Member Info for Simms45

If hes in Mayfair then hopefully finalising a deal with investment bankers for share, asset or some other mix of deal. I agree next update should give more meat to last 3 months as you would think due diligence on any deal should have been or is close to be completed. The silence is an obvious reference to due diligence. All still on track as i see it and every passing day raises chances of completion.

What we do know is that the EG have signed off everything required so the ball is firmly in Harrys court. This is a big step forward, although the shareprice completely disregards the importance but for years we have had a sluggish EG under the previous MOM Tekele who was probably holding out for brown paper bags but he got caught for fraud elsewhere and was ejected. The new MOM as expected cleared up the whole process and Kefi are now in the clear. All investors have signed the latest umbrella agreement that is basically a draft version of the binding agreement so in reality the step for signing binding definitive agreements will not be a long stretch and will go hand in hand with the debt financing but presume everything comes together. What was most impressive from the last RNS that was not expected is that Harry has got ahead of the warrants triggering over 1.6 and has a 3rd party who will take up the £20m equity that was expected to be covered by Kefi. This now derisks that successfully so the project is 100% committed in funding. We will presumably collect the warrant money at 1.6p and use that for the dual listing in Saudi, Hawiah and funding more drilling so we know we have no placement for a good while assuming the warrants are triggered. There seems to be skepticism still but we are still in June and the AGM is a week away so more details will emerge. My hope is a RNS prior to the AGM announcing debt financing is confirmed and or a date for signing the definitive agreements. Does feel that the share price has never been better value given the potential and Hawiah and JQ are bounding along so the fall i am pretty sure is connected to contractors who have taken shares in lieu or payment and selling into a market as it is hard to think why anyone would happily take losses as we are at a all time low. I really hope this last week brings more confidence to the market as we should be heading past 1p. What else are we missing?

So from same Q&A in Oct 21 we get confirmation that the access road has not yet started but survey has been completed in readiness so i think have been clear as i do not think anything has been said since has it?

Q: Having read and listened to Harry outline that early initial work is progressing to get the TKGM site ready for the mine construction. From what we can see, it looks like activities are yet to begin, when is this actually going to start?

A: As regards physical construction-style activities on the ground: we have completed refurbishment of the exploration camp for accommodating initial construction workers; the new host lands about 50 kms from Tulu Kapi at a place called Aba Sena have been substantially cleared, road cut in and initial batch of starter homes delivered; electrical connection program over 50% expended in that fabricated equipment has been received in country; surveys for civil engineering partly completed; new access road to Tulu Kapi surveyed in but not started; old existing access roads and bridges into Tulu Kapi need their annual maintenance plus some further upgrading when the wet season has ended shortly.

I guess the question is whether they have spent this yet as the last time this was mentioned in the Q&A is back in Oct 2021 which states the road had not been built and in reality why would any road be built until the finance is completed or this would a very expensive road to nowhere. You would expect that once finance is completed the road will be built but then again this is Ethiopia but as long as power is connected we should be good to go :

How many road routes to Tulu Kapi and how long a drive are they?

A. The highway from Addis gets one to various turnoffs which all range from 1 to 2 hours from Tulu Kapi. Then there are a handful of routes on gravel roads, which take 1 to 2 hours each. The shortest route will eventually be that which is built as a new access road and it will then take about 30 minutes to reach Tulu Kapi from the highway.

Posted 25 October 2021

I see it that the Chinese need to make a binding offer for the assets and this should precipitate a response from some TSX listed entity. June/July should be the time we get the offer or some update as the board cannot go quiet and would need to update if something tangible had happened.

Not sure they would talk about anything even if something was going down. Hopefully an offer comes in before July as its been a while since we knew investment banks were involved and Jim and MC telling market they are confident of sale. Seems to me we probably have deal and just working on finer details.

Yes. £26.8m so if we get to credit or get some binding deals do we think £26.8m is a fair price given just our sweat equity in funding package is $95m at least. its all about credit sign off and definitive binding signatures but investors probably now have all paperwork and i suspect we are in credit as we speak as it would have been waiting on these conditions. My understanding is conditions are met but H did not explicitly state we were in credit but we have probably been parked here for 12 months pending conditions being met so presumably we are close as banks agreed the funding subject to conditions. Any other conditions ? Probably investors signing i advance is needed as debt follows equity. Share price really is miles off as i can only think a contractor is offloading last week. Crazy times to load up.

