Member Info for Simms45

Very confident from JM witj expectarions of more bidders incoming.

“further offers are expected as 9 companies are under a Non-Disclosure Agreement (NDA)“

Steady rise coming.

I also hope impairment charges are not just a different word for back handers to the duo who were caught handing out excessive made up contracts to their mates. Lets hope the new auditors and risk team closely look at those “impairments” as its a blind spot. if the company CNEL are dealing with are solvent how can any of these companies somehow have a haircut on what is owed. Lets see how the future looks, if we are allowed to know anything.

While not exactly unexpected i am not sure why CNEL today issued a profit warning. We knew 1st half of 2022 was bad and most of 2nd half so its not exactly unexpected. For me what is annoying is that they do it to maximise fear around the stock when we are told it has bee stellar since Covid restrictions ended towards end of 2022 but nothing mentioned in thr profit warning. Sometimes you think the duo are doing this on purpose. https://www1.hkexnews.hk/listedco/listconews/sehk/2023/0327/2023032701660.pdf i only hope reports goes into more details on its future and not dwell on 2022 that was a one off event. It looks around a £4m loss which in many ways looks pretty good all things considered if 2023 takes us back to serious profit again. We will see but i hope they go all in on a 20% share buy back but they must open up on order book in 2023 and more details on their tech as for me they are almost hiding details from shareholders. I still feel the duo are up to something. Hopefully results will give a more robust update on the future as Ivy and RB have openly reported.

Frankly we need a few weeks to slowly climb back towards 2p or so TK news will lead to rise towards 3-4p on and then onwards as Saudi updates and impatient investors swap with those looking towards much higher levels. We will have so much news landing across the 3 projects we will be in a very good place and if we get the dual listing when similar deposits have floated for in excess of $1bn it will change the valuation model as we will have huge demand from Saudi investors. If the news is coming its really just a waiting game, but its all dependent on that key news happening over next 4 weeks or certainly key parts of it to keep Kefi going to access short-term funds. Exciting times.

Maybe a buyer lurking at these levels. Could get update ang day now.

While this will not move the dial this is the first of many more with Idex and incredible validation. However market wants to see project completions, refinances, financial closures and revenue generation. We have billions of future projecte but today all that matters is revenue and prove DP can walk the talk. If he had refinance italy or closed a financing this RNS today would have been very helpful. However 3 RNS is 3 days. Lets keep up the news and hope next one is croatia or Deeside and deliver the profits. 2.7p target would be a 13x so even if we get back to 1p it will be a start.

I did expect an RNS to confirm 3 bidders or potentially we now have more. with over 2m ounces at $2k gold that is $4bn of revenue and $2bn of profit just from the gold already found. That leaves 5-10m ounces to be dug up along strike. If someone offered you $2bn over next 10 years (assuming $2k gold) what is that worth to you today bearing in mind this mine and district has gold for next 10-20 years minimum. If you think this way you can place a fair value on the asset. Sure some risk but it is not any more than most mines in south americs. Gla

Do we think now MC said in interview we have 3 offers and so far RNS only states 2 that he now needs to release a further RNS to confirm this? I seems material in that 3 bidders is 50% better than 2. I think he waited for 2 bidders for first RNS as a single bidder might have seemed riskier so it would make sense to update market for each new bidder?

