A Reminder from ADVFN BB:11 Nov 2019 15:09
Serialinvestor18 Nov '19 - 06:22 - 62581 of 62801
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MINING REVIEW AFRICA
“The mining sector in Ethiopia is on the brink of evolutionary growth and progress as the country’s first modern gold mine – KEFI Minerals’ Tulu Kapi moves into development...”
“Ethiopian Mines and Petroleum minister HE. Dr SAMUEL URKATO says the country is looking to drive significant growth from its mining sector and believes it could ultimately contribute 10% towards the country’s GDP.”
“The onset of construction at Tulu Kapi – a 140 000 ozpa gold mine scheduled to start producing in 2021 – will at US$250 million be the largest single export revenue generator in the country.”
VERDICT:
The largest single export revenue generator in Ethiopia is about to take off. And President Sahle-Work Zewde, the first woman to hold the office and a career diplomat by profession, is pulling out all the stops to get it going as soon as possible. Having been elected president (unanimously) by members of the Federal Parliamentary Assembly on 25 October 2018, this is now about her legacy – she promised the country the symbolic ‘spade in the ground’ moment at Tulu Kapi would occur in November 2019. And I believe it will happen.
To that end, expect things to move extremely quickly as the surge in national sentiment for Tulu Kapi breaks new records; those who tuned into ETV last night will have observed the president and government ministers rally behind Tulu Kapi. The euphoria displayed defied imagination.
Thus, on the above points, expect the transformational news to be released imminently. The market cap of £8.13m (1.10p) is, therefore, nothing short of vacuous nonsense! Kefi Minerals is materially mispriced and should be commanding prices in excess of 4pence per share at this stage of development. To this end, expect a significant re-rating of the company’s shares to take place over the next trading sessions as the market comes to terms with the company’s staggering fundamentals.