Comsidering we just past a key milestone to get to credit and possibly drawdown on investors within maybe a month it was a perplexing week. Whoever is selling is taking it on the nose and i can only think that the placing shares have gone to contractors who need working capital and 50p in the pound is fine as their work was probably billed at full cost but cost little. Seen this every year for many years but must stay focused on what will happen over next 6 weeks. AGM will kick things off but we look to be close. If i had more funds i feel this is the right time although if it is a contractor who needs cash then who knows where shareprice might go. I really detested Kefi paying off contractors in this way but for those who can we are in steal mode as market cap is something like £15m now. Harry now needs to execute credit and binding deals.

Bear in mind this 135m shares ,based on some performance we dont know the metrics, works out to be £1.35m at only 1p. Once he takes out costs its a £1m bonus just to get us back to 1p and frankly thats an insult to most as 1p should be where we should be if directors did not blow trumpet and fanfare £40m revenue in 2021 and lend money to northfork without any security. Looks to me a reward for poor management that should have had prices of 1p as base and not .25p. i am all to see share price rise but the board have never apologised and enriched themselves at every turn. This is largely a sham all the board are in for £1m bonus at 1p while shareholders buying at 1p have no comeback but continue to plough cash in. Im a big proponent and we are well under valued but the board is taking advantage.

Its says 60% based on company performance but do not include that target. If it is a share price of 3p or 5p etc we arw all alligned but, as i suspect, internal kpis its not great. We have seen share price tank from 3p to .18p on management over optimism and for this size of company paying outsize compensation but on way down to .18 they did not take any cut in compensation to recognise their performance. I will wait to hear their performance targets as i hope if is a share price one that aligns the team.

When did you hear MC blocked a milling deal due to proposed split of 70:30? Obviously that is high but at same time we 2m ounzes so plenty of gold to start with and now we plan to sell the whole asset off for an amount that would be far less than if we got on and milled the gold with calibre. Even at 70:30 it would have ensured cashflow to minimise dilutions and we would have cash for building up a fund for production. First time i ever heard this so anyone else come across this?

I totally agree the best strategy is crack on and create a cashflow and start small, again something that could have happened 12 months ago so would now be close to production

We have to assume a asset sales is in motion and we need to wait. the share offer can only happen once we get an asset sale so someone else can respond. It is near time for MC to finalise this now as once we are in mid July bankers dissappear to their retreats so really next few weeks are crucial and would be helpful to get a more quantifiable update if we have number of companies raising non binding offers etc. That would enable the market to help correct the valuation.

Wow spectacular news and the likes of VH and others peddling stories of plant failure should hang their heads in shame trying steal shares from others on false news. This is big news and will trigger a wave of orders. Eqtec are in the perfect position to leverage their tech and in five years no reason we might not be a billion dollar company as the market size is almost unlimited. Very pleased to see this profit generating plant operational and refinance cash due over summer. Throw in 2-3 financed projects in France and many many more we should have an fantastic run going forwards. Gla

Bear in mind every penny of the last 10 years forms the basis for our equity into this project so shareholders can enjoy every spoonfull of that are part of the financial closure. All departments including the Eg have signed up to its delivery and the EG are in for 25%. While i can certainly feel the pain i think your wrong. Its an absolute steal today for those coming into Kefi but certainly i share the pain of Harry and his language but i also understand he had the best intentions as anyone would guess he would richer if he had this project done 10 years ago but he is battling on and he is not someone to give up. For me the real win here is the project level finance and our commitment has alreadg been agreed so anyone whose a shareholder today will be along for the vertigious ride if after 10 years this happens. Who knows but Harry has run out of issues to hold us up and i think by end of July everyone today will he happy and probably wished they loaded up at .6. Gla and even some of those with a lot of animosity towards Harry might now invest and make all their losses back and then some. Fortune favours the brave!

