Chapter 745 Investment

"There is a probability of not finding it, but it is not high.

The reason is very simple. The current international background is that iron ore prices are constantly rising.

In this case, China's private mining companies will need a more stable supply of iron ore from Australia.

So FMG can continue to get iron ore futures orders from China.

Against the backdrop of rising iron ore prices, private equity and investment banks will continue to finance FMG.

So Forrest has at least one to two years to explore.

With Australia's natural resource endowment, it is highly likely that iron ore will be found."

Australia has 23 billion tons of iron ore reserves and an annual output of hundreds of millions of tons, both of which are the world's largest in terms of production and reserves.

The probability of finding it is very high.

"To put it another way, even if FMG fails in the end, it doesn't matter. There is no 100% profit in investment.

At least Andrew Forrest showed me the talents that a successful businessman should have, and FMG also showed me the hope of success, which is enough."

In these years of investment, he has read too many materials of start-ups.

Over time, he also learned how to judge the future of a company.

He thinks FMG will be a good company in the future.

"Mr. Xu, I'll call him right away."

Xu Liang nodded, "Let's meet at the Hanhua Australia office."

"Okay."

--

After getting off the car, Andrew looked at the dazzling Chifley Building in front of him in the sun, with a hint of envy in his eyes.

As the top 5A office building in Sydney Financial City, Australia, only top companies can work here.

Take a deep breath.

"One day, FMG will become such a company."

After strengthening his confidence, Andrew Forrest, who changed into a neat suit, walked in with firm steps.

Because he had an appointment in advance, he met Xu Liang smoothly.

"Mr. Xu."

With the expectation and excitement in his heart, Andrew hurriedly stepped forward and stretched out his right hand.

"Mr. Forrest, we meet again."

"It's my honor to meet Mr. Xu again."

Xu Liang smiled and said, "Please sit down."

"Thank you."

After sitting down on the sofa in the reception area.

The secretary served tea.

Andrew picked up the teacup, "Mr. Xu, I like Chinese tea very much. It not only tastes great, but is also very beneficial to health. It is simply a gift from God.

I bought a lot of it when I went to China on a business trip last time."

He opened the briefcase he carried with him and took out a small clay pot sealed with mud from it.

"This is the special Dahongpao I bought in China last time. The person who sold it to me said that it is the top black tea produced by the second generation of Dahongpao mother trees. I don't know much about this. Today, I will give it to Mr. Xu."

Xu Liang's eyes swept over the clay pot.

"Mr. Forrest, thank you very much for your generosity. I accept this can of Dahongpao."

Andrew's face smiled even more.

Accepting the gift means that there is hope for the success of the next negotiation.

"Since Mr. Xu likes it, I will definitely find better tea to give to you next time I go to China on a business trip."

Xu Liang smiled, "Then I will say thank you first."

Wave.

Lv Hui handed over a stack of documents.

Xu Liang took it and looked at it, then put it in front of Andrew Forrest.

"Mr. Forrest, this is the information you gave me last time."

Forrest took it and flipped through it briefly, "Mr. Xu, three days have passed, and I believe you have a certain understanding of FMG.

I dare say that this is the most worthy mining company in Australia.

You don't need to spend too much money, just 100 million Australian dollars can get a tenfold return in the next five years.

And I have obtained an iron ore supply agreement for eight Chinese steel mills in the next 10 years, totaling 94 million tons.

There will be more in the future.

The only thing missing now is enough funds to build a 260-kilometer railway connecting the mining area and the port, as well as basic port facilities. As long as the investment is completed, FMG will generate a steady stream of profits.

And you will also get a generous return."

Looking at Forrest who was confident.

Xu Liang smiled and said, "If you want to complete the railway you mentioned, 100 million Australian dollars is far from enough."

"I have received advance payments from many Chinese cooperative customers, and there are also many private equity firms willing to invest in us. So only 100 million Australian dollars is needed to leverage the entire project.

Of course, I can also ask you for more financing.

But I don't want to be considered a liar or a conspirator.

100 million Australian dollars is enough for me to operate FMG's project. At that time, you can decide whether to invest based on the results of our operation."

Xu Liang looked at the sincere man in front of him.

It is said that the most treacherous are loyal, and this guy in front of him is a typical representative.

He keeps saying that he doesn't want to be misunderstood by others. For his sake, he only needs 100 million Australian dollars in financing.

If I hadn't read FMG's information, it would be easy for him to fool me.

In this era, 100 million Australian dollars is not a small amount.

"The current market value of FMG should be 45 million Australian dollars."

"Yes. In just less than 5 months, the market value of FMG has increased from 20 million Australian dollars to 45 million Australian dollars, more than doubling.

This is the best affirmation of our value." Forrest said.

"I can give you 100 million Australian dollars."

Andrew Forrest was overjoyed, "Mr. Xu, don't worry. FMG will definitely be the one with the highest return rate among all your investments..."

