Saudi sale value24 Jan 2025 11:41
While was not going to do this but with Bonkers laughable verbiage on Saudi valuation..
Lets look at what Annual report actually says (even though it is out of date) and what a first right of refusal means.
https://www.investopedia.com/terms/r/rightoffirstrefusal.asp#:~:text=Key%20Takeaways,others%20express%20interest%20in%20it.
”A right of first refusal is a contractual right giving its holder the option to match or decline to match an offer on an asset before the owner can sell it to someone else.”
“While ARTAR has the right to buy-out KEFI at fair market value as things stand, and while KEFI has the right to seek acquirers of its GMCO shareholding, we are examining a number of scenarios to optimise the future GMCO ownership structure for mutual benefit and to reciprocate to ARTAR its support of the joint venture relationship.”
As things stood wayback when the Annual report came out. So firstly KEFI does have the right to see what offers are out there and take the best offer and if Artar cannot or do not want to match that they can sell to who they want. As for fair market value “the inclusion of a preliminary valuation of KEFI’s 15% beneficial interest in GMCO by assigning US$80/oz of gold equivalent resources.”
“GMCO has so far reported gold equivalent resources of c.3 million oz on ore bodies that remain open.” So one value well 240 million dollars not that anyone expects kefi to get anything near that though it only assigning 80 dollars for an ounce of gold when Jibal is a gold prospect and the gold price is well over 2700 dollars.
“the remainder of the stake at US$15m is misleading, as the shareholders’
agreement regarding dilution for contributions/non-contributions between the
founding shareholders is based on historical costs of investment, whereas the sale
of a shareholding to a partner or a third party is on an open market basis.”
“However, using a long-term copper price of US$10,000/t, we calculate a value for KEFI’s 15% stake in Hawiah (based on potential dividends discounted at 10% pa) of US$32.0m
and one for Jibal Qutman of US$17.2m, for a total of US$49.2m, or 0.62p per KEFI
share,” Edision and that was pre new licence area right next to Hawiah and the Saudi government chucking in some money for exploration and does not count the exploration areas chuck those in and you are talking around $70 million easy.
Fair market value to potential bidders? While any bidder will try to get a low price as possible it will not want to be outbid by Artar or any other bidders and the $80 dollars an ounce valuation is pretty laughable considering what the gold price is doing. Then you have the added factor that it can then cut deal with Artar to become it new mining partner and “planeloads” of people are suddenly wanting to get on the Saudi mining bandwagon with Ivanhoe on kefis doorstep. So say 70 to a 100 million.
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