Project update Q2 2018:
The Zanaga Project Team continues to investigate logistics and product options for the EPP project as well as its scope of operations and project economics and we intend to provide more details about this workstream during Q2 2018."
Not long to wait now and topped up 100,000 yesterday.
Kalan, I do believe that ZIOC will do well for its shareholders. most of whom bought in originally at close to £1.50 a share - no dilution since, just proving up of the ore quality, volume, processing and delivery options.
If a deal closes at all favourably for ZIOC (noting that Glencore won't give their 50% holding of the Zanaga project cheaply), the ZIOC share price will move rapidly or there might even be a suspension pending an announcement.
I understand that the IMF loans for the country will be signed of at the end of June, subject to lots of conditions - which I am sure must reasonably guarantee re-payment by the government. So, apart from the port expansion, the projects which will export raw material (iron ore, or even steel if a plant is added near the coast) will also need to be contractually agreed for the revenue/tax returns - thus I expect one of the big iron ore producers to commit the funds within the next 6 weeks... this shouldn't "go the wire" after all the recent negotiations.
Nevertheless, I can't guarantee anything, so I have limited my investment here to c.15% of my overall portfolio - tempted @12p to buy more ZIOC of course (which would actually increase my average share price), but I have nothing I want to sell at present (incl. GKP, FDI, NANO, VOG, JLP, etc.). If nothing gets agreed and ZIOC have to find extra cash for low cost/volume production initially, the ZIOC SP could even drop below 10p; but a reasonable deal ought to see the original ZIOC shareholders (incl. directors) getting back at least their original £1.50 a share. I think we will find out quite soon now...
A trilogy of companies ends for now with Zioc and they say to always leave the best for last.
A mega mega Iron Ore project with 50% more to extend Lom in evaluation.
This is a mouth watering prospect in Congo with port facilities being planned/financed by Chinese
50 per cent partnered with Glen and hundreds of millions already spent on ground work and proved resrves and a m/cap of £40 mil
This project is ready to be sold for a min of £500mil (ziocs 50%)
Imf in town but ready to sign off Congo once again and Chinalco are ready to out-bid any Rio competition to this monster resource.
No 7 year chart on iii to show where its been to where its going and no dilution in that time
I will leave pennants,golden crosses etc to proper chartists but I know that a big move is imminent
Hi HPC - taken a quick look here after your reference on FRR - always check out your shares as I believe you only buy what you consider to be good companies (no game playing). Well the prospects here are huge but so are the costs and logistics. Going to put it on watch for now until I have a better handle on the company.
Not going to let the presence of jonbore on the list of posters put me off.
It seems to me that investors want instant gratification and are no longer willing to invest long term. It is my belief that holders who stick with this stock will be rewarded as funding and production begins with the added possibility that at current values the shares will attract a bidder. With todays drop the downside has, in my view, been illiminated and the stock is an interesting investment for the longer term. There is considerable value in the ground and getting at it will generate growing income in the medium to long term.
First i need to be clear that i don't have alot of knowledge in mining stocks but i do have around 500,000 shares in this one.
However, I have ran many businesses including my own which became a PLC and it seems to me that the real nugget in this announcement is that they believe they will get third party financing for the early extraction. This means there should not be a call for more cash from shareholders in the near term.
Is there anything else i am missing? All constructive views are most welcome.
It seems Andrew Trahar is at least giving everyone the same short answer, without any detail on the scope of the news... but this must clearly be fairly complex as it is taking quite a long time for the final text to be agreed (with much work going on in the background on funding, ports, etc. and is surely not just waiting on receipt of the delayed beneficiation trial and input on its suitability for the Chinese steel industry.
The news must surely be good after so many years of work at very high cost (£300m+ by Zanaga alone, plus Glencore's contribution/buy-in), with so much high quality ore proven in-situ with firm plans for cost-effective routes to market for 30+ years of very large scale production.
Iron ore is a key ingredient in the production of steel. We principally market iron through physical transactions. In addition, we have interests in early-stage iron projects in the Republic of Congo and Mauritania.
No mention of ZANAGA at all in the full report delivered by Glencore today, and little interest shown in iron ore. Only "For 2018, while overall supply of iron ore may increase, we could see a decrease in low grade cargoes exported to China."
I suspect Glencore may prefer to sell's its whole interest (with Zanaga's) to the Chinese... but who knows. The production plan (beneficiation, pipe, port, etc.) looks fairly solid now, despite no promise of funding by Glencore of Zanaga... both of whom will want to avoid significant debt given iron ore volatility.
The deal proposed much be close to publication... but what/when/how will be crucial to Zanaga shareholders like myself. Will ZIOC want to maintain a royalty or "free carry" position to stay in business or just crystalize the entire benefit from the project in a one-off deal?
News on Friday or Monday I feel now, post the Chinese New Year...
Glencore are expected to produce good profits and they will surely wish to fund the development of Zanaga. The big question is how they will proceed, will they buy out Zanaga and then fund development or use their substantial resources to continue with the development as originally envisaged. Either way shareholders in Zanaga are well placed to benefit from their long period of patience. I believe there are very few shares changing hands and long term holders are awaiting their reward. Roll on Wednesday.
