Kogi Iron

Website: www.kogiiron.com
Primary ticker: ASX:KFE
Stage of development: Development
Primary minerals: Iron Ore, Steel
Project to promote: Agbaja Cast Steel Project
Company presentation: Click here

Live financials

Kogi Iron Limited is a Perth-based listed company with the objective of becoming the first producer of cast steel billets to be sold to domestic manufacturers of steel products through the development of its 100% owned Agbaja Cast Steel project in Kogi State, Republic of Nigeria.
Nigeria has substantial domestic demand for steel products ~2Mtpy, which is currently met largely through imports of scrap materials.
The Company holds a large land position which hosts an extensive, shallow, flat-lying channel iron deposit with an Indicated and Inferred Mineral Resource of 586 million tonnes with an in-situ iron grade of 41.3% (including 405Mt @ 45% Fe) reported in accordance with the JORC Code (2012) on ~20% of the prospective license areas.

Management Profile

David Turvey. Managing Director

David is a geologist with >35 years of experience in the Australian and Asian mining industry, especially business development and corporate activities in metals & industrial minerals.
Key management roles and consulting assignments relevant to Kogi Iron include:
1985-2002 Mining & Industrial foreign investment policy in Indonesia, Malaysia, Saudi Arabia & India.
1995-2005 Commercial evaluation of iron ore projects & steel technologies + M&A investment (IOC, Cleveland Cliffs, SASE, NZ Steel)
2004-2009 Corporate Geologist = Founder & Managing Director of FerrAus Limited (ASX : FRS with EV growth $10-300M)
2010-2019 Evaluation of Fe Alloy & specialty steel projects (FeCr, FeMn, EMM)

What is your rationale for attending 121 Mining Investment?

Seeking cornerstone equity investors to support funding of a 2020 Feasibility Study. Currently on US$8M funding roadshows in London, EU and North America to close end April’20. Preferred investors are high net worth individuals / consortia or PE specialist resource funds. News flow and market support relates to feasibility study milestones including technical, marketing, political and commercial information and agreements. Ultimately, this 1-2 year equity growth story will be driven by the financial metrics determined by the Feasibility Study and related corporate activities eg. JV’s, M&A.

What recent news would you like to highlight to investors attending?

Change of Director’s Interest Notice 30/12/2019
SPP Closes and old Director Fees Settled 17/12/2019
Mining Lease Approval 13/12/2019
Change of Director’s Interest Notice 13/12/2019
Results of Annual General Meeting 26/11/2019
Chairman and CEO Address at AGM 26/11/2019

What are your key goals for the next 3, 6 and 12 months?

3 Months:
Raise sufficient equity funds to support 2020 Feasibility Study.Establish key scopes of work for technical (steel tests & design engineering, mine plan), marketing and commercial consultants. Secure political support and development bank/s co-funding for “Project of National Significance.

6 Months:
Progress technical, marketing and commercial studies, especially power options studies and Environmental, Social & Governance (ESG) initiatives. Apply development banks co-funding to ESG initiatives. Establish partnerships or offtake agreements with key customers and ancillary service providers.

12 Months:
Subject to equity funding, complete the Feasibility Study on the Agbaja Cast Steel project. Feasibility Study to contain financial model/s with risk & opportunity analysis to support asset, project and company valuations and project financing scenarios (cornerstone equity investors / JV partners, equity : debt ratios, external due diligence on “bankability”.

What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?

Reliable, cost-effective power supply – overcome by providing cornerstone off take contracts to new PPT power generation plant (gas or coal) allied / integrated with renewable power sources (solar, pumped-hydro). Operating skills and costs to produce low contaminant billet steel – overcome by expert steel test work on Kogi iron ores and local raw materials (pilot-scale tests by Sweden, USA consultants) by using convention production technologies

What do you think makes your company such a compelling investment?

Unique project fundamentals and competitive advantages, especially current and latent domestic demand at attractive pricing.

Analyst Insight – provided by Independent Investment Research

Kogi Iron is an ASX-listed company with the intent to build a cast steel plant on the Agbaja Plateau in Kogi State, Nigeria. The project will utilise company leased iron ore deposits and will supply a cast steel feedstock to steel manufacturing and product fabricators in Nigeria and overseas.

Kogi is developing Nigeria’s first integrated cast steel project, which will utilise the company’s 100%-owned iron ore deposit, Agbaja. Importantly, all currently required licences and permits are in place, the DFS is well advanced and the company is in advanced discussions with a number of potential project debt providers. The Agbaja Project is uniquely positioned proximal to existing, under-utilised infrastructure including road, river and power suitable to facilitate a major cast steel project.

The Plateau hosts an extensive, shallow, flat-lying channel iron deposit (CID) and Kogi Iron has determined a Probable Ore Reserve of 205 million tonnes at a grade of 45.7% iron (Fe), estimated in accordance with the JORC (2012) code. Mineral Resources on the plateau are 586 million tonnes with an in-situ grade of 41.3% and comprise an Indicated Mineral Resource of 466 million tonnes at 41.4% Fe and an Inferred Mineral Resource of 120 million tonnes at 41.1% Fe, all estimated in accordance with the JORC (2012) code.

Since 2016, the company has advanced its intention to develop an integrated steel plant utilising the company leased iron ore deposit and nearby coal and limestone sources. The results of a laboratory-scale test on the iron ore demonstrated that it could be converted to a steel feedstock suitable for electric arc furnaces. In November 2017, the company commenced a Pilot Plant Test Program on a large bulk sample to demonstrate the process in a continuous batch mode.

SD Capital and GKB Ventures Ltd were jointly engaged in October 2017 to secure debt funding for the project as well as equity finance to complete the Bankable Feasibility Study (BFS) and Project financing. The majority of the debt funding is expected to come from Export Credit Agency funds and a detailed program is underway to ensure agencies are well aware of the Project.