RE: RE: Launch 🚀 pad ready20 Aug 2024 07:57
Early Works at Tulu Kapi are ramping up, as follows:
Physical Activities:
Commencement of building construction camps, which follows on from the installation of security camps. Plus, the drilling of water wells, as well as geotechnical drilling to confirm foundation design of certain planned infrastructure….
Studies being undertaken to increase processing capacity by a minimum of 20% as we now look to incorporate the addition of underground mine development…
…Studies suggest this increased capacity can be achieved within existing capex and opex…(perhaps the value of BRR decreasing has meant foreign currency investment will stretch further so the can now afford to do this earlier plus higher gold price going to make it more attractive to do so for the consortium)
The nearby company airstrip has been upgraded
Government security expanded around site and district. Private security contractors appointed for on-site and for communications and logistics control
Financing Activities:
Financing Activities:
o Second site visit by secured lenders has been prepared so that the second co-lender may proceed with its final credit approval during the next month, following that of the first co-lender already received
o Conditions precedent list no longer contains matters for negotiation, but has been reduced down to matters just requiring documentation finalisation and formal execution (find a pen time)
o Local investors in Equity Risk Notes requested to formally resolve their level of participation by the end of August 2024 so that other regional investors know what is available for finalisation by them in September (so should know who has what chunk of TK and how much everyone is putting in by the end of the month)
o Political Risk Insurance confirmed for non-Ethiopian investors in preparation for finalising the equity investment syndicate structure in September
"In these same two months, reforms have included the floating of the currency, the launching of the first IPO on the new Ethiopian Stock Exchange, the opening of foreign investment into the local financial sector, international creditor rescheduling and a major IMF financial support package.” All these do help be interesting to see how TKGM or kefi will be floated in Ethiopia
"At the current all-time high gold price of US$2,500 per ounce, the first full year net cash flow from Tulu Kapi operations is estimated at US$196 million (£154 million), which is estimated as being more than sufficient to then be able to prepay all debt. This is based on the 'bankable plans for the open pit with the plant to run at designed nameplate processing capacity."
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