Kogi Iron Limited (“Kogi Iron” or “Company”) (ASX Code KFE) is a Perth based company with the objective of becoming an African iron ore producer through the development of its 100% owned Agbaja iron ore project in Kogi State, Republic of Nigeria, West Africa (“Agbaja” or “Agbaja Project”).
The Company has completed a Preliminary Feasibility Study (PFS) which determined that the development of an iron ore mining and processing operation at Agbaja to produce 5 Mtpa of upgraded iron ore concentrate was technically and economically viable.
The Agbaja Project is robust and highly attractive with an IRR of 23.7%, an estimated pre-tax NPV of US$420 million (@12% discount) and a four year capital payback. Agbaja's CAPEX estimate is US$497 million and capital intensity is US$99.4/t, ranking it in the bottom quartile for magnetite projects. Forecast average operating costs of US$42.98/t concentrate FOB places the project in the bottom half of the operating cost curve for magnetite projects.
The PFS established that iron ore concentrate from Agbaja will be transported by river barges on the Niger River from a site approximately 22 km from the planned processing plant to the Gulf of Guinea, then transhipped to large ocean going vessels for export to world markets. The Company is entering a very exciting phase in its development and planned emergence as an African iron ore producer. Kogi Iron has the scale, the strategy and the team to deliver.
The Company has on issue 584,800,674 fully paid ordinary shares and 9,800,000 listed options (Exercise Price $0.0305, expiry date 16 November 2019).