Transformation period17 Aug 2020 08:19
All of KEFIs past led to Now. Massively undervaled and should be 3p plus before financial close. On close in October 5-10p. Gold supporting and moving up slowly.
These illustrative NPV's are shown for 100% of the Project and for KEFI's assumed 45-70% beneficial interest i.e. the previous base case beneficial interest of 45% is now redundant and will be higher. We now target up to 70%.
The value-indictors set out above with ranges of £85-340 million exclude KEFI's two other advanced projects - Hawiah (copper-gold) and Jibal Qutman (gold) projects in Saudi Arabia and compare favourably with the Company's current market capitalisation of approximately £35 million.
As announced on 1 July 2020, based on discussions and proposals received to date from specialist mining financiers and Ethiopian investors, Project company, Tulu Kapi Gold Mining Share Company ("TKGM"), is now also seeking to potentially reduce the number of shares it issues to any third party by increasing the amount of funds raised by TKGM from specialist mining financiers in other acceptable forms, and by doing so, increasing existing TKGM shareholders' ultimate beneficial interest in TKGM. This would have the effect of increasing KEFI's beneficial interest in TKGM.
Along with fellow Directors and Management, I strongly believe that we now have the opportunity to advance and excel in what will be a rebound for our sector and our locations. This targeted success will have resulted from your support and the Company's caution, focus and tenacity. Now should be opportune to develop our first operation and for KEFI to also go onto the front foot in both Ethiopia and Saudi Arabia for growth from exploration.
KEFI was until recently a grass roots explorer, but is now an explorer, developer and operator of mining joint ventures for influential and financially strong local partners in the Arabian-Nubian Shield, in both Ethiopia and in Saudi Arabia, along with leading African project contractors, and development and operating management.
We have much to do to reward our shareholders for their confidence, support and patience for which we are deeply grateful and respectful. It gives me more than a little pleasure to be able to hold this meeting in Sydney, my hometown, and also to pay tribute to the large number of Australian shareholders we absorbed into KEFI from the previous owner of the Tulu Kapi Gold Project. Over US$60 million has so far been invested by our now-combined shareholders and it is great that the Project is finally coming to life after a fifteen year gestation period; and doing so at a very exciting time for the gold industry, the country of Ethiopia and for KEFI."