Welcome to Advanced Explorations Inc.
Advanced Explorations Inc., based in Toronto, Ontario, is a resource development company focused on its Roche Bay Iron Ore Project in Nunavut, one of the world's largest developing iron ore districts. The Roche Bay Project is located proximal to a natural deep water harbour on the east coast of the Melville Peninsula in Nunavut, Canada giving it many logistical advantages. The project has an indicated resource of 323 million tonnes, outlined within a small portion of the potential 140 km of banded iron formation. This iron formation incorporates the Roche Bay deposits, the Company's Tuktu deposits and other targeted deposits in areas to the north, south and west of the Company's Roche Bay Project. The preliminary economic assessment from the Roche Bay deposit alone indicates a potential net present value of US $1.1 billion, and the potential for rapid advancement into development of either iron concentrate or high value iron nugget products. The management team has extensive technical, exploration and Canadian Arctic mining expertise to effectively develop the high quality iron ore opportunities on the Melville Peninsula.
Advanced Explorations Inc. Intersects 196 Metres of 31.32% Iron at Tuktu Project
BeantwoordenVerwijderenTuesday, October 18, 2011
TORONTO, ONTARIO--(Marketwire - Oct. 18, 2011) - Advanced Explorations Inc. (the "Company" or "AEI") today announces final drill results from its Tuktu Iron Ore Project located in Nunavut, Canada. Results show that drill-hole 11TT018 contained an interval of 196 m of 31.32% iron. This hole further demonstrates the quality of banded iron formation ("BIF") at the Tuktu 1 deposit. Drill-hole 11TT019 was collared in the granite with the purpose of locating the banded iron formation contact at depth while confirming the dip angle of the hanging wall for the resource block-model which is expected to be released within Q4 of this year. A plan map showing drill-hole locations and a complete table of all released drill results can be found on the company website at www.advanced-exploration.com.
Advanced Explorations Inc. Intersects 126 Metres of High Grade
BeantwoordenVerwijderenIron at Tuktu Project
(TSX VENTURE: AXI)
TORONTO, ONTARIO--(Marketwire - Oct. 5, 2011) - Advanced Explorations Inc. (the
"Company" or "AEI") today announces further drill results from its Tuktu Iron Ore Project
located in Nunavut, Canada. Results show that drill hole 11TT016 contained an interval of 126
m of 33% iron. Similarly broad intervals of >32% Fe have been previously reported by the
Company, with some holes (11TT008, 11TT011) intersecting very high grades of 50.2% Fe over
9 m and 46.3% Fe over 14 m respectively. A plan map showing drill-hole locations and a
complete table of all released drill results to date can be found on the company website at
www.advanced-exploration.com.
John Gingerich, President and CEO, commented:
"The consistent high quality results from Tuktu 1 continue to demonstrate its potential to become
another large tonnage iron ore deposit on the Melville Peninsula, where the Company has
secured all of the available banded iron formation within 50 km of the coast. Our 4,000 metre 20
drill-hole program has only tested one magnetic anomaly within the Tuktu claim block; there are
many more untested magnetic anomalies, and mapping this summer has confirmed that they are
in fact Banded Iron Formations. We are now working on a NI 43-101 resource statement for
Tuktu 1 and expect to release the results within this quarter"
Advanced heb ik zelf ook. Vond vooral de chinese partner een interessante factor. Dit kan een makkelijkere financiering betekenen voor het Roche Bay project van het bedrijf. Chinezen krijgen geloof ik 50% van het project en nemen 50% van de productie af (productie zou moeten beginnen in 2013/2014).
BeantwoordenVerwijderenHet tweede project is Tuktu. Gisteren werd bekend dat de bevolking van het gebied geen/weinig bezwaar heeft voor het Tuktu project. Kan dus nog waarde toevoegen aan hieraan
fd89
FD89,
BeantwoordenVerwijderen140 km ijzererts met een dikte van ca 100 tot 200 m, dat klinkt GIGANTISCH...!!
do 10 nov 2011, 07:48
BeantwoordenVerwijderenMetaaldieven stelen nu ook riooldeksels
GENT - Na de koperen regenpijpen aan woningen en kerken lijken nu ook de metalen putdeksels van riolen een doelwit voor dieven. De afgelopen weken zijn rond de Vlaamse stad Gent tientallen putdeksels geroofd, meldde de Vlaamse krant Het Nieuwsblad donderdag.
Zelfs midden op straat verdwijnen de deksels, bevestigt watermaatschappij TMVW. „Levensgevaarlijk voor wie in zo'n mangat tuimelt of rijdt”, aldus een woordvoerder. De watermaatschappij bekijkt of ze de deksels beter bestand kan maken tegen diefstal, maar ze mogen ook niet te stevig vastzitten. „Bij wateroverlast moet het opstuwende water de deksels omhoog kunnen duwen.”
De diefstallen zijn een gevolg van de hoge grondstofprijzen. Een riooldeksel van 40 kilo levert 10 euro op, zegt een schroothandelaar uit Merelbeke.
--------------------------------------
commentaar: zolang we dit soort berichten in de krant lezen, kunnen we gerust investeren in ijzer-mijnen.....!!
(lol)
China iron ore imports fell to 8-month low in October despite $60 price drop
BeantwoordenVerwijderenFrik Els | November 13, 2011
The China General Administration of Customs reported that the country’s iron ore and concentrates imports were 49.94 million tonnes in October, down 17.5% from 60.57 million tonnes in September 2011. Over the first 10 months iron ore imports still show an increase over last year rising 10.8% to 557.93 million tonnes the data showed.
Bloomberg reports the spot price for iron ore arriving at China’s Tianjin port increased to $134.40 a tonne last week from $116.90, the lowest in almost two years, on Oct. 28, according to the Steel Index.
China Daily reported this week the communist government has put together plans to source 45% of country’s iron ore use from domestic sources by 2015, a big increase from last year’s 32%, as the country steps up efforts to protect its steel industry from a foreign monopoly over iron ore and the dominance of the big three producers – BHP, Vale and Rio Tinto – that control nearly 70% of the 1 billion tonne annual iron ore seaborne trade.
The country is also expected to add more than 100 million tons in iron ore capacity abroad over the same time frame by encouraging its steel producers to invest in iron ore projects around the world.
MINING.com argued this week that although iron ore prices have now turned around after crashing 30% in October, the longer term the outlook is not rosy thanks in large part to the aggressive go-to-market strategy of the big three.
Thanks to their economies of scale have been flooding the market by concentrating on building market share rather than maximizing prices. This way the giants drive high-cost producers out of the business and crowd out any new players who want to enter the space. Read more about the the big three iron ore producers’ expansion plans and market strategy.
The same pattern that has played itself out in the copper import market in China could well happen with iron ore. MINING.com reported last month how Chinese traders took advantage of falling copper prices to stock up on the red metal. Chinese copper imports hit a 16-month high in September as prices retreated 24% to a 14-month low during the month. Read more on how when the price is right… China stocks up on copper.
Advanced Explorations Inc. Announces Tuktu Inferred Resource Estimate
BeantwoordenVerwijderen465 Million Tonnes of 31.1% Total Iron, at a 20% Iron Cut-Off, Reported for Tuktu 1 Deposit
Symbol Price Change
AXI.V 0.31 +0.00
TORONTO, ONTARIO--(Marketwire - Nov. 28, 2011) - Advanced Explorations Inc. (TSX VENTURE:AXI)(FRANKFURT:AE6.F - News) (the "Company" or "AEI") is pleased to announce its initial inferred resource estimate of 465 million tonnes of 31.1% total iron for the Tuktu Magnetite Project located in Nunavut, Canada, approximately 60km north of the company's flagship Roche Bay magnetite Project and 70 km west of the hamlet of Hall Beach. The National Instrument (NI) 43-101 compliant Inferred Mineral Resource estimate was completed by APEX Geoscience Ltd. ("APEX") in conformance with the CIM Standards of Disclosure for Mineral Projects.
John Gingerich, President and CEO, commented:
"The 465 million tonne Tuktu resource estimate is extremely encouraging given the remarkable consistency of the average grade (31.1%) regardless of the cut-off grade used. With drill tested widths up to 400 m and the depth ranging from 200-250m, there is significant opportunity to increase the resource at depth and along the 400 m of untested strike. Metallurgical work on drill core samples will commence soon but based on an initial review, we expect these ores to have similar beneficiation characteristics as the A, B and C Zones at our Roche Bay iron project.
With the previously released results from the C-Zone (April 6, 2011) the Company's has now delineated over 1 billion tonnes of iron ore on its Roche Bay and Tuktu iron properties consisting of an NI 43-101 compliant resource of the Roche Bay Project's C-Zone with 323 million tonnes in the indicated category and 226 million tonnes in the inferred category, as well as the new resource estimate for Tuktu at 465 million tonnes. The updated C-Zone and new A/B Zone resource estimates should continue to add to our total resource base. The ongoing confirmation of historic resources at Roche Bay and the discovery of additional iron ore at Tuktu further validate the importance of this emerging Melville Peninsula iron district".
APEX Geoscience Ltd. (APEX) was contracted by AEI in the spring of 2011 to provide geological services and supervision of the drill program at the Tuktu prospect and was subsequently retained to complete a resource estimate. The Company has received a summary report from APEX that describes a Global Inferred Mineral Resource Estimate for the Tuktu Project of 465 million tonnes grading 31.1% total iron (Fe) and 35.13% total magnetics (see Table 1). A sensitivity analysis of the grade and tonnage relationships, based upon total iron cut-off values, has been completed (Table 1) and demonstrates remarkable consistency at a number of grade cut-offs. This result was not unexpected as the model was well constrained to the Tuktu iron formation, which was observed to be remarkably consistent in magnetite content visually and in grade both along and between drill-hole intercepts. This was further supported by detailed ground geophysical surveys and geological mapping.
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commentaar: het ziet er inderdaad naar uit dat de gevonden hoeveelheid ijzererts onvoorstelbaar groot is en ze zijn nog lang niet klaar met boren.
Advanced Explorations Files NI 43-101 Inferred Resource Estimate for Tuktu Iron Project
BeantwoordenVerwijderenSymbol Price Change
AXI.V 0.24 -0.02
TORONTO, ONTARIO--(Marketwire - Jan. 13, 2012) - Advanced Explorations Inc. (the "Company" or "AEI") (TSX VENTURE:AXI.V - News)(FRANKFURT:AE6.F - News) is pleased to announce the SEDAR filing of the National Instrument (NI) 43-101 compliant mineral resource estimate for its Tuktu Iron Project located in Nunavut, Canada, approximately 60km north of the company's flagship Roche Bay Iron Project and 70 km west of the hamlet of Hall Beach (www.sedar.com).
As press released on November 28, 2011 an Inferred Mineral Resource Estimate for the Tuktu Project consists of 465 million tonnes grading 31.1% total iron (Fe) and 35.13% total magnetic at a 20% iron cut-off, as outlined in Table 1. The Tuktu 1 resource estimate represents but a small portion of the entire Tuktu project and demonstrated a high consistency of the average grade (31.1% Fe) regardless of the cut-off grade used.
John Gingerich, President and CEO, commented:
"The resource estimate lays a solid foundation to undertake an economic assessment as to the conventional exploitation of the Tuktu 1 deposit.
With additional drilling along strike and extending the depth, AEI believes it can substantially increase the size of this resource. While this is a very important next step, the Company will also look to assess the potential of defining a resource associated with the high grade direct-ship-ore type samples (over 62% Fe) taken from the Tuktu 2 area located 10 km southeast of the Tuktu 1 deposit".
Iron ore billionaire Gina Rinehart is “gonna be the whole shooting match” after raiding media group
BeantwoordenVerwijderenFrik Els | February 1, 2012
ABC news reports the richest woman in the world, Gina Rinehart, on Wednesday more than doubled her stake in Australian newspaper group Fairfax to add to her shares in a television channel prompting questions about the mining magnate’s motivations.
Rinehart, nicknamed Big G, who owns a multi-billion dollar coal and iron ore empire has spent more than $500 million buying the media assets over the last year which commentators say she is able to do with “loose change.”
Rinehart, 57, inherited Hancock Prospecting from her father Lang Hancock who discovered the world’s largest iron deposit in the Pilbara region in 1952. When Rinehart took over 20 years ago the family firm was debt-ridden and struggling and she built it into the world’s number one private mining business.
