Profit, page-14

Here is my analysis I posted back around 19/8/2018

I have developed 2 financial scenarios one with an equity raise @30c and the other with an equity raise @60c.  Each scenario includes 65,000,000 shares allocated to a CI, a 10% allocation to a CI seems reasonable at this point in time.  The costs are at the higher end of the range stated @US$240/t and I have taken 10% off the sale price per tonne, @US$600/t, even though the announcement where this info comes from said "Steel billet prices in Nigeria are currently in excess of US$660/t Cost, Freight and Insurance (‘CIF’ delivered to Lagos". I also used a 60:40 debt to equity ratio even though the company stated 70:30.  All of these assumptions have been used in order to be conservative with the projections.

I have not taken in to account any new information arising from the company video released on the 10th, such as mention of 500m USD capital expenditure to build the plant, I may need to increase the start up costs, though Mr Wood also mentioned that this would include interest which I have explicitly included as a cost item.  I have maintained a first production date in 2021, until we know the size of the plant that is being proposed 2021 remains plausible if the initial proposed plant is at the lower end of the scale.

$0.30 equity raise


$0.60 equity raise