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Q: Everyone knows that AIM is weak at present for junior miners. Are the other exchanges any stronger?
A: Yes , total equity raisings for junior miners on AIM in the past year totals less that the Tulu Kapi project finance package arranged by KEFI in Ethiopia.
TSX and ASX are both bigger with 3000 listed miners compared with AIM less than 10% of that.
Riyadh and Dubai are smaller than AIM as regards listed miners but better understand their own region.
We are looking into all of these, to provide the best support possible for KEFI’s long-term plans, to match the high quality of our strong retail investor base, as illustrated by the high share liquidity.
Q: Please comment on the going concern note in this year’s accounts.
A: Similar notes attach to all annual accounts since the IPO in 2006. We are a pre-production company and rely on equity funding pending the commencement of production cash flows. That has been our inherent structure since the IPO, rather than an aberration or passing phase.
The proximity of the Tulu Kapi project financing is something we look forward to rather than considering it a problem.
Q: Why report losses every year by writing off exploration, even though nearly all “exploration” is on development studies? Unsophisticated shareholders can be put off.
A: That has always been KEFI’s stated policy until a development commitment is made. Other companies may choose less conservative policies and we have always explained our policy.
Q: What I do not understand is how KEFI can have thousands of retail shareholders, one of the highest share turnovers of junior miners, and yet have strident detractors on bulletin boards.
A: We are in no position to know or comment on the motivations of anonymous posters or their comments. They may or may not be sincere beliefs. We have no idea and cannot engage as it is against stock exchange and company policy.
The information in this announcement that relates to geology, exploration results and mineral resources is based on information compiled by Mr Tomos Bryan, Exploration Manager for Gold & Minerals Limited. Mr Bryan is a member of the Australasian Institute of Mining and Metallurgy ("AusIMM"). Mr Bryan is a geologist with sufficient relevant experience for Company reporting to qualify as a Competent Person as defined in the JORC Code 2012. Mr Bryan consents to the inclusion in this announcement of the non-financial matters based on this information in the form and context in which it appears.
Our setbacks have stymied progress in both Saudi Arabia and Ethiopia since applying for a mining licence in both countries in 2015. We need to establish a record of reliable progress, which seems possible now with a steadier and more supportive environment in both countries.
KEFI’s share market capitalisation represents about:
- 33% of the equity it has raised and spent since 2006. It is indeed disappointing but better than the average for grass-roots explorers over the same period; and
- 10% of its projected intrinsic valuation, estimated on the basis of NPV’s as our projects come into development and then production. This ignores upside from exploration of related projects.
Management is focused on delivering the intrinsic value for shareholders which hopefully justifies the patience and support. This indicates the potential and realistic reward as projects are de-risked.
Chairman Harry Anagnostaras-Adams was meant to present at the Proactive event this evening at
the Chesterfield Mayfair Hotel. Due to unforseen circumstances he will not be able to make the presentation. He sends his deepest apologies & hopes to see all attendees next time.
https://www.kefi-minerals.com/files/files/WHI-Production-ready-KEFI-21June21.pdf
KEFI (AIM: KEFI), the gold and copper exploration and development company with projects in the Federal Democratic Republic of Ethiopia and the Kingdom of Saudi Arabia, is pleased to provide an update with respect to the Company's Tulu Kapi gold project ("Tulu Kapi" or the "Project").
Further significant progress has been made during May 2021 and KEFI is currently focusing on completing preparations for full Project launch after the Company's Annual General Meeting, which is expected to be convened in due course for 30 June 2021. The Company remains on track to commence Project commissioning in late 2022 and to reach full production by mid-2023, in line with previous guidance.
Highlights of recent activities include:
· The Project company, Tulu Kapi Gold Mines Share Company ("TKGM") has submitted to the Ethiopian regulatory authority, for its formal confirmation of compliance as part of the Project finance requirements, an updated detailed Project development and production plan. Whilst final approval of this updated plan is awaited as a condition precedent of the Project financing, TKGM has exchanged formal confirmations with the licencing authority regarding TKGM's commitment to honour the already outlined Project timetable;
· A new Project mining contractor, Corica Group, which is now the largest mining contractor in Africa, has been appointed, replacing the previous mining contractor on better terms after re-tendering of the contract. A letter of intent has been signed with them covering the major works package due to commence its procurement any time from July 2021;
· The early works programme with principal process design and construction contractor, Lycopodium Limited, has commenced this month and the major works package has been agreed to commence any time from July 2021;
· Responses are up to date in respect of the senior lenders' due diligence requirements for credit approval. The timetable for Project finance remains for execution of detailed documentation as soon as possible after the KEFI AGM on 30 June 2021, then equity subscriptions for launch of full development, followed by debt drawdowns during Q4 2021; and
· 150 local personnel have been employed to prepare new host lands. TKGM have commenced compensation procedures for the small part of the community to be resettled that occupies the site for the planned electricity substation and starter homes have been fabricated and are being delivered to site for assembly.
The Company looks forward to making further announcements as the Project progresses.
https://www.kefi-minerals.com/files/files/BHC-KEFI-Initiating-Coverage-24Nov20.pdf
Valuation: 4.05p rising to 5.62p; potentially 8.18p
We calculate that Tulu Kapi is capable of generating free cash flow of c £65.2m a year (cf £48.8m previously) for seven years, from 2022 to 2028 inclusive. This, in turn, drives average (maximum potential) dividends of 1.62p/share for the four years from 2025 to 2028, which values KEFI at 4.05p/share when discounted back to FY20 at a 10% discount rate. This confirms a current value for KEFI of £75.6m or US$97.0m (cf £46m and US$59m previously), based on Tulu Kapi alone. However, it excludes any beneficial interest for KEFI in TKGM above the originally planned 45% and also the value of the pipeline of targets in the KEFI portfolio. In the event that KEFI is ultimately successful in increasing its beneficial interest in TKGM or leveraging its cash flow from the open-pit mine into the underground deposit and its other assets in the region, our valuation increases to up to 8.18p/share. We estimate that Saudi Arabian and other ‘next level’ assets potentially add a further 5.38–17.8c (4.19–13.87p) to this. In the meantime, investing in KEFI at 1.99p should generate an IRR to investors of 25.6% pa over nine years in sterling terms.
https://www.***************************/kefi-gold-and-copper-maiden-resource-looking-very-promising-interview/412853011
https://www.kefi-minerals.com/files/presentations/kefi-corporate-presentation-20aug20-final.pdf
https://www.londonstockexchange.com/news-article/tidm/headline/14658375