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I just focus that it's half the market cap of Condor with 2x NPV. So get it double or more then I start worrying about that. I rarely invest for m+a, more for value. EUA has been unlocked by M+A but seems was a lot of value there it seems, and that's the key. M+A is a symptom not a cause of value.
I agree someone strategic may be interested in KEFI for Saudi but I don't think it makes the slightest diff in Ethiopia. If the Saudis go and offer any miner making or capable of making 150k oz of gold or more, which are multiple, money, they will take it.
Yes Kefi could have £10s or £100s m upside for gold but Saudis think in billions (which maybe the copper is, no idea, but maybe if they keep extending it). Obv if it looks to be of that size, the SP will utterly roof it - but that will be regardless of what Saudis initially do.
UK2.0
suppose the Saudis take a majority stake where do you see KEFI share price...……. its been alluded to in last RNS the are investors lined up. Saudis Maaden back in June clearly state they want expansion into gold. You say KEFI is too small but really? When I look at some of the historic investments Saudis make small is not something that concerns them the fact is there aren't many turn key gold assets out there they have such close links to Harry it makes perfect sense.
IF they take a majority stake 5p - 10p is where I see this move too loom ate EUA!
TSP - I agree and yes they could get the SA asset running fast. But TK is not of sufficient scale. They would buy Centamin, or one of the many Canadian golds, etc. It's a good asset for us to invest in, it's just too small for them to care.
There is nothing to say the Saudis might not try and acquire KEFI outright!
"Maaden is currently weighing several opportunities for international acquisition to help it reach that goal, he said, declining to give details"
Would the Eth Govt be happy with SA investment?
Anyway sp going up and beyond.
READ THIS if you doubt the Saudis desire to acquire Gold assets!
21/6/2020!!!
https://www.arabianbusiness.com/banking-finance/448435-saudi-arabian-mining-unit-signs-41bn-finance-deal
THIS PART!
Gold demand
Gold has been the one bright spot for Maaden, with demand for the precious metal buoyed by investors seeking a haven amid concerns about a new surge in coronavirus infections, Al Ohali said. As gold comprises only a small share of the company’s sales, Maaden is looking for ways to boost production, he said.
Al Ohali was appointed Maaden CEO in April, having worked previously at Saudi Basic Industries Corp. as an adviser to the chemical maker’s CEO and as its group chief financial officer. At Maaden, he has started to develop a long-term strategy for making the company one of the seven biggest miners by revenue, he said.
Maaden is currently weighing several opportunities for international acquisition to help it reach that goal, he said, declining to give details.
Extract from 30 June RNS;
The joint venture looks forward to development and expansion in the minerals sector which the Saudi Government has made a national strategic priority. Potential development funding for Hawiah is anticipated to be more straightforward than in Ethiopia because of the simpler partnership structure and the very strong local development lending institutions for this prioritised sector.
The Saudis aren't funding. You're getting a bit carried away with a tangential idea TSP!
Saudis must be thinking the they've surfed the Tech wave long enough time for a look at other asset classes:
https://qz.com/1426370/silicon-valley-is-awash-with-saudi-arabian-money-heres-what-theyre-investing-in/
Sp still rising. No RNS at Mo then.
What all this talk about the Saudis funding?
Is there any info?
It’s too small for them. Yes it can grow but it’s still a juniour gold mine. Diff with Saudi is they’ve only just started delineating the resource. It could notionally be an asset of real scale but v early days
whos not to say the Saudis fund TK? Harry has good links and the Saudis diversifying away from oil. They've been some of the biggest tech investors I feel theyre probably thinking lighten up on TECH but add to GOLD ect.
1 Year ago but even more relevant today with GOLD elevated
https://www.bloomberg.com/news/articles/2019-04-03/saudi-arabia-s-gold-miner-plans-to-be-a-global-top-20-supplier
Saudi Arabian Mining Co. wants to more than double gold output within five years.
Maaden, as the state-backed company is known, plans to boost gold output from about 415,000 ounces this year to one million by 2025, Chief Executive Officer Darren Davis said in an interview. That would catapult the oil-rich kingdom from a marginal gold producer to one of the world’s top-20 suppliers.
To continue reading this