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Did HA that he thought the next RNS would be regarding JQ?
HA told TW about a week ago that the secondary bank would sign off credit approval with a month. So, by deduction, JQ RNS should hopefully arrive within 3 weeks?
LoveLosses,
:-))
You can remove me when
H1-24 Closing Project Finance and Project Launch
actually finally occurs
My take..
Well Harry pretty relaxed, obviously just sees it as a matter of time for kefi to launch it projects one after the other. You can see he is not sweating on the second bank approval at all. As for Saudi said they are working on another Rns now which is why they expect it to be the next announcement would expect it to flesh out the information in today's Rns.
The are not rushing to list as most of the money for kefi projects are not expected to need to come from shareholders looking to fund at project level like TK and probably JQ. Already looking a exploration in Saudi was mention of lithum and what sounded like a discovery which sounded like it was near a kefi area which kefi was watching but it was bit garbled people will probably have to watch the video back a bit to get the gist.
Looks like the locals are supportive of the whole TK project irrespective of their politics and are happy to move hardily surprising as they will get life changing amounts of money and anew house plus there are jobs and community works. Final sign off is not dependent on pace of resettlement anyway.
The funding structure is
PLC -> KEFI ETHIOPIA -> TKGM
So we need to consider what we own… it is the TKGM which is under discussion here.. 25% is owned by the government, split between national and local entities… the finding provides 95% of the required capital, and the remaining capital needs to come from in country - so giving up equity to secure this is one way to fund it - at the TKGM level.
Once the funding is secured from the banks then the deal can be done for the last bit - it sounded from what was said previously that there is money trapped in country due to capital controls and also the banks might take this equity portion up as well as their loans.
It was discussed as being “convertible loans” in the past, but could be direct equity instead - until it’s agreed, it’s up in the air.
Were a majority SH regardless - and we must trust the team to get the best deal they can…
Sharezy
Can you remember what he said? He mumbled something about Kefi and the banks getting into a huddle. Such a bizarre thing to say.
There’s room for negotiation to seal the deal… would still be majority shareholding… or nothing… I know which I’d prefer…
This is an out and out lie.
Bizarre.
Jeff still working for kefi
Yes but on Ethipopai side.
Dual list
Ethiopia Saudi or Ethiopia..stock market palyin gjust a small part in our funding but feel we should dual list will play I tout when we focus on
Harry when are you looking to retire
20 years (joking)
Timescales?
Wrong in the past due to Ethiopia surprising us. We believe it will close in the timescales we now have.
Closing remarks
Appreciation for people that are riding the stockmaket shareholders and other organisations I have mentioned. Obvious now that kefi is preparing to launch upside is imminent as two countries are allowing us to get on with it.
We are now ready to go I look forward to celebrating with people.
Questions part one
What is the chance of funding being done in 2024 for a mine..
Only got access to the site 13 months ago (JQ)..the sovereign fund..can see the lines we are thinking along..how does kefi develop the two Saudi projects well we have accepted we will be a minority..might JV with others..would only need to put up a very small component of the finance package.
What is the status of licence area that were taken from kefi ?
We believe we will get them back.
How will finance in Saudi get financed?
Various options
What is the status of the sidf?
Very close talking to them premature to lodge formal
Full project financing for TK?
Slide show three jobs going on security sign off legal documents.. we are on the rebound had a camp out for a long time. Kefi being rigorous to make it water tight. First development of this type ever and first in thirty years in Ethiopia.
Can you guarantee that no money will ever need to be raised (on aim?)
Mining sentiment has been bad risk off market can understand shareholders frustration company does try to get financial support from other parties. TK banks have been working with us for five years they want to do this. We have been raising the bulk of money from other parties for the project launches.
Cash burn rate?
Made it clear that we are being carried by major party to day cash burn zero (Saudi)
TK capacity there to carry us.
Ethiopia another military confrontation?
A stretch to connect the Somalia port issue with TK and Kefi. Will be unarmed private.Security force in area. None of the parties are hostile to the project all of them want this to go ahead as the community wants it to go ahead just have to maintain goodwill.
Kefi board (improve) alignment with shareholders?
Open to suggestions but have to prioritize working on the projects.
How long will resettlement take?
90 day from notice. However working and preparing the ground for that now.
Exploration strategy in Ethiopia ?
Not that we are about to go in lithium exploration but open to opportunities (license application on minister website) open to JVs. Battery market booming posting
Does the community resettlement been done first?
No.
Funding resettlement?
Part of the package.
Everyone want to move?
Yes.
Various Same banks and no block to second bank approvals.
Revenue Royalties agreement? Possible in Saudi
Placings?
