Member Info for Robjm66

We should all know next week what the situation is anyway.

From kefi website Q and A section

Questions regarding KEFI's interest in GMCO

Q: Why have we repeatedly pushed ahead with a rate of exploration in Saudi Arabia, resulting in time and money expenditure as well as dilution of KEFI's interest in GMCO?

A: GMCO is a JV Company, with a duty to be operated for the benefit of its shareholders as a whole and not for the benefit of one or other shareholder. KEFI and its shareholders obviously should not be restricting GMCO and ARTAR to either’s detriment or to KEFI’s sole benefit. That would be breach of duty.

Q: Under the terms of the JV with ARTAR, is there a realistic prospect that we could in future increase our percentage holding from the diluted 26.8% that we now hold? Perhaps through negotiation with ARTAR to overpay following a raise at a higher level post TK full funding. Or is it simply a matter that over time we will again own less and less?

A: Going forward, we have some choices (Saudi of IPO of GMCO or KEFI, JV of individual projects with third parties and so on). But if KEFI or ARTAR dilutes or sole risks, the other cannot come back later and call for their share back. If KEFI and its own shareholders do not want to contribute to worthwhile GMCO projects and budgets, KEFI can ask ARTAR to suspend the project or sole-risk itself and credit KEFI for the historical spending thereon. Of if KEFI shareholders are not really interested in GMCO and want KEFI to get out, KEFI can dilute below 25% and trigger a takeout at an independent valuation.

Posted 16 June 2023

Think a lot of the detractor's are not harry fans rather than just wanting to bash the company. Had to laugh about to comment about "Unsophisticated" shareholders come on we are all sophisticated here.

Interesting that the top reply was about dual listing but simply no sense listing then being in direct competition with 3000 other mining companies rather than just being in competition with a couple in a region awash with money.

Well at least they are taking the wages as shares though maybe they are being paid too much.

Sorry showing my age Bishop lol.

Would recommend people to schlep through the annual report especially the section Group Strategic report page 41 to 44 you should get an overview of the last year and what progress the company hopes to make.

htTps://www.kefi-goldandcopper.com/files/reports/kefi-annual-report-2022.pdf

Actually some good stuff positive stuff there.

Following the award of 14 ELs since the beginning of 2022, GMCO now holds a total of fifteen ELs covering an area of more than 1,035km2

. This demonstrates the overhauled regulatory regime and the seriousness of Saudi Arabia’s commitment to the development of its minerals sector

(From annual report) The Government is continually improving the mining regulatory framework. Recent initiatives include the digitisation of the licence application lodgement system plus other policy precedents brought to the Government’s attention by the private sector, such as:

• Specialist internationally accredited contractors being allowed to operate in Ethiopia;

• Whilst we are still resolving the detailed operating arrangements, bank accounts have been permitted for us in major international financial centres to allow mining project finance; and

• Permissible capital ratios now cater for the capital-intensity and project-debt-gearing of mining

Https://www.kefi-goldandcopper.com/files/reports/kefi-annual-report-2022.pdf

Https://www.proactiveinvestors.co.uk/companies/news/1017437/kefi-focused-on-achieving-gold-production-in-2025-1017437.html

Part Two

Banking procedures to be eased such that capital and operating

can be serviced promptly: whilst we were granted the right

to offshore banking some years ago, the detailed procedures

are only now being clarified and we are pleased with the direction this matter is taking.(Main hold up still red tape in Ethiopia but you can see from articles online that the banking sector is being overhauled)

From an ownership value perspective and measuring the Company's underlying assets on an NPV basis, this approach has already contributed to the indicative value of KEFI's share of its three main assets having more or less tripled from $153 million in June 2020 to c.$352 million (GBP281 million(1)) in May 2023. (Kefi Geo team have done a great job and obviously the higher gold price has helped)

It is important to note KEFI's planned circa.70% beneficial interest in the underlying valuation of Tulu Kapi is c.GBP125 ($156) million based on project NPV at a gold price of $1,815/ounce and including the underground mine. (expect a higher gold price the 70% is at the lower end of the scale)

Overall its pretty good but looks to me that harry dropped the ball on Saudi due to Ethiopia sucking up most of his time and energy (if we are being charitable).

Kefi simply have to dual list as soon as possible now they plan to go full turbo on exploration in both regions. Harry needs to take the thumb out of his (Rude word) and make a decision on a listing do not understand why on Earth he is still considering Australia and Canada when kefi want to replicate the success of Amak.

Part one edited down with my comments

"And as we advance in both countries with an early-mover position, we can now expect to report an escalating stream of achievements. What a welcome outlook after years of challenge and frustration! (your telling us)

At the same time, both the Saudi and Ethiopian local equity capital markets have shown particular interest in natural resources, as have the Canadian and Australian mining-focused stock markets. KEFI has appointed advisers to consider a dual-listing of the Company's shares on major regional or mining-focused stock exchanges.(Advisors came in February!)

