Rainbow Rare Earths Phalaborwa project shaping up to be one of the lowest cost producers globally. Watch the video here.
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HtTps://www.kefi-goldandcopper.com/files/presentations/kefi-20_may_2024_quarterly_webinar_presentation.pdf
htTps://www.investormeetcompany.com/meetings/operation-update
My comments in brackets as usual.
Start Harry and Eddy Solbrandt chief operating officer of Kefi gold and copper. (both in Saudi)
Slide 3 entered Arabian Nubian shield slide… Just talks about Arabian Nubian shield general intro to company…three projects with also with exploration areas around around both sets of assets (projects).
Slide 4 goes into the gold rush in the Arabian Nubian shield area (the Taxi rank is getting a bit crowded)
Slide 5 comparative valuations mentions research report hxxps://www.kefi-goldandcopper.com/files/files/Orior-Capital-KEFI-Research-Report-13May24.pdf talks about consolidation in the industry (take overs and mergers) kefi “cheap”
Slide 6 kefi cheap just on the NPV of TK alone with a gold price of 2350 dollars..(slide) all ore bodies open for expansion more mines funded at project level exploration cash flow from TK)
Slide 7 expected milestones for Ethiopia harry history lesson then “anyhow” lead bank ratification and approval from its shareholders, the other people cracked on in the Syndicate (the second bank the equity risk note investors and the share investors from the government). The other day we announced we started the schedule for production. First stage early works..
Slide 10 In Saudi walk up drill targets ..government support.. two emerging projects..record metal prices..shovel ready down to grass roots..ahead of the pack project came good.
Questions
46 questions sent (Lol)
1.When will funds arrive and which conditions are still waiting to be met and how does the overall project flow to production (think they cheated and asked three questions)?
…Early works plus major works add up to production commencing (he walk people through the whole process to production can catch the full reply when the Q and A pops up nearly all is the usual stuff around building a mine). “Process designed to protect all shareholders from spending money too early”.
2.Has the second bank signed the deal off? A main shareholder in TKGM already spending their money..first bank gave approval risk note board approval other guys went to their committees and yes we have had confirmation from all of them including the second bank (kefi made a total hash of Rnsing this otherwise would not have people asking if the second bank had given its board and credit approval I red the Rns as saying this was the case as obviously not going to lunch the project without second bank approval but obviously it did not sink in with some people leaving a space for the usual suspects to make mischief) we have all agreed to early works..
Part two
3.Question about wet season and what works can be done when
Detailed project schedule..
4.How will drawdown of funds will work.. kefi historical spending.. government spent half twenty million dollars already (kefi should have highlighted this more in the past). Major works 320 million package (Excluding mining fleet) ERN (Equity) spent first the bank loan.. all the big money in the final works.
5.Will kefi need money for TK before major drawdown of funds for the project?
The answer for the budget is no but what we have to check is in the home stretch is the final lump some needed for the project that no extra money is required if it is but indicators are we have cover it all maybe even more than covered it syndicate carrying the load now..
6.If the TK finance is done in this half year will there be a fixed schedule for construction that the company can be measured against?
Yes.
7.You mention an additional layer of due diligence being set up by syndicate parties will this process delay drawdown?
No the Extra layer is for the banks to get independent advice on security this happens in parallel.
8.Who will pay for security forces?
Two security forces police and private security contractors within the site we pay for our own contractors part of budget.
9.Now Ethiopian government has changed the laws when did the company realize they were needed?
Changes well flagged publicly company has been reporting them. Now in early works program.
10 have The licence areas that were given to shell company been returned and why is the company taking legal action?
Have not been returned but not taking legal action… no “antipathy” with the government expect return when we trigger major works (a big change in a previous webinar would not even discuss this now expect them to be returned when major works triggered by then the shell company would find it hard to defend any claim anyway due them doing no work on the licence areas and obviously the Ethiopian government as part of TKGM will feel more comfortable wit TK progressing and will not need a back up plan if that was the idea).
11 Further exploration areas in Ethiopia where?
Doing pegging (not that kind this kind “mark with a peg or pegs”) (sounds like areas near TK).
12 Rns 13th of May..TK mineral resource 1.7 million ounces.. cash flow?
Open pit Ore reserve plus.. (not sure I understand the question or answer)
13 Is Saudi potential cash flow based on 80 25 percent ownership (?) what the comparison to TK?
Too early to make a definite statement.
14.Water and Energy at JQ and how long till we get an update on JQ?
We are developing plans around JQ which will cover water and power
Part three
15.Can you please comment about possible joint ventures?
Initial guide to long term strategy is to JV as seen by us JVing with Artar and government in Ethiopia. Longer term will naturalize the organisation (involve locals)..that might take us into local listing to admit the public (think is certain that kefi will list in other regions) rest of mining industry has turned up kefi keeps getting approached people that want to deal with the assets or partner us or JV another asset (non kefi asset?) not only have we got these projects moving not only are metal prices at all time highs not only are the countries supportive but we have so many choices that they are coming out of our ears.
16.Would kefi consider selling a minority stake in TK?
Everything is on the table.
17.Move from Aim to lse full listing?
Look at when we are bigger.
18. How do you plan to protect shareholder value?
We feel the pain but by delivering and no excuse now and delver we will. Management team have scarified their wages to receive shares instead so they are shareholders too.
19.The biggest question for shareholders is the number of shares in issue what are the other funding options?
Been hard to get capital on Aim however been a big base of support with syndicates and partners. Did placing for advisors this way as it was the best was to do it this time.
20.Cash burn in Ethiopia?
400 to 500k per month corporate and Ethiopia changes with major works.
21.When will Artar have to pay the exploration costs?
Have to catch up sooner or later but good partnership and trust between kefi and Artar no tension number of ways to skin the cat may have nothing to do with the public stock markets (think maybe a cunning plan in the background)
22.Could say what the advisors that were paid in shares yesterday will be advising on?
Mentions Norman green other advisors wanted shares and now targeting 200000 ounces and TK ownership has gone up all this not by accident. Kefi turned corner.
23.Major milestones in May and June.
24.Clearly a major share trader as only ten days left in may not in the business of feeding share traders (great hilarity issues) the critical thing is that Is game on…
Closing comments
I appreciate this webinars..talking to 750 people. Its all good stuff now we can start to enjoy it with the progress i think we are going make.
(maybe should have signed of with what he said earlier "Saudi walk up drill targets ..government support.. two emerging projects..record metal prices”. joking apart all looks good no cash raising envisioned near term, Artar not pressing for repayment, lost license areas likely to be returned kefi looking at deposits near TK and much bigger expansion of projects in Saudi and open to JVing and bigger yearly production ounces.)
Probably the naysayers tried to find something negative connected to the webinar or a Harry stuff up but could not find anything so now sulking Themaskedsinger.
Robjm66
Lol.
Nice write up.
I have been out all day socialising and smoozing.. It's a hard life but someone needs to do it. ;-)
Will look over everything hopefully tomorrow.
Have a good night.
Good night.
Smellys a trader not an investor here, he has invested here in the past when kefis projects was less advanced and is quite capable of turning around and suddenly thinking kefi is great again. Think he has the same problem as Plump in that he was hoping to get in or back in at a much lower price.
As always @rob thanks for the quick recap - and I urge everyone to watch at least the first 20 mins of the webinar where HAA deals with the question over the second bank (point2) and not to be swayed by ill-informed manipulating comments on here.
HtTps://www.investormeetcompany.com/meetings/operation-update
Https://t.co/lHpOSekKdM