The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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Methinks that Kefi has likely lost this development and that the Chinese will snap it up for pennies. Getting themselves some more gold for their ever growing stockpile. Hopefully, we don't go bankrupt in the meantime and I get to make some money, in 2 to 4 years time, from Saudi.
Donegal199717 Oct '21 - 22:44 - 16607 of 16629
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Part 2 - An expert with close to 15 years of experience in the mining industry suggests the company follow in the footsteps of firms conducting explorations in Congo.
"The security situation there is not ideal but large exploration projects are taking place," says the expert. He advises Kefi to arrange its own security team in collaboration with the government.
Before the board of directors of Kefi Gold suspended operations, a team of international experts were contracted to conduct assessments. But the team was unable to carry out the evaluation and advised the company to pause its activities. The experts are scheduled to return next month, and the company review its decision based on their report, the Executive Chairman disclosed to Fortune.
"We're working closely with the regional authorities," said Adams. "We expect these issues will be resolved this month."
Suspending operations not only goes against the operational schedule required by the Ministry but has also affected the disbursement of funds Kefi Gold secured almost two months ago. Its executives were in search of financiers for 350 million dollars needed to carry out its plan to erect a production plant. They struck a deal with the Trade & Development Bank (TDB) and the Africa Finance Corporation (AFC), which committed 140 million dollars.
According to Adams, all the legal and documentation work has been completed, but the investors want to see the security issue resolved before signing.
The federal government has a 17pc stake in the company, while domestic and foreign investors have chipped in 160 million dollars
Copied from advfn
Donegal199717 Oct '21 - 22:43 - 16606 of 16629
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An overseas firm exploring gold in Western Wellega Zone has suspended the erection of a production facility in Tulu Kepi due to security concerns. The second suspension comes weeks before a government-enforced deadline to begin operations takes hold.
The hiccup jeopardises hundreds of millions of dollars in financing Kefi Gold Plc has secured recently. The value of its shares at the London Stock Exchange slumped down 22pc to 1.25 pence days after the suspension was announced by its executives.
The exploration in Tulu Kepi, 350Km from Addis Abeba, began over a decade ago after Kefi acquired an Australian firm, Nyota Minerals Limited, for 5.2 million pounds sterling (7.2 million dollars at current exchange rates). Close to 70 million dollars had already been spent on the venture before Kefi took over. The 2,000hct exploration area is estimated to hold deposits of close to 50,000Kg of gold. Federal officials expect to boost shipments of gold, which is now the second-most exported item next to coffee. The export of gold brought proceeds of over 650 million dollars last year, more than double the amount it earned in 2019.
The suspension is the latest in a series of delays the company has faced since 2016. Its executives attribute the setbacks to security concerns in the area and state of emergency declarations. Two years ago, the company halted operations in the wake of an attack on its exploration site by an unidentified armed group. Uncertainties in the area disrupted transport and office activities in Gimbi town, 315Km west of Addis Abeba, according to Harry Adams, executive chairman at Kefi Gold.
West Wellega has been a hotbed for instability over the past few years, with frequent reports of attacks on civilians and military engagements between the Ethiopian army and a growing insurgency. According to authorities in the area, the security situation is "risky", and the local administration takes measures to respond to the concerns.
"I believe they took the right measure considering the armed conflict in the area," said a senior official of the Oromia Investment Commission, who requested anonymity.
However, officials at the Ministry of Mines find the claims put forth by Kefi Gold executives unconvincing. They suspect the security concern is used as a pretext to push the deadline set by the government to begin production.
"Although security issues are prevalent, the company uses it as an excuse to extend the deadline," Takele Uma, minister of Mines, told Fortune.
I'm buying consistently at these levels.
We've lost a few more chicken livers.. great!!
They're heading back to "Managed Funds" (aka I've got no idea, I'm out of my depth, I'm incapable of thinking for myself, original thought escapes me, I cannot understand how market cap catches up with asset values over time, where's my Mum?)
I'm here. Forever.... or at least until we hit 30p. Then I will start selling..
I started off with 2% of this.. I've been diluted down to 0.5%.... I'm okay.. I'm a realist.
Agree Simms, someone is buying consistently at these levels.
I think this front page article is very helpful. The main headline is that the government are not happy at possible loss of investment in country. While nobody likes this weekly unpredictability it is largely expected but again should help galvanise focus to sort this out. Today it seems investors, locals in Ethiopia or MMs are all happy to pickup at a penny this morning. Sometimes you wonder if their is a background buyer at 1p who knows more and will reap the rewards in a few weeks after security issue docs get fixed and government get involved and add some policing in the area.
Thanks Nigel.
