Member Info for Robjm66

HtTps://tbestlaw.com/ethiopia-allows-offshore-accounts-for-strategic-fdi-investments/

Extracts

In a significant and bold move to attract strategic investors into Ethiopia and generate new foreign currency inflows, the National Bank of Ethiopia (NBE) has issued Off-shore Account Opening and Operations for strategic Foreign Direct Investment Projects (Directive No. FXD/86/2023)...

The Directive defines strategic foreign direct investment projects as PPP projects in power generation and infrastructure, large-scale mining projects with substantial export earning potential, and other FDI projects to be designated by the Executive Management on the strength of the size of investment, job creation, import substitution, foreign exchange inflows, technology transfer or sector specific impact of the FDI projects.

The Directive allows strategic FDI investments preferential treatments in three distinct areas, namely:

– opening of off-shore accounts;

– currency convertibility guarantees; and

– enhanced debt-to-equity ratios...

Apart from Ethiopia probably have more idea of when we get the Jibal Qutman upgrade if the market can see two gold mines going ahead..

Part 2

That’s the big one to be honest because that two thirds of the capital the toughest capital is banks the toughest due diligence in that sense (Basically if you can convince the banks..) and the Equity piggy backs (other investment in the project follows) o the bank work. The equity was put together at the subsidiary and project level (less dilutive than parent company level) is pencilled in (most of the work done) some of it finally formally approved some of it informally some of it in principle approved (everyone want to get this done and in the process of getting it done) but waiting for any conditions from the banks final approvals from the banks everything so they can finalize their approvals (sounds like other consortium members just waiting on some rubber stamping from the banks for their sign offs) the we will be launching next quarter (Credit board approvals this month then launch).

We are launching in the next quarter as best I can judge, we are mobilizing into the field at the end of September (obviously expect final board and credit approvals before the end of September then) and preparing the community its all falling into place.

(Interviewer) anything else to add?

(Harry) The key point is Ethiopia has quite markedly turned it been a tough gig for some years for a mining company in Ethiopia also in Saudi Arabia where we have operations also both countries have turned over the last two years and now particularly this marked change in Ethiopia where regularity obstacles are being removed at a rapid pace (Ethiopian government and mining ministry helping the company) and the industry is starting to line up (mining industry taking off). That Allied deal is very interesting to me because if I am not mistaken it’s the largest equity raise for any gold mine globally this year (anyone know of any deals bigger?).

That a big deal it shows you that the markets are there for the right projects and the right countries and clearly north American investors have turned onto Ethiopia that’s a good sign it augurs well for kefi and kefi very patient very long supportive shareholders.

My comments in brackets

htTps://www.proactiveinvestors.co.uk/companies/news/1026342/kefi-gold-and-copper-ceo-highlights-new-regulatory-ticks-in-ethiopia-1026342.html

(Harry) I am not in Ethiopia I have family in Ethiopia they and they staff are celebrating the Ethiopian new year (https://en.wikipedia.org/wiki/Ethiopian_calendar) I happen to be in the US but it’s a big day in Ethiopia.

(Interviewer) and a big day for kefi and Ethiopia as well we had some big news recently from Allied gold (see my previous posts) and some more progress at your TK project could you just give us an overview of those two bits of news Harry.

Harry Ethiopia has a wonderful production at an artisanal level for millennia literally since the days of the pharaohs in Egypt however lets call it the modern industry has not arrived yet its now arriving (Kurmuk gold, KEFI, Kenticha, Allied gold Akobo minerals) because of us and one or two others busily preparing to launch their projects as well. I suppose its coincidental today the company referred to Allied announced a equity capital raising in the stockmarkets in north America (https://financialpost.com/commodities/mining/gold-veteran-peter-marrone-emerging-nations) of over 200 million dollars I think to go towards the launch of their project which is a bit furthur west than TK in Ethiopia and on the same day we told our shareholders about some pretty important regulatory ticks if you like especially of foreign exchange controls Ethiopia is launching the industrial modern scale gold industry.

(Interviewer) all understood Harry what do you need to do (kefi) to be part of that new revolution over there?

