Proactive / Beaufort9 Oct 2017 10:31
http://www.proactiveinvestors.co.uk/columns/beaufort-securities/28763/beaufort-securities-breakfast-alert-bezant-resources-plc-easyjet-plc-kefi-minerals-plc-cora-gold-28763.html
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KEFI Minerals (LON:KEFI, 4.32p) � Speculative Buy
KEFI has published its 3Q update which summarises progress made during the period (e.g. Oryx funding mandate, VAT refund received) and includes details of new plans to increase the plant's capacity. Oryx has agreed to provide additional funds to help fund the extra processing capacity. The financing process is well underway, and will culminate in the issue of listed bonds which is on track to complete this year. Other significant news during the period includes the end of Ethiopia's state of emergency and the full support of Tulu Kapi by the government. This is evidenced by the fact that two of the directors on the project company (Tulu Kapi Gold Mining) are Ethiopian government representatives.
Our View: This is a positive update from KEFI. Mine financing remains a challenge for junior mining companies. However with the support of Lycopodium, Oryx, Ausdrill and the Ethiopian government, KEFI should complete mine financing and start construction within the next 6 months, potentially within 4. The capacity increase plan is also very good news. We expect more details in due course but we would expect the extra 300,000 tonnes per annum to significantly improve both the IRR and NPV, as well of course as the annual EBITDA. KEFI is entering an important few months and if the bond issue succeeds as expected, KEFI shares should react very significantly. We reiterate our Speculative Buy recommendation.
Beaufort Securities acts as corporate broker to KEFI Minerals plc
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