RE: Fundamentals & TA - STRONG BUY10 Jul 2020 09:38
NO LEAK!
Just the same strong fundermentals that have always been there, but the RIGHT TIMING.
The combined volume of these lodes in the sub-vertical structure drilled to date is still considered likely to exceed 12 million tonnes in aggregate based on the results to date, as reported on 27 February 2020. For the purposes of indicating the potential relative importance for KEFI shareholders, at an assumed approximate 2% copper-equivalent, which initial assay results would support, the in-situ metal content of 12 million tonnes at current metal prices would approximate the analogous in-situ metal content of the one million ounce Ore Reserve in the planned open-pit mine at KEFI's Tulu Kapi Gold Project in Ethiopia. We always new the Saudi news due is MASSIVE.
And TK
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.
Speaks for itself. With gold at a high, everything in place, and it talks with the specialist mining financiers, speaking of offtake agreements, in a rising gold market,
sentiment has turner from its all lies, an giving no consideration to the assets, the climate the timing.
And now is realising, all the waiting was for NOW.
In October 4-7p would be 80-140milmcap, all that is absolutely realistic.
24 production of 212 mil annually at 140,000, and then ramp up to 200,000.
Displaying the facts
Sign In
Follow the stocks
