KFE only has cash balance of $1.4 million at 30 June 2019 and...

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serena

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16/08/19

23:20

Post #: 40022715
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Originally posted by Mr. Turner: ↑

Seeing today Kogi Limited (KFE) going up 12%, imminent to start producing steel ingots for the internal Nigerian market got met thinking;

Cameroon is a neighboring country of Nigeria, and Nigeria is the most populous country in Africa, and Africa's #1 economy.
Having been there, have seen it with my own eyes they are industrializing, and albeit slowly, they are moving ahead and once they get momentum, they will need a lot of steel.

I wouldn't be surprised if for example Mr. Dangote (Nigeria's #1 entrepeneur and Africa's richest man, valued at US $ 10.6 billion) will expand his steel mill activities, as he is currently doing with agriculture, cement and a whole lot of other industries to supply West Africa with steel. Approx. 350 million people live in West Africa and this figure is about to double in the next 30 years.

I did some research on ore grades in Nigeria, https://www.researchgate.net/figure/Iron-ore-reserves-in-Nigeria_tbl1_228490197
shows Fe grades are max 54%; Sundance has Fe grades of 62.5% right at the doorstep of Nigeria.
They only need a railway to ship it out (and overcome some piracy issues...)

Bottom line, I think this mine will be very well positioned for the not insignificant upcoming West African market.

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KFE only has cash balance of $1.4 million at 30 June 2019 and they will spend around $1.2 million for quarter ended 30 Sep 2019. So there will be another CR again. Never ending story of CR.

SDL has far better position than KFE.
SDL has developed all feasibility studies, and spent around $200 million and ready to go waiting for project funding while KPE is still doing feasibility study.

SDL Price at posting: 0.6¢ Sentiment: Hold Disclosure: Held
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KFE only has cash balance of $1.4 million at 30 June 2019 and...

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