How the Wusang River copper-gold mine project should be valued involves many factors.
The first, of course, is the exploitable reserves of the Wusang River copper-gold mine.
Secondly, there is the grade of the ore and the geography and climate environment of the mining area, which determine the cost of mining, transportation and smelting in addition to the initial project construction investment. A copper-gold mine has no specific development value, which is usually determined by this point.
There are many gold resources in Akwa, and the potential reserves are theoretically greater than those in South Africa. However, most of the minerals are mined in harsh environments, buried too deep or of too low grade, thus losing their economic development value. No one intends to make further exploration.
Exploration, let alone organized mining.
The rock gold mine acquired by Yibogu Mining in the past two years only started to have good performance after the international gold price started its second wave of violent rise. The previous performance made Yang Deshan frown all day long.
Therefore, the overall valuation of the Wusang River copper-gold mine project must be directly related to the current international gold and copper metal futures prices and future mid- to long-term trends.
When it comes to the mid- and long-term price trends of futures, this also involves the judgment of the mid- and long-term trends of global industrial and economic development.
Here the benevolent sees benevolence, the wise see wisdom, there are too many things to say, and everyone has his own insistence.
Fortunately, international copper metal and copper concentrates have stabilized at relatively high historical highs, and international gold prices have begun a second wave of seemingly more violent gains. The current international gold prices are significantly higher than the lows three years ago.
The amount was doubled, and sufficient adjustments were made in the process, which put Cao Mo in an advantageous position during the financing negotiations for the Wusang River Copper and Gold Mine.
When it comes to a stable political and economic environment and corresponding industrial supporting capabilities, Cao Mo is at a disadvantage.
Another disadvantage is that apart from Qian Wenhan and Xinhai Gold, Cao Mo has no other choice in terms of strategic partners. Even now, he still has to consider that the board of directors of Xinhai Gold may ultimately reject this cooperation.
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If the Wusang River copper and gold mine were placed in China, with the domestic stable political environment, continued strong economic growth trend and abundant private capital, let alone financing at a valuation of US$5 billion, the valuation would be reduced to US$3 billion.
, I don’t know how many investment institutions will step through the door.
Cao Mo gave Qian Wenhan and Xinhai Gold such a low financing valuation. In addition to the need for more industrial and financial capital forces to unite to fight against the unstable political situation in Akwa, there is another important reason.
The subsequent development and construction of the Sanhe copper-gold mine is too short of funds.
Cao Mo had previously planned the construction of the first phase of the Wusang River copper-gold mine based on a plan to reserve 200,000 tons of metallic copper, as well as the concentrator and corresponding water and electricity and other industrial supporting facilities. For this purpose, he did everything possible to raise 150 million this year.
Put dollars in.
Based on the current exploration results, the economically exploitable reserves of the Wusang River copper-gold mine are conservatively estimated to be 10 million tons of metallic copper and 30 million ounces of gold. It is hoped that this copper-gold mine will be mined within the thirty-year permitted mining period.
If the mine is hollowed out, the capital investment required for construction will be terrifying.
In addition to the mine, the size of the ore dressing plant must be increased by forty or fifty times. Drake's industrial supporting capabilities are far from being able to support the mining of such a super-large copper-gold mine. Yibogu Mining needs to spend a lot of money for larger-scale mining.
The construction of supporting facilities such as water, electricity, gas and communications requires the recruitment of tens of thousands of workers, and the occupational dormitories are enough to form a small city.
What's more important is that the railway to Pemei Port via Drake is a legacy from the Akwa colonial period.
Narrow-gauge transport capacity has been almost completely occupied by mineral transport in places such as Krono and Mamba.
In the past, the Wusang River Copper and Gold Mine was designed and built according to the design of a medium-sized mine. It was not a big problem to squeeze 70,000 to 80,000 tons of transportation capacity from this railway line every year. However, if the Wusang River Copper and Gold Mine truly enters a stable mining period, it will require an annual
The amount of copper ore shipped to sea through Peimei Port will be as high as three to four million tons.
Such a huge demand for transportation capacity requires almost a separate narrow-gauge railway to guarantee it; this also involves the need to upgrade the berths of Peimei Port to accommodate the berthing of very large sand ore ships.
If the Wusang River copper-gold mine is to be built to an economic mining scale within the mining rights period, the funds required are so huge that it is both gratifying and painful.
Except for the licensing period of mining rights, it is impossible for any country to allow a private company to cling to huge treasures and not exploit them.
And if Cao Mo can raise a huge amount of funds to carry out large-scale development of the Wusang River copper and gold mine, even though there will be quite a lot of coveters at home and abroad in Akwa, there will be quite a lot of open and covert attacks, but as for the country as a whole,
Especially when Akwa does not have the ability to develop itself, it will not mind which foreign company takes over the development rights.
Not to mention the large number of job opportunities created and the improvement of local industrial supporting development capabilities, Akwa will be lenient even if it levies a special tax on mineral resources. As for how this money is allocated between the central government and local government in Akwa,
It depends on how the central government that is about to be elected in Akwa will compete with regional forces.
Cao Mo did not expect to raise enough capital at once to develop and construct the Wusang River copper and gold mine. If Qian Wenhan and Xinhai Gold could inject 200 million US dollars this time, they would only be able to invest in the copper concentrate.
The annual mining scale has been increased to 300,000 tons, which is only equivalent to one-tenth of Cao Mo's estimated economic mining scale.