Although she has never granted a media interview herself, after dropping $200 million on Wednesday, she now owns just under 13% of $1.75 billion Fairfax. As the largest shareholder, she’ll almost definitely be offered a seat on the board of the publishers of the influential Sydney Morning Herald, The Age and The Financial Review, the monopoly business daily. Fairfax controls about 30% of Australia’s newspaper market with Rupert Murdoch the rest.
ABC quotes Paul Barry of the Power Index, a business opinion website, who says her influence on the television channel has already paid dividends:
…she’s lost half her money [she invested]. So, I don’t think she’s doing it for business purposes. She’s doing it because she wants a say.
Writing in the Power Index Barry speculates whether Rinehart could be gunning for the whole of Fairfax and pushing her anti-global warming agenda and her opposition to Australia’s carbon and mining tax:
It was Rinehart, remember, who jumped on the back of a truck at last year’s anti mining tax rally in Perth with fellow mining billionaire, Andrew Forrest. It was also Rinehart who funded climate change denier Lord Monckton’s recent Australian tour. Rinehart revived the Lang Hancock lecture at Notre Dame University in Fremantle (which she sponsors) so his Lordship could give it.
ABC also interviews Tim Treadgold of Forbes magazine about Rinehart’s growing wealth and expansion into media:
The asset base she has is directly linked to the growth of China, so as long as China keeps growing, she’ll keep getting richer. What she now wants is more influence in the public debate in Australia, particularly when it comes to matters like taxation, land access, the ability to bring in low-cost labour to develop her mines and ports and she is gonna have a railway as well. She’s gonna be the whole shooting match and I think we’re just seeing the start of Gina the Skyrocket.
2)
BeantwoordenVerwijderenThe Sydney Morning Herald itself weighs in on the likely influence of Rinehart on editorial policy and quotes from Rinehart’s father’s polemic, Wake Up Australia:
And some ideas from Lang Hancock in his book [...] provide some hints, such as how “we can change the situation so as to limit the power of government”. “It could be broken by obtaining control of the media and then educating the public,” he wrote.
“Control of the press could also be obtained by several of the big mining groups banding together with a view to taking over one or more of the present giant newspaper chains which control the TV and radio channels, and converting them to the path of ‘free enterprise’,” he said.
Rinehart is predicted to become the world’s richest person as Hancock’s coal projects and the massive 100%-owned iron ore mines start producing by 2014 and earn her annual net profits of billions. She doubled her wealth from 2010 and last year her net worth was pegged at some $10.3 billion last year, although some estimates put it as high as double that.
While Rinehart’s business success has been mammoth, her private life has not always been a happy one. Earlier this month Rinehart handed her daughter Ginia (sic) directorships of three companies, including Hancock Prospecting which controls her empire.
Ginia who is 25 years old is the only one of Rinehart’s four children who are not currently suing her in court in a bitter dispute over control of the family fortune. The shake-up was the biggest in a long time at the Rinehart group of companies and elevates Ginia in place of her siblings – Bianca Rinehart, John Hancock and Hope Welker – to the top ranks in the world of mining.
Big Pond reports Western Australia’s premier Colin Barnett seized the opportunity Wednesday to highlight the economic power of the resource-rich state and its growing influence over the rest of the country.
‘The rest of Australia get used to it. This is where the money is.’
Advanced Explorations' Integrated Exploration Program to Evaluate Nickel-Copper Discoveries
BeantwoordenVerwijderenPress Release: Advanced Explorations Inc. – 4 hours ago
Symbol Price Change
AXI.V 0.34 +0.01
TORONTO, ONTARIO--(Marketwire - March 19, 2012) - Advanced Explorations Inc. (TSX VENTURE:AXI.V - News)(FRANKFURT:AE6.F - News) (the "Company" or "AEI") announces today that it will play a role in advancing Canada's newest and most exciting Nickel-copper district. The discovery of significant Nickel-Copper and Copper-Silver-Gold mineralization on the western side of the Melville Peninsula was announced in late 2011 (See Press Release dated 25 November, 2011). A minimum of five zones of nickel-copper mineralization were identified, with better assay values of 0.86% Ni, 0.59% Cu, 0.04% Co and 0.40% Ni, 0.19% Cu, 0.04% Co, and one zone of high grade copper-silver-gold mineralization returned assays of 1.93% Cu, 33 g/t Ag, 0.35 g/t Au and 1.06% Cu, 18.8 g/t Ag, 0.14 g/t Au.
The copper-nickel mineralization discovered is similar to a high grade (8% Ni) nickel discovery reported by the Geological Survey of Canada at Adamson River and, although at early stages of exploration, importantly highlights the potential discovery of a new nickel province, similar to the Thompson Nickel District, Manitoba, Raglan Belt in northern Quebec, the Abitibi Belt in eastern Ontario/western Quebec or the Kambalda Nickel District in Western Australia.
Advanced Explorations has staked approximately 203,000 acres to include the areas of mineralization discovered by the Company and favourable mafic-ultramafic rocks which typically host magmatic nickel-copper sulphide deposits.
John Gingerich, President & CEO commented:
"Seldom do junior exploration companies have an opportunity to participate in the discovery of a new mineral province; we believe the nickel-copper discoveries on the western Melville Peninsula represent the first significant nickel discovery in Canada since Voisey's Bay and are very excited about the potential to discover world class nickel-copper orebodies. The Company has a significant land position, have an experienced team and are well positioned to pursue this opportunity while maintaining our focus on the development of our iron projects."
The western Melville Peninsula is remote; however, future development of the Company's iron deposits at Roche Bay and Tuktu and establishment of a deep-water port on the eastern side of the Melville Peninsula will provide an excellent logistical base and operational hub for development of any nickel-copper resources delineated.
The Company is planning a two phase integrated exploration program in 2012, comprising an initial program of airborne geophysics, prospecting, geological mapping and sampling followed by phase two hyperspectral airborne mapping and diamond drilling to test high priority targets.
An experienced senior nickel geologist, Dr Ron Scott, has been chosen to lead the "Anik Project", as the Company's nickel-copper properties will now be known. Preparations are nearing completion for a phase 1, 12,000km VTEM airborne geophysical survey to commence early-mid April; this survey will be flown, in part, on a cost sharing basis with one of the world's dominant nickel producers who also has some interests in the area. Recruitment of the geological team who will complete evaluation of the known nickel-copper target areas and new anomalies defined by the airborne geophysical survey is also near completion. It is anticipated that the field crew will mobilize to the project area mid-June and drilling will commence mid-July.
Advanced Explorations Inc. Re-Scoping Development Plans to Accommodate a 20 Mtpa Production Target
BeantwoordenVerwijderenPress Release: Advanced Explorations Inc. – 8 hours ago
Symbol Price Change
AXI.V 0.355 +0.04
TORONTO, ONTARIO--(Marketwire - March 22, 2012) - Advanced Explorations Inc. (the "Company" or "AEI ") (TSX VENTURE:AXI.V - News)(FRANKFURT:AE6.F - News) announces today that in response to expanding interest in its projects and emerging development scenarios within the East Melville area (which includes the Roche Bay C-Zone, Roche Bay A-B Zone, and the Tuktu projects), the Company has decided to expand the scope of its development scenario to support a possible potential start-up of approximately 8 million tonnes per annum (Mpta) with a longer term regional production target of up to 20 Mtpa. In particular core infrastructure would become immediately strained if additional production from Tuktu or the A-B Zone were to occur. A major portion of the technical evaluations have been completed through the ongoing feasibility study (FS) and technical studies completed by XinXing Ductile Iron Pipes Co. Ltd. (XDIP). The proposed re-scoping will include adjustments to the ongoing study to accommodate the targeted higher production rate. It does not necessarily impact the C-Zone initial mine plan with production currently to supply 5 Mtpa. This move should allow the Company to further benefit from lower operating costs through better capital/infrastructure leverage, given the number of development options associated with the Roche Bay and Tuktu projects.
John Gingerich, President & CEO commented:
"The exciting expansion of development scenarios places AEI as one of the foremost iron ore projects in Canada. As the Roche Bay project is located adjacent to a natural deep water harbour, our partners do not face uncertainty in respect to future port and railroad developments as to securing supply requirements. In the last few months we have worked to address the exciting development scenarios while securing fundamental collaborative opportunities and additional funding in respect to a much larger development. Our challenge in the near term is to align all the expressed interests into a collaborative development strategy that may be 4 to 5 times greater than the base plan initiated one year ago. The Company also believes the new structure will facilitate an earlier implementation of the funding for a fast track early works program".
2)
BeantwoordenVerwijderenOn February 28, 2012 XDIP announced the completion of a Pre-Feasibility Study on the Roche Bay project and the role AEI may play in meeting Chinese domestic iron ore concentrate demand. Moreover, with broadened development scope, AEI is capable of becoming a key supplier to China, which is strategically seeking to secure up to 300 Mtpa of seaborne supply and guaranteed long term access of feedstock for its domestic steel industry. By expanding its regional production objectives, AEI will be better able to play a role in meeting XDIP's and China's supply requirements. Due to its location near shore, Roche Bay does not face the potential bottlenecks in product delivery other land-based projects may face. AEI's ocean location provides natural deep water shipping lane access that can expand as market requirements demand.
The restructuring of AEI's iron ore assets, also announced February 28th, 2012, was developed in response to inquiries from third parties interested in participating in the Tuktu Project that is not part of the XDIP Joint Venture option, as well as a potentially much larger development scenario in East Melville. While there is no guarantee an agreement will be reached, the Company has confirmation that XDIP is willing to consider a three-party arrangement to better allow for a larger regional development vision and which would contemplate the added value of production from A-B Zone and Tuktu. AEI is currently in discussions with its Feasibility Study Team as to the impact of re-defining the feasibility specifications. Upon further review, all delivery milestones will be updated. The change in scope and shift to a second quarter delivery schedule will also be discussed with XDIP in the context of a potential revised development partnership.
John Gingerich further commented:
"The Company has had discussions with a number of interested parties in respect to acquiring an interest in the Tuktu project, with particular interest in pursuing the DSO potential. While these options remain available to the Company, pursuing a larger scale integrated development solution is believed to provide better shareholder value. Further details will be released as the Company concludes the current discussions/negotiations."
Iron ore price hits 6-month high
BeantwoordenVerwijderenFrik Els | April 11, 2012
The import price of 62% iron ore fines at China’s Tianjin port was $148.70 at tonne on Wednesday, an almost six month high.
The price is up more than 27% from lows struck in October last year when the steelmaking ingredient experienced a mini crash with spot declining from a record high of $180 to $116.
The last time iron ore traded above $150 was mid-October 2011 and the commodity hit a 2012 low of $134 a tonne on February 20 according to Bloomberg data.
China consumes 60% of the 1 billion tonne seaborne global iron ore trade which is dominated by BHP Billiton, Rio Tinto and Vale.
Despite predictions of a severe slowdown in China and lower iron ore prices by rival miners, world number one iron ore producer Brazil’s Vale made very positive comments about the market on Wednesday.
The Financial Times (sub required) reports that Macquarie estimates that China’s steel production reached an annualized rate of 715m tonnes in March – the highest in at least nine months – and quotes another bullish analyst:
“Those arguing about whether China will have a soft or hard landing are missing the point. It has landed already,” said Rob Clifford, equity analyst at Deutsche Bank, in a note to clients.
“Under most growth scenarios – other than an ultra-bearish one – for China, the country will need more steel production capacity.”
The performance of iron ore is contrast to that of copper. The red metal hit 3-month lows on Wednesday falling to $1,018 a tonne on the LME and $3.63 a pound for the May contracts on Comex in New York. Copper futures hit a high of $4.53 a pound in early August last year.
Advanced Explorations Inc. Roche Bay Iron Project Feasibility Study Advancement
BeantwoordenVerwijderenPress Release: Advanced Explorations Inc. – 1 hour 3 minutes ago
Symbol Price Change
AXI.V 0.26 0.00
TORONTO, ONTARIO--(Marketwire -05/10/12)- Advanced Explorations Inc. (the "Company" or "AEI") (TSX-V: AXI)(AE6.F) announced today that it has completed an internal review of the Roche Bay Feasibility Study process with the study author, TetraTech Wardrop ("TetraTech"), and that the results of the study will be released in July 2012 with the filing of the complete report 45 days thereafter.
Pursuant to the completed trade-off studies and technical project inputs, the Feasibility Study ("FS") will be based on an initial 5.5 Million Tonnes per year production (nominal) of 66% iron concentrate with initial mining development to be commencing at the project's C Zone. As indicated in previous press releases (April 3rd & April 10th, 2012), the Company is also examining opportunities regarding long term operating cost reductions through alternative power solutions and future production expansions. The near-shore location of the mine and low infrastructure requirements continue to provide significant cost advantages and future production flexibility.
