FACTS not OPINIONS27 Jul 2020 15:32
I am open to assessing all bad points about the company. Iv searched myself for everything and anything that can be wrong.
Tulu Kapi Project Economics
From a gold price-risk viewpoint, the development and finance plans withstand a flat gold price for the next ten years of c. US$1,100/oz - which approximates the lowest gold price experienced in over ten years. The average gold price for the past ten years was US$1,365/oz.
At the current gold price of circa US$1,700/oz, KEFI estimates:
· net cash flow of the open pit mine to be US$481 million; and
· the Definitive Feasibility Study ("DFS") based NPV of the open pit (US$300 million) added to that of the PEA-based NPV of the underground mine (US$110 million), totals to the aggregate Project NPV at 8% of US$411 million. NPV's are on after-tax cash net cash flows as at today.
On this basis and after taking into account that KEFI has already invested nearly all of its contribution to the Project equity, KEFI's 45% beneficial interest in Tulu Kapi only is US$185 million (approximately £153 million), about nine times the current market capitalisation of the Company. From the official RNS.
We have a massive RNS due within a matter of weeks confirming the official JORC resource that we already know is up 66% at 20 million times, which is expected to support the Re-rate the share price is currently in ( above 52 week high ).
What we're seeing is only the start of that, as an update on the World class Saudi resource is due.
That'll be quickly followed on by the TK news, with offtake financing arrangements now being 'Concluded', according to the company's own statements.
The Technicals point to a very near term clear run to 2.5p with fundamentals indicating a share price effected well above 5p on the further news due in September and. Full close in October.
This isn't idle ramping but hard analysis of the metrics if the project and the game changing catalysts being affected within weeks.
Do your own research. It's all there for those astute enough in canny investing and against a strengthening macro economic backdrop for gold investment.
Watch this space - the best gold stock currently listed by far, imo.