Chapter 553: The White Wolf's Plan with Empty Gloves
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"What's wrong? I think your expression seems complicated? Fan Heng asked his son Fan Wuxian.
Fan Wuxi shook his head and replied with mixed feelings, "How can I say it, but the mood is more complicated now, Baosteel has increased its price." ”
"Baosteel often raises prices, so what does it matter?" Fan Heng was a little puzzled.
In Fan Heng's impression, the price of the steel market will rise, which means the recovery of infrastructure, which means that the impact of the financial turmoil in Southeast Asia is far away from China, which should be considered a good thing, right?
"It's a mixed bag!" Fan Wuxian explained to Fan Heng, "If Baosteel's price increase this time is in line with the trend of the market, it will be okay if there is a need to raise prices, but according to my intelligence, Japan's Mitsui chaebol is gradually controlling this one of the top key steel companies in China, which cannot but be worrying." ”
In fact, the price of steel raw materials has risen. However, it will drive the collective price increase of the upstream industry, and some low-end raw material suppliers, such as iron ore supply and coke supply, will move randomly and swarm into this price increase trend.
The domestic market has only been well regulated. At the time of the results, Baosteel suddenly came to such a hand, which is obviously a bit out of place, but for Jiangnan Province, it is not bad news, or a good news.
In Jiangnan Province, Indonesian Chinese business investment was introduced. After the huge amount of capital of iron and steel enterprises, the iron and steel metallurgical industry has developed very rapidly, and the financial problem that restricts the overall development of the industry has suddenly been completely solved, and then it will be followed by explosive growth.
In just the past five months, the steel enterprises of Jiangnan Province. The output has doubled, which has led to the rapid development of various downstream processing industries, and also made Jiangnan Province's financial revenue begin to make great strides, and more importantly, it has provided a strong guarantee for the foundation of Jiangnan Province's upcoming family car manufacturing industry.
As the vane of the domestic steel market, Baosteel's price increase is directly guided. As a result, the sales of the steel industry have risen collectively, which means that the key enterprises in Jiangnan Province have suddenly taken a free ride on the rapid development and enjoyed huge profits from the beginning.
Naturally, with the strengthening of the steel market, the iron ore market is also going to. However, due to Fan Wuji's investment in iron ore mines in Australia, Rio Tinto and BHP Billiton did not immediately raise international iron ore export prices, but chose a more cautious wait-and-see attitude.
And before Jiangnan Province. Following Fan's advice, we signed a contract with Rio Tinto and BHP Billiton for the supply of 50 million tons of iron ore, which can ensure that the demand will not be affected by rising prices within one and a half to two years, and in this case, the return is extremely rich.
Therefore, when Fan Heng heard the price increase of Baosteel, not only was he not worried, but he was a little relieved, because the rise in steel prices was a strong agent for the developing steel industry in Jiangnan Province.
But the disadvantage is also obvious, the rapid rise in steel prices will inevitably lead to the rise in the cost of various infrastructure projects, so that prices will re-enter a new round of climbing, which is very unfavorable for the overall situation, this large order is to be paid by all Chinese.
Fan Heng thought for a while, and knew that Fan Wuxian was worried, but he also said to his son, "There are many factors that lead to the rise in prices, and the rise in the steel market is only one of them. ”
What Fan Wuxian thought of in his heart was something else.
At present, the domestic steel market is hot and the price is rising, so their layout in Australia can also be carried out on a large scale at this time, after all, Fan's iron ore investment company, which has been prepared for a long time, should also make its debut.
The next day, Rio Tinto and BHP announced that the price of iron ore would rise by 40 percent, from the original price of 18 US dollars per ton, to the current price of 25 US dollars per ton.
If Fan Wuzhi had not asked Jiangnan Province to sign a large order in advance, the 50 million tons of iron ore, calculated at the original price of 18 US dollars per ton, would have risen to 24 US dollars, and an additional 350 million US dollars would have been paid, which is equivalent to almost 300 million yuan.
Although the renminbi of more than 300 million yuan is not enough in the face of big capital, in 1998 it was enough to save more than a dozen large enterprises in Jiangnan Province, and this is still a very large amount of money. Coming and going like this made Fan Heng have a lot more money on his hands.