John Gingerich, President and CEO commented:
"We are very pleased with the Feasibility Study as it has progressed to date and are moving forward with a low-capital, low infrastructure intensive project while continuing to evaluate further opportunities for adding significant value to the Roche Bay Project . The near shore location provides excellent opportunities for the development of the entire banded iron formation on the East Melville Peninsula, and the Company will continue to pursue the future expansion options in a parallel path to the completion of the FS.
Advanced Explorations Inc. Provides Update on Roche Bay and Tuktu Iron Projects
BeantwoordenVerwijderenPress Release: Advanced Explorations Inc. – 8 minutes ago
Symbol Price Change
AXI.V 0.22 0.00
TORONTO, ONTARIO--(Marketwire - June 28, 2012) - Advanced Explorations Inc. (the "Company" or "AEI") (AXI.V)(AE6.F) today announced that field work is underway on its iron ore properties located on the Melville Peninsula in Nunavut, Canada.
Moving forward with the development of its flagship Roche Bay Iron Project, AEI continued a geotechnical program that includes confirming water depths for Capesize ships in its natural deep water harbour at Roche Bay. In addition, recent metallurgical studies as part of flow sheet optimization on the C Zone resource indicate that concentrates in excess of 69% Fe, less than 5.0% Si and less than 0.07% S can be achieved. High quality concentrates with these specifications currently demand premium pricing.
Additional exploration work is also being undertaken to follow-up previously discovered high grade iron at the Tuktu Project to further determine the project's direct-ship ore (DSO) potential. Initial field work has focused on the 1600 metre long ground magnetic anomaly (Tuktu 2) where prospecting in 2011 yielded results in excess of 62% Fe (see press release October 26, 2011). Preliminary reports indicate, the northern portion of the anomaly is fairly well exposed and has been traced along strike for approximately 500 metres where it disappears under shallow cover. Widths up to 100 metres are noted, and of particular importance is the presence of abundant specular hematite. The first assays from the channel sampling are expected within the next 4-6 weeks. These early findings have identified the size potential for a high grade (DSO) mineralization with grades to be verified by laboratory analysis. The company expects to release photos of its field activities on its corporate website.
The Company also wishes to report that it has been in strategic partnership discussions with several of the world's largest power generation companies who expressed interest in AEI's proposed LNG (Liquified Natural Gas) remote power solution program. It is anticipated that a memorandum of understanding will be concluded in the near future. The work undertaken by AEI suggests power generation savings of up to 65% over Arctic Diesel is possible with significant environmental benefits as well. Concluding a strategic partnership in the development of LNG power generation will bring to the project the capability and capacity to deliver the power solution and allow the Company to focus of the Roche Bay mine development.
John Gingerich, president & CEO, commented:
"We have made a continued effort to follow up on all of our promising iron
ore assets while our priority remains the development of our flagship
Roche Bay Iron Project. The results of the important geotechnical work at
Roche Bay will benefit the detailed engineering work that is expected to
commence after the completion and release of the Feasibility Study. At the
same time, we are continuing to evaluate the DSO potential at Tuktu which
could have a substantial impact on the economics and merit of both
projects. There have also been important developments taking place in
respect to our remote LNG power solution. The successful implementation of
a power solution at Roche Bay will not only have potential to
substantially lowering operating cost, these solutions could have a major
impact on other northern resource projects and Canada's Arctic development
strategy."
commentaar:
VerwijderenSteeds meer mijnbouwprojecten willen aardgas ipv diesel gaan gebruiken voor de energievoorziening.
Het wordt steeds duidelijker dat de lage aardgasprijzen in Noord-Amerika gaan zorgen voor een energie-revolutie van ongekende omvang.
Dit zal de kostprijs van de gehele economie in NA fors gaan verlagen en kan dus een grote bijdrage gaan leveren aan de verbetering van de concurrentiepositie van Canada en de USA.
Het zou me niet verbazen als de aardgasprijs in NA binnen een paar jaar gaat verdubbelen, maar dan nog is deze prijs veel lager dan in de rest van de wereld.
History
BeantwoordenVerwijderenAfrican Minerals has been active in Sierra Leone since 1996. The Company refocused its initial search for alluvial diamonds after discovery of the Tonkolili iron ore deposit.
In February 2005 the Company was admitted to AIM, raising £20m. In 2008 the company discovered the major Tonkolili magnetite resource, and carried out significant fundraisings for its development. Through 2010 and early 2011 it raised over $1.1Bn to fully fund its Phase I development of the project, which entered production in Q4 2011.
Gibril Bangura, one of the founders of the Company and Executive Chairman, AML Sierra Leone, maintained its corporate office in Freetown, from mid-1997 through 2002 during the civil strife that plagued Sierra Leone. The Company remained committed to Sierra Leone and the Group’s business during that difficult period.
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Tonkolili Project Highlights
Significant in situ resource upgrade from 5.1Bnt to 12.8Bnt.
Three phase development approach for rapid attainment of cash flow.
Phase I production capacity increased from 15Mtpa to 20Mtpa and low cash costs expected at under $30/t.
First production achieved on time in Q4 2011.
Integrated mine, rail and port infrastructure complete.
Low cost of transport and infrastructure, low stripping ratio and low processing requirement drive low cash costs.
Strategically located for European and Asian markets.
Uniquely experienced management team.
All Tonkolili project mining licences awarded, environmental permits issued and fiscal terms agreed with the Government of Sierra Leone.
------------------------------------------------------------
Major Shareholders
As at 14 June 2012, shareholdings of 3% or more of the issued share capital notified to the Company were:
Issued Shares: 330,178,892
Name
Number of
Shares (m)
Shareholding
Timis Diamond Corporation
42.3
12.8%
China Railway Materials Commercial Corporation
40.6
12.3%
BlackRock Investment Management
35.7
10.8%
M&G Investment Management
32.1
9.7%
Capital Group Co's Inc
17.5
5.3%
Goodman & Co Investment Counsel
11.9
3.6%
JP Morgan Securities Limited
11.1
3.4%
Henderson Global Investors
10.1
3.1%
Twin Trust (The)
7.8
2.4%
Free Float
As at 14 June 2012, the percentage of the Company’s issued shares not in public hands (i.e. held by directors, management and shareholders with greater than or equal to 10% of the issued share capital) was approximately 38.1%.
Free Float is approximately 61.9% (72.5% including Blackrock holding).
Laatste presentatie:
Verwijderenhttp://www.african-minerals.com/am/uploads/reportsa/June2012.pdf
laatste koers AMI.L ca 370 p.
Research Coverage
VerwijderenTonkolili Iron Ore Project 23 June 12
“We still see significant upside to our price objective of £10, with a further “blue sky” potential to £19.30 if we assume all three project phases eventually execute successfully” Daniel Lian - BofA Merrill Lynch March 30, 2012
“As one of the leading West African iron ore exploration and development companies, AML should stand out from the pack and begin to re-rate as the company ramps up shipments in the coming year”
Seth Rosenfeld – Jefferies
January 11, 2012
“Multiple catalysts including plant delivery, Shandong funding, and cash generation will lead to re-rating of the stock..” Rob Clifford – Deutsche Bank February 28, 2012
“Our target price is based on a P/NPV of 1.1x and a 2013E EV/EBITDA of 4x. Our upside valuation based on successful delivery of Phase I and II and rerating in line with global iron ore peers is £10/sh.”
Liam Fitzpatrick – Credit Suisse
March 30, 2012
Broker
Date
2012
EPS
2013
EPS
Target
Price
Phase 2 Value Inclusion
Buy
Bank of America Merrill Lynch
8-June-12
$0.77
$2.78
£9.30
75% credit
Canaccord
11-Oct-11
£6.50
Citi
20-Apr-12
$0.14
$1.44
£7.50
Credit Suisse
25-June-12
$0.29
$1.50
£8.00
Deutsche Bank
1-May-12
$1.09
$2.00
£8.07
2/3 credit
Dundee Securities
16-May-12
($0.20)
$1.18
£12.60
GMP
18-June-12
$0.37
$1.65
£8.50
50% discount
Goldman Sachs
8-May-12
$0.84
$1.93
£7.50
Investec
11-Apr-12
$0.56
$0.86
£7.38
Discount
Jefferies
30-May-12
$0.03
$1.42
£8.30
75% discount
Mirabaud
2-Apr-12
$1.29
£13.40
90% credit
Renaissance Capital
2-Feb-12
$1.91
£7.20
n/a
Average
$0.43
$1.63
£8.77
“Scaleability enables the company to maintain consistently strong IRRs in each build out phase, in excess of the 17% industry average, and keep a low cost option on high value Phase 3”
zie pagina 24 van presentatie.
VerwijderenDe koersdoelen liggen ver boven de huidige koers.
Op basis van de geschatte winst voor 2013 ligt de huidige K/W op ca 2 tot 3
Dit zou dus weleens het goedkoopste ijzererts-aandeel ter wereld KUNNEN zijn.
Het bedrijf heeft niet of nauwelijks geld nodig omdat ze voor 1,5 miljard 25% van het project verkocht hebben aan de Chinezen.
India looking at scrapping 30% iron ore export duty. Could bring 100 million tonnes back onto market
BeantwoordenVerwijderenFrik Els | July 4, 2012
Reuters reports India's minister in charge of mining Dinsha Patel told an industry gathering on Wednesday that the duty on iron ore exports is under "active" review.
The export surcharge was raised on two occasions last year in an effort to keep ore inside the country for local steelmakers amid a mining ban in the state of Karnataka instated in July. That ban is now being lifted. Karnataka represents roughly 25% of the country's production.
The customs duty is pegged at a crippling 30% and is the number one reason India's iron ore exports dropped from 100 million tonnes in 2010 to around 40 million tonnes this fiscal year. The global seaborne iron ore trade handles about a billion tonnes per annum.
The country produces some 200 million tonnes or iron ore per annum, but much of it is low grade,which have led to trade spats with China in the past, where almost all of the export ore goes.
The spot price of 62% iron ore imported into the port city Tianjin in northern China on Wednesday was $135.10 a tonne. The price of the commodity has declined more than 8% over the last quarter as demand from top consumer China weakens. Benchmark Tianjin 62% ore averaged a record $168 during 2011.
Lower grade 58% fines was changing hands at $120.90 on Wednesday, down from $125 at the start of the year according to Steel Index data.
Human Rights Watch said in a report released in June that India’s "deep-rooted shortcomings in the design and implementation of key policies have effectively left mine operators to supervise themselves."
The report describes "pervasive lawlessness in India’s scandal-ridden mining industry" and the collapse in enforcement of laws to protect local communities.
http://www.mining.com/2012/07/04/india-looking-at-scrapping-30-iron-ore-export-duties-thats-100-million-tonnes-potentially-coming-back-on-the-market/?utm_source=digest-en-fe-120704&utm_medium=email&utm_campaign=digest
Advanced Explorations Inc. Confirms Direct Ship Ore Potential With Assays Up to 69.30% Fe at the Tuktu Iron Ore Project
BeantwoordenVerwijderenPress Release: Advanced Explorations Inc. – 7 hours ago
Symbol Price Change
AXI.V 0.22 0.01
TORONTO, ONTARIO--(Marketwire -07/11/12)- Advanced Explorations Inc. (the "Company" or "AEI") (AXI.V)(AE6.F) today announced results up to 69.30% Fe from the Tuktu Iron Ore Project located on the Melville Peninsula in Nunavut, Canada. The recently completed channel sampling and prospecting program along the northern limits of the Tuktu 2 magnetic anomaly confirms the direct ship ore (DSO) potential of the target. Equally important to the high iron grades is the consistent low Sulphur content.
This recent field work represents a follow up examination of the 2,100 metre, Tuktu 2 magnetic anomaly that in 2011 yielded 63.85 % Fe and 62.26% Fe (see press release - October 26, 2011) separated by 1,600 metres. The southernmost limits have not yet been examined. The July 2012 results, summarized below and taken within 100 metres of 2011's 63.85% Fe sample confirm the presence of very high grade iron at Tuktu over a substantial area.
To view the table associated with this press release, please visit the following link: http://media3.marketwire.com/docs/AdvancedTable.pdf.
Of special note is the presence of abundant specular hematite, a form of iron oxide not seen before at the Tuktu Iron Ore Project. Grab sample 12ATP071 (69.3% Fe) was taken from a 50 square metre outcropping of specular hematite located 100 metres to the east of the channel samples, approximately in the centre of what is interpreted as the nose of the folded iron formation. The geology noted in the field agrees well with the results of the ground magnetometer survey completed in 2011.