This is essentially still the plan with recovery in the price of high quality iron ore, given that plans are now firm for port upgrades and additional electricity supplies and permits in place for mining.
Funding needs the Chinese to make commitments... hence the final independent checks on FE content post beneficiation.
Could see real progress next week... but £2 a ZIOC share is more likely than £3+. Fair value is subject to hard negotiation and faith in future iron ore demands and prices... but IPO investors (who will want a profit after all this time/effort) paid about £1.50 a share, there has been no dilution through the release of more shares, $300m + invested so far and the plan does look much more solid now, with government and Chinese backing... At £2 a share, those with > 500,000 ZIOC shares could become millionaires with an outright buy of ZIOC, but there are lots of possibilities in terms of off-take agreements, partial buy-outs, etc.
I suspect that a relatively low percentage of ZIOC shares are actually being traded as most long term holders will not want to be out with news so close... which includes myself.
Report due from Glencore on the 21st February. That will probably coincide with the companies intentions concerning Zanaga. As I see it some clear plan for the development of the site jointly owned by Zanaga and Glencore will be forthcoming and will either include taking out Zanaga, selling the site or entering into a joint venture to cash in on the substantial resources at a time when iron ore is in demand and holding a steady value. Whatever happens there seems a very real prospect that Zanagas true value will be established before the end of this month and that must surely be substantially more than the current market value. The rise in the value of iron ore over recent months must make development of this substantial resource worthy of urgent consideration.
IPO in Nov'10 added 39.8m ZIOC shares priced at £1.50 to give 280.4m shares on AIM; reduced to 278.8m through share buy backs... none issued since; work to plan (delayed whilst iron ore prices were low); permits now in place; ore proven; piping to port plan in place; beneficiation work nearing completion - project could be launched mid-February...
Volatile ZIOC share price... should get back to £1.50, possibly as much as £3 within a few weeks if you believe the facts line up with the strong possibilities.
Why no interest here? Are there no other ZIOC shareholders who chat through III?
115,000 at 14.75p
115,000 at 14.70p
100,000 at 14.23p
231,053 at 15.1437p
This may set the scene for increasing demands and trading volumes for the next couple of weeks at least, pending the expected mid-February update on ZIOC plans which is likely to have more dramatic effect, especially if the "independent" beneficiation report is favourable (as expected) and financial (including off-take) terms are agreed for the overall project to proceed as permitted, and facilitated through port upgrades being funded by the Chinese.
I agree the floor could rise above 14p a share from today's trading... but it is "day traders" who are pushing the price up/down the most at present; lot's of small buys to raise the price and get interest from new buyers, then a race to sell near the top to take profit, repeated...
My ZIOC purchases started at £1.07 a share back in August 2011, then I averaged down with quite a few purchases in the 20's, 10's and finally doubled my holding with extra shares at just 1.5p when the price of iron ore was very low - giving me my current average of 5.65p a share.
Strangely, despite my hope for ZIOC's Congo' holdings to be bought out for c.£2 a share (or better), I'm reluctant to buy more ZIOC shares just in case this all goes wrong... probably because, at 15p a ZIOC share, I've already got more invested in ZIOC than any of my other share holdings.
There are going to be big changes here in the next few weeks - I just wish I knew what!!! I can only wait and remain optimistic given the facts as I know them... others with a lot more invested must have even more "butterflies" over the future.
Lets hope that the 2p rise (13.30hrs) sticks and its PI's getting in on mid Feb progress report.
Who knows by close of play it could be 1p up or 3p up as I believe we have a new floor of 14p for a few days.
Why so quiet here, when the company is so close to capitalising on its investments and extensive work over quite a few years now to prove up their high quality iron ore resources, and the means of benefication and delivery with the help of Glencore, the Chinese and the Congo government?
I still consider the share price of ZIOC could easily leap above the £1.50 IPO price, up to fair value of above £3 a share for their 50% of the resource rights... or some lower amount retaining a "free carry" share. Still at the same level of shares on the market.
ZIOC stated we will hear more by mid-February, delayed from end 2017 waiting on completion of the independent benefication report. The FE levels are world class and the resource volume is in the top 5 globally; and iron ore prices are strengthening with demand exceeding supply... the port development is ready to go with $2billion Chinese funding - this can only be for the Zanaga resources.
Africa is back at work from Monday as most of it closes down over Xmas so any news due should be coming then a perfect T20 trade I reckon this should motor well past 25p!
Chinese building the new port, hmm wonder if they will buy ZIOC stake or Glencore's???
With iron ore on the rise, surely it makes sense to take advantage of the situation and get into production as early as possible. Hoping for good news once all the research has been completed. The current movements in the share price suggest manipulation rather than any sound basis for such large girations. I prefer to sit tight in the hope that arrangements will be made to take advantage of the current strength in the value of iron ore.
With the value of iron ore rising at present now seems the right time to accelerate the development of the companies resources. We were promised a progress report before the year end and time is running out!
Yeah well I try not underestimate the ability of the herd to see rainbows in mud. It's a good place to try a trade imv but it doesn't mean it'll work. I still think it goes much lower. Obtaining the environmental licence was a great bit of news but the mania of the herd has destabilised the sp and they will have to be dealt with before progress can be made. All imv of course.
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