(Harry) Well we have set it out in the recent updates, the particular points really are that our banks that are putting up two thirds of the capital need to issue their final full approvals those permission can now proceed (looks like final hurdles now cleared with banks) and processes can now proceed on the back of what we announced today (sounds like any hold up was with the banks other parties were more advanced) we were waiting for regularity clearances now we have got them (see previous RNS).

Thanks Bear htTps://www.proactiveinvestors.co.uk/companies/news/1026342/kefi-gold-and-copper-ceo-highlights-new-regulatory-ticks-in-ethiopia-1026342.html

HtTps://www.ft.com/content/92950b78-1044-4be5-8c90-853cbedf5d31 (Extracts)

The boss of a newly listed gold mining company has said that its future lies in Toronto and New York, as more precious metals miners are bypassing the London Stock Exchange to list their shares.

Allied Gold, an Africa-focused producer, listed in Canada on Monday following a reverse takeover transaction, raising $267mn in the country’s largest mining initial public offering since 2010 with a market capitalisation of C$1.3bn ($970mn) on the first day.

Allied Gold operates three mines in Mali and Ivory Coast that produce about 375,000 troy ounces annually. Marrone aims to lift output to more than 700,000 ounces over six years through organic growth including investing $500mn in the Kurmuk project in Ethiopia. In that time, the company aims to triple core earnings from $200mn to $600mn.

Marrone said he would consider opportunities for mergers and acquisitions to build a portfolio of emerging market gold mines, which could include partnering with competitors to buy bigger rivals and divide up their assets.

Well they were appointed in July and are “non-UK investor relations adviser" and the Warrants are connected to TK “The Options have a term of seven years and shall vest at the earlier of the Company's Tulu Kapi Gold Project closing its project financing or six months from the date of 3PPB's appointment…” Obviously they missed the word time or date from my copy of the Rns shall vest at the earlier date..time..

The two most likely sources of new “non-uk investors are obviously Middle eastern or Ethiopian I say new as I doubt they have a massive number of Non uk or English speeking investors unless they are talking about the Consortuim or Artar probably mainly Uk investors with a small sprinkling of European investors. So it’s a flip a coin guessing game which it is Saudi or Ethiopia think the exercise of the warrants is connected to the TK launch as it will be a whole new ball game then so it does not necessarily mean its Ethiopia.

HtTps://twitter.com/i/broadcasts/1lPKqBvLmrAGb 3.47 minutes in.

Nice find Tintin that's in addition to Kefi and Kenticha "Allied has just completed a $267-million financing, including a significant investment from incoming management in the amount of $40-million. Chairperson and CEO Peter Marrone anchored the investment of incoming management."

Https://www.proactiveinvestors.co.uk/companies/news/1026173/kefi-gold-and-copper-down-to-admin-matters-at-tulu-kapi-1026173.html

Proclaimed and published a new NBE Directive on 8 September 2023 which satisfies the requests made to ensure conformity with the specific Project details.

Other Ethiopian Government confirmations have been received. Formal approval of the updated Environmental and Social Impact Assessment has been received, facilitated by the Ethiopian Ministry of Mines, together with the requested updated completion schedules by the electricity and roads authorities for offsite infrastructure. Only documentation and administrative matters remain; and

-- Security to facilitate next steps in the field and to ensure continuing stability is being addressed.

Further announcements will be made in due course as the Company remains on track for Project launch in Q4 2023.

….

And obviously will have official board and credit approval before that which is crucial step.

“Only documentation and administrative matters remain” so looks like everyone agrees and on the same page so should be no major hurdles left.

From ADVFN Bostanli

"RNS matching exactly what the Q&A said, great stuff!!

Q: The central bank of Ethiopia has published another Directive onto its website. Does that cover what was raised only last Friday by KEFI and our banks.

A: Yes, it covers what we wrapped up on Friday and had been discussing for some time."

...

Everyone wants to get this done and actually want to get it done as fast a possible. Have the banks the ministry and the government all on the same page hence the speed. If it was here and you had the bankof England bringing in new rules you would be talking years but now things have "flipped" to use Harrys words and things are getting done in days in some cases as for the clowns you can flip them something else but nice to see them panicking.

