By Kachepa Mtumbi
FQM Abandoning Sale Process Of Zambia Assets!
By Tshepo Magagane My read – yes, balance sheet is stronger BUT I dont think you can price a Tier 1 asset right now. Will be like trying to sell a stake in an Iron Ore asset in 2003. Price was 30/t – in 05 went up to 65/t – think about that – it […]
Arsenal – Can They Ever Win The League?
By Tshepo Magagane Investing / Commodities lesson! Was having this conversation with a distressed debt investor I worked with around 09 about this. He was linking it to investing – especially a question that he liked in interviews “X is trading at 2 but you analysis says 5” …you buy in and sell at 4 […]
Pre-MRE Projects
By Tshepo Magagane At this early stage is where the greatest value creation lies! You will hear all this, “we only do feasibility stage projects” – know that the capital does not understand the sector. No one ever made real money in mining by coming in at BFS! You need to do the risk unlock […]
Copper – Valuation Pulse Check!
Tshepo Magagane Hudbay sells 30% of the project for an implied valuation of USD2bn – Tier 2 project and focuses on the Cu grades in the attached. Why whoever solves this conundrum of these 0.6-1% projects in Zambia will unlock generational wealth creation multiples of what we saw with Iron Ore in Australia. This is […]
Strategic Equities in Mining
By Tshepo Magagane They are no longer there but remember that they unlocked every project you see out there producing across different commodities. Without them the world of Mine Finance is excessively challenging. NB: remember these stats – our team had a book of USD10bn (I am excluding PF, DL, SL, TF here) to support […]
Zambia and Africa’s Critical Minerals: What Can We Learn From Malaysia’s Tariff Trap?
By Savior Mwambwa I suspect that like me, most African policy makers, thinkers and finance experts must be watching the US-China trade tensions unfold with a mix of concern and urgency. It’s reshaping global supply chains in ways that could hit African nations hard if we don’t get ahead of it. A fresh piece What’s It […]
Punching Above Your Weight.
Most of us know a man or two who is with a partner that society would say is ‘too good for him’. Fascinating concept, this. To look at two people and decode that one of them is pulling the other down and not that one is lifting the other. At the bar, it’s called punching […]
Commodities and Industrialisation
I will give you this eg of Kumba Iron ore and ArcelorMittal South Africa (Arcelor has these agreements globally). With the Kumba one, the iron ore assets were effectively written-off to zero and spun out… …what the steel operations held on to was the supply of this production to support steel (& expansion) at a […]
The Emperor Truly Has No Clothes
By Tshepo Magagane When QE started post GFC, the below was our overriding thesis at the HF – note the emphasis on real assets such as Commodities; it is even more urgent now, the USD is being debased (the US is like an EM country that has been taken over by a military dictator – […]
The African Copperbelts
By Tshepo Magagane Sometimes it is so difficult to really convey the opportunity at hand! The average project can generate an EBITDA margin of cUSD5,000/t (DRC will be higher given the higher grades). Now this about when Copper prices start to move – it is just dropping to the bottom line! I have the attached […]