Proactive Investor's  Instablog

Proactive Investor
Send Message
Proactiveinvestors is a leading multimedia news organization, investor portal and events management business with offices in New York, Sydney, Toronto and London. Proactiveinvestors operates five financial websites in four languages providing breaking news, comment and analysis on hundreds of... More
My company:
My blog:
  • Charter Pacific Corp. To Emulate Sphere Minerals In Iron-Ore Rich Mauritania 0 comments
    Jul 9, 2013 9:16 PM

    Charter Pacific Corporation (ASX:CHF) is a Queensland-based investment company with potential to emulate previous ASX-listed Sphere Minerals in Mauritania, which was acquired by Xstrata in a $514 million takeover offer.

    While early days at the Kaoua El Khadra Prospect, there are similarities with Sphere's Lebtheinia iron ore deposit, currently being developed by GlencoreXstrata in Mauritania.

    Adding spice, Jindal Steel and Power Limited has acquired an adjacent Permit to Charter Pacific's Kaoua and is conducting its own exploration program.

    With an iron ore Exploration Target of 2.6-4.4 billion tonnes at Kaoua El Khadra Permit, there is no shortage of iron ore on its tenements.

    Early-stage iron ore exploration has revealed high grade results that show potential for a marketable concentrate to be produced at relatively low cost. Therein holds the key to the decision by GlencoreXstrata to develop their Mauritanian iron ore deposits and the allure of Charter Pacific's Kaoua permit.

    There are geological similarities between GlencoreXstrata / Sphere's Mauritania Lebtheinia iron ore deposit and Charter Pacific's Kaoua prospect surface expression, in that the project areas are largely flat. This would ease the development of necessary infrastructure.

    Research has shown that production costs in Mauritania using a dry sinter process are approximately $32 per tonne (GlencoreXstrata), which are lower operating costs than Pilbara FOB iron ore. The sinter feed route favoured by other iron ore developers in West Africa (dry grinding as compared to wet grinding and pelletisation) has the advantage of lower pre-production capital expenditure.

    Interest in Charter Pacific's iron ore prospect has quickened with recent results, including interest from Chinese, Indian and European investors and end users. The target market for product is Europe, where France and Italy are already well established importers of iron ore from Mauritania.

    Mauritania already hosts one large iron ore producer, the Societe' Nationale Industielle et Miniere' (SNIM), which produces 12 million tonnes of iron ore per year at Zoueratte, north-northeast of Charter Pacific's Kaoua prospect.

    Next step in the exploration process is a drilling program to further test both the quality of the BIFs and their orientation and dip, to establish a maiden resource.

    We believe that discussions are underway for new capital.

    For a company with a minimum exploration target of 2.6 billion tonnes of iron ore, in a country with an established iron ore industry, Charter Pacific Corporation appears to be worth considerably more than the <$6m currently ascribed to it by the market.

    Click here to receive the full Research Report for a limited time.

    Disclaimer / Disclosure

    This report was produced by Proactive Investors Pty Ltd, which is a Corporate Authorised Representative of RM Capital Pty Ltd (Licence no. 221938). Proactive Investors will receive payment for the compilation and distribution of three research reports. Proactive Investors Pty Ltd has made every effort to ensure that the information and material contained in this report is accurate and correct and has been obtained from reliable sources. However, no representation is made about the accuracy or completeness of the information and material and it should not be relied upon as a substitute for the exercise of independent judgment. Except to the extent required by law, Proactive Investors Pty Ltd does not accept any liability, including negligence, for any loss or damage arising from the use of, or reliance on, the material contained in this report. This report is for information purposes only and is not intended as an offer or solicitation with respect to the sale or purchase of any securities. The securities recommended by Proactive Investors carry no guarantee with respect to return of capital or the market value of those securities. There are general risks associated with any investment in securities. Investors should be aware that these risks might result in loss of income and capital invested. Neither Proactive Investors nor any of its associates guarantees the repayment of capital.

    WARNING: This report is intended to provide general financial product advice only. It has been prepared without having regarded to or taking into account any particular investor's objectives, financial situation and/or needs. Accordingly, no recipients should rely on any recommendation (whether express or implied) contained in this document without obtaining specific advice from their advisers. All investors should therefore consider the appropriateness of the advice, in light of their own objectives, financial situation and/or needs, before acting on the advice.

    Where applicable, investors should obtain a copy of and consider the product disclosure statement for that product (if any) before making any decision.

    DISCLOSURE: Proactive Investors Pty Ltd and/or its directors, associates, employees or representatives may not effect a transaction upon its or their own account in the investments referred to in this report or any related investment until the expiry of 24 hours after the report has been published. Additionally, Proactive Investors Pty Ltd may have, within the previous twelve months, provided advice or financial services to the companies mentioned in this report. As at the date of this report, the directors, associates, employees, representatives or Authorised Representatives of Proactive Investors Pty Ltd and RM Capital Pty Ltd may hold shares in Charter Pacific Corporation Limited.

Back To Proactive Investor's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers


More »

Latest Comments

Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.