Just come back from Adelaide presentation. Personal reflections....

Just come back from Adelaide presentation. Personal reflections. Martin Wood very impressive, great banking credentials and contacts with the right investors. Certainly knows his facts. Many take homes - 'Shares stupidly cheap', project about import replacement rather than export, positioned very favourably physically, commercially and politically. Appears Nigerian Government seriously on side and wanting project to suceed on many levels. -employment, less capital in US $ going out of country, training work force, less reliance on oil and gas income by diversifying. As announced this week coal source nearby and cheap. Iron ore price not a great issue Sachz as market internal not initially export focused. Initial thoughts of approx. $500 K build  to produce 600-1m tons steel pa for first year, iron out the bottlenecks remembering limited skilled workforce initially and then ramp up production as market share increases. 

Very close to signing up with CI. Martin working with a number of potential Instos but wants the right one with African experience to give KFE best credentials. Martin took pay cut to join KFE as he saw the potential. He stands to earn shares if all the boxes are ticked. (See Annual report ,DYOR) . Very much in his interest to get the project running and he is working hard to get right investors on board. Still could be at least 9 months plus getting finance and DFS done which will give clear direction for initial size of plant and off takers. Very important that Export Credit Agency (ECA) funding is available and process is slow and thorough but will open doors when in place. Debt and equity financing but numbers not yet finalised.World class project, multigenrational 

High margins (Chiller) Cost to produce steel anywhere across the world is 180-240 (known) and there will be no new technology tas current processes proven and work! Current steel selling at 660 ton but is only 95% pure (scrap) and landed at coast then has to be transported inland to steel mills. Licences very solid. Nigeria not known for misappropriation. Very encouraging but will still take a little longer but process will be very thorough to get best investors on side. Acknowledged slow and painful to date but the prize and benefits enormous. Target now in sight. I was very encouraged!! Good turn out here in Adelaide. Some of larger holders well represented. Hang in there the wheels may be turning slower than we would like but the mills are grinding exceeding fine...GLTAH