Member Info for Robjm66

Perhaps you would like to start from giving us the highlights from TK first.(Interviewer)

Its been a turbulent set up over the last few years but things are settling down well and there have been some pretty important steps forward.(One) Two big participants in the syndicate really are the two development banks they could not really put the project on the fast track internally till they were given the same rights as the country.

I am not here to speak for them but the bottom line is Ethiopia has granted rights to the development banks to be protected in a number of ways. Ethiopia is being admitted to the commercial banking sector the protections being granted that unlocks a lot of work that we can now complete that is fantastic to be honest. Also their enthusiasm and willingness to support is reflected in the fact that they stepped up with a bit bigger allocation for the project.

A the government is right on board and allowed the banks to engage the way they wanted to.

B The total financial package is in place so we can cover the whole project.

C an atmosphere of positivism its hard to convey in words or on paper but if yo were on the ground you would feel it, it’s a wonderful state of affairs to me.

(Interviewer)Now let look at yo operations in Saudi.

Jibal Qutman was discovered years ago but got frozen by regularity issues but were unblocked a bit over a year ago. So now playing catch up but have a really hard working team that are putting together a development proposal for a larger project than we first had in mind and that because obviously the gold price is completely different to the way its was now talking 2000 dollars an ounce originally were talking 1200 dollars an ounce.

So the company is fortunately and luck has not been part of our world for a long time but to day with the two governments if you like unblocking processes for us and us getting a tailwind in a regularity sense and the gold price itself is flying so maybe it will work out terrific in the end after all.

(interviewer)I think a lot of people would like to see it work out terrific in the end after all. You Rns was called progress on all fronts but we are always waiting for spades in the ground?

Yes we are well observers are waiting the people in the company working like blue ****d flies. We are working very hard the governments are working hard, the commitment inside the company and the positive air inside the company is palpable. Its not an easy job t bring hundreds of millions of dollars to the table to support a junior aim company, but this will not be a junior aim company for very much longer.

So the observers and the patient shareholders will see the justification for there patience.
…
this will not be a junior aim company for very much longer :)

https://www.zawya.com/en/projects/mining/project-updates-kefi-reveals-new-targets-for-gold-copper-projects-in-saudi-arabia-hlzc6ddp

“We expect a minimal delay in closing finance within Saudi Arabia and starting development so that we can be in production around mid-2025,” the company said.”

“The Red Hill deposit and nearby areas have extremely good potential to provide additional ounces from the current drilling programme, KEFI added.”

https://www.kefi-goldandcopper.com/files/announcements/kefi-quarterly-operational-update-22mar23.pdf

Has a map with red hill area included at end.

Fjones well its good to be seeing how much money we will be making and maximizing that rather worrying about making money at all.
Part of the problem is they keep tripping over great mineral prospects in Saudi another reason to get the Saudi listing done as soon as possible.

https://www.zerohedge.com/markets/bill-ackman-blames-janet-yellen-restarting-bank-run
(gold)
Think things were stuffed whatever the bank said or did. Would now expect others things to start breaking fed rate rises to be paused indefinitely and inflation and higher gold prices to be here to stay.

i think these are good questions if the interest is there for listing which it is the company should be able to leverage interest in mining in Saudi to source lines of finance that are not dependent on the companies share price.

Think there has been so much time and energy focused on Ethiopia the sea change on the positivity around Saudi listings was missed for too long. It was shareholders really that responded first after the Amak listing.

On the face of it kefis greater share in Ethiopia projects might make it more sensible to slightly favour them but simply the speed of progress that's possible in Saudi means that even though kefi gets a smaller share the cake is so much potentially bigger.

Company needs to find away or get experts in that can maintain the 30 percent level not good enough to only get 25 percent not only do we want cake we want lots of it ;)

https://www.proactiveinvestors.co.uk/companies/news/1009831/kefi-working-through-last-stages-at-tulu-kapi-1009831.html

https://www.share-talk.com/rns-hotlist-with-zak-mir-obe-tek-good-boom-qbt-tap-all-bird-rock-axl-vrci-kefi-glr/

Sorry just google kefi minerals should pop up.

https://www.***************************/kefi-gold-and-copper-working-intensely-to-launch-the-first-two-of-three-development-projects/4121111451

