My take on the Orior Capital research report on Akora.Key points...

My take on the Orior Capital research report on Akora.

Key points made by Orior:
- Bekisopa DSO project should take the value of Akora to A$1.46 / share within the next year
- Huge Upside from there: Bekisopa start up valuation could reach A$2.70 to A$6.44 / share
- then add potential value for other projects including Satrokala and Tratramarina
- " It seems inevitable that the company will attract strategic interest"

My view of the future:
- Strategic interest will result in a major iron ore producer offering to acquire Akora within the next year
- The major making the offer will attempt to acquire Akora for the NPV of the DSO project (say A$1.50 per share)
but will have to offer an additional 30% for control - taking the offer price to A$2.00/ share

Question is:
- Will existing shareholders sell for A$2.00 per share and by doing so forego the potential of the Bekisopa production upgrade and potential value of Satrokala and other projects?
- My answer is that an offer of A$2.00 / share within the next 12 months would not get my acceptance!