Xu Liang smiled and waved his hand to interrupt him.

"Listen to me first. I want 49% of FMG's shares for this 100 million Australian dollars.

I will serve as the chairman of the board of directors of the company, and you will continue to serve as the CEO of the company and be fully responsible for the management of FMG."

In the Western business world, the ownership and management of a company are separated.

The board of directors has no right to interfere with the operation of the company.

The core of a company is the CEO, who determines the management and operation of the company.

In the East, it is just the opposite. The chairman is the core of the company's management, and the CEO is just a worker.

After a little thought, Forrest shook his head.

"Mr. Xu, 100 million Australian dollars is too little. Although the market value of FMG is only 45 million Australian dollars, we have 39 million Australian dollars in advance payment in our account, and we have also obtained 30 million Australian dollars in financing from ANZ Bank and PEP.

We have enough funds to operate FMG's projects."

Xu Liang smiled and said, "As you said, 39 million Australian dollars is the advance payment of the steel mill, and 30 million Australian dollars is project financing, which will be repaid in the future.

And the 100 million Australian dollars I invested can be regarded as the capital reserve of FMG, which can be directly invested without the need to bear the debt pressure.

The nature is different."

"Too low, if Mr. Xu wants 49% of the equity of FMG, it must be 200 million Australian dollars."

For Andrew Forrest, FMG is not something that cannot be sold. As long as the price is right, he will sell it even if it is 60%, 70%, or even higher, let alone 49% of the equity.

At the beginning of Anaconda Nickel, he only held 12% of the shares, and the rest were taken out for financing.

So as long as the price is right, the equity can be sold.

"Greed is a good quality, but excessive greed is not a good thing. 200 million Australian dollars?"

Xu Liang smiled and shook his head.

"Mr. Xu, FMG can pay more shares."

Xu Liang still refused.

Although he judged that FMG had great potential, it was not without the possibility of failure.

So, 100 million Australian dollars was the limit of his investment, and 200 million Australian dollars was too much.

"Mr. Forrest, I have some status in the global financial venture capital industry. With my endorsement, it will be easier for FMG to raise funds or promote iron ore in China."

"Mr. Xu..."

After a tug of war, both sides took a step back.

Xu Liang raised the financing amount to 120 million Australian dollars, and FMG paid 55% of the equity.

Both parties hired lawyers and signed a contract.

FMG also formally submitted a notice of major equity changes to the Australian Securities Commission and applied for temporary delisting.

Xu Liang's investment in FMG passed the review of the Australian Securities Exchange very smoothly.

After all, it is just a small company with less than 100 million Australian dollars, not a giant like BHP Billiton and Rio Tinto, so there is really no reason to stop it.

However, with Xu Liang's investment, FMG's opening price soared.

The company's share price soared nearly tenfold from 0.45 Australian dollars per share to 3.8 Australian dollars per share. According to FMG's total share capital of 100 million, the market value reached 380 million Australian dollars.

It can be said that Xu Liang, who holds 55% of the shares, has made money.

But he has no intention of selling his shares.

FMG still has huge room for development.

One week before the Chinese New Year, Xu Liang flew back to China on Kunpeng.

"Brother, you pasted it crookedly, a little more to the right."

"Like this?"

"Too much, too much, a little to the left."

Under the command of his baby sister, Xu Liang pasted the Spring Festival couplets.

He jumped off the bench and looked at it.

"A harmonious family brings prosperity, and a harmonious family brings happiness. Not bad."

Under the command of Xu Meng, he pasted all the couplets, carrot money, etc., and then took the paste home.

"Liangzi, come here."

"What's wrong, Dad?"

"Are you going back to your hometown for the New Year this year?"

"Xiaoyang is still in confinement, how can I go back to my hometown?"

Seeing his father's serious expression, Xu Liang's heart moved.

"Did the village call you?"

Xu Yongpei nodded, "The village wants to rebuild the family tree and restore our Xu family's ancestral home."

"Xu's ancestral home?"

"Yes."

Xu Yongpei's eyes were filled with memories.

"Our Xu family's ancestors were the most prominent official family in Qingzhou. Before liberation, they owned nearly 10,000 acres of land in our local area. Many of the children in the family also served as senior officials in the Red and White Parties."

Xu Liang had heard his father talk about the ancestors of the Xu family before.

As a top family, hedging is a basic operation.

So many people in the Xu family joined the White Party, and many joined the Red Party.

The Red Party had the highest rank of division commander, and the White Party had served as a senior official in Qilu.

Later, before liberation, the White Party members flew directly to Wanwan.

When Xu Liang was in elementary school, he came back to look for his relatives.

He donated a lot of money to the village.

The Red Party promptly passed back some policies from above.

Therefore, the main branch of the Xu family sold part of the family's land before the class classification, and divided the remaining land and houses equally among all the Xu family members.