KFE 0.00% 2.0¢ kogi iron limited

M&A = takeover?

  1. 3,958 Posts.
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    Hi everyone

    I was just flicking through the presentation that was released last week and came across something that I was very easy to miss.

    In the section which outlines anticipated expenditure till the end of Q1 CY21 there is the section that states:
    "Australian Office & Board (Admin, BFS Project Manager, M&A/JV)."

    Why is this interesting??

    Well to me its those two letters: M&A

    If you look back at my posts I have been of the view that the company is ripe for a takeover and it could happen any moment now that the marketing study is done as well as the engineering study. All of this is on top of the confirmation that our iron ore can be turned into steel using local coal sources.

    With all of this information in the public domain it does not stop any company that can fund the project on its own from making a takeover for the company.

    A BFS is required to get the project funding to build the plant if we were to go down this path ourselves. A BFS is not required if a large multinational firm can fund the project on its own and include it in its suite of operations. It will not need specific project funding and hence there is no requirement to wait for a BFS to be completed.

    But what the company is doing IMO is the right approach the board should be taking .. advance the project on our own but never shut the door on someone that wants to acquire the business.

    And this is what they are doing.

    With all the information known to complete a detailed financial and operating model, plus our project being one of national significance, plus the now public interest by the World Bank, and now the comment of M&A slipped into the presentations ... I think that there is an increasing awareness within the company that Kogi Iron is a takeover target.

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