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For newbies been through the Allied argument before TCM seems to have forgotten he lost it when it was pointed out Allied gold was worth 700 million though it may have been more at the time. He had no answer to when it was pointed out that obviously five hundred millions of dollars being invested into an Ethiopian mining project was a good omen for kefi investment. You notice this time he does not reference the recent deal “where AGC shares were valued at USD 3.01 apiece, which puts the whole transaction at almost USD 100 mn” so Allied paid around hundred million dollars just for the remaining share of an purely Ethiopian project. Anyone who has been around here for while knows this is kind of par for the course with his posting.
https://www.enterprise.news/news/story/558c1173-06f5-4ca3-bd52-7afb80fda3bf/ASCOM%20acquires%20stake%20in%20Canadian%20gold%20producer.%20PLUS:%20News%20from%20Gold%20Era%20and%20NBE
https://seekingalpha.com/article/4653986-allied-gold-undervalued-gold-producer-if-management-executes-on-2026-growth-plan
MRPlumber
'Ya pays ya money and take ya chances' - agreed
'I'm not here to try and influence anyone in the big bad world of AIM share dealing' - that's good
'Have a lovely evening' - You too
You are confusing lower grade as somehow being more costly ? but forgetting they own all of their major mining equipment. The $500m is over 15years producing 240k oz per year
Kefi c$400m producing 140k oz per year over 7 years ?
The key parameter Net Cash flow - Allied beats kefi hands down
Sad news. The creator of autocorrect has died. His funnel is tomato
As for this nonsense that allied's cost are more...
"Africa-focused Allied Gold, which on Monday listed on the TSX, has approved the expanded Kurmuk project, in Ethiopia, earmarking $500-million for a two-phase development plan.
Kurmuk is now planned as a 240 000-oz/y gold mine with all-in sustaining costs (AISC) targeted below $950/oz, with a strategic mine life extending for an initial 15 years."
and kefi :
"Kefi said the average planned gold production at Tulu Kapi is forecasted to be more than 140 000 oz/y at an all-in sustaining cost of about $950/oz"
so 240k oz v 140k oz = with both having same cost per oz. Allied is a 15 year mine, Kefi is around 7 years max
So explain how Allied's way more expensive than kefi's ?
McDoog
Ya pays ya money and take ya chances
I'm not here to try and influence anyone in the big bad world of AIM share dealing
But you are right about one thing i am a very kind and thoughtful chap
Have a lovely evening
*Kefi - Auto correct
I think we're crossing wires Condor.
Allied own the asset and have $500m of development costs to pay. Cash or debt.
Kevin own the asset and have $390m of development costs. From debt.
But the Allied project is 28% more expensive to develop than Kefi.
Are you for real ? do you know how takeover calculations are made ?
Allied has cash flow - millions each year - has been for nearly a decade. It has a massive cash balance and zero debt.
Kefi has none of either.... has been for over a decade
Allied bought the asset that had no debt attached to it. In other words enterprise value was just for the asset paid for - no debt to take on.
Kefi has the asset but has enormous debt attached to it - the enterprise value would therefore have to include the debt if you are going to compare like for like with allied's purchase. Not only that, the asset is effectively mortgage to the debt. It's a charge which means its not theirs until the debt is paid off.
Allied on the other hand own the asset outright - no mortgage or charge against the asset.
This is pure black and white accounting numbers - not sentimental bias, or rose tinted "they are better", "more value" etc etc tripe.
"Is there a slight niggling doubt in the back of Winni's mind" @ 15:20
"clearly we have a strong indicator that the train is leaving the station." @15:24
I wonder if that's what Winni's 'niggling doubt' could be all about ~ Trains?
Does it has a buffet car?
Can't think of anything else that could be bothering him too much - unless you or he knows something that we don't?
imo the risk/reward ratio is now as palatable as it can be.
MrPlumper
You wouldn't be trying to save our newbies shirt or influence him into not participating in taking a little punt would you?
Such a kind, thoughtful chap!
