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clock Created with Sketch. 27/08/18
19:34
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Originally posted by livas1
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What did the last announcement tell us? This is my reading between the lines of the testwork update that was announced 10 days ago now. Sorry the update has taken so long. We had a few boardroom issues to deal with but we are all moving forward now. Tenova have confirmed they can produce a concentrate suitable for pig iron and Tenova are able to produce a refined metal with a grade/composition suitable for billet. Refined metal with a grade and composition – ie they can get rid of the impurities! This has always been the big ‘IF” for me. Great news! Further evidence that we have an economically viable steel billet product! The company is never going to be specific but there is clearly some fat built into this timeframe. And of course there is no info on when this will be released to shareholders. But watch this space, it could come any moment. All systems go! We aren’t going to progress the financing of the project if the ore isn’t suitable for billet. We are now comforted that it is so it’s all systems go! Lets see exactly how big the opportunity is not only in Nigeria but also for the export market. It will diversify the customer base and could increase margins! Look out everyone! Off-taker negotiations, cornerstone investor(s)! negotiations, and negotiations with financiers – all taking place now. And these negotiations will ramp up with the announcement of this update and it places KFE in a stronger negotiating position. We now have a better idea of inputs and can gain greater clarity on production costs. As I said in my post a week or so ago – once this is out in the public and other firms can do their own sums, it opens up the door for a takeover. While the DFS is still going on we have already done the mine portion. Now we need to do the steel plant portion. But we are advancing negotiations with cornerstone investors as well as financiers so this could all push ahead prior to a DFS. Good to see both Ian and Martin commenting about “such a positive notice”. This further confirms to me that the test results show that the impurities are out and a commercial quality and quantity can be produced. And these further details wont just be received by shareholders but by potential off-takers, cornerstone investors, and debt and equity financers. If there is good news we will sing it from the rooftop! Why do you think we appointed Proactive Investors?!
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Thank you Livas1. A good take on the current process. There is a lot of work to be done to get the DFS up and some of the threads seem to think this is going to happen in days not weeks or months. It is a big project and maturing well. If it happened as fast as some would like I would very suspicious. There are good people in charge of this project and the long term looks very healthy but we have to be patient not reacting to every little movement on the SP. I am sure in 12 months time qwe will see the graph continuing upward from left to right.
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