Chapter 310: Stock Price Skyrockets Fiftyfold
Li Tang Prosperity Holdings was effectively the parent company of Lianying Mining.
Follett rarely came here; after all, Lianying Mining operated independently, so there was no need for frequent office visits or constant reports.
Moreover, his boss, Li Tang, had granted him enough freedom and authority.
Nevertheless, each time he visited, Follett felt an inexplicable sense of excitement.
"Would you prefer coffee or tea?" Li Tang asked, glancing at Alice, Follett, and the others.
Li Tang Prosperity Holdings had grown increasingly large, with a progressively refined organizational structure.
Back when Li Tang first founded the company, he typically brewed tea himself when hosting guests.
Now, the logistics department had specialists for hospitality and reception duties.
When entertaining guests, they offered various coffee flavors, teas, and juices, and even catered thoughtfully to individual preferences.
"Coffee," Follett answered casually. He wasn't overly concerned about minor details. Instead, he gestured to his team to present Li Tang with Lianying Mining's revised design plans and overall budget change applications.
A thick stack of documents.
Li Tang flipped briefly through the cover pages, remarking, "You already explained the general concept last night. I'll review and sign these documents as soon as possible."
Tasks like these couldn't be completed with just a quick glance.
After all, as a technician himself, he naturally took a more focused approach toward technical matters.
"I think you should particularly review the financing plan for three billion Australian dollars," Alice suggested.
Speaking of the financing plan, Follett interjected, "Our original plan was to raise one billion Australian dollars through issuing additional shares, with the remaining two billion funded through bonds or loans. Before requesting your approval, we had already met with numerous investors. Initially, my intention was to secure investors beforehand, so that when I presented the financing plan to you for signing, you wouldn't have to worry about these details."
Follett preferred completing tasks first, then approaching Li Tang for approval.
He was indeed a manager who didn't burden his boss unnecessarily.
But Li Tang noticed something off in Follett's tone: "You weren't successful?"
"We did find investors willing to invest," Follett admitted, "but their conditions were excessive."
"What conditions?"
"They demanded controlling shares, dominance over the board, and involvement in operational decisions."
"They're trying to push us out!" Li Tang obviously wouldn't favor such partnerships.
That wasn't cooperation—it was outright usurpation.
"Knowing your vision for Lianying Mining's future, I assumed you'd never agree to such terms, so I directly declined their offer." Follett clearly had already decided on behalf of Li Tang.
"Perhaps you made the right choice." Li Tang didn't object much.
Having delegated authority to Follett, Li Tang had already anticipated his manager's tendency to act decisively first, then report back later.
"I suddenly realized that I've been approaching this incorrectly," Follett said, his eyes sparkling beneath flushed cheeks. "You are a remarkable boss. Your approach is obviously much smarter and more comprehensive than we had imagined."
"What does this have to do with me?" Recently, Li Tang had spent time in Guinea with Lei Pingjin, Pan Yuexing, and other technicians, working on the iron ore project, without involving himself in Lianying Mining's management.
How was he smarter?
"The key to whether Lianying Mining can secure funding and successfully develop iron mines isn't about finding investors who give us huge sums of money!" Follett declared excitedly.
"What's the key, then?" Li Tang asked.
"The key is whether anyone will buy our iron ore!"
In Li Tang's eyes, Follett seemed to have found his answer: "Normally, mining follows this sequence: secure funding, build infrastructure, produce ore, and then sell it. But if Lianying Mining wants to grow and expand rapidly, we can't follow conventions—we must find an alternative method because we lack funds!"
"That's called going against conventional wisdom," Li Tang smiled.
"Exactly!" Follett enthusiastically agreed. "If we can secure buyers for our projected iron ore output even before developing the mines, investors will flock to us!"
Having contracts that guaranteed sales for ten or twenty years ensured stable income without worrying about finding customers.
That represented guaranteed profitability!
Wasn't investing fundamentally about securely recovering the principal first, and then seeking greater returns?
At this moment, Li Tang passed several contracts over: "Hai Gang Steel, Fengli Group, and other steel enterprises from Huaxia have clearly expressed intentions to sign long-term supply contracts with us, similar to our deal with Hualing Steel. The contracts are standardized, though annual quantities differ, and each has specific transport requirements. These are the agreements I negotiated with five steel enterprises, awaiting your signatures."
