- Flagship Joyce Lake project is advancing rapidly to capture the strong market
- CEO Sandy Chim has a track record of raising capital in Australia, the UK, Hong Kong, and Canada
- Century has two key strategic partners — Baowu Steel Group and Minmetals
What Century Global Commodities does:
Century Global Commodities Corporation (TSE:CNT) (OTCMKTS:CEUMF) owns some of the largest iron ore resources in Canada, totaling some 20 billion tonnes in multiple deposits across five projects in Quebec and Newfoundland and Labrador. This total includes the Joyce Lake Direct Shipping (DSO) Iron Ore Project, Hayot Lake, Full Moon, Black-Bird and the Duncan Lake project.
The company’s flagship Joyce Lake - which it is aiming to spin-off - is a simple quarry operation with a bankable feasibility study already completed, while Full Moon and Duncan Lake, both have completed preliminary economic assessments. These three advanced projects alone have a combined after-tax net present value (NPV) of over $5 billion, calculated using iron ore prices that are well below trading prices seen today.
Century is led by founder CEO and Chairman Sandy Chim, a mining industry veteran, who has an extensive track record of raising capital in Australia, the UK, Hong Kong, and Canada.
A chartered accountant, Chim has already secured two key strategic partners — Baowu Steel Group and Minmetals — Global Fortune 500 companies who have provided both financial and technical support to Century. The two Chinese state-owned companies together hold close to a 30% shareholding in Century.
How is it doing:
Century Global has been making progress on its Joyce Lake Direct Shipping (DSO) Iron Ore Project so far in 2021.
On May 14 the company announced that its special purpose vehicle, Joyce Direct Iron Inc (JDII) is seeking to list on the Australian Securities Exchange (ASX) after raising A$2 million. JDII now owns the Joyce Lake Project.
In a statement calling the completion of the financing a “key milestone”, Century said that JDII is hoping to list to facilitate the project’s development through permitting and towards a production decision.
The financing saw JDII issuing just over 20 million shares priced at A$0.10 to a group of private investors, putting the company’s valuation at around A$20 million. The private placement shares represent 9.09% of the outstanding shares. Century Global owns 200 million JDII shares and 40 million performance preferred shares convertible into one share upon completion of certain milestones.
On April 15, Century Global had provided an update regarding its plan to spin out the Joyce Lake Project. After a careful study of the various options of a spin-out, the company said it had determined that the best market to spin out Joyce was the ASX given the quality and the liquidity of the exchange, particularly in the iron ore sector.
It said it had therefore signed a mandate with Empire Capital Partners, a Perth-based corporate advisory and investment bank to execute the spin out. The mandate authorized Empire to identify a pre-IPO investor or group of investors to raise initial seed funding in a special purpose vehicle holding 100% of Joyce.
Then on May 27, Century Global had announced that an Environmental Impact Statement (EIS) for the Joyce Lake Project had been submitted to federal and provincial authorities.
The company said JDII had filed the EIS with the Impact Assessment Agency of the Canadian government (IAAC) and the Department of Environment and Climate Change of the government of Newfoundland and Labrador (NLDOECC).
Century Global said the EIS was produced to meet the requirements of the federal guidelines that apply to the project. The EIS states the fundamental elements of the project design and analyzes its environmental, economic, and social impacts with the corresponding mitigation, controls, and benefits that will be present over the operation of the project from construction to closure.
Looking at its financials, on August 12, Century Global filed condensed consolidated interim financial statements for the first fiscal quarter ended June 30, 2021, and related management discussion and analysis statements.
The statements showed that, as of June 30, 2021, the company had strong working capital of $15.2 million, consisting of cash, bank deposits and marketable securities totaling $14.2 million, together with accounts receivables and other current assets of $4.4 million, less accounts payable and other current liabilities of $3.4 million.
- ASX float for JDII spin-out of Joyce Lake DSO
- Updating and optimizing the Joyce feasibility study
- Maximizing the upside of a potential iron ore super-cycle through quick production
What the boss says:
Century Global Commodities CEO and chairman Sandy Chim said: “I’m very pleased that the quality of our Joyce project and Canada as a mining jurisdiction has attracted key strategic investors with extensive Australian iron ore investment experience and network."
“Achievement of this milestone adds credibility and market acceptance of Canadian iron ore assets in the Australian capital market and is a foundation for a successful ASX listing,” he added.
Contact the author at jon.hopkins@proactive investors.com