GEN gets a site visit from Gabon’s president

Published 22-JUL-2024 13:43 P.M.

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We always like to see our Investments engage with important stakeholders when advancing their projects.

Today, our green iron ore Investment Genmin (ASX: GEN) did just that, announcing that the company had hosted the transitional president of Gabon at the Baniaka project which lies in the south east of the African country:

Here’s what happened during the presidential site visit:

President Nguema encouraged GEN to develop Baniaka as quickly as possible, offering full government support
He praised GEN for employing and training young Gabonese workers at the project
The visit enabled GEN to directly present Baniaka to the President and discuss collaborations for successful production

Gabon is one of the richest countries on the African continent, and has significant infrastructure to support GEN’s future mine.

So we think getting the tick of approval from the government is a big boon to GEN’s prospects of putting the mine into production.

Last week, the transitional president of Gabon referred to GEN’s Baniaka project directly by name, and intimated that the government intends to make the project a centre piece of its efforts in the Haut-Ogooué region of the country.

(Source - Note: translated content)

President Brice Clotaire Oligui Nguema said the following:

“We are investing in concrete projects that will improve the quality of life of our fellow citizens and strengthen the regional economy…the Baniaka mine is an essential lever for job creation and sustainable development in our region.”

So we see it as a further sign of momentum behind GEN’s project, that the President of Gabon followed up his commentary with a visit.

Today’s presidential visit aligns with Gabon's aims to develop its mining industry and GEN's potential future role in providing green iron ore for steelmaking.

As per our GEN Investment Memo, Baniaka is positioned to become Gabon's first commercial iron ore mine, with a 20-year mining permit, access to infrastructure, and existing offtake agreements in place.

How does this impact our GEN Investment Memo?

Jurisdiction risk/political risk
In August 2023, a military coup affecting regime change occurred in Gabon.

A transitional, appointed rather than elected, government has been put in place with elections scheduled to be conducted in August 2025.

While the population of Gabon has generally supported the coup - there are uncertainties about the future political climate of Gabon.

For example, delays in holding elections and returning to an elected civilian government may lead to economic, political, and social risks materialising that adversely impact GEN’s ability to develop Baniaka and subsequently produce, export and sell iron ore products.

Source: 2 April 2024 GEN Investment Memo

We see jurisdictional and political risk reducing in the wake of the indication that the Gabonese transitional government appears firmly behind GEN’s Baniaka project as a key pillar of their economic agenda.

What’s next for GEN?

We’re particularly interested in binding offtakes being signed right now, which we want to see converted from the pre-existing MoUs that GEN has with four major Chinese steel makers.

This is Objective #2 from our GEN Investment Memo, and we see binding offtakes as a key catalyst which would accelerate GEN’s progress on financing, and ultimately construction of the mine.

To read more about GEN, be sure to read our first note on the company, detailing our Investment and what we want to see from GEN as it pursues becoming Africa’s newest green iron ore producer: