Dreaming back to 1949, the great powers were there to deceive us

After a brief thought, Atlan said,

"Mr. Martin, I need to report your proposal to the board of directors. Please understand that the steel plant is not a 100% certainty, so we'd better discuss a backup plan."

Martin nodded, and this time he said directly without any hesitation,

"How about your company investing 3000 million yuan in BH Mining and acquiring 10% of BH Mining's shares?"

Atlan shook his head.

"Mr. Martin, B&H Mining's operating revenue last year was just over 100 million euros. Your offer is too high."

Due to the particularity of the mining industry, the valuation of mining companies cannot be carried out using common valuation methods.

Its particularities are as follows.

First, mineral resources are scarce and non-renewable, which limits the life of mines.

Second, mining is highly risky because minerals are buried underground and even with comprehensive exploration, it is difficult to determine their reserves.

Third, the mining industry is cyclical and the prices of mineral products fluctuate greatly.

Fourth, the buildings of mining companies are special, such as mines, which cannot be moved. Even if you have invested tens of millions, once the minerals are mined, the value of these buildings will be completely reduced to zero.

Because of these particularities, the valuation of mining companies usually adopts multiple methods and finally takes comprehensive consideration.

For the acquirer, it is a bit like opening a blind box. You may make a fortune or lose everything.

Martin looked at Atlan's face and saw that he looked calm, and said,

"Mr. Atlan, my offer is very sincere. For example, my company's iron ore reserves are as high as hundreds of millions of tons. Mr. Atlan, please calculate how much this is worth."

"Don't those ores need to be mined? Mr. Martin, please tell me, what was your company's net profit last year?"

Martin naturally refused to tell the truth, as financial data was company secrets.

"Mr. Atlan, how many shares do you want?"

"20 million, % of the shares!"

"impossible!"

Martin jumped up, his face filled with anger.

Atlan waved his hand, signaling Martin to calm down. After he sat down again, Atlan said,

"Mr. Martin, your offer is naturally sincere for an ordinary company, but we at Tongan are not an ordinary company. In Naha, we have begun to build a free trade port, and in the future, we will also establish a commodity trading center. Mr. Martin, only if we own enough shares will Tongan strongly support the expansion of B&H Mining. Otherwise, we would rather choose another company!"

Martin had calmed down. He lit a cigarette and started puffing.

"Mr. Atlan, may I ask if you will exclusively support BHP Mining in Naha?"

"No, we are a free trade port and will not restrict any company."

“Then how can you support BHP Mining?”

Atlan laughed out loud.

"Mr. Martin, Tongan is the one who makes the rules."

Martin put out his cigarette in the ashtray and said firmly,

"This reason is not enough to obtain a 20% stake."

Atlan smiled.

"What about the annual purchase of 100 million tons of iron ore?"

"One million tons? Isn't your company's annual procurement volume two million tons?"

Atlan shrugged.

"Mr. Martin, it's not impossible for you to take the entire order, as long as you are sincere enough."

Martin was very angry, and suddenly stood up and shouted,

"BHP Mining will never accept blackmail!"

He suddenly pointed at Atlan and shouted,

"I came here with sincerity, but you, Atlan, where is your sincerity!"

Atlan was also very angry when his nose was pointed at, and he shouted,

"I immediately agreed to your suggestion. Isn't that sincerity? Martin, if you don't want to talk, you can just leave! No one will stop you!"

Martin was ordered to leave and his face turned red with anger.

Kenny, who had been silent, suddenly stood up, pulled down Martin's arm, and persuaded him,

"Mr. Martin, please calm down. Even if the negotiation fails, there's no need to get angry."

David also stood up, helped Atlan to sit down, and said,

"Mr. Atlan, please don't be angry. Martin just couldn't get over it for a moment. I'm trying to persuade him."

David walked up to Martin and finally persuaded him after a while of talking.

After both sides rested for ten minutes, Martin said,

"Mr. Atlan, I apologize for my impulsiveness just now. 4000 million yuan, 20% of the shares, and 200 million tons of annual orders must all be given to Bhe Mining!"

Atlan stared at Martin and said in an unquestionable tone,

“22% of the shares!”

Martin clenched his fists, but then loosened them at David's gaze.

"All right!"

Atlan laughed heartily and shook hands with Martin.

"Mr. Martin, it's a pleasure to work with you. Now, let's talk about the price of iron ore!"

At present, the international price of iron ore is 30 million yuan/ton.

Martin thought for a moment and quoted a price.

"29 yuan/ton, how about that?"

Atlan pondered for a moment, took out a piece of paper, wrote a number and handed it over.

Martin looked at it and nodded.

"Okay, Mr. Atlan, I'll take your offer."

The number on the paper was 28, and Atlanta didn't bargain too much!

"Mr. Martin, what do you think if I want to sign a 20-year agreement?"

"Mr. Atlan, iron ore prices are low right now. How about 10 years?"

"About 15 years!"

"make a deal!"

After the main agreement was discussed, the atmosphere became much better. The two sides chatted for a while, and Atlan spoke again.

"Mr. Martin, I have a proposal. Are you interested?"

"Speaking!"

"Tong'an and Bihe Mining will establish a new company to engage in mineral trading. For example, for iron ore, the new company will purchase iron ore from Bihe Mining at a price 10% higher than the mining cost, and then sell it to other regions. How about we split the profits -?"

Martin thought about it in his mind and thought that this method was indeed very good. It could not only ensure that Bhd. Mining would have a certain profit, but also enjoy the premium of rising iron ore prices.

Once the iron ore price drops sharply, Tongan will also bear the losses.

Oh, that’s not right. Once the price of iron ore falls below 110% of the cost price, the new company may not buy a single piece of ore!