Follett excitedly took the contracts, envisioning endless streams of investment pouring into their corporate accounts, factories springing up across the Pilbara region, and endless shipments of iron ore traveling by rail and sea to ports in Huaxia.
"These are precisely the contracts I wanted!" Before arriving, he had carefully studied the contract signed with Hualing Steel.
A ten-year supply agreement for two million tons annually—totaling twenty million tons—might seem insignificant for a mine with an annual production capacity of over fifty million tons.
But signing ten or twenty similar contracts beforehand could bring transformative changes!
This meant their iron ore production would face no sales issues.
Nor would there be anxiety about huge investments in mining failing to translate into cash flow!
With these contracts, their job became simple.
Extract the ore and transport it—that's all!
There was no easier or more profitable trade than iron ore!
"Oh, by the way," noticing Follett's excited expression while reviewing the contracts, Li Tang specifically pointed to the final one. "Hai Gang Steel is the leader of Huaxia's steel industry. Their annual iron ore demand is tens of millions of tons, potentially exceeding 100 million tons in the future. Their production plans increase yearly."
"Yes," Follett eagerly anticipated cooperating with such a giant corporation.
Just like Rio Tinto and BHP, which became global mining giants through collaboration with world-class steel enterprises like Nippon Steel and POSCO. Leveraging the rapid growth of Japan and Korea in the 1960s and 70s, they amassed great wealth and resources.
For Lianying Mining to become strong, their only path was close collaboration with Huaxia's steel enterprises, especially giants like Hai Gang Steel!
He initially thought he would encounter many challenges, but Li Tang had already resolved everything.
Undeniably, having a Huaxia-native boss was advantageous.
Li Tang's nationality made securing such futures contracts easy.
Furthermore, clients were willing to pay substantial upfront payments.
Without adequate trust, these steel enterprises wouldn't readily agree to such contracts.
"First, review the contract from Hai Gang Steel. They're ordering twenty million tons annually, with a ten-year agreement totaling two hundred million tons!" Li Tang reminded him.
All other contracts combined amounted only to a few million tons annually.
Yet Hai Gang Steel alone ordered twenty million tons per year!
"This much?" Even Follett, an experienced veteran, was astonished.
Twenty million tons annually equaled nearly half the production capacity planned for Lianying Mining's initial phase!
Initially, mines couldn't run at full capacity; even half-capacity at startup would signify success. Production would only increase gradually after stabilizing operations.
"This is fantastic news," Li Tang laughed heartily. "Additionally, aside from these contracts, the Steel Industry Association coordinated several enterprises to discuss with banks in Huaxia. They're willing to offer substantial low-interest loans—or even interest-free loans—to Lianying Mining."
"Low-interest loans?" Follett suddenly felt that the contracts in his hands had lost some allure.
With financing resolved entirely, other problems were insignificant!
With money, anything was possible!
"How much low-interest funding could they provide?" Follett quickly asked.
"Between one and two billion USD. The exact amount depends on future discussions," Li Tang responded cautiously.
Although Bao Yanyao had promised assistance, Li Tang remained cautious. Such large capital outflows would likely face regulatory scrutiny and challenges.
"If this financing materializes, our business is destined for tremendous success!" Follett couldn't find words to express his current excitement.
He yearned to build Lianying Mining into a major player, considering his 10% share options.
Since joining Lianying Mining, Follett had poured all his energy into it, determined to match the scale of Rio Tinto and BHP.
Partly for profit, partly to prove to Eagle Magnesium Resources—and to Charlie specifically—that he was capable of leading a mining enterprise to world-class status!
Being ousted from his own company by Eagle Magnesium Resources wasn't something easily forgotten.
"The rise of Lianying Mining is unstoppable!" Li Tang observed Follett pacing energetically, clearly thrilled.
He was also affected by the enthusiastic atmosphere, laughing as he said, "We have the right timing, location, and people—this is our era!"
"Yes, this is indeed our era!"