The key to Harry interview was he said bank is injecting more cash so that implies Kefi probably got the extra £10m it was agreeing with EG was part of its equity. This would have allowed Kefi to access more borrowing. This will mean we will have almost $100m of sweat equity in this project with even less minimal dilution. Seriously if he pulls this off we are all going go be in a very good place. I mean we literally add $100m to the market cap as all of Harrys pina colladas and sun lounger rentals :) will be counted as equity. Its a big deal. Most gold miners raising $380m would need to pony up $100m and that would be a massive dilution but we have agreement on last 10 years of investment to be counted. On top of this We have warrants tripping at 1.6 that was designed as our equity. So bear in mind TKGM will make a payment to Kefi around $10m on financial closure that coupled with warrants is plenty of cash to fund Saudi. The 25-30% discussed probably means 30% if we get TK confirmed in next few weeks or it means 25% as we will have to let Saudi dilute as Harry must first guarantee TK is settled. he can do a raise prior to TK close as it would jeopardise all his warrants and could kill TK off at this stage. We will see but this is the potential deal of the decade. It all sounds too good to be true in all fairness and why we have had so many years of pain as pis. Will it be 4th or 10th time lucky i am not sure but having followed last few years twists and turns i have never had this level of real information coming from EG and Harry so it looks that it could be. Next week could start an explosive northwards march if the market gets wind of news or if we get some RNS update. For sure 1.6 will be a key landing point as if we hit 2.4 for 10 consecutive days we raise cash on the warrants. This will propel company onwards as that cash will fund Kefi and Saudi especially if banks are now lending more to the project as Harry explained. I am still amazed how low the market cap is of Kefi at £35m??? That is insane when we will be worth £150m after this first deal and then penny drops and Saudi will have full value as today its valued at 0. In 12 months £200m is not out of the question if everything falls into place. That is 7x todays valuation for the company and some would consider this a low valuation. Certainly £150m seems very easily achievable as that is just adding in our $100m sweat equity. Gla and dyor

The update from MC was very positive today, politics has thawed with recent deal with the US for political prisoners, and importantly all bidders were confirmed as being in the process so far and probably more will be added towards a sale that will be in excess of $100m. Plenty of upside for with 2-3x subject to binding offers that could come as soon as a few weeks.

Wow we now have 3 non binding offers. This is incredible news as should get greater scope for bidding war. We have a total of 9 NDAs and another site visit just happened with a questions today. So we could be knocking at 4 offers so far. Seems that the sale process is going very well. Current market cap today is a £40m and sale is likely to be £100m+ so looking very positive.

Looks like the gloves are off. Someone knows more than us and could be building a stake in lead up to news. Certainly from experience we bounce along at .8 for a very long time and then seemingly out of nowhere we motor ahead. My sense has always been a 3rd party contractor, paid for services inshares, selling down for working capital after a raise and when they finish we naturally rise. Could be a few step changes up as further news could come shortly that could propel us into uncharted territory.

For me seeing we might lose a little more of Saudi Kefi needs to work faster to either get the dual listing or split Saudi into a different company solely for Saudi and float it clean. I suspect dual listing is the way but speed is important as if they do a little raise as part of that for liquifity in Saudi we can make sure we stay at 25-30%. Saudi is massive and far far bigger then TK but Harry is not doing a placing, even though i am sure ge desperately wants to before TK close. Therefore Harry must comclude TK, do a raise as part of that and keep our Saudi asset at 30%. Its an added bonus for Harry to make sure we get the TK project to a binding position in next few weeks. Its possible we get to credit and its possible definitive agreements can be ready. Really feels the early interims cleared the way for TK news and Saudi and could be a blitz of news incoming. Could completelty catch the market out if the conferences they are attending (what are they?) as they sound very important if interims were needed to be clear prior to this. Gla.

Noticed someone sneakily buying 71,581 shares at end of day taking advantage of the lull. Would be great if we get an RNs next week that we have additional offers as i presume MC must be moving those who made offers to now complete binding offers. If we get one binding offer i presume it will be immediately announced and then it will speed up any other players to make binding offers and see who proposes the best deal. Still does not preclude someone simply tabling an offer for the company, although premium of 200%+ is unlikely so really share price needs to rise to 30p+ for that to be a possibility.

France is a great market for Eqtec where governent are more active in direct support and there are 100s of coal and incinerators in France where Eqtec can move in. This is the first of many and a million euros is always handy to pay all the team and grow our foothold in France. Sadly the CFO and DP rather destroyed the confidence of the market, by accident or design, but if this news had followed Italy i suspect we would be heading to .4 and not stuck at .19. DP has a lot to answer for and explain how finances, costs and timelines were so poorly forecast. There has been so many good moves the last 6 months but not managing finances and timelines is the one thing they should manage better. Italy refinance should have happened sooner that should have done away with the need of this placing. We wil find out what the Italy refinance will achieve shortly no doubt.

If overhang is gone we could start to move higher as maybe in next week or so we will get some further and maybe more substantial updates. Certainly feels the train is in motion and everyone is on board from EG, to banks and investors.

