some good news for General Nice

A quick update on General Nice (俊安集团), the license holder for the Isua iron mine in Greenland.

Some two weeks ago, the group’s Hong Kong-listed company, Loudong General Nice Resources (樓東俊安), entered a conditional agreement to issue some $50m in convertible bonds to state-owned investment manager China Huarong 华融. That money would help pay for an investment in a Mainland logistics business Loudong GN have been talking about for some time.

Loudong General Nice have had a tough couple of years as their historical core business of Shanxi coal generated considerable losses, but they’ve been trying to diversify away from it and have already managed to get some new Mainland shareholders on board, as I’ve reported recently. Their shares are trading at almost three times what they were worth not two months ago.

General Nice’s HK-listed company is not directly involved in Isua.

Meanwhile in Australia, a troubled General Nice investment is starting to look better. Pluton Resources, the operator of the Cockatoo iron mine off Western Australia, where General Nice own a majority stake, has come out of receivership, where it had landed after a dispute with Chinese partners and creditors. Encouraged by a rebound in iron prices, they are now seeking to finance new activity at Cockatoo and a new project with a $50m bond offering.

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