Takeover target, page-171

Hi James

This has been something that has been in the forefront of my mind since the announcement came out earlier this week.
I have mentioned this before so I apologise for repeating myself.

The announcement of the mintek results along with the flow chart provides enough information for any interested party to make an offer for the company. Im not talking about a cornerstone investor either. Im talking about a full blown takeover.

Now the more advanced the project gets the more an acquiring company will need to pay.


But there is enough information out there now for an experienced steel production company to form a reasonable view on likely costs (opex and capex), production profile, and ultimately the margins they can obtain.

Am I saying that we are going to get a takeover offer tomorrow? No. But I am saying that there is enough information available for 3rd parties to run their ruler over KFE and determine what to do next.

As you say, there are regular big fat dividends up for grabs.. so this company is now a live takeover opportunity IMO.. and somewhere between yesterdays close of 16.5c and chillers conservative DCF valuation of ~$1.50 is where we are looking IMO