John Gingerich, president & CEO, commented:
"Our field work confirms the direct ship ore potential at Tuktu. Internal analysis suggests that the target dimensions exceed minimum thresholds for a satellite DSO trucking operation that could be integrated with the Roche Bay Project infrastructure. This unique target exhibits grades of both hematite and magnetite in excess of 65% Fe adding to the potential product development scenarios. Tuktu DSO is providing a new paradigm of opportunities for AEI."
Iron Ore Crash Worsens
BeantwoordenVerwijderenAugust 29, 2012 | 39 comments | includes: BHP, CLF, FSUMF.PK, RIO, VALE
The intention of this article is just to update on what's happening in the iron ore market in China. Basically things are getting worse fast. When I last wrote on iron ore, spot prices were still hovering at $110 per ton, and futures were around $99 per ton.
Today, these have fallen to around $90 spot, $86 futures (and these aren't updated for August 29 yet!). It should be kept in mind that my last update was just last week. So spot prices fell 18% and futures fell 13% in a single week.
Where it goes from here, short term
One important thing to understand is that there are still few signs of steel production slowing down meaningfully in China. Clearly the market is oversupplied, but very few mills are throwing in the towel just yet. This means that the iron ore panic still has to contend with a significant, if temporary, reduction in demand.
On the other hand, the first frail signs of reduced Chinese iron ore supply are already appearing, as the very highest cost suppliers fall off the map rather quickly. These haven't been enough to stop the price drops, though.
What's more likely to happen given these conditions, is for the panic to continue and reach for lower prices, which will eventually choke off not only internal supply, but even some importers.
Where it goes from here, medium to long term
One of the things which impresses the most while going through the major producers' earnings reports, is how every single one of them is expanding production and has plans to expand production in the near and long term. Be it Rio Tinto (RIO), Vale S.A. (VALE), BHP Billiton (BHP), Cliffs Natural Resources (CLF) or Fortescue (FSUMF.PK), every producer has either brownfield developments, greenfield developments, debottleneckings, etc that enable them to both show increased production now, and expect increased production in the near and medium term future. Sometimes, the expected increased production is massive when compared to the entire market, for instance Fortescue expects to triple production into mid-2013, bringing in an additional 100 million tons of iron ore. To have a feeling for how much this is, BHP's production in the latest fiscal year was 179 million tons, so Fortescue is gunning to bring in an additional 55% of the entire BHP production within the next year. The market, as it is today, doesn't seem able to handle this.
2)
BeantwoordenVerwijderenNot only is every large producer increasing production and planning on increasing near term, medium term and long term production significantly, but every small producer one finds is also doing the same. There are countless news of 2-3-5-6-10 million ton projected increases in production from small players. There are also entire new mines about to enter production, such as the 27.6 million ton Sino project which has seen countless delays and is now expected to come online during November 2012.
What does all of this mean? It probably means something BHP has already expressed in presentations - that the worldwide iron ore demand is about to be met by increased capacity coming from low-cost sources. Such has the potential to transform iron ore pricing.
Iron ore pricing
As in most markets, iron ore pricing tended to be established by the highest marginal cost producers needed to meet demand. As new low-cost supply comes online, the highest cost margin producers will have a lower and lower cost, and equilibrium prices needed to supply the market will be lower and lower.
We know that the largest producers have costs below $50 per ton and will in all likelihood continue to be profitable. However, as prices are set lower and lower, they'll be less profitable. At this point, given all the new production capacity that's expected to come online, together with the likelihood of stagnated demand in China for some time, it would seem likely that iron ore will first find an equilibrium price below $100 per ton, and will then converge to a pricing regime that's similar to what existed before this decade's China boom. That would mean $75 per ton and below.
Conclusion
The iron ore crash I have been predicting has already happened. This last week saw an intensification of the crash. Right now the focus turns into trying to understand the implications for the medium to long term.
The first signs indicate that it's likely iron ore will revert to pricing that will be consistently below $100 per ton, with below $75 per ton being possible over the longer term as more low-cost projects come online.
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Iron ore freefall catches miners
BeantwoordenVerwijderenCecilia Jamasmie | August 29, 2012
Iron ore prices hit their lowest level since November 2009 on Tuesday as the commodity crashed 4.6% closing at $94.80. The dive proved a drag for producers of the commodity, particularly companies investing heavily to expand their production capacity.
Iron ore pure plays Fortescue Metals Group dropped 1%, Atlas Iron lost 5%, while major diversified players such as BHP Billiton and Rio Tinto shed 1.2% and 2.1% respectively.
FT writes (subscription required) the free-fall in the steelmaking ingredient prices is putting to the test a popular theory: “that the global price of iron ore has a natural floor around the marginal cost of Chinese domestic ore production – which most analysts put at roughly $120 per tonne.”
The general idea is that it would cost at least $120 for an average Chinese mine to produce one additional tonne of iron ore – because increasing production would tap lower grades of ore that are more expensive to mine – so at that price level it becomes cheaper for Chinese mills to buy iron ore from overseas.
This theory is being severely tested however, because the Chinese iron ore market has developed an unusual dichotomy: domestic iron ore is selling at prices a third higher than imported iron ore.
The commodity has been free falling consistently in recent weeks, from a 2012 peak of $149 a tonne in April, while hard coking coal prices are down about 31% since June.
High inventories of the steelmaking material at Chinese mills, say experts, are mainly to blame. In addition, higher exports from Australia, Brazil, other Latin American producers and Africa have weighted on the price outcome. An the recent lift of a ban on iron-ore production from Karnataka in India, which typically increases its ore exports after the monsoon season, has also played a role in pricing, Barclays Capital representatives told the Business Spectator.
Only bad news for Australia
Apart from the alarming drop in prices for iron ore and coal, Australia’s two major exports, local investors are also worried about the state of the residential property market.
Gezien bovenstaande berichten over de prijzen van ijzererts en kolen, lijkt het mij verstandig om voorlopig geheel of gedeeltelijk afscheid te nemen van ijzererts- en kolen-aandelen, zoals b.v. AXI en Cardero.
BeantwoordenVerwijderenFortescue chief sees iron ore price down 25% from current levels. Says it's a 'good thing'
BeantwoordenVerwijderenMINING.com News | April 2, 2012
Fortescue chief executive Neville Power – who took over as CEO from billionaire founder Twiggy Forrest last year – told an Australian newspaper that a lower price for iron ore is a good thing for miners and steelmakers.
Power also predicted the price of iron ore will settle at about $110 per tonne over the next few years.
The price of iron ore is down from all time highs of $180 per tonne in September to $147 per tonne currently:
"Chinese steel production growth will be lower over the next five years at about 4 or 5 per cent," Mr Power told The Australian at the Boao Forum for Asia in the Chinese province of Hainan yesterday. This represents a slowdown from growth rates of 7 to 8 per cent in recent years, but the base grows each year.
Shortly after taking over the helm Power said Fortescue could remain profitable at a price of $70 per tonne.
Fortescue exports the vast majority of its 60 million tonne ore per year to China and only began commercial production five years ago.
Cliff Natural Resources rose to around $120 a share in 2008, and recovered nicely after the 2008 financial collapse and subsequent recession to reach $100 a share in early 2011. The stock currently trades at just 4x trailing earnings, and less than 5x average estimates for next years likely earnings. Many traders and investors are now beginning to become bullish on this company.
BeantwoordenVerwijderenThe share price of Cliffs Natural Resources and other iron ore and mining companies heavily levered to the Chinese real estate and construction markets have essentially crashed over the last year. While many iron ore and metallurgical coal companies have stabilized for short periods of time, leading companies in this sector, such as Rio Tinto and BHP Billiton, are still down over 30% in the last six months.
Cliffs Natural Resources is a nearly $5-billion dollar company based in Cleveland, Ohio. The company has significant exposure to the seaborne iron ore market through its acquisition of the Austrialian company Portman's, and the company's mines in Brazil and other countries. Cliffs Natural Resources has a strong operational record over the past decade, and the company has performed very well during stronger economic times. Still, management has a very poor track record of trying to use capital to maximize shareholder returns.
Cliffs Natural Resources' current dividend policy is totally unsustainable, and the company raised its dividend by over 125% in the last several months as iron prices continue to crash. Cliffs Natural Resources raised the company's dividend when the stock was trading at around $60 a share, and the current dividend of $2.50 a share represents a nearly 50% payout of estimates for next year's likely earnings. The company's current dividend payout would also use over 80% of next year's projected cash, and analysts are projecting revenues and cash flow to drop significantly over the next several quarters.
While Cliffs Natural Resources may be able to sell assets and borrow to maintain the dividend, the management of this company is leveraging a weak balance sheet at the wrong time. Cliffs Natural Resources' last major decision to leverage the companies balance sheet was an ill fated $128 a share bid for Alpha Natural Resources, Inc. (ANR), a metallurgical coal company now trading at $7 a share. While few industry insiders foresaw the financial collapse and subsequent recession in 2008, this company still made a $128 dollar offer for a company that is today trading at $7 a share.
2)
BeantwoordenVerwijderenCliffs Natural Resources' current dividend policy is both unsustainable and dangerous. With revenue and free cash flow likely to remain weak for some time, the company's high payout ratio will keep management from having the flexibility to look at better ways to maximize long-term shareholder value with buybacks or acquisitions.
Cliffs Natural Resources and other leading iron ore and metallurgical coal companies have seen record profits over the last several years, but the weak balance sheets of many companies in this industry and the housing bubbles in commodity-based economies such as Australia and Brazil, suggest that many industry insiders significantly overestimated long-term demand in these industries. While price to earnings ratios and historical price ranges of iron ore and other bulk metals are usually good valuation metrics for mining companies, it is also likely that recent bulk metal prices were significantly inflated from what these commodity prices are likely to trade at in coming years.
With the Federal Reserve continually initiating significant quantitative easing efforts, while the Chinese government and Chinese Central Banks financed a $4 trillion dollar real estate and infrastructure build-out, steel demand in the U.S. and China will likely remain very weak over the next several years. Companies such as BHP Billiton recently announced significant cutbacks in future capital expenditure plans, and many experts are also suggesting that cash flow in the mineral industry will likely be very limited moving forward.
To conclude, while iron ore prices are at the lowest levels, this mineral has been priced at in two-and-a-half years; mineral prices are unlikely to return to previous levels for years. With the Chinese government and Chinese Central Bank increasingly unwilling to pursue new fiscal and monetary initiatives, and regional banks in China laden with debt, the iron ore and metallurgical coal markets will likely remain oversupplied for some time. While companies such as Cliffs Natural Resources have sold-off hard over the last several years, China and the U.S. are unlikely to pursue significant new stimulus policies in the near term.
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http://seekingalpha.com/article/841381-cliffs-natural-resources-broken-business-model-makes-dividend-cuts-inevitable?source=yahoo
Iron ore price plunge: Twiggy's problem opens gap for Gina
BeantwoordenVerwijderenFrik Els | September 14, 2012
Australia’s third-largest iron ore miner, Fortescue Metals, appears to have become the first major player to run into serious difficulties following a melt-down in the price of the steelmaking ingredient over the summer.
Iron ore dropped again on Thursday to trade at $96.10 a tonne after a brief rally that took the commodity into triple digits. Benchmark 62% iron ore fines at China's Tianjin port hit a three-and-a-half year low of $86.70 last week.
Fortescue – still 32% owned by Andrew (aka Twiggy) Forrest – shocked the market and sent its share price plummeting 14% after it announced that it is seeking a 12-month waiver of its debt covenants.
Fortescue – which started commercial mining barely five years ago – was built up to its current size without issuing new equity instead opting for debt financing. The Perth-based company owes lenders more than $10 billion and the request for debt relief comes a week after it said its scaling back expansion plans and putting on hold spending.
The Financial Review hints that billionaire founder and chairman Forrest may have played a role in the decision not to issue shares:
"Some brokers have questioned why Fortescue would postpone the introduction of lower cost production rather than raise new equity to complete its $US9 billion expansion. An equity raising would dilute Mr Forrest’s stake if he did not participate in the issue.
The Brisbane Times calculates that Fortescue is losing money with iron ore at current prices and that the company needs to earn at least $105 a tonne to break even:
Like many miners and mining services companies, Fortescue was too bullish on China and the outlook of iron ore prices. It said it would expand into a 155-million-tonne-a-year iron ore outfit and then brought its expansion plans forward. In a show of machismo it left itself exposed to a downturn.