Https://www.reuters.com/markets/commodities/us-saudi-arabia-talks-secure-metals-africa-wsj-2023-09-10/ (Saudi mining)

(from JP Morgan)China currently holds 96% of global copper inventories, 75% of global aluminum, 70% of corn, 54% of wheat, 30% of soybeans and 22% of crude oil: JPM)

https://www.zawya.com/en/economy/gcc/saudi-arabia-uk-review-ways-to-develop-trade-and-economic-relations-j8h3it90 (Saudi UK)

Thanks was one of harry better webinars and did a even better job with conference presentation https://www.youtube.com/watch?v=jHQ8rYTDnmM where he was more at ease and relaxed was even cracking jokes.

Thanks TinTin that's fast work by the central bank.

Part Three

Q.10 Have you looked at selling a project have you seen any approaches?

A.It’s a small world (mining industry) but the best way to optimize return is to deliver…(not the right time and circumstances)

Q.11 will the company need further funding in the short term?

A. We have paid all liabilities at the end of June and we do have working capital facilities to carry us through to post closing (would be a whole new ballgame post closing)

Q.12 is there a business plan in place in Saudi?

A.Yes. We are heading to develop two projects and elevating a pipeline of other projects though we might JV multi billion projects.

Closing comments

We have carried on..and all this companies that have come to region show the value of our mission I think when TK is launched there will be a remarkable transformation of perceptions around the company as perceptions have been coloured by past difficulties. But that will be a thing of the past very shortly.

Welcome to those looking at us for the first time and thank you for your patience and support of those of you who have been in there with us.

Questions part 2

Q.6 Saudi stockmarket listing?

A.We have invested a lot of time on this question.. to be a bit flippant we are a bit like rock stars in Saudi in this game having been applauded and patted on the back…Saudi Authorities have only had one ipo in years (https://www.zawya.com/en/press-release/companies-news/amak-ipo-book-building-closes-successfully-with-736-times-institutional-coverage-junm34mi) and there are only two mining stocks..so the Saudi stockmarket is a bit away from pre-production companies…I think it fair to say the joint venture will look at all alternatives to build a mining house Artar are very serious people and we will as a JV optimize the capital for each project..the individual projects are now being put into their own subsidiaries into post holding companies we have agree to insert this is all to do with creating flexibility for us a a partnership. Saudi is taking off the partners have agree to look at all possibilities…looking at other ideas as well for kefi (basically up in the air how they may list but obviously giving themselves the option to list somewhere in the middle east hence the reorganization) .

Q.7 If any of the banks refuse credit approval what's the plan?

A the banks have invested three years they have stayed in there they are in the Addis today to sort out the fine print of exchange controls they are serious people they are no doing this in a view to rejecting this..they are development bank that have Ethiopia as a member (they have Ethiopia as a member).

The prize her for kefi is to close that gap between market cap and intrinsic value

Q.8 What is your gut feel for when the banks will sign this off what else do they need?

A. The only reason I will not answer that explicitly as I do not think it s respectful of the internal decision making of the banks (basically in the midst of discussion with the banks so limited over what he can say or anything that may been seen to put public pressure on the banks unnecessary anyway as just got a good report from the banks) but banks were happy to come on plane to sort things face to face and planning to launch next quarter.

Q.9 Are other members of the Syndicate sitting waiting to sign as soon as we get board and credit approval?

A The short answer is yes. The main thing is to.. the main frustration to the shareholder is when can you finish..but its in shareholder interest to hold the line we will not budge till everything is right but we are now moving from the negotiation stage to documentation stage the documentation stage has been dragged forward we are doing some of it now in terms of fine print. There is nothing in the timetable that I would call big ticket of negotiation (no more big hurdles). the government could not be anymore supportive from the start of this year we are first in the queue for mining and a high priority for them.

Questions part one

Q.1 you stated that syndicate lenders meeting with the company this week is one of the final action points of the completion of TK finance are their any more action points remaining?

A. The main thing now is the central bank issues the fine print of the central bank issues are being put in place with the meetings that have taken place this week the next step is the final credit and board approvals of the banks everything from there on is procedural.

Q.2

Resettlement?

A.Is chopped up into Tranches we do not plan to resettle the 350 households in one step so move the people of the airstrip side..it all sequenced out.. the other question was is there equipment in the country there is plenty of equipment in Ethiopia (That can be mobilized)

Q.3 Will there be a similar press photo opportunity to the final umbrella agreement when the final signing when the final financing agreement is signed..?