If he'd bought in on Friday he'd have got more for his money and if felt inclined he could have sold today and bought a new shirt!
Do you own research and don't listen to anyone else - me included!
Maybe Winni
Https://www.facebook.com/MinesandPetroleum
Intellectuals of the field said that the three day mining and technology expo conference was a great discussion.
The conference focused on the importance of increasing assets of jewelry and precious minerals, the overall contribution of minerals to the macro economy and other issues has presented articles by high sector experts.
The expo is until tomorrow November 18, 2016 E.C. It will stay open and local and foreign companies are participating. (Ethiopian calendar)
The funding required for the Allied Gold project is $500m Vs $390m for KEFI.
The considered buy-in price per Moz for Allied excludes the development costs - These are still to be paid on top of the buying price.
Good article here: https://m.miningweekly.com/article/newly-listed-allied-gold-board-approves-500m-ethiopia-project-2023-09-12
How they choose to fund from their side is likely cash or debt. If Allied prefer cash over debt, then minus the interest cost, their project is around 28% more expensive to fund for the same output, so swings and roundabouts.
KEFI have a far superior grade to Allied.
To show their confidence in the Ethiopian project, the management stumped up $40m of the total $267m financing cover package.
https://*************.net/gold-scales-6-month-peak-on-softer-dollar
for the newbys https://www.kefi-goldandcopper.com/
https://www.investormeetcompany.com/
So close to breaking .7 ask and when we do we will pop higher. At stake is a $390m project that we have already injected our equity into the project for our 70-80% stake so once we get credit signoff this will build substantially. I cant quite remember the source but was told that as part of the project finance Kefi will receive a sizeable cash injection for services but would love to understand if that is the case as on top of the $95m windfall we would also factor in any of the $390m that will reach our shores. We should be at least 1-1.5p today but markets are markets so its rude not to take advantage at these prices. Everything is lining up perfectly and Kefi could join the big league. If they can bring out the Hawiah DFS in early 2024 and confirm a better timeline for launching on Saudi exchange things will get really interesting.
We are heading up which is great and we will continue as we are on the cusp of stonky news which will change the game and company will be on full steam. Gold is rising, kefi has big support from Ethiopian government and also I sense a tension from those ones on the fence as clearly we have a strong indicator that the train is leaving station.
Exciting end of the year. Bring it on
Is there a slight niggling doubt in the back of Winni's mind
I sincerely hope not
A great start to the week with strong buying.
Looks like very few want to sell at this price which should continue to drive the price up ahead of the much anticipated financial sign off
Then it really is game on
Thank you. Looks like i need to do some more research.
Thank you guys, Appreciate the responses. A lot of reading to do but this does look like there is potential if things align. Liek always if there is reward there is risk but you have to make a choice and stick with it.
// So when Kefi secures funding, the Allied pricing ‘should’- This is Aim- set a lower valuation bound of £106m for Kefis 70%
Which equates to over 2p. //
is this after taking account of kefi's share of the debt ? Allied don't carry debt on the project, kefi do on theirs.
Third time lucky …
t DOT me
at the beginning
****/kefi_minerals2021
try: *************kefi_minerals2021
The short version is waiting on bank credit and board approvals which could come at a time between the next couple of days to next couple of weeks according to the banks themselves in a letter that they sent to kefi. This is the key stage in the whole process. The banks want skin in the game by having a chunk of the equity at project level the law has been changed t o help get kefi over the line by the Ethiopian government and just had the leader of the country chatting to the companies Ceo at the mining conference and pictures of them chatting on the leaders twitter feed and a national newspaper. The building of the mine and production will be done in phrases and open to the usual vagaries of building a mine but the company will be kicking on with building another gold mine in Saudi and further down the track a multi metal deposit in Saudi as well and a middle eastern listing.
Hi All, KEFI has come on my radar and just wondered if someone could advise if the finances have been agreed yet and when they propose to be mining. Apologies if i have missed this info in the RNS list i am just working through it to see if this is worth investing for the long term.
I will do more research but thought someone might have there finger on the pulse so to speak