Forrest was number 23 on MINING.com's ranking of the richest miners with an estimated fortune of $5.8 billion as at March this year. Today he would be worth closer to half that.
Fortescue's troubles have led to speculation that it is now a firm takeover target. The most likely candidate is cash-rich Hancock Prospecting owned by Gina Rinehart. Twiggy's fellow Australian mining tycoon is the second richest billionaire from the world of mining with an estimated fortune of $19.5 billion and is developing a deposit called Roy Hill adjacent to Fortescue.
China bulls chase iron ore 25% higher in just two weeks
BeantwoordenVerwijderenFrik Els | September 18, 2012
Iron ore prices continued its strong rally on Tuesday, adding $4.50 or 4.3% to $109.60 a tonne after a record-setting 5.7% jump on Friday according to data supplied by SteelIndex.
Benchmark 62% iron ore fines at China's Tianjin have now clawed back more than 25% of its value since hitting a three-and-a-half year low of $86.70 two weeks ago. This time last year the commodity was trading at $175 a tonne.
Iron ore's bounce comes after the Chinese government approved a raft of new building and rail projects worth 1 trillion yuan ($157 billion) early September in a concerted effort to boost its slowing economy – the fortunes of the steelmaking ingredient have been increasingly tied to Chinese investment in infrastructure.
The rally in iron ore has spilled over into shipping. Bloomberg reports for the first time this year, rates charged by dry bulk carriers capable of carrying 160,000 tonnes dead weight will be more than the cost of operating them.
The annual seaborne iron ore trade is roughly 1 billion tonnes and more than 60% of the commodity ends up at Chinese ports. Investment bank Morgan Stanley forecast the iron trade to grow 14% in 2013 – three times the rate of expansion predicted for this year.
Not everyone is convinced the rally is sustainable though.
FT.com quotes Colin Hamilton, a commodities analyst at Macquarie, an investment bank, in London as saying: “It’s a big turning point in sentiment rather than a turning point in demand”.
Bloomberg quotes Jim Chanos of hedge fund Kynikos Associates and inveterate short-seller, speaking about the recent rally in commodities as saying "structurally, until China really addresses this credit-driven infrastructure and fixed-asset investment model, the surprises are going to be on the downside.”
Enorme prijsverschillen in ca 5 dagen....!!
VerwijderenVale says iron ore won't go below $100 – 40% of Chinese output is already off the market
BeantwoordenVerwijderenFrik Els | September 27, 2012
The world's number one producer of the commodity, Vale, sees iron ore prices trading in a range of between $100 – $120 per tonne for an extended period.
Speaking at an industry event in China on Thursday, José Carlos Martins, head of ferrous metals and strategy at the Brazilian miner, also warned that market volatility will continue according to Reuters Brazil.
Iron ore was unchanged at $104.20 a tonne on Wednesday having clawed back more than 20% of its value since hitting a three-and-a-half year low of $86.70 on September 5. This time last year the commodity was trading above $170 a tonne.
A Chinese industry body said roughly 40% of domestic producers have suspended production – when the price of ore falls below $100 many Chinese miners of the steelmaking ingredient become unprofitable.
Chinese miners simply cannot compete on price with the top exporting countries – Brazil, Australia and South Africa. The iron content of Chinese ore currently stands at only 20%, down significantly from 30% in 2004 and well below the benchmark 58% and 62% ore from the likes of Rio Tinto, Vale and BHP Billiton.
Investment bank Standard Chartered predicted in an August study that Chinese iron content could sink to only 15% by 2026, further benefiting the big three producers who control over 60% of the 1 billion tonne global seaborne iron ore trade.
Vale said the company estimates Chinese steel production will rise 3% to 5% in 2013 which would also boost imports.
While it continues to produce steel at a pace of near 2 million tonnes a day China's steel industry has been struggling with profitability.
Lange Steel reported on Thursday top producer Baosteel has suspended production at its plant in Luojing, Baoshan district, Shanghai to stem further losses. The company acquired the project for more than $2.2 billion in 2008.
Norway Port Set to Boom With Iron Ore Shipped to China: Freight
BeantwoordenVerwijderenBy Mikael Holter and Niklas Magnusson - Oct 3, 2012 12:00 AM GMT+0200
Three yellow construction cranes tower over heavy machinery and clusters of workers as they bustle in the Norwegian Arctic drizzle to get a new iron ore terminal ready by the beginning of next year.
The port of Narvik, where the waters around a ship at the existing loading quay are tainted red by iron ore dust, is preparing for an economic boom. Iron ore from neighboring Sweden via Narvik is forecast by the port to surge fivefold by 2025, much of it bound for China. That is bringing wealth to a city lacking the oil riches most of Norway enjoys.
Narvik is banking on Northland Resources SA (NAUR) which, like Sweden’s LKAB, is ramping up production at its Swedish iron ore mines. Northland plans to start extraction in Kaunisvaara in the fourth quarter and make its first shipments from Narvik early next year. The stock could more than double in value in the coming 12 months, according to the average share price estimate of five analysts surveyed by Bloomberg.
“Narvik is the optimal port solution for us,” said Northland Resources Chief Executive Officer Karl-Axel Waplan in a phone interview, noting the port’s proximity to Northland’s Swedish mines and its capacity to take the biggest vessels, which isn’t the case for Sweden’s Baltic ports. “Demand for iron ore will rise.” Even if Chinese annual growth falls to 7 percent, he said, Northland forecasts prices averaging 15 percent higher than today’s level over the next 15 to 20 years.
The ice-free Narvik port, almost a two-hour flight north from Oslo, is 250 kilometers (155 miles) from Northland’s mine in Kaunisvaara, Sweden. Volumes may rise to 33 million metric tons by 2015 and to as much as 100 million tons by 2025, Rune Arnoey, head of the Port of Narvik, said in an interview. In comparison, northwestern Europe’s fourth-largest port, Amsterdam, handled 93 million tons of cargo in 2011.
Job Creation
The forecast surge in exports would give a boost to a city that hasn’t directly benefited from Norway’s oil wealth. Arnoey said rising volumes could create as many as 2,000 jobs in Narvik, a city of 18,500 people hurt when Renewable Energy Corp. (REC) closed its solar-cell plant last year, costing almost 200 jobs.
State-owned LKAB is building a new quay in Narvik and expanding the railway between Narvik and Sweden. It also will move parts of the city of Kiruna, including some 3,000 apartments, to a new location over the coming 20 years to have access to more ore. Total cost to LKAB: at least $3.3 billion.
Northland Resources’ new terminal will accommodate rising iron ore exports from the company’s mines in Kaunisvaara and Hannukainen in Finland. Waplan forecasts production in Kaunisvaara of 4 million tons in 2015 and 4.5 million tons in 2016 or 2017, with a long-term goal of 5 million tons. While the current price for iron ore is about $104 a ton, he sees it averaging $120 a ton over the next 15 to 20 years.
Rising Prices
“The ore is of an extremely good quality, so there will always be demand for it,” Waplan said. “We think ore prices will stay high for the simple reason that production costs are rising in so many countries.”
2)
BeantwoordenVerwijderenNorthland Resources has slumped 46 percent in the past 12 months to 4.2 kroner on the Oslo bourse, compared with a 35 percent advance in the OBX benchmark index in the same period. Of 13 analysts covering the stock, 10 recommend investors buy the shares while three have hold recommendations. None of the analysts advise their clients to sell the stock.
“The project will be very profitable in the long term, but in the phase they’re in now, investors are more concerned that the project will meet the timeline, which might have held the shares down,” Kenneth Sivertsen, an analyst at Arctic Securities in Oslo, which has a buy recommendation on the stock, said in a telephone interview on Sept. 17.
Transportation Plan
While Swedish authorities recently pledged 3.5 billion kronor for rail and road improvements, Arnoey at the Port of Narvik is concerned public spending won’t keep up with growth. A national transportation plan pending government approval calls for 1.5 billion Norwegian kroner ($260 million) of investments for the period from 2014 to 2023.
Thor Braekkan, head of Norway’s stretch of the iron-ore railway, called that “completely insufficient.” Waplan of Northland Resources also called for more rail investment by Norway, saying private rail users could pay a fee for use to recoup the expenditures.
The increase in Swedish iron ore volumes transiting Narvik is good news for Sweden, where mining accounts for 15 percent of the nation’s 200 billion kronor ($30.3 billion) of gross exports and 40 percent of its 70 billion kronor of net exports, according to LKAB.
Sweden’s ‘Oil’
The Kiruna-based company accounts for 90 percent of the entire iron ore production in the European Union, while Sweden sits on 60 percent of Europe’s known iron ore deposits and 2 percent of the global total, according to LKAB. The Swedish government received a 2011 dividend of 5 billion kronor from LKAB, based in Sweden’s northernmost county, Norrbotten.
“We sometimes speak of this gold in the shape of oil that means a lot to Norway, and our counterpart is the mining business and iron ore and has been for a long time,” Swedish Premier Minister Fredrik Reinfeldt said in an interview in Kiruna on Sept. 5.
LKAB plans to raise output to 37 million tons by 2015 compared with last year’s 26 million tons, Markus Petaejaeniemi, LKAB’s marketing chief, said in a telephone interview from Kiruna. The increase will stem from the opening of three new mines and prospecting for new deposits, while the 12.4 billion- krona development of the new main level in Kiruna will ensure that production there can remain at current levels.
3)
BeantwoordenVerwijderenPure Iron
Arctic Securities forecasts that seaborne global iron ore volumes will grow to about 1.35 billion tons in 2015, compared with an estimated 1.1 billion tons this year. The brokerage sees iron ore prices at $120 “in the long-term.”
The iron ore in northern Sweden has the highest concentration in the world, containing 60 to 70 percent pure iron, according to LKAB’s Petaejaeniemi.
LKAB ships about two thirds of its ore via Narvik, which has the depth to handle cape-size vessels. The rest of the ore goes via the Swedish port of Luleaa on the North Baltic, which isn’t always ice-free and can only handle ships able to carry about 50,000 to 60,000 tons.
LKAB also will raise the number of daily trains on the so- called Malmbanan, the world’s northernmost electrified railway, to a total of 20 in coming years from today’s 15, of which 14 will ship iron ore to Narvik, said Petaejaeniemi.
That is bringing hope to Narvik, which suffered in recent years after the closure of plants such as REC’s and a government decision to move public companies’ regional offices away from Narvik in the 1990s. The unemployment rate in Narvik stood at 3.1 percent in July, compared with the national average of 2.7 percent, according to Statistics Norway.
“In 2000, people were grumbling that ‘nothing is happening here’ but today, there’s a different mentality,” said Jostein Jenssen, 51, a real estate agent at Megler Forum, which sells about 150 houses a year. “You see cranes and ships in the port, which we hadn’t seen for many years. It’s something different to wake up to this than back when the financial crisis started in 2008. Everything was dead then. We’re waiting for the wave.”
To contact the reporters on this story: Mikael Holter in Oslo at mholter2@bloomberg.net Niklas Magnusson in Hamburg at nmagnusson1@bloomberg.net
Not one Chinese iron mine makes money at $80. There's your new price floor
BeantwoordenVerwijderenFrik Els | October 4, 2012
Benchmark 62% spot iron ore entered China's Golden Week holiday at $104.20 a tonne recovering from the worst quarterly performance in history and a three-and-a-half year low of $86.70.
Iron ore first crossed $120 at the start of 2010 and apart from a week in July of that year and all of two trading days in October 2011, the commodity never dipped below that level until July 25 2012.
There were dips and recoveries over that time – iron ore hit an all time record in February last year of over $190 and famously eight months later suffered a $60 drop over the space of 28 days.
Thanks to China's dominance of the market $120 provided a strong price floor for traders and became a rule of thumb in the industry, but 10 weeks below this level and the conventional wisdom is being sorely tested.
Chinese mills almost forge more steel than the rest of the world combined and given the appalling profitability of the country's steel industry (they make US26c per tonne!) you'd think the lower the price, the better for China.
Not necessarily, argues FT.com (sub required). Whatever the new floor turns out to be – and it seems more and more unlikely that it will be as robust as $120 – China has an interest in seeing that it does not go too low:
China still sucks in the stuff, albeit more slowly. And it is happy with the rate: a low price is not in its short term interests. That is because, as well as being the world’s biggest consumer, China is also a producer. Its myriad small miners, which already contend with low-grade deposits, are less efficient than global peers. Spot prices of $90-$100/t in 2008 had half of China’s iron ore industry running at a loss, notes Raw Materials Group. Their cost today is between $80-$170/t.