A.I do not know that banks are open to photo opportunities for final credit approvals but we will take every opportunity we can to record for shareholders everything that is reasonable to do so.

Q.4 wil Jibal Qutman be in production before TK and what percentage ownership will kefi have of JV?

A Jibal Qutman is not ready to trigger…I would be surprised but in the scheme of things mining projects being developed for the long term I would expect because it has a shorter time frame for development not at this stage..the other Question was percentages..the value we have made dwarfs the expenditure we have made..the obsession over TK for obvious reasons will alleviate itself as we move forward then we will be able to tackle the Saudi side.

Q.5 If we do not manage to get closure this quarter do we loss another year due to the wet season?

A.You have to be careful about definition of closure..money in the bank..what I said was credit and board approval and it all flows from that..what we have said we will launch during Q4 which is closure..

Part three

Having done those three things what's next detailed documentation now flying around circulating for approval from all parties. The most important thing is board and Credit approval from the banks that’s two third of the capital and I think with this weeks progress with the central bank opens the door for us to now proceed. The banks have been working with us for years they are very serious banks and scrupulous over everything being done right. We are now at the point where we can proceed. We are preparing the community already for what comes next which is moving them in stages and procurement will follow signing of detailed documentation. We must hold the line to everything is done formally definitively before we release capital. Today my team was in Kalgoorlie showing the ministry and friends form Ethiopia around and is wonderful.

(Slide 13) The schedule for the two Saudi projects (slide14) The board we are preparing the board that is coming now.

(slide 17,18,20) a great starter project we get everything signed off interdependently the amount of the project capital (being raised by the syndicate) raised is more than the Aim market has raised for its mining companies in the last year.

(slide 21-) Orebody potential for 1moz additional (27.08)

(slide 28-) Suadi Hawiah one of the biggest in the world.

(slide 31) (28.21) The Saudi stock market has taken off for mining Amak Market cap over on billion dollars resources smaller than Kefi.

(Slide 32-) Jibal qutman (going to be ) a string of pits and just exposed a VMS about 50km away from Hawiah.

Part two

(slide8) TK first cab of the rank in the finance closing procedures as we speak (11.10) and the two in KSA are a behind but we have lined up the capital for Saudi as well (we have lined up the capital for Saudi well worth saying twice) in that our partner puts up there share of the capital and the sovereign fund the Sidf the Sidf is engaging already (https://www.sidf.gov.sa/en/ServicesforInvestors/Sectors/Pages/Mining.aspx)

We have no doubt that when the board recommends development on the two projects there finance will follow. WE have a pipeline of exploration projects would venture to say second to none now in the Arabia Nubia region other than Maaden (https://www.maaden.com.sa/) unless you see Maaden as not being in the private sector. There is a pipeline we have assembled in Ethiopia which will emerge publicly as tenure is sorted.

(Slide9) Market cap to NPV as the projects de risk..

(Slide10) Comparison of Kefi value to other miners

(Slide11) The essence of this chart is we have joint venture equity…if you add up all the numbers on the Ethiopian side (14.35) that we have lined up preliminary approvals and already final approvals if you add up all the numbers they come upto a bit over 390milion dollars (well suggests to me that some of the syndicate are more advanced in their approvals than others).

On the left (Saudi) awaiting feasibility studies but they are heading in the right direction it is just a question of the resources that are still open,which will grow significantly it not a question of whether we will develop but when. A lot of upside in both countries.

TK is a great start project good grade and no legacy issues robust economics. We have been at the forefront of reforms.

(slide12) We are in the thick of closing..there were three critical hurdles before we could go into detailed documentation with the banks country membership (Ethiopia joining one of the African banks involved in the deal) we assisted in that process, Security needed to be treated as a red zone even though its a green zone the third thing is foreign exchange controls we need relaxation exemption (18.39) (relaxation exemption) and now we were granted this previously but now we are getting down to tin tacks we needed fine detail the fine print had to be agreed between the banks and the central bank of the country. Has been very challenging for us but we have succeeded there have been a series of meeting this week in Addiss (19.16) and the very detailed summary report I received in the last half hour was a string of thumbs up.