Thoughts by Tshepo Magagane When we were winding down Merchant banking operations over a decade ago, the Chinese decided to buy the bank’s International Trading arm! Do you know what they did? They brought in people to sit with the traders – showing them exactly what they do daily… …financially rewarding key individuals to stay […]
Zambia’s Copper Renaissance
Comment By Tshepo Magagane Zambia’s Copper Renaissance – really simple, of the 3Mtpa target, 800tkpa has to come from independent projects! https://research.massifcap.com/p/zambia-s-copper-renaissance?utm_campaign=zambia-s-copper-renaissance&utm_medium=newsletter&utm_source=research.massifcap.com&_bhlid=293b58d214f82873ed23384bebbfce5ebf3c8427 Independent projects need to go through the following: MRE – let us assume USD5m PFS – USD60m BFS – USD100m PF – USD160m (equity) However, as you go into production – on the […]
BHP / Anglo – Standstill Expiring
More importantly, Anglo executing the strategy communicated to shareholders: * Already 2 selldowns of Angloplats to increase free-float for demerger * Sold Aus coal – dont agree with it * Making progress on Copper side in SAmerica – this is the most crucial Copper – talked about the latest Chinese moves in the likes of […]
Upstream Strategy is a Necessary Condition
Penned by Tshepo Magagane There is this view in the West that “we will just buy the materials”! Have seen it in so many conversations (see comments in attached) – European industry is struggling to plan for the future – the most jarringly surprising thing was: 1. Strategy team at OEM is telling us “not […]
Exploration to Production Best of Class Case Study in Africa
By Tshepo Magagane Exploration to Production Best of Class Case Study in Africa (Large Scale Mining Preparation) – I cannot begin to put in words the work that Dr Mulenga has already put into this project. Remember, the orebody is 100km – the reserve he has defined is just for 4km – a month back […]
West Critical Minerals Strategy
Extract By Tshepo Magagane I have run out of superlatives to describe its idiocy! It is not that it is lacking… It is not that people dont understand that it is required… It is not that people dont understand that you need to be aggressive… It is not that they dont get that you need […]
US Elections – Copper Upgraded
By Tshepo Maganane Benedikt Sobotka Former Group CEO of Eurasian Resources Group (ERG) | Co-Chair of the Global Battery Alliance | General Partner Alpha Future Funds ### Impact of the US Election on the Mining Industry – some scenarios: – Push for more US Metals Sovereignty: Transitioning from a major net importer to an exporter […]
Gold – Premium to NAV
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 […]
Critical Minerals (Part 5 – 30/Sep) Financing Mining Projects – What Does It Mean?
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 […]
Critical Minerals (Part 4 – 27/Sep) – How to think about Risk?
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 […]