We raised £3.5m. We have £1.75m undrawn from our largest shareholder Altair. We have around £40m in net assets that need to be worked through and where possible complete projects and refinance. there is a possibility we have a access to £5.75m of Riverfort loan facility subject to conditions. We have Italy refinance and we wi start to receive monthly maintenance and service fees. We have comfortably resources for next 9 months and probably longer but just on raise and loans we are good for sometime. We are moving into profitability subject to several projects financial closure so we are in a strong place. I get it is massively painful as we lost almost 40% value from poorly delivered placing but thats in the past and need to look forwards that we have at least £5m of cash equivalents for deployment, there is Riverfort loan not drawn, Italy refinance and so many projects incoming including North Fork and Croatia and a lot of sunk capital in other projects around the world that should be extracted in due course.

I can only go on what is in the RNS. It does not say they cannot continue to draw on the loan facility but perhaps not accessible today due to conditions but that is not specified so i am just guessing. They also did not default as its quite normal to roll over this sort of lending as that is how they make profit and fees. Its pretty standard. Riverfort and Eqtec are probably both, for different reasons, not entirely wanting go convert the whole loan now but they are both happy to swap some portion of it. We have £4.25 million outstanding now and as it is interest only amounts to £31,875 a month so fairly trivial in the grand scheme. When Italy refinance and other revenue comes in from financial closure of projects it will be available for Eqtec fo pay down as they choose. Eqtec are very comfortably funded now for next 9 months and certainly expectations are high on more financial closures. I think once DP has faced this i hope he will be very quickly following this up with positive news on developments. In grand scheme 10-15% dilution is not a great deal and easily absorbed but i do think the way it was delivered was poor. Now its time for Eqtec to mend fences with pis and focus on delivering shareholder value and probably remove the CFO who i just feel is handly this poorly. he needs to close project and get cash in as opposed to spending all his days creating convoluted financing like this. If he refinanced Italy on time i suspect this was not necessary. He is certainly making hard work of this and cant help him in partnership conversations if he cant manage Eqtecs finances better. As for DP he needs to lead the charge and close deals and stop with any financial games. On the whole while down a large amount Italy has proven we can deliver and now need to work in the next project.

Happysurfer i read this differently ? We have a £10m facility with Riverport that remains in place and after this conversion have £5.75m undrawn and owe £4.25m? We have £3.5m from the placing and expected refinance of Italy project so there is really not a great problem keeping up repayments for a while even if we have no other revenue. If we bring in revenue as we are expecting this year then this is better. please explain your reading on the RNS yesterday as we have plenty of cash to hand including the undrawn loan from Altair so if you add it all up we probably have acess to £3.5m + £5.75m + £1.75m from undrawn Altair so best part of £11m available? is the RNS or my understand wrong as looks like a lot of fire power available? Obviously we need to pay back but they need to start closing finances and getting projects live this year and then we will be in a different place.

"The Company has an existing £10 million loan facility with Riverfort Global Opportunities PCC Limited and YA II PN Limited (the "Lenders" and the "Lenders Facility"). As at 21 March 2023, the outstanding balance of the Lenders Facility is £5,137,500. The Lenders have agreed, conditional upon Admission, to convert £887,500 of the current outstanding loan balance into 403,409,091 Units at the Placing Price comprising 403,409,091 new Ordinary Shares ("Lender Shares") and 201,704,540 share purchase warrants on the same terms as the Warrants.



The Lenders have also agreed to reprofile the monthly repayment schedule of the Lenders' Facility for the period until 31 December 2024, with repayments starting on 30 June 2023. A one-off reprofile fee of 3% of the Lenders' Facility will be added to the outstanding balance. Following the reprofile, the outstanding balance of the Lenders' Facility will be £4.25 million and a fixed-interest monthly coupon of £31,875 will be payable when repayments commence."

The most interesting part for me is why would you release this RNS ahead of "discussions" of various events?

"is being announced ahead of the end of the quarter to facilitate discussions at various events in Ethiopia and the Middle East in the coming days."

What is in the RNS that would need to be released prior to these discussions? who else is at these events that requires this release or is it simply they are clearing this out of the way before bigger updates on TK or Saudi? it is hard to know but i guess we will find out in the next week or so. I take it as positive though.