Exactly DP said Italy maybe a week so even if that slips we know we have been operational since March generating sales and acting as a case study to trigger further sales. I dont think market gets how important live projects are as gassification has been a tough nut to crack but Eqtec are on the verge of being tech super weight in this space with almost unlimited projects and retrofits. This is why like ARM and so on they want to license the IP and become the defacto modular standard for small to medium sized plants today and enable some companies to go offgrid and give them a competive advantage as energy costs are huge in some businesses and this is transformation. I would love to be starting my investment journey from today with everything i have learnt but here for long-term as i think while Eqtec have over egged and under delivered mainly due to excessive ambition and lack of management follow through they have done everything well in last 12 months to sort themselves out and we stand close to 50m of revenue just from 3 French projects? this is going to rocket like no other company if that happens and many more besides. we have so many projects several will come off. Even the UL projects could come out of no where even though we have written them off because seems France and Greece are way more organised.

Once we trigger finance we not only crystalise $95m of sweat equity into real equity we have 75% of a $390m mine to create the largest gold mine in Ethiopia and the single largest exporter. So from £28m current market cap to £150m market cap post cash in bank just for TK its not unreasonable that we could reach 3p just on basic assets we will have and we will have cash returned from financing as well as warrant money so we will be locked and loaded with cash at that point and have too much briefly but in this valuation i am giving almost no valuation to Saudi that to many here is worth a lot more. Obviously the issue is shareholders appetite so while fundamentals on execution of finance is well towards £150m it will depend on the shareholders. What will need to happen is institutions looking for long term growth and once we have funding this project is derisked and probably sold onto a major but longterm dividends could flow going forwards upwards of .8p a share so more than current share price. Obviously the Harry discount will prevail until that cash is in the bank or at least until banks have signed off credit. We should be in credit now so we might get that news soon. The bank cash flows after equity investors but sign off will mean syndicate can inject cash knowing bank funds are secured. Crucial next few weeks.

Did you actually watch the webinar as if you did we have revenue about to come from many projects. We have larissa now in hot conditioning after ribbon cutting today, we have 3 active orders in France, North Fork about to go into commissioning and issue for Italy is nothing to do with it not working, it is all about staff training issues. I see plenty of light at a tunnel and some of those numbers for france projects? 12m euros for MDC, 25m for Gardanne and 12m for Limoge and all active and close to confirmation as its already funded by partners. There were 2 more just for France. Do we think these orders will happen? These are with tier 1 and 2 utility players so this is pocket change. Eqtec could be 10xx in revenue in 12 months. So much was said and shown in slides.

6p is doable in a few years but i am hopeful we get an RNS we are with credit at the bank as that is key now to make people feel the money is incoming. Best part of last RNS apart from EG clearing their desks of things holding up project is Harry found the $20m so we are now 100% funded on paper and just need to execute. I presume the warrants at 1.6 will be a nice amount for Saudi and speed up expanding TK resource. Its a huge win for shareholders. Obviously what Harry has said and what happens have not matched up for a decade but maybe 2023 is his year when his patter and reality collide. I am personally hoping we linger at .6 for a while as i might be able to secure some further cash but happy to also see Kefi power past 1p and be happy to invest up to 1.5p and on to bigger things. Also if Harry can sort the dual listing all bets are off as we could be worth 9 figures in Saudi listing.

When it is truly done snd dusted we will be a £150m market cap company so 5x from today. We could get RNS that credit sign off is completed very soon and syndicate have already signed to last agreement only a few months ago so its possible the first of the syndicate sign this off. If you want to wait for cash to be advanced you will have missed the easier 5x as we are mispriced. While Harry has created much pain in his inability to tell shareholders straight for me the key issue was the EG but this is no more. It is now down to H to get the wet signatures and compared to what he has been up against that should be a walk in the park.

Boot filling and then some if you think this project will happen as today we are £30m market cap covering 2 massive advanced gold and copper finds and a project at JQ with room for substantial growth. Not only is this project not diluting for shareholders as our equity of $95m is already injected so even our equity into this 1 project is almost 3x the market cap. Its an insane place to be (assuming definitives all get signed and bank sign off debt) but today this appears to be just a tick box exercise as the EG was the problem and that is all now resolved. Crazy days ahead as we get credit sign off and binding signatures. We should move back to a penny with ease and cant really see any reason this will not happen this week. Gla but looks we are closer than we ever have been!

And further big news is we have all financing and those warrants i guess will fund Saudi. levels. Crafty bugger but a bloody good deal for Kefi Investors who are confirmed to be 75% shareholders in a $390m funding package? Anyone remember what our Market Cap is?? Lol this will rocket as we now lead towards “cash in bank”

“The final US$20 million of the financing package has also now been allocated to a specific set of parties”