"In our view an iron ore project requires scale, infrastructure, minimal beneficiation and good management. This project looks to have all four. First-mover status in Nigeria has enabled Energio to peg an extremely large channel iron ore project in central Nigeria. We were pleasantly surprised on our visit to find that Nigeria felt extremely safe — particularly in view of previous perceptions!
We were impressed by the quality and potential scale of the Agbaja Project. We feel that, despite the current decline in enthusiasm for West African iron ore projects, this one has the potential scale, infrastructure and quality management to be of interest to investors willing to look beyond what we view as a short, cyclical downturn in iron ore demand. We intend to complete a full initiation note on Energio in due course and highlight Energio as One to Watch going forwards."