However, this step cannot be omitted.
With this financing, Qian Wenhan will be completely tied to them, and will also reach an in-depth strategic cooperation with Xinhai Gold. The Wusang River copper and gold mine will be built next year to reach an annual mining capacity of 300,000 tons of copper concentrate.
It will further consolidate and promote Ibogu Mining’s position in Akwa and the entire West Africa, improve Ibogu Mining’s own hematopoietic capabilities, and lay a solid foundation for the next step of financing.
Of course, Cao Mo also knew very well that Qian Wenhan and Zhou Shenhe accepted his offer in his heart.
When Cao Mo returned to China in early summer, Qian Wenhan took the initiative to contact him and was interested in discussing cooperation. He did not immediately talk directly about the cooperation on the Usan River copper-gold mine project, but first started with Guiya Inner Bay Shipping and Usan River
Discussion on cooperation in exploration operations of copper and gold mines.
It would have been impossible to talk about it in June or July.
If Cao Mo had set a basic valuation of US$1.5 billion for the Wusang River copper-gold mine project to accept financing from the beginning, Qian Wenhan and Zhou Shenhe would probably think that he was too greedy and create a rift, and even some other cooperation would become
Perfunctory.
Five or six months later, Qian Wenhan, Zhou Shenhe and the management of Xinhai Gold not only have a deeper understanding of the Wusang River copper and gold mine, this understanding is also supported by actual operation data and corresponding geological and mineral theory.
At the same time, they had a deeper understanding of the industrial layout of Yibogu Mining and Tianyue in Akwa, as well as the chess pieces they played in Akwa's political situation.
The latter is more directly related to Tianyue's ability to control the Wusang River copper-gold mine project.
Without corresponding control capabilities, and with just an agreement that can be torn up at any time, the value of the Wusang River copper and gold mine will be greatly reduced, no matter how high it is.
Now, Cao Mo has valued the Wusang River copper-gold mine project at US$1.5 billion and is accepting financing based on this. If Qian Wenhan and Zhou Shenhe still think it is high, it is because they are not greedy enough.
Zhou Shenhe certainly has no way to agree on behalf of Xinhai Gold at this time. He needs to wait for the C2 level reserve assessment report to be released, and then combine it with Xinhai Gold’s political and economic investigation of Akwa during this period and the industrial supporting capabilities of the Drake area.
A comprehensive assessment is conducted, then discussed by the board of directors, and even needs to be reported to the district State-owned Assets Supervision and Administration Commission for approval before it can be finalized.
Of course, Qian Wenhan is the largest natural person shareholder of Xinhai Gold, and Xinhong Investment under his personal name independently invests in the Wusang River copper and gold mine project at a corresponding price. It will be much easier for Xinhai Gold.
In collective decision-making, risk control is more important than expected profits. Although Qian Wenhan is only an ordinary director of Xinhai Gold, he has a great influence on Xinhai Gold. With his endorsement, Zhou Shenhe vigorously promoted it, and other directors
What reasons are there to object?
Of course, Qian Wenhan also needs time to weigh such a large investment.
"Tomorrow I will ask Kabuja to hand over all the exploration data to the Xinhai Gold Geology and Mineral Exploration Institute, and entrust Xinhai Gold with the C2 reserve assessment," Cao Mo said, but he did not want to give Qian Wenhan too much time.
, "I will spend New Year's Day in Xinhai and then return to Akwa. When I return to Akwa, I will no longer recognize this price..."
"In less than a week, the C2 level reserve assessment report may not be available. You are too impatient." Qian Wenhan patted his forehead and said.
"I just want to find an opportunity to increase the price. It depends on whether Qian will give me this opportunity." Cao Mo said with a smile.
"Xinhong makes decisions quickly, but no matter how fast Xinhai Gold is, it is impossible to give you a clear answer. It has not even had time to convene the board of directors to discuss the matter." Qian Wenhan said.
"Mr. Zhou, I will relax the quotation period for two months," Cao Mo said. "Whether Xinhai Gold will eventually go through this muddy water actually depends on you, Mr. Money. I am short of money, so I can only chase you."
Make a decision as soon as possible.”
"If I make a decision now, can I get a better deal?" Qian Wenhan asked.
"Mr. Qian, are you still short of these three melons and two dates?" Cao Mo said, "Mr. Qian must want to take advantage of it. It's not impossible. I have left a certain share of options for the management of Yibogu Mining. If Mr. Qian is willing,
As the vice president of Ibogu Mining, you can take away one point of options, and the price is half lower than that given to Xinhong and Xinhai Gold!"
Strategic financing hopes to obtain cooperation resources, while granting management the right to buy company shares at a certain price within a certain period of time hopes that management will work hard. The pricing standards are of course different.
In terms of overall valuation, Ibogu Mining has reached US$2 billion, but the exercise price of management options in the next stage is calculated based on a valuation of US$1 billion.
"I've been idle for several years. I can't afford this busy life, and I can't take advantage of it. It's a pity," Qian Wenhan said with regret, "Lao Xie has been running around Africa all the time, and he's always following the gold industry.
Mines, gold trade, but he can serve as the vice president of Ibogu Mining..."
"I don't know if Lao Xie is willing to do this. If Lao Xie is willing, I can give him 1% of the shares." Cao Mo said.
When Xie Sipeng saw Qian Wenhan, Cao Mo suddenly turned the conversation to him, and he was stunned...