For comparison, it costs BHP and Rio between $40-$50/t to land ore in China. Chinese ore output could fall from last year’s 320m tonnes to 120m-200m in 2020, RMG estimates.
Neither is the outlook for China's mines getting any better. The iron content of domestic ore currently stands at only 20%, down significantly from 30% in 2004 and on its way to 15% according to research by investment bank Standard Chartered.
The outlook for iron ore has certainly become more clouded since July, but some of the more bearish analysts may be overshooting on the downside – particularly those that see $50 a tonne by mid-2013.
Last month a Chinese industry body said roughly 40% of domestic producers have already suspended production – and that's with a price in triple digits. Would China simply let its hundreds of iron ore mines go out of business?
di 16 okt 2012, 07:54
BeantwoordenVerwijderenMijnbouwer Rio Tinto trotseert Chinese draak
LONDEN (AFN) - De Brits-Australische mijnbouwer Rio Tinto heeft een sterk derde kwartaal achter de rug ondanks de onzekerheid over de ontwikkeling van de Chinese economie. Dat stelde het concern dinsdag.
-De markten blijven grillig maar ons bedrijf is veerkrachtig en we hebben een sterke prestatie neergezet-, aldus bestuursvoorzitter Tom Albanese. De op een na grootste producent van ijzererts zette een recordproductie neer in Australië, waar in het derde kwartaal 63 miljoen ton ijzererts werd gedolven. Dat is 5 procent meer dan in het derde kwartaal van 2011.
In totaal produceerde het bedrijf 67 miljoen ton ijzererts. De prijs van de grondstof daalde vorige maand tot onder 87 dollar per ton doordat de Chinese vraag instortte. Sindsdien is de prijs weer opgelopen tot circa 113 dollar per ton. Rio Tinto handhaafde dinsdag de productiedoelstelling voor 250 miljoen ton ijzererts in 2012.
Chinese iron ore mining is already out of whack and now 500 million tonnes of new capacity is coming
BeantwoordenVerwijderenFrik Els | October 29, 2012
Iron ore on Monday traded at exactly $120 a tonne – a psychologically important level for the industry and a 38% improvement since hitting a three-and-a-half year low of $86.70 in September.
Iron ore's recovery to triple digits is attributed to high cost mines – more specifically those in China – which become unprofitable when the price stays low for too long. Supply is cut and prices return to these sort of levels.
That's the theory – but the domestic Chinese iron ore industry has not been following the rules of supply and demand. Not even close.
Shanghai-based industry site Glinfo provides details of a new report by MySteel.net and China's Metallurgical Mines Association that show just how unbalanced the domestic Chinese market has become.
Over the first nine months of 2012, China's pig iron and crude steel production reached 503 million tonnes and 542 million tonnes, year-on-year up a modest 2.7% and 1.7%, respectively.
In contrast China's domestic iron ore output shot up 16.6% to 968 million tonnes, while imports jumped 8.2% to 550 million tonnes over same period.
And it's still accelerating – in September Chinese mines churned out 129 million tonnes, up a whopping 20% from last year.
That's despite the fact that the highly fragmented Chinese industry have to deal with cash costs of minimum $80 and for many mines twice that number.
With the dynamics of the industry so out of whack you'd think that a deep cull of mining operations and a slashing of output would be in the offing.
Quite the opposite.
According to the study there are 66 projects with a total production capacity of 490 million tonnes currently under construction in the country.
The new capacity also comes despite a survey that shows the domestic industry losing share against the import market.
A survey of the top 55 steel mills shows that they now import almost 90% of their requirements, up from 70% at the start of the year.
The annual seaborne iron ore trade is just over 1 billion tonnes. Of that almost 60% end up at Chinese ports.
The big three suppliers – Vale, Rio Tinto and BHP Billiton – which completely dominate the global trade mine ore for $40 – $50 a tonne.
India's crack down on illegal mining is a $15 billion blessing for overseas iron ore producers
BeantwoordenVerwijderenMarc Howe | November 30, 2012
India's recent campaign against illegal mining in the country's key iron ore states has created a $15 billion gap in the international market whose benefits are set to be reaped by diversified giants such as BHP Billiton (ASX:BHP) and Rio Tinto (ASX:RIO) who are still struggling with dwindling demand from China.
The Business Recorder reports that the Indian government has recently engaged in strenuous efforts to eradicate illegal mining in the key iron ore producing states of Goa, Karnataka and Orissa. The crackdown has slashed iron ore output by over 20% in the year to March and exports by around 40%.
The clampdown on illegal mining could not have arrived at a more propitious time for overseas iron ore giants such as BHP, Rio and Vale (NYSE:VALE), all of whom have struggled this year with a dive in spot prices and ailing Chinese demand.
BHP, Rio and Vale have already picked up some of the $15 billion slack in the international iron ore sector created by the crackdown, acquiring much of India's market share in East Asia.
Graeme Train, a commodity analyst with Macquaire in Shanghai says the crackdown is a "huge bonus for big miners," while also creating opportunities for lower grade ore and smaller pure ore players such as Fortescue Metals Group (ASX:FMG).
Northland Resources Identifies Funding Shortfall, Shares Dive to Record Low
BeantwoordenVerwijderenBy Midnight Trader, January 24, 2013, 10:49:21 AM EDT
Northland Resources S.A. (NAU.TO) has identified a funding shortfall, and intends to launch an offering consisting of a combination of new debt and new equity, for total gross proceeds up to US$ 375 million.
Kaunisvaara project.
Additional funding is required due to higher than expected operating costs in the production ramp-up phase
Higher capital expenditures than expected
Lower operating assumption for iron ore price, and adverse movements in exchange rates.
Planned US$ 375 million combined equity and bond offering to secure the planned long-term financing, consisting of US$ 250 million of new equity, and US$ 125 million bond tap
Term sheet signed with Stemcor UK Limited for a prepayment facility of up to US$ 50 million.
On completion of the financing the Company is expected to be fully funded through the minimum cash point and to full production in the third quarter of 2014
Operational expenditures life of mine supported by the revised budget
Forecasted production
1.5 million dry metric tonnes (dmt) in 2013
3.1 million dmt in 2014
Full production rate of 4 million dry metric tonnes per annum (dmtpa) as of the third quarter of 2014
Operational update - Commissioning according to plan The Kaunisvaara process plant is working according to its design and no modification has been necessary
In December 2012, the Kaunisvaara project produced its first iron ore concentrate which was transported by truck and rail to its Fagernes Terminal in the Port of Narvik. The entire logistical chain works well.
To-date 18,500 tonnes of iron ore concentrate have been produced in Kaunisvaara.
Northland is down 71 cents to 36 cents late morning. Close to 1.7 million shares have changed hands.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.
Northland is a producer of iron ore concentrate, with a portfolio of production, development and exploration mines and projects in northern Sweden and Finland. The first construction phase of the Kaunisvaara Project is complete and production ramp-up started in November 2012. The Company will produce high-grade, high-quality magnetite iron concentrate in Kaunisvaara, Sweden, where the Company will exploit two magnetite iron ore deposits, Tapuli and Sahavaara. Northland has entered into off-take contracts with three partners for the entire production from the Kaunisvaara Project over the next seven to ten years. The Company is also preparing a Definitive Feasibility Study ("DFS") for its Hannukainen Iron Oxide Copper Gold ("IOCG") project in Kolari, northern Finland and for the Pellivuoma deposit, which is located 15 km from the Kaunisvaara processing plant.
VerwijderenDankzij bovenstaand bericht is de koers van Northland met bijna 80% in elkaar gedonderd (van boven de 6 NOK naar ca 1,32 NOK), hoogste koers dit jaar ca 7 NOK.
VerwijderenDit lijkt nogal overdreven en biedt wellicht een zeer fraaie koopkans.
Is te koop in Oslo en in Toronto.
De koers van Northland heeft wellicht een dieptepunt bereikt vca 1,07-1,15 NOK, zeer waarschijnlijk hebben grote partijen grote hoeveelheden aandelen gedumpt omdat ze op een lage(re) koers bij de emissie willen inschrijven. De kleine beleggers kunnen (als ik het goed begrepen heb) niet inschrijven.
VerwijderenDe marktwaarde (na emissie) schat ik op ca 360 miljoen USD en dat lijkt niet veel voor een ijzerertsmijn die volgend jaar 3,1 miljoen ton erts moet gaan produceren.
Bij een prijs van ca 140 USD per ton praten we dan over een omzet van meer dan 4 miljard USD en een winst van laten we eens gokken een half tot 1 miljard.....???
Kortom de dappere koper kan een flinke koerswinst verwachten als alles (deze keer) wel goed gaat.
HIGHLIGHTS
VerwijderenIdentified Funding Shortfall
· Additional funding is required due to:
· Higher than expected operating costs in the production ramp-up phase
· Higher capital expenditures than expected
· Lower operating assumption for iron ore price, and adverse movements
in exchange rates.
· Planned USD 375 million combined equity and bond offering to secure
the planned long-term financing, consisting of:
· Planned USD 250 million of new equity
· Planned USD 125 million bond tap
· Term sheet signed with Stemcor UK Limited ("Stemcor") for a
prepayment facility of up to USD 50 million
· On completion of the financing the Company is expected to be fully
funded through the minimum cash point and to full production in the
third quarter of 2014
· Operational expenditures life of mine supported by the revised
budget
Forecasted production
. 1.5 million dry metric tonnes ("dmt") in 2013
. 3.1 million dmt in 2014
. Full production rate of 4 million dry metric tonnes per annum
("dmtpa") as of the third quarter of 2014
· 69 percent iron ore concentrate with very low impurities expected to
position Northland's product in the top 5 per cent of global iron ore
production from a quality perspective.
Operational update - Commissioning according to plan
· The Kaunisvaara process plant is working according to its design and
no modification has been necessary
· In December 2012, the Kaunisvaara project produced its first iron
ore concentrate which was transported by truck and rail to its Fagernes
Terminal in the Port of Narvik. The entire logistical chain works well.
· To-date 18,500 tonnes of iron ore concentrate have been produced in Kaunisvaara
· Approximately 4,500 tonnes of concentrate is currently stored in Narvik
· Approximately 5,000 tonnes of concentrate is currently stored in Pitkäjärvi
· The first customer shipment is expected to leave Narvik for Tata
Steel in the Netherlands in mid February 2013
· Road and rail interchange work has been completed at Pitkäjärvi
· Permits necessary for a temporary solution for the Fagernes Terminal
in the Port of Narvik are in place
· The announcements of the Hannukainen and Pellivuoma DFSs, have been
postponed until the contemplated financing transaction has been
completed.
Karl-Axel Waplan, President and CEO of Northland Resources S.A. said,
"Northland has progressed the Kaunisvaara project from bog to mine in
less than two years. We are now preparing for the next major step to
reach full production from our Tapuli mine in the third quarter of 2014.
To achieve this we unfortunately need to raise additional financing due
to cost overruns and higher initial operating costs. We are comfortable
with the estimates for the remaining investments and our forecasted Life
of Mine operating cost per tonne."
"The production ramp-up has been successful and to date Northland has
produced approximately 18,500 dmt of iron ore concentrate with Fe-grade
and quality well in accordance with specifications. Simultaneously, we
have been carefully assessing the long-term financing needs of the
Kaunisvaara project. We have devoted significant effort to verifying the
numbers, pursuing possible mitigating activities and have identified an
additional financing requirement of USD 425 million, which is required
to cover higher than expected capital and higher initial operating
expenditures for the first two years. The Company has estimated that
Life of Mine ("LoM") Opex/tonne will be USD 67 and is in line with the
Definite Feasibility Study, adjusted for the currency effect".
De koers daalt vandaag flink door tot ca 62 à 70 cent NOK; het is een mooi voorbeeld van een vallend mes.....!!
VerwijderenNaar mijn mening kan deze enorme daling alleen veroorzaakt zijn door de verkopen van grote aandeelhouders, die goedkoper willen terugkopen bij de emissie.
Dit bedrijf kent tal van grote aandeelhouders, die allemaal enorm op verlies zitten.
De hoogste koers in 2012 was ca 12 NOK en de hoogste koers in de laatste 5 jaar was ca 20 NOK.
