Knock knock knock.
Three knocks on the door caused i Xiang to turn her back and wipe her tears.
Chen Cheng also vacated the president’s seat and sat down on the sofa to one side.
The door opened, and a man in his early fifties entered, his build lean and carrying several folders under his arm.
He glanced at Chen Cheng, bowed slightly in greeting, and Chen Cheng nodded in response.
Naturally, Chen Cheng couldn’t understand their conversation, but he could tell the man was here to get i Xiang’s signature.
"President Xingye, I..." the man glanced at Chen Cheng again.
i Xiang sat in her chair, "Uncle Watanabe, please go ahead. Mr. Chen is not an outsider."
Watanabe placed the folders on the desk, opening one of them first,
"President Xingye, this is the latest progress of our iron ore exploration project in the Pilbara region of Australia."
He then took out an iPad, displaying the geological map, "As you can see, the area marked A contains high-grade Red Iron Ore Vein, and the preliminary estimate of reserves is quite significant."
"Our planned exploration of three veins is currently under drilling and sample analysis. If subsequent lab results et expectations, the potential for developnt of this mining area will be trendous."
i Xiang watched the geological map intently, her eyebrows slightly furrowed, "Uncle Watanabe, how difficult is it to obtain mining rights in this region? Are there any risks associated with local policies and environntal assessnts?"
Watanabe pushed up his glasses, prepared to answer:
"President, we have commissioned a local Australian law firm to conduct preliminary research. Currently, the difficulty of obtaining mining rights is moderate."
"We plan to proceed with a joint developnt approach, forming a joint venture with a local mining company, which can effectively reduce risks and speed up the project’s progression."
He took a docunt from another folder and handed it to i Xiang, "This is our preliminary draft of the frawork agreent for cooperation, you can take a look."
i Xiang didn’t understand geology, but she could understand the numbers in the agreent.
"400 billion yen?" she lifted her head to Watanabe, "Uncle Watanabe, this... 400 billion yen, is this the investnt amount Xingye Products has to bear?"
"President, please don’t worry, this 400 billion yen is not a one-ti investnt."
Watanabe explained, "This is a long-term investnt plan based on current exploration results and future market estimates, to be invested over ten years. The initial phase, mainly for mining rights acquisition, infrastructure construction, and equipnt procurent, is about 80 billion yen."
He pointed again at the geological map on the iPad, adding,
"If the exploratory results from Area A continue to be positive, subsequent investnts will gradually increase, ultimately reaching the scale of 400 billion yen. Of course, this is a preliminary estimate, and the specific investnt amount will be adjusted according to actual situations."
i Xiang took a deep breath, her fingers tapping on the desk. 400 billion yen, even spread over ten years, ant an annual investnt of 40 billion, a considerable challenge for Xingye Products.
"Uncle Watanabe, what is the return on investnt? How long will it take to recover the costs?" i Xiang asked the most critical question.
Watanabe was well prepared and imdiately flipped to the last folder, pointing to the data inside, "Based on our estimates, if everything goes well, the Pilbara project can recoup its investnt within five years, and the total return on investnt over ten years is expected to exceed 150%."
"Of course, this is a conservative estimate, and the actual return could be even higher."
i Xiang was also in a dilemma; Xingye Products had just barely made it through a tough ti. Even the initial investnt of 80 billion yen would stretch her thin.
Not to ntion, Chen Cheng nearby was also looking to sell his shares, an additionally thorny issue.
"Uncle, I want to put this project on hold for now." i Xiang concluded.
"Why?"
"We don’t have that much money right now," i Xiang massaged her temples, her tone carrying a hint of helplessness,
"Uncle Watanabe, as you know, the company only recently went through a crisis. Although it has now stabilized, our financial situation remains precarious. An initial investnt of 80 billion yen would be too much pressure for us."
She paused, glanced at Chen Cheng, and continued:
"Moreover, we have already invested a lot of money and resources in Brazil, and so far, the situation there is still at a loss."
In the end, i Xiang didn’t ntion Chen Cheng’s impending share sale. She had her considerations; Xingye Products could not afford to experience such turmoil again.
Watanabe’s expression changed significantly, even his form of address, "i Xiang, I am aware that our situation in Brazil is indeed not ideal, which is why we can’t put all our eggs in one basket."
"Only by opening new channels and finding new growth areas can Xingye Products truly escape its predicant and revitalize."
Watanabe spoke urgently, trying to persuade i Xiang, "The Pilbara project is an excellent opportunity; we can’t just give it up!"
He pushed the iPad back in front of i Xiang, pointing to the red-marked area on the geological map, his tone even more fervent:
"i Xiang, take a good look, such high-grade Red Iron Ore, with such abundant reserves, is a once-in-a-century opportunity! If we miss this, we’ll definitely regret it later!"
Chen Cheng, who had remained silent, although he couldn’t understand what both of them were saying, seed to see a scene of the young master being cornered.
"Director Watanabe, I know you have high hopes for this project, and I trust your professional judgnt."
Reviews
All reviews (0)