Hawiah Copper-Gold Project
We expect this Resource to increase as well as defining additional Resources at nearby prospects including Al Godeyer where we have already completed 4,176 metres of drilling and expect to report its Maiden Resource Estimate and detailed assay results in April.
 the Pre-Feasibility Study is nearing completion for internal review. We target to secure finance and launch shortly after the start-ups at Tulu Kapi and Jibal Qutman. (Hawaih is huge Al Godeyer could be as well)

We have formed regional exploration teams which have mobilised onto all projects for initial prospecting of what we now see as 4 project areas (4 project areas?)spread over the new licences. As was the case at Jibal Qutman and Hawiah, many of these licenses have abundant evidence of historical workings and surface expression of mineralisation.
CORPORATE
Over 90% of development capital for all three advanced projects has already been conditionally arranged at the project or subsidiary level,
At today's gold price and assuming an ownership level in TKGM of say 77%, the NPV to KEFI of just our Ethiopian project is estimated at US$251 million or GBP207 million. 
"At the current gold price of c. US$2,000/oz, KEFI's beneficial interest in the estimated Net Operating Cash Flow from Tulu Kapi alone is estimated to be c. GBP75 million average per annum and in the NPV is estimated at GBP207 million , or respectively 1.8 pence and 5 pence per current KEFI share in issue.
"At Tulu Kapi in Ethiopia, the project finance is conditionally in place and, with the Government, we are ensuring that all security and administrative arrangements are also in place.
"At Jibal Qutman in Saudi Arabia, whilst we had originally defined a starter project at then-lower gold prices, we are completing a feasibility study on a larger project at today's higher gold prices."

Jibal Qutman Gold Project
-- We applied for a mining licence in 2015 on the basis of an assumed gold price of US$1,200/oz, and the heap leach processing oxide ore containing c.200,000 oz within a 733,000 oz gold Resource.
a 13,000 metre drilling programme (to be completed in April 2023) which is aimed at upgrading and expanding the current 733,000 oz Resource;

 We target to complete the DFS this year and, based on encouragement from regulators and development financiers, we expect minimal delay in closing finance within Saudi Arabia and starting development so that we can be in production around mid-2025.

(licence area bigger now with three licence area rather than the one plus you have the higher gold price obviously going to mean a bigger operation than originally envisioned though now expected to be in operation roughly the same time as TK)

The project finance banks have, as of last week, both been formally provided certain specific protections and benefits from the Government of Ethiopia, which had become conditions precedent for financing. (banks happy as of last week so things are getting done and if the banks are happy everyone else is likely to be if not you are stuffed)

-- The total Project finance package of US$390 million (mining fleet US$70 million provided by the mining contractor and US$320 million provided by debt and equity financiers) is now conditionally in place within the syndicate. (Actual equipment costs worked out from a previous harry answer in the webinar one of the last things to be done as costs have to be current)

-- Drafting of the numerous definitive agreements is either complete or advancing well and all parties have indicated that they intend to proceed to seek formal final approvals on satisfaction of the conditions precedent in the hands of Government in respect of administrative matters and security.(everyone on board just tying up loose ends with the government)

-- TKGM now has the intense attention of the Ethiopian Ministry of Mines, National Bank of Ethiopia and the other Ministries and agencies and expects to resolve all outstanding issues in the coming weeks, so that the syndicate can then proceed to seek all-party formal approvals including KEFI shareholder approval. Upon all approvals being formally confirmed, we can then proceed with drawdowns and Project launch so as to be in full production by mid-2025. (Still got a few things to sort out.. few loose ends now expected to be imminently resolved with the Government...but now the Ethiopians side is fully on board with the backing of the mining ministry.

The most significant thing though except maybe the banks bit is "We also await Government permission to follow up our other exploration discoveries in the Tulu Kapi district and, to that end, based on discussions with the Government have recently re-assembled our Ethiopian prospecting team for that and other initiatives." Suggests exploration areas issue has been largely sorted recently "based on discussions...recently assembled". Probably once launch if TK out of the way the ca explore more widely over the whole of the previously promised exploration area.

