Member Info for Simms45

Nice and steady today. Expect some nice afterhours trades to appear and if it contines can see 15-20p is not far off. Gold pruce rise is just getting started and Dupax update cant be far

At $2600 an ounce we are almost $200 up on the last 10 days. Thats a handy $16m FCF extra for Metals. Metals is still barely valued above its Net Assets and they are written down below their real value and does not account for gold in the ground so its surprising how cheap we are. As you say La India is just up the road so just a few hours really. They could be plugging in the kit as soon as it arrives if they have got all the foundations in place. No reason mine cannot be operating a lot sooner if they have done the ground work in advance.

I agree that a dividend will speed up the valuation. We have £170m that is ready for a future dividend. The board hold just shy of 50% of the company on a fully diluted basis (i have checked) and stand the most to gain. A company generating this much cash is not healthy to not take on some debt as money today is worth a lot more than money in the future, especially if you think gold price will continue rising and borrowing can both help as extract more gold to pay back the debt but secondly we could borrow at quite low rates given our low risk and 0 debt levels. We have £170m potentially but even announcing a dividend of £35m (peanuts and just an increase of £350 an ounce in the gold price) would put Metals on a 10% yield. This would trigger a decent rise in the shareprice of maybe 50% so we trade on a 7.5% yield and reward our board with £17.5m that i am sure several would reinvest back into Metals. Most importantly their valuation of their holding would rise 50%, far outstripping the dividend and Metals shareholders would maximise shareholder value, as stipulated in the articles of association. It also gives Metals easier options to buy other companies as they can use a share only purchase. This is still prudent given the relatively small level of dividend proposed that is well covered by future income, especially so if gold does continue to rise to $4000+ an ounce. gla

We are still at a ridiculous £350m market cap that is barely even above our net assets and by next year we will be below our net assets at this rate. We have £235m in net assets at June 31st and no 0 borrowing. We have £170m in accumulated profits that could all be paid out as a dividend if the board decided. Lets imagine Metals takes on a little bit of debt, call it £75m and then we could pay out a £100m dividend no problems and not even touch existing cash resources of £50m. We would still have an enormous cash pile that is growing by the month. The board own a signifiicant amount of the company so apart from eventually selling the company dividends are really the only way they will get a return on their investment. I would be worried if the board did not own much of the company but in our case they must own 50% of the company so they are all very aligned to give out a dividend so i am confident as soon as they are able to they will. The more the gold price rises the more excess cash we have and the greater the argument to hand back cash to shareholders will increase. All costs for La India are covered when gold was at 3000 an ounce.

At the rate the gold price is rising we have already added around £20m cash just from recent gold price rise. The cost of changes to accommodate Dupax will be insignificant in the grant scheme of things as we already have the working mine and just need to make some adjustments. Abra i am not sure about but drilling is not even going to start until early 2026 and we will be drowning in cash the way gold is going. Then in 7 months time we will be drowning in cash from La India. it might make more economic sense to borrow money and then hand out a dividend to investors but a placing is for the birds as the problem we will have is too much cash and not sure what to do with it.

As we head into the final month before signoff i guess it is expected for smart money to flow in with increasing magnitude. Someone could make 2-5x their investment today if everything comes together for what is a month or so. Could be 10-20x in 2-3 years with La India live. exciting times to be able to invest in Kefi. gla

Just noticed a 27m trade go through from yesterday? Hard to tell if it was a buy or sell but regardless it was certainly having some background influence on the price. Nice to clear eitherway and onwards and upwards.

If gold keeps on rising and all allocated money is deployed and we have a boat load of cash left over or bank makes a loan offer we cant refuse its not unknown for companies with a highly invested board to take divvies, not expecting myself for 1-2 years but we are adding $8m profit for every $100 rise now and if gold rises further we could have $50m sitting idle. never say never.

Quite a few messy trade today by someone who dropped a few million shares that shows up in late trades, with what seems to have been without a sell limit order. Looks to be have gapped at by the close so looking good for tomorrow.

Those green boxes make me laugh. MrH will be talking to himself, as he is probably well used to in real life. Maybe if he actually reads up on Kefi, as opposed to random noise, he might see what everyone else has spotted and it might all click, or not. Anyway I really hope he gets better soon.