The weather is still quiet in Western Australia, and Fan's Iron Ore Investment Company is mobilising large numbers of workers to build a port to the open sea, as well as a rail link between the port and the mine.
The railway line, which costs up to 2 million Australian dollars per kilometer, is a key project of Fan's Investment Group, and only about a third has been built, and the direct investment of 300 kilometers of railway has reached 600 million Australian dollars, plus investment in other aspects, a total of 2 billion Australian dollars, this money still looks relatively scary, especially for an iron ore producer, to earn back this money, it means that more than 200 million tons of iron ore need to be sold.
However, Fan Wuxian also took into account a factor of rising prices, so he hoped to solve this problem through the capital market, so that the money raised through the capital market could soon be used to build factories, railway lines and ports, etc., but if the price rises too fast, it will relieve his own repayment pressure.
However, in order to do so, it is also necessary to give investors confidence that your company can guarantee that profitability and production capacity are equally good, which is more difficult to establish.
"But now this opportunity has come." Fan Wuxian smiled and said to Fan Heng, "Our Fan's Iron Ore Investment Company in Western Australia will sign a supply contract with Jiangnan Province for 20 million tons, and the price will be calculated according to 70% of the current price of iron ore." ”
Fan Heng was stunned for a moment, he didn't know what Fan Wuxian meant, but if it was calculated according to 70% of the current price, it would be equivalent to Jiangnan Province could get 20 million tons of iron ore at the price before the price increase, which is more than 100 million yuan saved.
"Isn't the loss too big if you do that?" Fan Heng paused for a long time before asking.
Although he doesn't know what the purpose of his son's approach is, he can't be clearer about this real concession, such a big deal will only make Jiangnan Province more special and capable than other provinces.
"The price is kept secret, but once the order quantity is confirmed, Fan's Iron Ore Investment Company will have a firm foothold in Western Australia." ”
For foreigners, contracts are sacrosanct, once your company gets a huge order, then investors will flock to it with interest, and now Western Australia's Fan's Iron Ore Investment Company is brewing to list in Australia for financing, and suddenly signing such a large order will definitely make the listing process very simple.
This is a kind of empty glove white wolf method, only need to invest a small amount of money in the early stage to start the whole project, and then use the power of orders to attract the majority of investors, through the issuance of shares to raise funds for the later construction, to resolve their investment risks in this project.
It can be said that Fan Wuzhi's investment in this project will not exceed 300 million Australian dollars, and if it is done properly, the company can raise billions of Australian dollars to maintain the follow-up project by issuing shares, that is, once the company is successfully listed and funded, it will already be invincible.
Even a direct transfer of the company would be enough to make Fan Wuxian easily earn billions of dollars, or more.
Fan Heng was a little dizzy by his son's set of capital operation techniques, although he has been studying economic knowledge very carefully, but in the face of this superb capital operation methods, he still has a little bit of a clue about the doorway.
However, Fan Wuxian is not much interested in explaining to him in detail, because the process is simple to say, and there are still many skills in operation, especially for the grasp of timing and the grasp of investor psychology, which are very important.
People who do not have a deep foundation in capital operation cannot play such a big business, which is why although there are many players in the capital market, there are very few people who can make a name for themselves and eventually succeed.
"Well, there's one thing I've figured out anyway." In the end, Fan Heng touched his chin and said to his son, "Jiangnan Province can save one billion yuan by signing this purchase contract, and even if it sells iron ore to others, it will make money." But you will not suffer a loss, but will be sought after by investors because of the large orders you have obtained overseas, and you will get rich returns from the capital market? Is that so? ”
Fan Wuxian nodded and replied, "That's right, that's pretty much what it means." ”
"So how should we cooperate?" Fan Heng thought that another great achievement was about to fall on his head, and it would also be of great help to his son's career, and he was a little eager to try it in his heart, so he humbly asked for advice.
"This matter still needs to be discussed in the long run, and the most important thing is that we can't reveal the slightest rumor before, and when the time comes, we will throw this contract out, otherwise we won't be able to achieve our goal sooner or later." Fan replied.
Fan Heng nodded, convinced that confidentiality is naturally the first priority, which is not only a must in international business, but also in domestic business activities.
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