african minerals appears to be upping its stake - possible takeover / offer?

What worries me about Baobab etc with iron ore and coal at Tete -

Iron ore and coal are a low cost and high volume products to transport
I do not think there is a sustantial local market for iron ore or coal anywhere
near Tete
Steel could be made from coal, iron ore, and limestone if a blast furnace
could be built, then they could export steel from Tete perhaps
Tete iron ore would be competing with iron ore which is much closer to
user markets i.e Ukrane for Europe, Australia for China, etc
They would need to transport the iron ore or coal for miles to the coast

Maybe I need to study the economics of Tete deposits, but at the moment
I just do not see it ?

Is it like finding gold on the moon ? Have a look on a map and find Tete.

What worries me about Baobab etc with iron ore and coal at Tete -

Iron ore and coal are a low cost and high volume products to transport
I do not think there is a sustantial local market for iron ore or coal anywhere
near Tete
Steel could be made from coal, iron ore, and limestone if a blast furnace
could be built, then they could export steel from Tete perhaps
Tete iron ore would be competing with iron ore which is much closer to
user markets i.e Ukrane for Europe, Australia for China, etc
They would need to transport the iron ore or coal for miles to the coast

Maybe I need to study the economics of Tete deposits, but at the moment
I just do not see it ?

Is it like finding gold on the moon ? Have a look on a map and find Tete.

Audio interview with Ben James, Managing Director
Ben James, Managing Director gives an update on the final year results, forthcoming pre-feasability study and financing potential.

Click the link below to listen:

http://www.brrmedia.co.uk/event/106741/ben-james-managing-director

Audio interview with Ben James, Managing Director of Baobab Resources. The Company is very pleased to present the Ruoni Flats resource statement. Baobab is now able to realistically consider significantly larger production options at Tete, with the expanded 490Mt Tenge/Ruoni resource base sufficient on its own to underpin a 4Mtpa Pig Iron operation over an impressive life of mine of c.35 years
Click the link below to listen:
http://www.brrmedia.co.uk/event/107071/ben-james-managing-director

I suggest you sell now at 12.75p

I agree that pig iron production is the way to go from Tete.
But the economics of getting it to ? Asia, etc I really do not know.

I think Baobab was funded and floated to explore mainly old Portugese
mining operations in Mocambique. It seems that gem stones, copper
and nickel have not yet been commercially found as intended, and they
have switched operations into Tete, where it was already known their were
quantities of coal. Do know about iron ore.

Looks like they will need to transport pig iron across Malawi, where they
would need to construct some rail line and repair some, or down the Zambezi
"corridor" to Beira somehow. Either journey is a good distance to the Indian
Ocean coast. Then ship to markets, probably in Asia.

Interesting ambitions, but far too much of a long shot for me.
Share price seems to be dropping back now

Baobab Resources presenting at Minesite.

Click the link to view:

http://www.brrmedia.co.uk/event/107075/ben-james-managing-director

i see this dog has started barking loudly once more, though unsure how justified

Like Cynic -
I just do not know or understand who is buying this share at this 16.50p price.
Good luck to them, but I am keeping well clear.

when i posted previously on 11/12, sp was 15.50 ...... it is now 19.75 ..... ride the momentum if you wish, but it remains a dangerous play

Superb chart.

Number2 Son certainly called this one right when he told me to get back in a few weeks back ..... i actually held off until 18.75, which was a bit late in the day, but still doing very well

I do not understand BAO share price - who is buying - Chinese ?
Pig iron from Tete ???
OK big reserves coal and iron ore.
What is the transport route and costs ???
Which market are they intending to target ???

I think BAO was floated at 6p about three years ago to explore old Portuguese
mining potentials in Mocambique. Searches for copper and nickel etc have not been fruitful so they have turned to Tete where coal and iron ore were already known to be.
Pity they have not found something other than low value bulk ores far inland.

Anyway - maybe someone knows something I do not.
Good luck, - hope you do not get blasted and your fingers burnt in this furnace.

Superb performance today.

i am reasonably sure i shall make my exit too early!

profit now taken at 25.75 :-)

=============

i believe there may be further news in late jan/feb, but will it be truly spiffing?
in the meantime, the present rise looks ridiculous to me, but as so often, i am/was happy to ride the momentum

WOW WOW WOW - I BOW - well done Cynic

Must be some news or something coming !!!

Just can not believe this share is worth anything like current price

more like "well done Number2 Son" ..... this time i hope he'll have the sense to take profits, unlike ignoring that advice last time re this one and XEL ..... given that he is now in the middle of africa for 3 weeks, i hope he will not come home to find his profit in tatters

Cynic
Where is he in Africa - I spent half my life there.
Nigeria, Cameroon, Kenya, Malawi, etc etc even boarders of Mozambique
How many times has he had malaria ?

5 or 6 companies are gonna be fighting it out shortly to become the joint venture partner here. Long way to go on this rise new highs coming. May get a few t20 people taking profits today and tuesday. But then back on the rise.8-)