Northland Announces Fixed Date for Loading of its First Vessel
BeantwoordenVerwijderenPress Release: Northland Resources S.A. – 1 hour 37 minutes ago
LUXEMBOURG, LUXEMBOURG--(Marketwire - Jan. 30, 2013) - Northland Resources S.A. (NAU.TO)(NAUR.OL)(NPK.F)(NAURO.ST) ("Northland" or the "Company") announces that the Company will start loading its first vessel on February 9, 2013, for further shipment to end customer and partner Tata Steel UK Limited ("Tata Steel").
Northland's first shipment from the Port of Narvik is now fixed for loading of 40,000 tonnes of high grade iron ore concentrate for a customer in Europe. Loading is expected to commence on the February 9, 2013. The results of analyses to date confirm that the quality produced is meeting the specifications, with Fe-content above the expected 69%. The cargo will be shipped by MV Star Norita to Tata Steel in the Netherlands where the product will be used in their pellet plant.
Tata Steel, established in 1907, is one of the largest global steel companies with a crude steel capacity of over 28 million tonnes per annum (mtpa). It is now one of the world's most geographically diversified steel producers, with operations in 26 countries and a commercial presence in over 50 countries.
The first shipment to Tata will be followed by regular shipments to customers in Europe, the Middle East and the Far East. Total shipments in 2013 are expected to amount to 1.5 million tonnes increasing to a rate of about 4 million tonnes per year, or 350,000 tonnes per month, by the third quarter of 2014.
Northland Resources Operational Update-March 2013
BeantwoordenVerwijderenMarketwirePress Release: MINING EXPLORATION UPDATE – 3 hours ago
Symbol Price Change
NAUR.OL 0.86 +0.05
LUXEMBOURG, LUXEMBOURG--(Marketwire - March 22, 2013) - Northland Resources S.A. (NAUR.OL)(NPK.F)(NAURO.ST) ("Northland" or "the Company") announces its seventh bi-monthly operational and construction update on the Kaunisvaara project. During this period, January 24, 2013 - March 22, 2013, Northland has amongst other things shipped its first iron ore concentrate to end customer Tata Steel.
First shipments of concentrate left the Port of Narvik on February 25, 2013
The first Kaunisvaara process line in hot commissioning/production
Logistics chain proven solid and is operating as planned
The permanent storage building in Narvik has been completed and is operational. The building can store up to 210,000 tonnes of iron ore concentrate and is a vital part in the efficient loading of the Company's product
The Company plans to produce 1.5 dmt1 in 2013 and to reach the production capacity of 4.0 dmtpa2 at the beginning of third quarter of 2014
Due to the current financial situation and the ongoing reorganization of Northland's three Swedish subsidiaries, the Company has as a first step, re-phased its capital investment program to a level to better meet its current cash flow. The Company has agreed with its bondholders for additional short-term funding to maintain the present operations. The assessment is that this re-phasing will not have any material impact on the Company's long-term production plan. For more details, please refer to Unaudited Year-End and Q4 2012 Report published on February 26, 2013 and subsequent press releases
THE MINE AND PROCESSPLANT
The first Kaunisvaara process line in hot commissioning/production
The second Kaunisvaara process line has progressed 65% of the assigned time plan
PRODUCTION
Commissioning is close to completion
Northland is currently producing approximately 2,500 tonnes of iron ore concentrate per day
The quality of the product is well in line with planned specifications
Northland has on March 22, 2013 in total produced more than 123,000 tonnes of iron ore concentrate
THE LOGISTICS CHAIN
The logistics chain is operating as planned. Approximately 81,000 tonnes of iron ore concentrate have been transported to Narvik
The rented box cars will be used until the arrival of the specially designed railcars from Kiruna Wagon
To date 26 railcars have been manufactured according to Northland specification.
55,000 tonnes of iron ore concentrate has been shipped out of the Port of Narvik
About 55,000 tonnes of concentrate was loaded onboard the first vessel and shipped to Northland's off-take partner Tata Steel on February 25, 2013. The vessel arrived at IJmuiden, the Netherlands, on March 2, 2013
The second ship is expected to load 55,000 tonnes of iron ore concentrate and to arrive in Narvik at the end of March, 2013
Pellivuoma
Pellivuoma is located approximately 15 km west of Sahavaara. The Company controls 100% of the exploration permit, which totals 11,346 hectares. The deposit constitutes potentially significant additional tonnage in the Kaunisvaara area.
The DFS report for the Pellivuoma deposit is expected to be published shortly after a long term financial solution has been secured.
Next Operational Update
The eight issue of Operational Update is expected to be published on May 30, 2013.
Financial Statements and MD&A for the first quarter 2013
The Company will publish its Financial Statements and Management's Discussion and Analysis for the period ending March 31, 2013, on May 8, 2013.
To view the images associated with this release, please visit the following link: http://media3.marketwire.com/docs/nr322_Images.pdf
African Minerals sees output tripling in 2013 at Sierra Leone mine
BeantwoordenVerwijderenApril 10 | Wed Apr 10, 2013 2:55am EDT
(Reuters) - Iron ore miner African Minerals Ltd said it expected a surge in output this year as it continued to ramp up production at its flagship Tonkolili mine in Sierra Leone.
The company, which said it remained on track to meet its sustainable output target of 20 million tonnes of ore per year during the second quarter, forecast production of 15 million tonnes to 18 million tonnes at Tonkolili in 2013.
The mine produced 5.1 million tonnes last year.
"While significant progress was made in 2012, delays in construction and commissioning of the wet process plant, and the prolonged and severe 2012 wet season, impacted operations resulting in the exporting of 4.3 million tonnes of material, below our revised 5 million tonnes target," African Minerals said in a statement.
The miner, which owns the Tonkolili mine that sits on one of Africa's largest iron ore deposits, said adjusted operating loss narrowed to $27.9 million in 2012 from $35.6 million a year earlier.
African Minerals, which faced a short-term funding crunch late last year and reworked its finances to meet working capital needs at that time, said it expected to be cashflow positive on a sustainable basis during the second quarter.
The company's shares, which have more than halved in the past year, closed at 224.75 pence on Tuesday on the London Stock Exchange.
African MInerals is waarschijnlijk de goedkoopste ijzerertsmijn ter wereld, gebaseerd op cashflow en winsttaxaties voor 2013.
VerwijderenDe probleempjes van 2012 zijn zo goed als opgelost en het bedrijf kan nu eindelijk flink produceren.
Het mooie is dat de kostprijs van AMI.L tot de allergoedkoopste ter wereld behoort.
De huidige koers van ca 250 p kan fors gaan stijgen wat mij betreft.
BeantwoordenVerwijderenAfrican Minerals May Seek China Debt for $2.1 Billion Expansion
By Jesse Riseborough - Apr 10, 2013 11:33 AM GMT+0200
African Minerals Ltd. (AMI), the Sierra Leone iron-ore producer that got a $1.5 billion investment from a Chinese steel mill last year, may seek debt funding from the Asian nation for a mine expansion scheduled for 2016.
“We have a range of different options,”, Chief Executive Officer Keith Calder said today in a phone interview from London, referring to the $2.1 billion development plan. “We have the opportunity for project-level debt, which would be a combination of perhaps Chinese and western banks.”
African Minerals began shipments from the Tonkolili mine in November of 2011 and today said it expects to reach its targeted production rate of 20 million metric tons annually this quarter. The stock jumped the most in more than a year, surging as much as 15 percent today in London trading.
The company also issued its first forecast for exports this year of 13 million tons to 15 million tons. That estimate “is well above market expectations,” according to Jefferies Group Inc. analyst Seth Rosenfeld, who had predicted 12 million tons.
“We are close to a major cash flow pick-up,” Rosenfeld wrote today in a report. “While investors were disappointed by a series of delays to ramp-up targets in the last year, reaching the end of a bumpy ride should help African Minerals gradually rebuild some investor confidence.”
The stock, which fell to its lowest level since June 2009 on April 8, jumped 14 percent to 255.5 pence by 10:08 a.m. in London trading. The shares have dropped 20 percent this year and have a market value of 845 million pounds ($1.3 billion).Chinese Interest
The company may need about $1.5 billion of debt on top of about $500 million of its current cash to fund the expansion, known as Pepel, that will increase capacity to 35 million tons, Chief Financial Officer Miguel Perry said today in an interview. China’s Shandong Iron & Steel Group Co. owns 25 percent of the Sierra Leone mine.
“We’ve got interest coming from the Chinese to put in project funding debt,” Perry said. “That really proves the strength of the relationship and the benefits of the relationship from partnering with Shandong.”
African Minerals produced 5.1 million tons last year and shipped 4.3 million tons, with sales of $242 million.
It posted an operating loss of $225.6 million, from a 2011 loss of $41.5 million. That included a $51.1 million charge for breaching an accord with its Chinese partner relating to missing production and sales targets. The company is seeking to recover losses from an estimated $18 million fuel theft, it said today.
Fuel Theft
“Management is continuing with efforts to recover losses incurred and to identify more accurately the exact amount of fuel theft,” African Minerals said. It’s “also strengthened controls around the delivery and issue of fuel supplies to prevent the recurrence of fuel loss.”
The company reported a profit after tax of $4.3 million, from a loss of $40.4 million a year earlier.
The profit was largely due to a $288.4 million fair value financial gain on a put option with Shandong relating to an agreement where Shandong can sell back its 25 percent interest in the company’s Tonkolili project “in the unlikely event” Chairman Frank Timis chooses to resign from the board. That option liability is now estimated at $706.1 million, it said.
UPDATE 1-African Minerals shares jump on strong output forecast
BeantwoordenVerwijderenAfrican Minerals sees output tripling in 2013 at Sierra Leone mine
2:55am EDT
Wed Apr 10, 2013 5:46am EDT
(Adds comments from CEO and analysts, details, share movement)
By Brenton Cordeiro
(Reuters) - Iron ore miner African Minerals Ltd said it expected a surge in output this year as it ramps up production at its flagship Tonkolili mine in Sierra Leone, sending its shares up as much as 15.6 percent.
The miner, which said it remained on track to meet its sustainable output target of 20 million tonnes of ore per year during the second quarter, expects to triple 2013 production to between 15 million and 18 million tonnes at Tonkolili.
Citigroup analyst Michael Flitton, who rates African Minerals as one of his key picks within the sector, said the company's production forecast was better than he expected.
He added that his cash costs-per-tonne expectation might be too high as costs fall with increased volumes.
The company said cash costs were expected to fall to about $30 per tonne by the end of the year. The costs were under $45 per tonne in February, the company said.
"While significant progress was made in 2012, delays in construction and commissioning of the wet process plant and the prolonged and severe 2012 wet season, impacted operations," African Minerals said in a statement.
The company produced 5.1 million tonnes last year. It exported 4.3 million tonnes, below its 5 million tonne target.
African Minerals said it expected to export between 13 million tonnes and 15 million tonnes in 2013.
"While investors were disappointed by a series of delays to ramp up targets in the last year, reaching the end of a bumpy ride should help African Minerals gradually rebuild some investor confidence," Jefferies anlayst Seth Rosenfeld said.
African Minerals shares rose to 259.75 pence in morning trading, making the stock the top percentage gainer on the London Stock Exchange.
"By shipping only fines during the dry seasons and saving low moisture content and easily drainable lump for the wet season, African Minerals should not face the same challenges with ore liquification that arose in 2012," Rosenfeld said.
High moisture content, particularly in fines, makes the transport of iron ore unsafe as it could lead to liquefaction of the mineral, which in some instances, has resulted in the capsizing and sinking of ships.
The miner, which owns the Tonkolili mine that sits on one of Africa's largest iron ore deposits, said adjusted operating loss narrowed to $27.9 million in 2012 from $35.6 million a year earlier.
Iron ore prices .IO62-CNI=SI have rebounded from their 2012 low of $87 per tonne and are now at about $139 as China's steel mills replenish their stocks.
African Minerals, which faced a short-term funding crunch late last year and reworked its finances to meet working capital needs at that time, said it expected to be cashflow positive on a sustainable basis during the second quarter.
Earlier this year, the company established a $100 million facility for general corporate purposes and a separate $250 million facility to provide more working capital flexibility.
"We've got the headroom now ... we did have a tight period last year and that's exactly why we put that financing in place," Chief Executive Keith Calder said. (Editing by Don Sebastian)
African Minerals Group Receives “Buy” Rating from Jefferies Group (AMI)
BeantwoordenVerwijderenPosted by Alphonse Anthony on Sep 9th, 2013 // No Comments
African Minerals Group logoAfrican Minerals Group (LON:AMI)‘s stock had its “buy” rating reiterated by analysts at Jefferies Group in a research report issued to clients and investors on Monday, AR Network reports. They currently have a GBX 400 ($6.25) price target on the stock. Jefferies Group’s price objective indicates a potential upside of 106.72% from the company’s current price.