Follett spontaneously gave Li Tang a big, heartfelt hug. "Having a boss like you providing us with so much help—not only negotiating these contracts but also securing such a huge low-interest loan—if our team still can't expand and develop Lianying Mining successfully, I'll perform a seppuku right here!"
"Seppuku really isn't necessary," Li Tang chuckled loudly. "I trust your abilities!"
Alice watched the two men hugging, feeling a bit awkward.
After Follett released Li Tang, Alice, acting almost instinctively, suddenly gave Li Tang a warm hug as well. She rested her head against Li Tang's chest, seemingly lost in the moment.
"Is everyone really this excited?" Li Tang wondered aloud. He thought these seasoned professionals would handle the news calmly and steadily.
He didn't anticipate that everyone would react as if they'd just survived some kind of disaster.
"You have no idea how challenging fundraising is. Every day involves watching people's faces and constantly getting rejected," Alice explained.
"You've all worked really hard," Li Tang said thoughtfully.
Clearly, securing such a substantial loan would undoubtedly alleviate Lianying Mining's immediate financial concerns. They had all been busy dealing with this issue, experiencing a great deal of hardship lately, which explained their overwhelming joy.
In contrast, Li Tang was the calmest person in the room.
"Did something good happen?"
Suddenly, an unfamiliar voice came from the doorway.
Lu Chenyi had received Li Tang's phone call. Since he was handling business in Yanjing these days anyway, he decided to visit in person.
"Chairman Lu, you're here so early?" Li Tang was slightly surprised.
During their previous call, Li Tang thought that since Hai Gang Steel was offering a 20-million-ton-per-year supply contract, his own people should proactively travel to Hai Gang Steel to show respect. But Lu Chenyi had indicated that he himself would come over, without clearly explaining the reason.
"I have some matters to discuss with the Steel Industry Association and the Foreign Funds Utilization Department, and the topic of our conversation is somewhat related to you."
Lu Chenyi entered with his entourage, appearing puzzled. "What exactly is going on here? Why is there someone hanging off of you?"
Alice had just become overly excited, her arms still draped around Li Tang's neck as she celebrated cheerfully, completely forgetting her esteemed status as the Chairwoman of Lianying Mining.
Realizing a stranger had arrived and was staring curiously, she quickly let go of Li Tang as though she'd been electrocuted.
"I got carried away," she said awkwardly, blushing slightly.
"Chairman Lu!" Follett stepped forward and enthusiastically embraced Lu Chenyi as well.
This was Follett's usual way of greeting people, embracing them warmly. Incidentally, this helped relieve Alice's embarrassment.
"You foreigners' greetings are indeed very enthusiastic—hard to refuse," Lu Chenyi joked, smiling. He had met Follett before and knew him somewhat. "We'll be cooperating for a long time in the future."
"Chairman Lu, Follett will represent Lianying Mining in discussing the contract with you from now on," Li Tang mentioned. Previously, Li Tang and Lu Chenyi had already discussed the main terms of cooperation. However, specific details like delivery methods and payment arrangements still required further negotiation, as these varied among companies.
"So you're genuinely stepping back as a behind-the-scenes boss now?" Lu Chenyi found it somewhat surprising. Considering the size of the contract, he had thought Li Tang would personally oversee everything.
"These matters are beyond my expertise. Follett is more professional," Li Tang clarified. It wasn't laziness; he genuinely positioned himself as a behind-the-scenes owner. Just like mining giants such as BHP and Rio Tinto, their major shareholders, based in New York or London, typically didn't get involved in daily operations. Lianying Mining followed a similar model, where operational management and contract negotiations were Follett's responsibility. Li Tang's role was limited to facilitating connections and occasionally providing key support.
"In fact, your previous contract with Hualing Steel is similar to ours. Our legal department has reviewed it thoroughly, and only minor adjustments are needed. I brought the updated details today for your review. If everything's fine, we can schedule a signing date," Lu Chenyi explained seriously. He considered this matter important, as a 20-million-ton annual iron ore supply contract had significant long-term implications, crucially affecting their leverage over major companies like BHP and Rio Tinto.
"Working with you is very pleasant," Li Tang praised sincerely.
Lu Chenyi glanced at Li Tang and then at Follett. "You previously mentioned a financing plan to me. Since Mr. Follett is here, could we discuss it now?"
