Many thanks for your contribution hicks58, good to see someone...

Many thanks for your contribution hicks58, good to see someone new excited about the prospects of Kogi Iron.

And while the price of IO fluctuates a bit it does not exceed 200USD per tonne whereas the company plans to build a steel plant and sell Steel Billet for a price somewhere between 460 and 650 USD per tonne. The value adding strategy of the company far exceeds the IO opportunity that you see. So I will let you do the maths on initially a 0.8Mtpa operation that can be ramped up as demand increases. Added to the what you see are the impurities in the Agbaja ore that means Kogi could never sell it for the maximum IO price, but Kogi has determined that through an arc furnace process they can eliminate the impurities to produce a Steel Billet. And the substitute domestic steel market means little or no transport costs.

From memory it takes about 2.5 tonnes of IO to produce 1 tonne of billet steel, lets be conservative and call it 5t. The resource is at least 586Mt (it has variously been described as 3-7Bt over the whole plateau of which Kogi holds most of the leases). 586/5 = c117. So that is 117Mt of potential steel billet, if Kogi constructed a 5Mtpa steel plant that is 23 years of generating revenue of somewhere between 460 and 650 USD per tonne on the known resource (let alone the rest of the plateau).

I can't remember the CapEx off the top of my head for constructing a 0.8Mtpa plant, but it isn't ridiculously huge (mind you not small either ) of which a large component is planned to be debt funded anyway. Good luck to you, it appears the exciting times are back for KFE.