Not allowed never seen a right issue on Aim..primary bid only raised 200k but would look at new ways.
Have you explored different choices of financing?
Yes
Security?
Security monitored on site by independent experts.. safety first.
What do you expect the next announcement to be?
Saudi next announcement being worked on now.
Will you stand down if finance not done by certain date?
New ministry for mines (ex roads) he is project on his side and Harry on his side neither will keep their job will have succession built into company in
Did anyone pick up near the end of the presentation regarding; Kefi get in a huddle with the banks and thrash out what % Kefi will own? I thought it’s a 75% owned asset by Kefi?
Rough transcript
Start
Harry walking us through slide show focus on Nubian shield…over the last two years things have turned for the better. JV in each. Slide of companies now in the Arabian nubian shield area. Allied gold 260 million ipo for Ethiopian project Barrick Ivanhoe Newmont. Corporate snapshot TK first project will generate 50 million pounds per annum after cost to kefi.. NPV five times the share price without looking at Saudi Arabia.
Big change in sentiment palpable in bot countries, changes in law environment has changed to the positive. Three projects in a queue and a pipeline of exploration
Things are moving now in TK independent experts will give sign offs, milestones achieved slide. Excellent team in Saudi to prepare each of them for development. Benchmark slide comparison to other companies.
Slide of structure of the syndicate for TK and Saudi kefi technical partner more money in Ethiopia and Saudi than in the stock market.
Having had final lead bank and lead equity investors other members going through their processes and can lay out plans for resettlement can close before resettlement (milestones ahead slide). Ticking off of compliance stage should be straight forward (most of the bits just ticking off). Government has given us informal assurance for proximal licence area exploration.
Work on JQ intensive, discussion on how big to build it when to build it Hawaih coming along behind that. Regional exploration. Booth was packed at the Saudi conference people wanted to talk to us.
Slides on director and so on. End of slides
I think once we see the announcement on the 2nd bank the market will realise this is, finally, for real.
Not a bad message to sign off with.
All coming together.
Market will follow, once deal is done and it all sinks in.
As all AIM investors are probably aware - at present any RNS for any company seems to be received with an enforced drop.
Almost regardless of the positive or negative information in the announcement.
One might assume that traders are always expecting a showstopper and when the news is not spectacular their limited patience is exhausted and they are off looking for the next "big news".
Patience has been the theme here for many years so a few more weeks seems all that is needed.
GLA GT1
Positive news is 2nd bank is just waiting on updated security report. odd as lead bank has already signed but this should be very soon. This will clear the path . we have £200k cash burn and only drawn £1m of loan so plenty of headroom so i cant see a placing unless we completely drop the Tk financing. Everyone in TK village is good to move and no blockers. Really nothing is holding this up except box ticking and frustratingly they still seem to be doing it. Harry has the bit between his teeth is strong so hopefully we can start to see a proper re-rate once the 2nd bank signs the credit agreement.
PATSHARE:
agreed and as expected the responce from the markets.
@ Forrest - you mean the potential pot of copper/gold?
As yet there isn't any, how we all wish there was.
Judging by the trades and SP this RNS hasn't been well received.
More butter no bread.
you can’t make this up, what a **** show and this clown winnifrith pumping the **** out of this stock
Plenty in there for the Harry 'haters' and investors alike...
Copies from a Dec 2020 RNS:
"KEFI in the Kingdom of Saudi Arabia
In 2009, KEFI formed G&M in Saudi Arabia with local Saudi partner, ARTAR, to explore for gold and associated metals in the Arabian-Nubian Shield. KEFI has a 34% interest in G&M and is the operating partner."
So, if I'm not wrong, our stake in Saudi has dropped from at least 34% to 25% as we give up equity in place of cash?
I expect to make money here, but the pot of copper/gold seems to get smaller each month.
I've only got C. £7k in my ISA these days, but who knows what it might become in the years ahead?
GLA
Apparently Kefi have a head start in both Saudi and Ethiopia.
I'd hate to be invested in a company that didn't if this is how long it's taking Kefi to get TK done, let alone extract a single ounce of anything out of the ground!!
More patience required, possibly more than I can spare to be honest... HAA must have it in truck loads.
You can remove me when
H1-24 Closing Project Finance and Project Launch
actually finally occurs
Reading between the lines Kefi is clearing the path for a listing on Saudi so we might get news not so long from now. As Sb says it looks our stake is valued internally at £40m. pretty decent although the market valuation of the project is likely to be many many many rimes this amount. Heads down now to listen to Harry and close TK!!!!
Shame the SP has retraced to where we were pre RNS. Get TK finance done!!!