Top member reports
Company Report
Last edited 3 years ago
PerformanceCommunity EngagementCommunity Endorsement
ranked
#36
Performance (43m)
5.5% pa
Followed by
185
Straws
Sort by:
Recent
Content is delayed by one month. Upgrade your membership to unlock all content. Click for membership options.
#ASX Announcements
stale
Last edited 3 years ago

As per below, it looks like the left wing candidate is going to win. Given he stated he wanted to nationalise all mines, it might pay to review if any of your mining companies are exposed to Peru.

 

Much like other ASX listed miners, and as previously and repeatedly highlighted by Bear77, sovereign risk is not inconsequential. 
Here follows an excerpt from my usual rag; the economist. The low probability of a populist nationalising the mines seems to be increasing 

Cajamarca, in peru’s northern Andes, is known mainly as the place where Atahualpa, the last ruler of the Inca empire, was murdered by the Spanish conquistadors despite having paid his ransom by filling a room with gold. Today Cajamarca is the capital of a large region of struggling farmers, rough roads and modern gold mines. It still feels betrayed: the mines have brought more prosperity to the nation than to the region, which is Peru’s poorest. It is the home of Pedro Castillo, a rural schoolteacher and union leader who surprised the country by winning 19.1% of the vote in a presidential election on April 11th, ahead of 17 other candidates. He did so on a platform that calls for the nationalisation of foreign mining firms, a new constitution and a much bigger state.

-------------------/-/-


ASX MARKET ANNOUNCEMENT
Peru Iron Ore Offtake Agreement Signed with US$2 Million Prepayment
HIGHLIGHTS
Binding Offtake Agreement signed with international iron-ore trading firm for 100% of Peru iron ore for two (2) year initial term
Offtake Agreement incorporates US$2 million prepayment facility to fund first ore on ship First ore on ship of a minimum of 30,000 tonnes expected in May/June 2021
Strike is initially targeting annualised sales of ~125,000 tonnes of iron ore from specific portions of concessions comprising the Apurimac Project
Potential exists to significantly expand sales through ore from multiple sites within the Apurimac Project, once steady state operations are achieved
Current project profile targeting sale of a high grade “Apurimac Premium Lump” DSO product of ~65% Fe with low impurities
FOB target cost at Pisco Port of less than ~US$70 per tonne
Based upon current iron ore prices and lump premiums, Strike is targeting a CFR price of approximately US$180 - 200 per tonne for its Apurimac Premium Lump DSO product indicating a significant near term positive cashflow opportunity
Strike Resources Limited (ASX:SRK) (Strike) is pleased to advise on a further significant milestone for the Company with the execution of a binding Offtake Agreement (Offtake Agreement) for 100% of the iron ore currently being mined from its 100% owned Apurimac Iron Ore Project in Peru for an initial two (2) year term.
The Offtake Agreement also incorporates a US $2 million prepayment facility to fund first ore on ship and to allow Strike to accelerate plans to expand iron ore sales to capitalise on current strong demand and premium prices for high grade Lump Iron Ore.
The Offtake Agreement has been entered into by Strike’s 100% Peruvian subsidiary company and Good Importing International Pty Limited (GII), an international iron ore trading company currently involved in iron ore offtake into China from various countries including Australia, Russia and South Africa and having previously been involved as an offtake partner for a number of Australian iron ore producers including Mt Gibson Iron, Karara Mining, Pluton Resources and Shree Minerals.
Terms of the Offtake Agreement include market reflective pricing referenced to relevant S&P Global Platts pricing indices and market-typical lump premium and impurity penalties, on a Cost and Freight (CFR) basis for delivery into China.