hi matlo sorry for slow response - have been in a financing and...

hi matlo
sorry for slow response - have been in a financing and it’s the toughest market I’ve seen in my 30 years in mining! I reckon it’s even worse than after bre x as at least then the generalists still had a little bit of ammo and interest. Anyway, it’s finally done!

so, you make a good point about the project - why isn’t it being financed? I think shareholders (which I am no longer one) should be asking what REAL progress has been made for their money at agbaja.

you point out that most of the kit comes off the shelf - ‘‘twas ever thus. When I was on the goods ship we concentrated on the 10% of kit that will be non standard as that will be where the project lives or dies. For them to declare a victory as most of the kit is off the shelf was in my opinion a low trick.

the world of finance has got harder - you ask about outright finance and i say to you confidently there is ZERO chance of agbaja getting financed to production in its current structure.

if management were focused on recouping shareholder losses and not on how to get more options they would be looking for a JV partner with deep pockets. I stress deep pockets because their next move will be to announce a jv where Kogi shareholders get hosed and the jv is just a shell company with no track record or cash itself. This shelf will then job the asset on again for a tidy return to ITS shareholders, leaving Kogi shareholders with some dust in Australia.

if management can find a jv partner with the ability to progress the project then almost any terms would be better than the current situation. But of course this requires work to find and is in reality the board putting them selves out of work. So don’t hold your breath. This should be 100% of their focus as it is really the only way to recover any value for long suffering shareholders. The project has a good team in country which is a plus and the asset remains huge so there are still some factors that with the right lipstick could perhaps lure in a real company with real management.