KEFI's beneficial interest is planned to be 26.8% in GMCO and the shareholders' agreement provides extra flexibility on a project-by-project basis by catering for the possibility that one or other GMCO project can be sole-risked by either shareholder if one partner chooses to opt out. (A huge exploration programme is obviously going to cost more doubt this was kefi idea kind of backs my theory that kefi was leant on by Artar hence the rush for funds)

now cover more than 35km linear extent or 270 square kilometres of the prospective fault zone north and south of the known Jibal Qutman deposits, thus providing more opportunity to discover near-surface gold mineralisation.(Good expansion prospects)

GMCO could reasonably target commissioning gold production at Jibal Qutman in 2025, coincidentally around the same time as Tulu Kapi in Ethiopia.(JQ will be first see my previous post ADVFN)

Exploration commenced at the nearby Al Godeyer Project in early 2022 and drilling quickly confirmed similar copper-gold mineralisation to the Hawiah VMS deposit. The recently announced initial Al Godeyer MRE demonstrates the potential for satellite orebodies to be discovered near the proposed Hawiah processing plant.(Could be another massive project and mine)

Simultaneous with the triggering of full development at Tulu Kapi, we intend to re-commence exploration programs in Ethiopia and intensify our exploration program in Saudi Arabia. (going to go turbo with exploration in bot countries) 

In Ethiopia, the initial focus will be underneath the planned open pit where we already have established an initial resource for underground mining at an average grade of 5.7g/t gold. We also intend to follow-up drilling which indicated good potential for nearby satellite gold deposits in the Tulu Kapi District. In Saudi Arabia, further drilling is being undertaken during 2023 at Hawiah, Jibal Qutman and surrounding ELs. Regional prospecting programs will also elevate as we are blessed with many other walk-up drill targets.(Tulu Kapi District and reginal exploration in Saudi)

Our two banks to have the same rights and protections in Ethiopia: in March 2023 Ethiopia and AFC announced country membership - a significant step which also achieved our goals in this respect ; (this is good relations between Ethiopia and the two big lending banks are key)

HtTps://mb.cision.com/Public/20964/3782880/8b2662a00b4d40e9.pdf

(Ethiopia mining/Akobo)

htTps://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1161627/uk-saudi-spc-pillar-1-joint-statement-7-june-2023.pdf (Saudi/UK)

htTps://www.thenationalnews.com/business/economy/2023/06/07/reforms-will-boost-saudi-arabias-fiscal-strength-imf-says/?outputType=amp

“It has also launched multibillion-dollar tourism, hospitality, industrial and mining projects to spur non-oil economic growth, boost local consumption and create jobs.

Last year, Saudi Arabia had the highest annual growth rate among the world’s 20 biggest economies after its gross domestic product expanded 8.7 per cent on higher oil revenue and a robust non-oil private sector.”

https://www.ena.et/web/eng/w/eng_2893658 (Ethiopia general)

Now on website https://www.kefi-goldandcopper.com/news/videos/2023/06/kefi-presents-proactive-one2one-investor-forum

Actually a sad story https://www.hgs-familyhistory.com/2014/10/sweet-fanny-adams/#:~:text=The%20expression%20'sweet%20Fanny%20Adams,euphemism%20for%20'sweet%20nothing'.

Https://share prophets .com/views/68698/tom-winnifrith-bearcast-talking-to-harry-adams-and-1600-a-month-for-doing-sfa

Yes saw that Fivecandles personally think it a better idea if that two percent went into the region kefi operate in or if kefi get it they donate it to schemes locally. Long term the goodwill would be more valuable than the immediate money.

Fivecandles think JQ will be in operation before TK even if things go relatively smoothly from now on in Ethiopia just because the pace of progress generally in Saudi. Both governments are behind the company but if any problems in Saudi the government can just chuck money at them. In Ethiopia they are trying to get to where Saudi is now certainly the country and the region needs the mineral wealth. As for Saudi the potential is getting missed at the moment by the general market which likes things right in front of its nose so the company needs to firm up listing plans as quickly as possible Saudi, Dubai, UAE whichever.

Https://news.cision.com/akobo-minerals-ab/r/invitation-to-presentation-of-akobo-minerals--first-quarter-2023-results-thursday-08-06-2023-at-10-0,c3779778

https://www.arabnews.com/node/2315661/business-economy (Saudi mining)

https://oananews.org/content/news/saudi-minister-industry-and-mineral-resources-embarks-official-visit-egypt (Saudi mining)

https://www.africaintelligence.com/eastern-africa-and-the-horn/2023/06/02/mamo-mihretu-embarks-on-central-bank-reforms,109979729-ar2 (Ethiopian banking sector)

Well everyone knows its BS holding it in Cyprus when most shareholders are British not going to inconvenience harry as he works for Venus minerals there and it probably suits him to have it held there with good things happening at Venus. https://www.proactiveinvestors.co.uk/companies/news/1008211/ariana-increases-stake-in-venus-minerals-ahead-of-planned-ipo-1008211.html

Saying that the Description of AGM is pretty accurate to me having attended one and asked questions before and the webinar will reach more people and post Middle east listing think its inevitable that the AGMs will be held in Saudi anyway. If people want to push for an opportunity to question harry suggest they just send questions in “Investor Webinar

The Company will host an investor webinar at 12:00 p.m. (EEST) (10:00 a.m. (BST)) on Friday 30 June 2022 which will be accessed via: https://www.kefi-goldandcopper.com/

Shareholders are encouraged to submit questions by emailing: questions@brrmedia.co.uk. The

webinar will subsequently be available on the Company's website at: htTp://www.kefigoldandcopper.com/news/webcasts. Also post them up here so they cannot be dodged a bit before the AGM also if someone can post this post up the telegram group and replicate the questions sent in discussion just before the AGM. This might have the effect that the company faces more questions than if they just held it physically in the UK but think everyone can live with that. Problem solved.