let some take over that isn’t a complete muppet
100% Veteran, he was there to sign for the port, although believe his son signed on the dotted line. Ensuring the next generation is coming up perhaps. He also met with the Brazilian president in Paris the other day. Very much seems as though the ‘politics’ are getting aligned prior to any deal..
Mitch, AT being at Vision Blue means he was given the nod to go an co-found his own company, which in-turn would mean his expertise are no longer needed at Zanaga. This is because the conversations taking place are between Glencore CEO and Saudi ministers. It probably also means the deal has been made in principle. However, to ensure the deal goes through and the Saudis are allowed in invest in RoC they have likely been sweetening up big Den for a while.. we’ve then had Saudis want to put an embassy in RoC, build a port, and fly big Den around in a private jumbo jet..
Tommo, development costs aren’t too outrageous. £1.7b CAPEX for Stage 1. Peanuts compared to Simandou, and pocket change for the Saudis.
Stage 1 construction phase is only 36 months. Could be up and running not long after the port.
I think some are forgetting this is the 5th largest iron ore resource in the world. The only thing ever holding this back was the route to market. That’s solved with the port. If the Saudis are involved on any level, we won’t be talking £2b..
Wow! Now there’s some exciting history. There were a few of those heart monitor companies that popped up around the same time.. all ended the same way I think. Can’t hate on people pumping a share if they believe in it. Everyone can make their own choice to invest or not, as always DYOR
Read an article.. £12.5m costs.. absolutely crazy administrative costs. They need to work out how to run the company and halve those costs to start coming close to turning a profit
Whoever takes the project on, I don't think they'll be looking at low volume/trucking options. Slurry pipeline was in the original plans. Rail would link in with other projects.
Everyone should just enjoy the ride from here on in
News today. For those who remember the ramp up to around 25p when the permit news hit. I think we saw that rise over a few days/maybe a week or so? I imagine we should be headed back to those levels very shortly and perhaps higher. Next on the agenda would be what Zanaga is doing, what type of deal is happening, how will the project move forward. There is now a route to market. I think we will be moving very quickly over the next few days/weeks. I would be very surprised if we are months away from big news. Nice to see those who put in the research and knew this was coming getting a hat tip for their hard work!