Kev, that is wonderful stuff but unfortunately not relevant at...

Kev, that is wonderful stuff but unfortunately not relevant at this point in time.

There is a relatively small amount of investment money allocated globally to industries like steel making. Kogi Iron will have to compete for a portion of that money. And it's not dumb money; it is money managed by some of the smartest fund managers on the planet.

If Kogi Iron wants to attract the capital required to construct the Agbaja project it will have to:

1. demonstrate that the future market value of the Agbaja project exceeds - by a big margin - the capex required to bring it into production; and
2. be a cheaper entry into the steel making industry than steel makers currently operating (eg if Posco's EV / EBITDA multiple is 4xs, then I imagine Kogi Iron would have to be priced at perhaps 3xs if it is to get the attention of global investors).

Kogi Iron's board released a feasibility study - which I presume is based on what the board believes to be realistic estimates of all project variables - which shows the post-completion market value to be less than 50% of the capex required to complete the project. In my opinion, a project which costs more than it is worth will not be built.

I am happy for someone to demonstrate - using the board's feasibility study as the basis for their analysis (not arm-waving estimates of future population and GDP) - that I have reached the wrong conclusion.