"Oh, right." Li Tang turned around, picking up the financing plan Follett had submitted earlier and handed it directly to Lu Chenyi. "We intend to issue 1 billion Australian dollars in additional shares, approximately 40% of Lianying Mining's total equity, priced at current market value. Additionally, we plan to raise 2 billion Australian dollars through bonds and loans."
"I'm already aware of the loan issue," Lu Chenyi replied, nodding. He had discussed it earlier with Bao Yanyao. Several steel companies involved in cooperation with Lianying Mining planned to jointly guarantee the loan and negotiate with relevant authorities to secure a low-interest loan. They had privately assessed this as feasible because, without these funds, mine construction wouldn't proceed, endangering the supply agreements. Thus, it was mutually beneficial.
"The entire three billion Australian dollars will go into mining and infrastructure construction," Li Tang explained thoroughly, presenting the revised designs to Lu Chenyi.
Zhu Youxin, Wu Yueming, and other leaders from steel companies planning to cooperate with Lianying Mining had traveled from various locations nationwide to Yanjing, discussing the final details with Li Tang and Follett. Crucially, they showed great interest in investing directly in Lianying Mining. It was clear to everyone that future iron ore production would yield significantly greater profits compared to steel smelting. Moreover, Lianying Mining's reserves and ore quality were undeniably attractive.
However, while their financing discussions were in full swing, they received a summons from the Foreign Funds Utilization Department.
They were received by He Lianzong, Assistant Inspector from the Foreign Funds Utilization Department. Participants included Lu Chenyi, Zhu Youxin, Wu Yueming, Bao Yanyao, and several senior vice presidents of the Steel Industry Association.
"I understand you've been intensively negotiating with Australia's Lianying Mining recently, intending not only to sign long-term contracts but also to acquire equity and provide significant low-interest loans," He Lianzong began authoritatively.
Despite being an assistant inspector, He Lianzong represented the entire department and carried a clear air of authority.
Lu Chenyi remained calm, despite his high status as Chairman of Hai Gang Steel. "Our collaboration with Lianying Mining is a new strategic initiative. In the long term, our steel industry's demand for iron ore will continue to grow. Yet, we remain overly dependent on imported ore, which places us at a disadvantage. We've had extensive discussions with Chairman Bao and consulted numerous experts, agreeing unanimously that controlling ore sources is crucial."
Bao Yanyao added, "Our domestic reserves of high-quality iron ore are insufficient for our growth. Acquiring high-quality overseas ore resources is vital for our steel industry's future."
He Lianzong appeared indifferent to their explanations, continuing on his own: "Our monitoring indicates a significant risk in such substantial capital outflow. Lianying Mining is a small company with no demonstrated profitability, suddenly initiating a large project involving over ten billion yuan. Do you consider this reliable?"
"The boss behind Lianying Mining is one of our own," Lu Chenyi replied frankly, disliking He's attitude.
"I have detailed information about Lianying Mining," He Lianzong continued pompously. "With such massive funds flowing out, ensuring safety is imperative!"
Bao Yanyao, having thoroughly investigated Li Tang's background, quickly defended him: "Li Tang is unquestionably trustworthy. He's cooperated closely with state-owned enterprises like Wu Mining Group and Shenxia Group, significantly contributing to our mining industry. This iron ore project is indeed reliable."
"I have some suggestions—otherwise, your investments won't receive approval," He said sternly.
"Speak plainly," Lu Chenyi replied curtly.
"You can cooperate and purchase iron ore, that's acceptable. But if you're investing in equity or providing substantial loans, we advise extreme caution," He declared. "Our explicit suggestion is: equity investments must be controlled by state-owned enterprises!"
After discussing He's proposal, Li Tang immediately rejected it. Why must state-owned enterprises gain control? Clearly, they worried about fund misappropriation and wanted to install their people into management, ensuring strict control. Neither Li Tang nor Follett accepted such interference. Consequently, although long-term supply contracts were eventually signed, financing talks ended fruitlessly after a month of negotiations.
Nevertheless, the five steel companies did finalize long-term contracts, totaling 28 million tons annually, effectively consuming about half of Lianying Mining's planned initial production capacity.