That won't do, Martin said immediately.

"Mr. Atlan, your suggestion is very good. However, I suggest setting a minimum sales volume. What do you think?"

"Mr. Martin, what do you think the minimum sales volume should be?"

“How about 100 million tons per year?”

Atlan thought for a moment and said,

"This is a bit unfair to Tongan. Let's add another clause. Bhe Mining must provide the new company with a quota of, say, 500 million tons. The new company can choose to take it or not. If the new company takes it, Bhe Mining must fulfill its contract and give it priority in supply! Of course, this priority will definitely be lower than Tongan's 200 million tons!"

"no problem!"

In just a few words, a new company was finalized.

With the previous two agreements, the relationship between the two parties became much more harmonious. Then, the two parties began to negotiate on equity swap.

From morning to noon, the two sides discussed and determined the final plan.

Through share swaps, BHP Mining acquired 15% of the shares of Modu Steel Plant, and Tongan paid BHP 2000 million yuan and acquired another 11% of BHP's shares.

In other words, Tongan owns 26% of BH Mining's shares.

In the agreement, BHP obtained the power to decide whether to withdraw from the Magic City Steel Plant within one year. If it withdraws, Tongan will pay an additional 2000 million yuan to compensate BHP for the 15% stake it replaced.

That is to say, if any risk occurs to the Magic City Steel Plant within a year, Bihe will only lose 4% of its shares.

Both parties felt that this deal was a good deal.

Because Tongan has alleviated its financial pressure, it can also obtain an additional 4% of shares.

For BHP, using 4% of the shares to fight for a bright future is a very cost-effective thing. Besides, doesn’t it still have an annual order of 200 million tons of iron ore?

No matter how you calculate it, Bihe Mining will not lose money!

Tonghe Mining Trading Company, a company jointly invested by Tongan and Bihe Mining, was also established on the same day.

The new company's start-up capital includes: Tongan's investment of 1000 million yuan and Bhe Mining's provision of 40 tons of iron ore.

Among them, Tongan National Sovereign Monetary Fund holds 51% of the shares and BH Mining holds 49% of the shares.

The company's headquarters is in Naha.

All funds will be settled in an account opened with ANZ Bank, which has been made clear long ago.

At the same time, Atlanta started another negotiation: purchasing Australian agricultural products.

Selling agricultural products has almost become a headache for Australia, which is related to their history.

For more than a century, Australia has been a colony of a gentleman country. Therefore, Australia has long played the role of a raw material exporter, especially agricultural products, and has long relied on exports.

Once the international situation changes, agricultural products will be difficult to sell because there will be no stable buyers.

Australian agriculture is primarily based on animal husbandry and grain farming, with animal husbandry being the most important sector. This has been a long-standing tradition. For nearly a century, Australia has been the world's largest wool producer, leading some to say: "If ever there was an industry, a single product, that built a nation, it was wool that built Australia!"

Tongan’s order this time is a long-term order with an annual quota of 2000 million RMB.

Grains, wool, sheepskin, beef and dairy products are the focus of Tongan's procurement, especially sheepskin and wool, which account for one-third of the orders.

That afternoon, the head of Australia’s agricultural department came to Shanghai in person.

2000 million yuan is not a small amount, but it is not a big amount either. It may not be worth the Minister of Agriculture’s personal visit. He has another purpose for coming: to lend money to Tongan so that it can buy its own agricultural products.

The amount given is very high, up to 100 million Australian pounds.

At this time, the Australian pound was pegged to the British pound at an exchange rate of 1:1, which means that the amount given by Australia was as high as 4 million Australian dollars.

After brief negotiations, an agreement was reached.

Australia originally wanted to provide a mortgage, but what can Tongan offer?

The future of aviation will only have some broken planes.

TA Cruise Company, most of the ships are rented.

Australia wants to use the industrial zone as collateral, but this industrial zone is full of uncertainties.

As for the shares of TA company, don't be ridiculous, all of TA company's assets are invested in the industrial zone.

Finally, at the strong request of Consul David, another steel plant and oil refinery in Tongan must be built on Irian Island.

When Lao Hu heard the news, he almost went crazy with joy!

The steel plant provided by the United States to Lao Hu can only smelt iron. It does not involve electric arc furnaces and refining furnaces, which require extremely high technology.

BHP Billiton, as an Australian mining giant, owns a steel mill. Moreover, it has close ties with several other steel giants. They have formed an alliance of interests through share swaps.

In other words, Tongan was indirectly connected with those steel mills.

TA pretended to be reluctant, so the two sides started another round of negotiations and finally made a request: BlueScope Steel must invest in technology and provide a series of technologies such as electric arc furnace and alloy steel making.

Otherwise, Tongan would never build a steel plant in that remote place.

BlueScope Steel is a subsidiary of BHP Mining.

During the second round of negotiations, this request was 'barely' passed.

In fact, Martin was very happy. With the investment in Xinzhou Steel Plant, the sales of iron ore of Bihe Mining would be more stable, and as a result, resources such as coal could also be sold in large quantities.

As for whether it will cultivate competitors, don't joke. The products of other steel companies cannot enter Australia at all.

A month later, Atlan proposed to Martin to move the electric arc furnace and alloy steel production line to Chongming on the grounds that the construction of the Irian Island steel plant was slow. In order to "monopolize China's iron ore trade", Martin readily agreed.

At this point, Chongming Iron and Steel Company has world-leading steelmaking technology!

Lao Hu felt that things had been going too smoothly recently and that he couldn't explain it scientifically, so he began to study metaphysics. In the end, he came to a conclusion: the Chinese had suffered for a century, but the catastrophe was over, and with the blessing of the ethnic group, Tongan had the aura of a protagonist!

Yes, that must be the case!