Front page news
https://twitter.com/addis_fortune/status/1449737695652196359?s=21
It’s become a very interesting (and worrying) situation for shareholders. It all hinges on RNS tomorrow. If there isn’t one I’m out on principle. If the licence is ok then that’s fine, just a misunderstanding. It’s possible this forces the financing along but unfortunately it doesn’t usually work like that. Escalation sign off takes time. Harry did say the security issue should be resolved by the end of the month but as cracker says that could be BS, we just don’t know, and to be honest I don’t know if Harry does. Sounds like there is more to the security issue than we have been told, reading between the lines I suspect regional leaders want a kick back. I think the ‘project security’ from the webinar is slightly different, just a planning matter. Harry says nearly all the outstanding issues are with the gov to sort so maybe that follows that they need to get their people into line. I really really hope there is an RNS tomorrow, enough people have emailed them this weekend. This has already halved in value, how much lower can it go?
Cracker10 - TW is Tiger Woods. I understand he's been tweeting about KEFI for weeks now...not sure why. Why you feel the need to upload so many messages about a company you clearly have no shares in is a total mystery to me. You obviously have nothing better to do, which is a bit sad...
Well if TW is right, presumably he got wind of some information after friday close, then if we get a positive monday RNS with extension sorted will turn out to be a good day tomorrow. It sounds that we are really close by all accounts to closing TK finance. we are valued on basis TK is toast at sub £20m and Hawiah alone is worth a lot more.
Says when it was sent in article source the mining minister think he would know when it was sent. Said myself not known when it was received.
Oh admins of the lse site please leave the crackers comment about me being a paid informant up even if it is libellous as undermines him more than me and gave me a good chuckle.
Certainly a worrying article which if true could spell disaster for Kefi.
However, trying to keep an open mind here until we hear something official - there are a few questions
1) Why did the ministry wait until almost a month after Kefi's extension application before publishing such a letter - they are heavily invested in TK and clearly know the situation on the ground very well already so why wait so long?
2) Why has there been no public mention of any issues directly from the ministry? Again given how invested they are in the project, once Kefi announced their initial delay at the end of September citing security issues, why did the ministry to squash the claims publicly straight away?
3) Why is this the only report of this? I've spent most of the night scouring the internet and this is the only article anywhere which is making this claim - not saying it's a lie but it seems odd that it's the only source unless I'm missing something
4) Can we still make the October deadline?
Kefi said they couldn't reach the October deadline due to security concerns, presumably this could potentially mean that everything else is in place ready to go but they wanted to hold of to sure up concerns of security ... In that instance if the Ministry is rejecting the extension and stating there are no concerns then presumably the project could still be given the green light by the 31st?
All will hinge presumably on what the next RNS states, looks like it could be make or break for this project
https://www.cyberdefinitions.com/definitions/TW.html
TW means "Trigger Warning."
The abbreviation TW is widely used online to label images or videos that may illicit a strong or potentially harmful emotional response in viewers.
Example. “Mentioning Tom Winnifrith should come with a trigger warning”.
Robjm66, if you don't know when the letter was delivered then you don't. Why make up stories. The day when you are going to be outed as HAA's paid informant is near. Manipulating share price with fake stories will end you and HAA up you know where
BS is a statement of fact not an argument! If you don't know what you are talking about say it's speculation. Don't just get out of your bed and write the first story that comes to mind and pretend it's a fact. That's all I'm saying. Otherwise, have great Sunday! ??
dvharrison, sorry but who is TW?
BS is a statement of fact not an argument! If you don't know what you are talking about say it's speculation. Don't just get out of your bed and write the first story that comes to mind and pretend it's a fact. That's all I'm saying. Otherwise, have great Sunday! ??
I am increasingly p*ssed off with TW seemingly having access to information from Harry in advance of us shareholders. It is not right or proper! This whole process is just dragging on too long and I've only been a shareholder for just over a year lol
"BS!" is not an argument.
https://www.youtube.com/watch?v=ohDB5gbtaEQ
Letter not sent till 11th do not know when Kefi actually got it. Considering that there is a running commentary in the Ethiopian papers on the project doubt the company thought they could keep it secret. Expect a RNS Monday anyway.
BS!
BS!
From Donegal1997 on ADVFN: “Good news for a change. TW said he can't discuss the security issue but he knows what it it. The mining minister wasn't aware of the delicacy of the issue and is now, as are the financing syndicate, including the banks. The EG will now allow the extension and an RNS is expected on Monday. He also said that the 'we will know' why he couldn't tell us what the security issue was in due course”
Hopefully he’s right and RNS Monday tackles this. The question remains why the details of the letter wasn’t shared with us.
Why would anyone hide such critical market sensitive information for what a week? 2 weeks? from the AIM? Not just HAA but isn't the board responsibility? How about the nomads SP Angel???? What the f**k are they supposed to be doing?