Commodities

By Tshepo Magagane Since I started being trained in M&M 2 decades back, Gold companies always commanded a huge premium to NAV/NPV NAV/NPV is simply the Discounted CashFlows over Life of Mine! NAmerican operating companies used to command a 2.5-3.0x Premia over their NAV/NPV; SAfrica will all the “perceived issues” would command 1.8-2.0x! There was […]

By Tshepo Magagane Critical Minerals – Financing Mining projects – what does it mean?  What is the underlying/common theme in these announcements? Up to and including the Project Finance stage, you need “equity or equity-like” capital. Even at the PF stage, you need to anchor the PF facility with 50% equity (including COF and potential equity cures). Debt or debt-like instruments […]

Authored by Tshepo Magagane Critical Minerals – How to think about Risk? Howard Marks In Mining; you have these “Perceived Risks” regarding the sector or regions in which you find mining Projects! Risk in Mining is not about Politics – you show that your knowledge of this sector is gossamer! Risk in Mining is Geology. Friedland has proved […]

Written By Tshepo Magagane Critical Minerals – Copper Indicative CFs – as said, if you are building non-Tier 1 projects of 50ktpa; you can create Returns Opportunities whereby the payback Period is 1-yr (if everything goes well in Commissioning – worst case by Yr-3) Q&D / back of a matchbox – does it add up as […]

By Tshepo Magagane Critical Minerals Australia (bulks) vs Copperbelt (Zambia) – The Opportunity (country level and entrepreneurs) – I wax lyrical about how Australia managed to take advantage of Chinese Steel production in the 00s – remember, most Steel and Steel Making Raw Materials were written-off to zero in the late 90s and early 00s! 1. […]

BY Tshepo Magagane Critical Minerals – When selecting metals to focus on, as I have said “not all critical minerals present the same opportunities”! Copper super obvious BUT I have said “can a portfolio afford to lack Gold in an era of unstable geopolitics, CB continuing to debase FIAT, Major GoldCos producing at 1.5-1.9/oz while juniors are producing at […]

Speaker: Tshepo Magagane Insaka Webinar 19 September 2024 – Please register for the webinar on this link: https://zoom.us/meeting/register/tJIsde-uqz8rGdMRk2IGAZoHxu5ifFk6TGfl Critical Minerals – all important, but not created EQUAL! Copper – we need 10 more Escondidas, we need 10 more Kamoas – we need a myriad of Khoemacau! For Zambia to 3Mtpa of Copper production, you are […]

Author: Tshepo Magagane – Pangaea Executive Director Maybe we do need the likes of Bill Gates or Stellantis? I say yes to the first part – Specialist Mining Funds stand at USD17-20bn globally, while the global identified copper capital requirements will come in at min USD200bn! To unlock Zambia’s independent projects, both the Chamber of Mines and myself […]

Authored By: Tshepo Magagane Lithium – too many jackanapes making comments who have never deployed capital, let alone developed a project! 1. The Chinese are deliberately making sure that no other capacity is built – the German/Russian case study has emboldened China; they can see how much damage has been done to German industry – like “Pinky & […]

By: Pangaea Metals & Mining Team Introduction Unlocking financing for African mining projects is crucial to capitalising on the continent’s immense mineral wealth. Despite producing 30% of the world’s minerals, Africa receives only 5% of global capital investment in mining. The shift from traditional merchant bank financing due to Basel III (BIII) regulations has created […]