Several other analysts have also recently commented on the stock. Analysts at Barclays Capital initiated coverage on shares of African Minerals Group (LON:AMI) in a research note to investors on Friday, August 16th. They set an “underweight” rating and a GBX 220 ($3.44) price target on the stock. Separately, analysts at Canaccord Genuity reiterated a “buy” rating on shares of African Minerals Group (LON:AMI) in a research note to investors on Thursday, August 15th. They now have a GBX 410 ($6.41) price target on the stock. Finally, analysts at Deutsche Bank reiterated a “buy” rating on shares of African Minerals Group (LON:AMI) in a research note to investors on Thursday, August 15th. They now have a GBX 550 ($8.60) price target on the stock.
One analyst has rated the stock with a sell rating and eight have given a buy rating to the stock. African Minerals Group presently has an average rating of “Buy” and a consensus target price of GBX 409.22 ($6.40).
Shares of African Minerals Group (LON:AMI) opened at 194.50 on Monday. African Minerals Group has a 52 week low of GBX 177.00 and a 52 week high of GBX 362.75. The stock’s 50-day moving average is GBX 211.9 and its 200-day moving average is GBX 228.3.
African Minerals Limited (LON:AMI) is a minerals exploration, development and production company with interests in Sierra Leone.
26 Sep 2013
BeantwoordenVerwijderenMajor US$990m proposed Strategic Investment by Tianjin Materials and Equipment Group Corporation ("Tewoo") confirms US$6Bn valuation of Tonkolili Project
African Minerals Limited (AIM: AMI) is pleased to announce it has entered into a strategic, binding Memorandum of Understanding (the "MoU") with Tianjin Materials and Equipment Group Corporation ("Tewoo") in respect of AML's flagship iron ore project at Tonkolili, Sierra Leone, and its related infrastructure projects (together, the "Project").
Under the terms of the MoU, upon successful completion of this transaction, Tewoo will pay to AML US$990m for a 16.5% economic interest in the Tonkolili project based on a project valuation of US$6Bn.
Tewoo will also secure a 20 year offtake agreement, and together with AML will form a JV to blend and market iron ore through the major Tianjin port facilities, significantly enhancing Tewoo's iron ore trading business.
Tewoo is the largest import and export enterprise in China, responsible for providing iron ore, coal, energy and other materials to Tianjin and Heibei Provinces, and is also the largest iron ore trader in China with 33Mtpa traded in 2011. Tewoo employs approximately 5,000 persons and had an annual turnover of US$32bn in 2012.
Key elements
The consideration is structured in two parts:
Subscription by Tewoo in AML for gross proceeds of US$390m, with Tewoo to hold 10% of the shares of AML post issuance, an
Sale by AML of 10% of its interest in the Project companies to Tewoo for US$600m.
This transaction will be accompanied by a long term (20 year) offtake agreement, at a price to be agreed by the parties, for a total of 10Mtpa of iron ore, or proportionately less if the capacity of the Phase 2 expansion is less than 35Mtpa, and with best efforts to supply 4Mtpa from the current 20Mtpa capacity.
Establishment of a joint venture to investigate development, construction and operation of a blending facility at Tianjin port, with a view to sourcing, blending, marketing and selling blended products into PRC.
Board approvals by both parties have been obtained, and this agreement is now subject to full documentation, due diligence and regulatory approvals.
Part of the due diligence process will be the receipt and testing of 2 test cargoes.
Commenting on the investment, Frank Timis, Executive Chairman of African Minerals said:
"African Minerals is delighted with Tewoo's intended investment at both the AML and operating company levels. With AML's history of successful relations with Chinese industrial entities, I am confident that this transaction will be successfully completed.
"Once completed, this transaction will provide African Minerals with almost a billion dollars of additional funds at the corporate level, significantly strengthening our balance sheet and will provide flexibility in financing options for the Company's future development. Tewoo's offer to subscribe to AML's equity at approximately £7 per share will provide a strong endorsement of the Company's value to the market.
"Furthermore, Tewoo's partnership would also provide additional guaranteed long term offtake for our product. With Tewoo, SISG and CRM as our long term offtake partners, we will have almost all of the Tonkolili project's production committed for the next 20 years."
Next Steps
Tewoo will carry out technical, legal and financial due diligence investigations on AML.
AML will arrange for shipment of two cape sized trial cargoes of iron ore to Tewoo in September.
The parties will negotiate in good faith on the necessary contract documents and seek to close the transaction by 31 December 2013. These documents may be conditional upon receipt by the Parties of all governmental and regulatory approvals for the transaction.
The parties will develop and seek to execute the final legal contracts relating to the development of the Tianjin Port blending facility as soon as reasonably practicable.
Dankzij dit bericht vliegt de koers van AMI.L met ca 38% omhoog.
VerwijderenVoor iedereen die een belang wil hebben in ijzererts, is en blijft African Minerals een van de goedkoopste en beste ijzererts-aandelen.
De kostprijs per ton is een van de laagste in de wereld, zeker buiten Australië.
De marktwaarde van AMI is ongeveer hetzelfde als het totale bedrag dat ze van Tewoo ontvangen, dus in feite krijg je dus als aandelenkoper de hele ijzermijn er gratis bij.
correctie: de koers stijgt als een gek: nu al ca 53% hoger...!!
VerwijderenGelukkig heb ik heel veel van deze aandeeltjes....!!
September 26, 2013 11:10 am
BeantwoordenVerwijderenAfrican Minerals boosted by China backing
By Neil Hume, Commodities Editor
African Minerals has struck a deal under which China’s biggest iron trader will plough $600m into its flagship mining project in Sierra Leone and a take a 10 per cent equity stake in the Aim-quoted company.
News of the deal with Tianjin Materials and Equipment Corporation (Tewoo) sent shares in African Minerals up 34 per cent to 218p, valuing the company’s equity at £720m.
The company’s founder, Frank Timis, said in a statement: “Tewoo’s offer to subscribe to African Minerals’s equity at approximately £7 per share will provide a strong endorsement of the company’s value to the market.”
Under the terms of Thursday’s “strategic, binding” memorandum of understanding, Tewoo will acquire 36.5m shares at $390m, or 670p-a-share – a 330 per cent premium to Wednesday’s closing price.
African Minerals will then sell a 10 per cent stake in the Tonkolili project for $600m to Tewoo. The deal, which is subject to due diligence and regulatory approval, also includes a 20-year “offtake” agreement at a price to be agreed by the two groups.
The supply arrangement is comprised of 4m tonnes per annum of iron in the first stage of the project and 10m in the second.
“Once completed, this transaction will provide African Minerals with almost a billion dollars of additional funds at the corporate level, significantly strengthening our balance sheet and will provide flexibility in financing options for the company’s future development,” said Mr Timis.
African Minerals is one of several mining companies betting on west Africa’s potential to be a supplier or iron ore, a key ingredient in steelmaking. However, the company, which is also chaired by Mr Timis, a controversial mining entrepreneur, has suffered several setbacks.
It has been through three chief executives in the past 18 months and recently disappointed investors by reducing production forecasts and expansion plans for the Tonkolili. The company also took a $56m charge related to unmet production agreements with China’s Shandong Iron & Steel Group, which struck a $1.5bn investment deal with African Minerals last year.
"Analysts said the deal showed Chinese companies remained bullish on the outlook for iron ore prices even though a wave of fresh supply from mines in Australian and Brazil was about to hit the market"
After the company’s recent setbacks the agreement with Tewoo took City traders by surprise. “The deal with Tianjin Minerals could see investment at £7 a share. Can someone introduce me to them! I have other projects I want to show them,” quipped one City dealer.
“Interestingly, the market cap of African Minerals is $800m [as of Wednesday’s close] and you would have to question why Tewoo would not just buy the whole project in partnership with Shandong,” he added.
Analysts said the deal showed Chinese companies remained bullish on the outlook for iron ore prices even though a wave of fresh supply from mines in Australian and Brazil was about to hit the market.
“Chinese strategic investors are still looking for long-term metal supply deals, which we think shows that domestic entities in China still have rosy long-term view of likely metal demand,” said Peter Mallin-Jones, analyst at Canaccord Genuity.
4 years late, $6bn over budget Sino Iron fires up one 4mtpa line
BeantwoordenVerwijderenFrik Els | September 30, 2013
After missing so many deadlines and going billions over budget, the first line of Citic Pacific's massive Sino Iron project in Australia has finally gone into production.
Platts reports initial production of 4 million tonnes could be followed by five more lines for a total production of 24 million tonnes per year from the Pilbara magnetite resource of 2 billion tonnes.
Sino Iron, which is one of the biggest foreign investments ever made by a Chinese firm, is almost four years behind schedule thanks to operational and technical difficulties.
The mine has already cost Hong Kong-listed Citic $8 billion to develop and the final bill could reach $10 billion.
Back in 2006 when the project first came off the drawing board, it was forecast by its high-profile backers, which includes the China Development Bank, to cost under $2 billion.
Sino Iron, one of a number of overseas Chinese iron ore ventures, was designed to wrest some of the pricing power away from BHP Billiton, Rio Tinto and Vale which control some 60% of the 1.1 billion seaborne iron ore trade.
The spot price of 62% iron ore imported into the port city Tianjin in northern China on Monday was $131.40 a tonne.
The price of the commodity has slid more than 9% since the start of the year, but has held up relatively well against predictions of decline as global supply ramps up.
commentaar: Deze Chinese ijzerertsmijn in Australië is een fraai voorbeeld van Chinese zelfoverschatting, mismanagement en corruptie.
VerwijderenDit project heeft ca dezelfde capaciteit en reserves als de mijn van African Minerals, maar kost ca 5x zo veel....!!!!
De 2 Chinese partners van AMI hebben het heel wat beter gedaan en zitten voor een prikkie op de eerste rang.
En iedereen kan nog steeds meeprofiteren van de unieke kans om deel te nemen in waarschijnlijk de goedkoopste ijzerertsmijn ter wereld.
een reactie op bovenstaand artikel van Fels:
Verwijderen.............................................................................
Engineer
• 5 hours ago
I was one of the senior engineers who has worked on this project, now there are only young Chinese engineers, you say 8 billian and rising, who has fed you that guff, its 10 billian and rising and its due very poor design (they had never seen a P&ID before!!) to non-compliance of chinese supplied equipment to Australian Standards and shocking workmanship with no regard to safety of Australian Standards, the engineers never saw 1 calculation fro the designers NETC as they do not do them, the mines inspectors have failed lots but the Chinese are ept at hiding lots. All the Chinese are on 457 visa's, a lot who are in middle management can hardly speak English (a violation of the WA mines act) with all meeting in Mandarin where shonky deals have been made between the major Chinese suppliers, what does this tell you about this project, its the laughing stock of the Pilbara.
BHP's iron ore business shoots the lights out
BeantwoordenVerwijderenFrik Els | October 21, 2013
World number one miner BHP Billiton maintained strong momentum in its September 2013 quarter as production from its most profitable division surged compared to last year.
BHP produced a whopping 48.8 million tonnes of iron ore during the quarter up 23% from the same period last year and 2% from the previous quarter.
The $3.2 billion Jimblebar mine expansion, one of four major BHP projects that reached production, increasing capacity to 35 million tonnes per annum achieved first production approximately six months ahead of the original schedule, according to the company's report.
BHP's $1.75 billion project to build a fourth pellet plant at its Samarco operations in Brazil is scheduled for production in the first half of next year and the project is 95% finished. The project will increase Samarco's annual production by 8.5 million to 30.5 million tonnes per year.
The Melbourne-based company said in its third quarter operational review that optimization of its Western Australia iron ore supply chain has enabled it to substantially increase its 2014 financial year production guidance to 212 million tonnes (100% basis).
"Longer term, a low cost option to expand Jimblebar to 55 mtpa and the broader debottlenecking of the supply chain is expected to underpin further capital efficient growth in capacity to approximately 260 mtpa to 270 mtpa (100 per cent basis)," BHP said.
BHP's metallurgical coal production also increased significantly during the quarter with production up 14% year on year, although the 10.1 million tonnes Q3 figure represents a 6% drop compared to the June quarter of this year.
The company is maintaining full year production guidance is maintained for coal, copper and coal.
http://www.mining.com/bhps-iron-ore-business-shoots-the-lights-out-63510/?utm_source=digest-en-mining-131021&utm_medium=email&utm_campaign=digest