The combined value of the multi-megaton Resource rights assigned to Sangha Mining, and the will of the Chinese Communist Party to diversify and capoture supply, means ONE thing to me. A BIG PAYDAY for whomever buys into it.
It would make sense that the Consortium buys the rights to exploit the Resource. That's been the plan in the past, as many came to conquer but failed. Hopefully this is different eh. Right time, Right place. I feel it is. If not now, then never...and that's a long time.
Here's my crazy calc's. Happy to be shot down in flames.
150MTPA
over 15 Years (minimum)
at USD$150/tonne (guaranteed future buy price)
with CAPEX USD$10B
minus Operating Cost $60/tonne
= USD192B revenue
Royalty 10% (2-3% will not cut it) = USD19.25B
*A 2% royalty on all future production is what's in place for Avima from Mayoko-Moussondji, but that's still a pipedream. What would the Africans Governments give up to actuallly get this project moving, to actually start to convert the dream to the bottomline and make Africa into the Modern Wakanda it should be! 10% is cheap IMO.
So, after deducting $10B to build the infrastructure, deducting $60 per tonne operating cost for mine operations/workers pay/transport/utilities...the cluster of mines should return close to $200 Billion in Guaranteed Revenue from a Chinese Buyer, opening up alternative supply lines to the Chinese for Steel.
Then you factor in all other available mines in Central West Africa, plus direct supply of Steel required for the build out of African cities (captive market - you process the Steel on the African side, no need to ship out, process, then ship back) and you have a multiplier effect so massive, I'm struggling to comprehend it.
Africa needs to be developed in order for Global Corporations to keep selling goods and growing their Markets.
That's how massive this can be. What would you pay for USD$200B that's guaranteed?
This Region is ready to explode.
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