Gold price about 700 dollars higher this time for a start.

https://news.cision.com/akobo-minerals-ab/r/akobo-minerals-secures-nok-22-475-million-in-funding-through-a-convertible-loan,c3736740

Akobo Minerals AB (publ) (Euronext and Frankfurt: AKOBO), the Scandinavian-based Ethiopian gold exploration and boutique mining company, today announced that it has issued an unsecured convertible loan (the "Loan") of NOK 22.475 million (approx. USD two million) from new and existing investors to fund the final phase of its Segele mining operation in Gambella, Ethiopia (the “Project”). The board of directors and management of Akobo Minerals contributed with NOK 3.8 million of the funds...

If Akobo can get funding...

https://www.arabnews.com/node/2271461/business-economy
RIYADH: The value of the Saudi financial market has surged 476 percent over the past five years as it hit SR9.9 trillion ($2.6 trillion), revealed a top official of the Capital Market Authority.
Going to be no problems in Saudi they are awash with with dosh.

While obviously a good deal with TK would help JQ its not dependent on TK. Just crunch the numbers.
https://www.kefi-goldandcopper.com/files/files/Orior-Capital-KEFI-Research-Report-25Jan23.pdf

KEFI has said that the Jibal Qutman DFS will be based on production of 500,000 oz over ten years. Given the potential for further resource growth, particularly with the award of the Jibal Qutman North and Jibal Qutman Southeast exploration licences along strike, the assumption is that production increases by a further 50% to 75,000 oz pa.. JQ which was modelled on a gold price of US$1,200/oz.(So before higher gold price and larger licence area).

“Start-up costs were estimated to be low at just US$39m”However say 75 percent covered by saudi sidf loan leaves roughly 10 million million then Artar senior partner covers 7 million leaving kefi to only find a couple of million.That is chicken feed and Saudi investors and banks would form a queue to lend kefi the money especially with kefi looking at listing on the buoyant ipo market in Saudi.

Kefi have gone months and months past when people have predicted a raise in the past and that is before they were close to getting the go ahead on two gold mines.Then factor in gold price..slide 20
Microsoft PowerPoint - KEFI-Update 7 March 2023v2 (kefi-goldandcopper.com)

Cash Built up in TK over life of mine (USD Millions) 508.1 or 764.3

Part of deal Debt Finance (US$190 million), including both senior and mezzanine-offtake-linked subordinated loans: would expect that part to have been built around the consensus gold price 1641 but any offtake will be linked in some way to the present gold price when the deal is done so would expect conservatively an offtake deal done between 1850 to 1900 minimum could be even higher if gold goes on a tear next week.

AquaeSulis01 the material uncertainty is not new been seeing the same statement for years and is not uncommon in exploration mining companies kefi has been able to get funds in the past and is now in a better place to get loans the “unsecured funding” with a much higher gold price. People are not going to know how much kefi might need to raise if anything till TK launch as a much higher gold price means a much higher offtake and better financials.

A new investor might think yeah kefi like any other mining explorer where is the difference (the USP) that would make me invest here.

What might get missed by a new investor is kefi has another project in Jibal Qutman that due to being easier to mine is likely to be in production at the same time or even a bit before TK and can be very easily funded to up to 75 percent loan from the KSA and kefi partner paying for most of the rest. The massive exploration portfolio in Saudi a follow on project to TK and JQ in Hawiah and the planned Saudi listing that could kill off any need to raise funds in the same way in the future.

Even if a new investor does not invest here they should be looking at gold and silver miners after all what are they going to do with their money leave it in a bank that's material uncertainty with material certainty that inflation will be killing their savings.

https://www.aa.com.tr/en/africa/us-announces-331m-in-humanitarian-aid-for-ethiopia/2846714 ( Ethiopia general)
https://insidetrade.com/daily-news/blinken-us-shares-ethiopia-s-aspiration-rejoin-agoa (Ethiopia general)
https://www.state.gov/secretary-antony-j-blinken-with-yonathan-yosef-of-fana-broadcasting/ (Ethiopia general)

“Failed state” refers to a state whose government is unable to perform its two most fundamental functions: it cannot project any meaningful authority over its territory and it cannot protect its national boundaries. " bit like here then ;-)

https://www.youtube.com/watch?v=6rgyOMQ3AMs Peter Schiff (gold)

https://www.dailymail.co.uk/news/article-11857123/Wall-Street-expert-predicts-Credit-Suisse-bank-fold.html (gold)

https://www.youtube.com/watch?v=z1s_aHR7C_w (gold)

https://cryptonews.net/news/bitcoin/20221083/ (gold)