Especially the cooperation with Hai Gang Steel: 20 million tons annually, totaling 200 million tons over ten years!
When this news was first announced domestically, the response was lukewarm at best.
However, after Austrian media reprinted the domestic reports and Lianying Mining officially confirmed the news, it was as if a massive stone had been thrown into the previously calm waters of the Austrian capital market, creating huge waves!
The share price of Lianying Mining, which had hovered around one Australian dollar, soared dramatically.
The rising trendline shot upward like a sharp sword piercing through the clouds!
When Alba was interviewed by a reporter, he was asked directly, "Is Rio Tinto concerned that Lianying Mining might take away your market share in Huaxia?"
The Huaxia market was becoming increasingly important in Rio Tinto's sales landscape.
Nearly half of the iron ore they produced annually was shipped to Huaxia's ports.
Saying they didn't care about the Huaxia market would simply be a lie.
"What do you mean by that?" Alba had seen the announcement from Lianying Mining but pretended not to understand the reporter's implication.
"Lianying Mining secured long-term supply contracts with five major steel enterprises in Huaxia. One of these is Hai Gang Steel, the largest steel company in Huaxia!" The reporter patiently explained, "Hai Gang Steel signed a contract to purchase 20 million tons annually, totaling 200 million tons!"
"So what?" Alba, knowing the reporter was deliberately provoking him, glared unpleasantly.
The reporter wasn't intimidated by Alba's gaze and pressed further: "As we all know, great dikes collapse because of small leaks. The market domination of the top three global iron ore giants now appears to have a gap."
"Do you have any factual evidence supporting your so-called monopoly claims?"
"It's common knowledge. The top three global iron ore giants indeed have a dominant market position!"
"South Africa exports tens of millions of tons of iron ore annually as well. Other African countries also produce iron ore, and even Huaxia itself produces over 100 million tons every year!"
Alba retorted confidently, "Rio Tinto produces less than 200 million tons annually. How exactly do we monopolize the global market? Do you even understand what monopoly means?"
"Perhaps you're right—you may not have a true monopoly. But aren't you concerned at all that Lianying Mining might threaten your market share and position?"
"The market is open and fair!"
"Huaxia imported approximately 150 million tons of iron ore last year. Lianying Mining's announced three-phase construction plan aims for a total capacity of 150 million tons! Once all phases are completed, their production will precisely match Huaxia's total import volume!"
The reporter had clearly done his math. "If Lianying Mining captures Huaxia's entire market, Rio Tinto's ore will have nowhere to sell!"
These words undeniably pulled Alba's thoughts back several years.
Throughout the 1990s, every iron ore producer struggled severely. The number of salespeople outnumbered even the staff at their headquarters.
Salespeople ran around desperately, traveling from city to city, country to country, just to sell iron ore.
But now, all their sales staff had been dismissed.
In today's seller's market, iron ore was easily sold at lucrative prices, generating substantial profits.
Only those who had experienced the tough times could truly appreciate the rarity of these peak years.
Such a prosperous era in iron ore was indeed precious!
They would never easily let this golden age slip away, nor allow others to snatch away their piece of the pie.
"You're grossly overestimating Lianying Mining!"
Alba spat disdainfully before breaking away from the encircling reporters and climbing into his car.
Outside the closed window, reporters continued relentlessly with their microphones and cameras.
"What exactly do you mean? Do you still believe Lianying Mining can't develop their mines?"
"Does Rio Tinto have a better strategy prepared?"
"Will you refuse to fulfill your transportation agreements with Lianying Mining?"
…
By the time the iron ore negotiation results were published, Lianying Mining's market valuation had already reached one billion Australian dollars.
As iron ore trading intensified and major steel enterprises around the world signed long-term contracts at significantly inflated prices with the top three giants, iron ore stocks everywhere surged rapidly.
For the first time ever, Lianying Mining's share price firmly surpassed the one Australian dollar mark.
But this was only a precursor to madness.
After the announcement that Lianying Mining had signed long-term supply agreements with Hai Gang Steel, Fengli Group, and other companies, the company's share price went utterly wild.
In a short time, it jumped multiple times—from one dollar to two, from two dollars to three dollars—and finally breached the five-dollar threshold.
