RE: Ready to Bounce29 Aug 2018 22:02
estseon advfn: Thanks gonawol. Slide 4 has appeared before (27/11/17) but the message was different. The objective now stated appears to be defined as possibly cashing in once the mine has reached production stage. Production stage for TK might include production from at least one of the satellites and possibly from the underground deposits but the message appears to be that Kefi may look to cash in the developed mine at some stage, possibly to fund the development of a mine for the VMS deposit. Slide 7, which looks at peer group market valuations, suggests that we could see 10.3p/share by the year end or shortly after and 17.3p by the time of commencement of production on the basis of gold at $1300 and before taking account of any further additions to projected production from the satellites, underground or the other deposits that will be explored.
Peer group valuations based on resources etc appear to support the price paid by the Ethiopian investors: three to four times current price Slide 9 shows a structure different from that shown before. The Ethiopian investors will invest via their collective company directly into TKGM. This does not explain where the new licences will be granted or what % of those the Ethiopian Investors will have. Slide 11 has an item of £2.7m deducted from cash inflows described as "costs paid in shares". That needs explaining. However, at the foot of the slide, there is a statement "the above-summarised sources...cover all current estimates of future requirements until positive production cash flows are generated". Does that statement cover cash flow requirements for exploration and PLC corporate costs?
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