Looking at trades it is just pis selling on news but it will no doubt rise tomorrow when some of them come back and increase their holding. There are no big buyers today so far like Drachs unless they do a raid later today but my feeling is Dupax news has been shared with board so they might be closed to buying currently. Metals is crazily undervalued and Drachs etc all know it so buying whenever they can and they are very happy to take stock from pis. Drachs etc will all ensure big dividends are inorder once La India is live as we are getting to point when PIs will own only a very small part of the company. Could be less than 10% by the time La India goes live as Drachs and other institutions will build decent positions over the next year leaving pis with very little left. gla

MrH how many shares do you own or how many shares are you shorting? i suggest you read the Q&A to update yourself on the basics. You must understand that The Ethiopian Government are a shareholder and we secured $240m in debt finance. We have converted our $100m+ of historic costs into our equity component to secure the majority stake, as high as 85%. We are still a ridiculous £70m market cap, that is not even equally our equity into this project. The risk is now very small compared to the upside if you make an effort to read up on the latest details. The key thing is that the project is happening and while it is always a bit slower than we would like the train will reach the destination. Furthermore as soon as we do our overheads going forward are, as confirmed by Harry, immediately 75% less and probably more and we will on our balance sheet have a 85% stake in a $320m mine. This can be used in future as real collateral to investors. So are you invested or shorting Kefi as i am sure many would hope the latter but i would like to see all investors make strong returns as the very basic metrics convert to a £1bn+ company once we are in production. This does not even account for Saudi. I really hope Manu got back in at .5 and is now recovering some of his historic losses. We will be 1.5p in the not too distant future and probably this month as material updates are forthcoming.

The key is Metals are drilling La India and if we are only 2274m between 23rd April and 30th june then we can assume they have now done at least 5,000m to date. This leaves 35,000m to go. I am not sure if they are going to spread this out but given they have so much cash flowing in i hope they speed up all drilling all over the place and double down as the sooner they can prove up reserves the quicker the ascent and quicker we can get a mine plan in place to maximise the new discoveries. Certainly feels that the CVR component of the buy out is well on target. First pour should be well before September 2026 so that will be 5p and if we can crack on with drilling then we will certainly prove up a decent amount of the extra gold that for Metals will result in a decent re-rate as the market will know we can get on and extract it.

Have to say we are not see the historically daily afterhours £200k+ buys so if we assume it was Drachs before then they might have stopped because we were in a closed period prior to interims or maybe news about Dupax is known to the board and we are still in a closed period until news is released. i understand times when insiders can buy can be limited given all the news surrounding a company. i would guess it is just pis currently buying and selling and this is probably a little overweight on selling as we are drifting around. Anyway i would hope middle of September we will get Dupax update and i suspect buyers will start to buy into the expectation of that news. if it is good news, and no reason to expect otherwise as this was previously mined area then we should robustly move forward.

Excellent results with massive freecashflow and very solid for La India, Dupax and Abra. All coming together nicely! Gla

Thank-you MrH for confirming your a bot as you responded almost immediately with a quite delusionary response. Green boxed for good!

MrH you clearly struggle with reading Q&As or understand corporate structures. Surely you understand that our overheads will fall off a cliff post finance and we are up to 90% owner in TKGM so have complete control to extract at least 300m+ off the back of cashflows. Now work our the discounted cashflow of that level of cash for minimum 10 years. its a very nice number and why i am going to continue accumulating. Are you actually invested here?

It was in the Q&A on Kefi website doh! It is pretty obvious to anyone how Kefi could operate going forward once finance is signed. They said explicitly said 75% but this does not include the development costs that will be 100% transferred.

"Q. Are group costs, outside of mining, salaries, office rent etc covered in the borrowing, or will the group constantly be raising until production?

A: TKGM’s project finance covers all direct TKGM capex costs, and production cash flows cover subsequent opex costs. Approximately 75% of KEFI corporate costs, attributed to overseeing and supporting the TKGM team per management service agreements, are covered as well."

So just looking at 2024 Base corporate overhead were £3.4m so this will be only £.85m post financing. our need for placing reduces to almost nothing. I hope that helps you.

The key for Kefi shareholders is that once the financing is completed most of our overheads will be covered at the project level rather than from KEFI plc so our actual costs will drop considerably as it will be part of TKGM. We recently spent $10m on costs for the project directly and these are being converted into Equity in TKGM. Going forward all of this expenditure will come out of the financing from TKGM. Our yearly overheads will drop 90% based on past expenditure almost exclusively being spent on this mine. Kefi could literally be a nameplate and a board of directors as the whole mine will operate out of TKGM along with all staff. Saudi will need some cash but we also know that offers have been on the table but i think most shareholders are very happy to keep that stake and post finance we will be better valued. Harry said on call he is spending 24/7 with his cattle prod getting everything in place. This is all commonsense really.

Make that nearly $200 in last 7 days. Nice round $16m extra a year cash to play with. Hopefully put that to work and speed up our progress.