From a mere 0.1 Australian dollars per share after the split to its current price of five Australian dollars, the share price had risen fiftyfold!
The total market capitalization of Lianying Mining also exceeded six billion Australian dollars, racing rapidly toward seven billion.
This explosive surge outpaced even many internet startups!
Such a spectacular boom was unprecedented in the mining sector!
The entirety of Austria, along with the financial sectors in the United States, Britain, and elsewhere, fixed their eyes on this once-insignificant mining company.
Capital's pursuit of iron ore enterprises and the relatively small total share capital of Lianying Mining—barely over one billion shares—served as strong incentives for the continuously climbing stock price.
In practical terms, Lianying Mining had already become Austria's third-largest iron ore producer!
And this was despite the fact they had yet to sell even a single ton of iron ore!
They still hadn't even fully secured financing for mine construction.
Yet none of these realities deterred investors' optimism and aggressive pursuit of their shares.
The reasons were simple:
Rich iron ore reserves!
Strong demand from the Huaxia steel market, guaranteeing future sales, all thanks to the mysterious Huaxia-native boss behind Lianying Mining!
Austrian media eagerly reported on this mysterious behind-the-scenes owner of Lianying Mining.
According to current market valuations, the hidden owner's personal net worth from his stake in Lianying Mining had already reached 2.8 billion Australian dollars!
Such wealth easily ranked him among the country's ten richest people!
Moreover, the upward trajectory of Lianying Mining's share price showed no signs of slowing down.
Experts even boldly predicted that if the company's mines began production smoothly, the share price could rise another hundredfold from the current five dollars, potentially hitting five hundred Australian dollars per share!
At that point, the hidden boss's wealth would skyrocket to an astonishing 280 billion Australian dollars!
This would undoubtedly crown him the richest person in the world!
Such speculative analysis appeared logical and captivating. The public loved such stories, eagerly purchasing newspapers, subscribing to television shows, and happily discussing them among friends.
Who wouldn't be intrigued by the idea of the "world's richest man"?
Follett saw countless serious articles predicting Li Tang's ascent to global wealth supremacy. Excitedly, he purchased every single newspaper containing these stories and mailed a thick stack to Li Tang by air freight.
However…
Beneath the frenzy of skyrocketing stock prices, market optimism, and appealing fantasies about becoming the richest man, Lianying Mining still grappled with numerous practical issues.
The critical thirty billion Australian dollar financing remained unresolved.
But the overall outlook now appeared far more positive compared to before.
Ring, ring…
Follett's phone had been ringing nonstop lately, bombarded by calls from previously disinterested investors, leaving him irritated and exhausted.
This time, glancing at the screen, he saw the name of Charlie—the Austrian representative for Eagle Magnesium Resources.
"Hello, Charlie," he answered the call.
"Follett, we need to meet and discuss investing in Lianying Mining. Clearly, I severely underestimated this company's potential before. I owe you an apology."
"My schedule is quite packed. Our meeting may have to wait indefinitely."
"You're a businessman, Follett. You don't hold grudges—I know you!"
"I'm serious. No jokes. Sorry, Charlie. I genuinely don't have the time right now."
"We cooperated for many years. Trust me, Eagle Magnesium Resources has ample funds and technical resources to significantly assist you!"
"How exactly will you help me? By reporting to the board that I failed to achieve annual sales of one billion dollars, or accusing me of pursuing private interests with my thirty-five billion dollar financing plan?"
"I know you're still upset about past incidents, but they're behind us now. Follett, we must move forward, right?"
"Yes, and I must thank you. Because after leaving aluminum and nickel behind, I discovered that iron ore is truly the most profitable business!"
"You're just a manager at Lianying Mining. You could get far more if you cooperated with us!"
"I won't allow you to slander my professional integrity again! Goodbye!"
Hanging up, Follett felt an unprecedented sense of relief.
The pent-up frustration lingering within him seemed to vanish instantly.
He believed his previous failure in mining entrepreneurship would no longer be mocked, but rather serve as a stepping stone toward success!
Iron ore was destined to become the most lucrative business of all!
And this wasn't just a fleeting phenomenon, but a lasting condition!
He cherished this career deeply and was determined to keep fighting.
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