RE: Let us hope no further dilution13 Jun 2019 19:39
18:37An interesting segment from the Angel brokers Metals and Mining note for Kefi that came out today -
Dilution risk
In absence of revenue generating assets in the portfolio, KEFI relies on capital markets for
funding of its day-to-day operations. Given our estimated first gold pour in mid-21, we
would expect the Company to require more capital for working capital purposes in the
meantime. KEFI raised c.£1.0m (57m shares at 1.7p) in February and also drawn £1.0m on
the £4m Sanderson convertible facility in April which allows KEFI to continue with
preparatory works for the start of the relocation programme and eventual onset of
construction works. KEFI annual cash burn rate is estimated at £5-6m pending its partners
taking responsibility for project funding of the Tulu Kapi project, then dropping to $2m pa
for corporate expenses. The Company has also access to the remaining £3m under the
Sanderson facility as well as expecting a refund of some of Tulu Kapi related costs incurred
by KEFI post closure of full project funding.
Let us hope that there will be no more dilution, as the sp and our investment has been decimated at this point.
Fingers crossed