Good morning! This is my last report from Paxos, as I'll be back in sunny England on Sunday. Even first thing in the morning it's too hot to sit in direct sunlight, so I've parked myself on the verandah in the shade of one of the vast number of olive trees on the island. It's a quiet day for news, with only a few things catching my eye today, as follows.

Zanaga Iron Ore (LON:ZIOC)

Share price: 18.5p
No. shares: 278.78
Market Cap: £51.6m

The announcements from this company are always a model of clarity, as well as giving a useful background summary on the company. It's been mentioned here a lot before. The company is developing a joint venture (with mining giant Glencore) iron ore mining project in the Republic of Congo (the smaller & politically stable of the two Congos).

Despite the iron ore price being under pressure, this project appears to be going ahead, because it has a number of key advantages - the most important being that it will be a very low cost iron ore mine, hence is economically viable even at the depressed iron ore prices pertaining at the moment. Secondly, the iron ore is high grade, and low in impurities, which means it will command a price premium, and be sought after by China in particular, where pollution from low grade iron ore processing is a big issue.

The main risk with the project is that financing for the $2.6bn initial capex has not yet been secured, so until that happens this share must be seen as high risk. However it's also potentially high reward, with the economics of the project being compelling. The company believes that most of the funding for capex can be secured through debt packages, and of course having Glencore as your JV partner makes this project entirely credible - i.e. if Glencore wants it to go ahead, it will go ahead.

Today's announcement from ZIOC concerns the granting of the mining licence, and mining convention (I'm not sure what the difference is, perhaps a reader could explain in the comments below). It details the terms agreed with the RoC Govt, which look favourable to me, although I'm not a sector expert.

So that ticks one remaining box, with the only other one being project financing. My understanding is that representatives from Glencore and Zanaga…

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