RE: Chilleth!21 May 2025 18:39
When my good friend Bonkers said he couldn't be bothered to read a paid report compiled by Edison, I found it hard to agree at the time and so I did bother reading it all.
Just how can anyone believe Edison's texts in the future if they are being led up the garden path when asking important questions?
In my opinion FCA needs to be looking into these blatantly fraudualent practices. Lord Ashbourne should be emailing HAA telling him he won't ever do any paid work for Kefi again after all the misleading briefings.
𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥𝐬: 𝐍𝐨 𝐦𝐨𝐫𝐞 𝐞𝐪𝐮𝐢𝐭𝐲 𝐚𝐭 𝐩𝐚𝐫𝐞𝐧𝐭 𝐜𝐨𝐦𝐩𝐚𝐧𝐲 𝐥𝐞𝐯𝐞𝐥
As is typical for exploration companies, KEFI has funded its pre-development activities with regular equity raising. It had £2.0m in net debt on its balance sheet as at 30 June 2024 (cf £1.9m as at 31 December 2023), after £5.9m in operating and investing cash outflows before working capital and after having raised £2.3m (net) in equity over the prior six months. In H2, we estimate that it raised a net £8.8m in equity, followed by a further £4.9m in early FY25, such that we do not now anticipate any further dilutive equity issues at parent company level in the foreseeable future. Companies on the verge of closing large project financing often have small working capital facilities offered to them as bridging finance support. If this is applied to KEFI, as long as it is neither large nor dilutive, any impact on our valuations will be immaterial owing to KEFI’s now solidifying non-dilutive plans for project financing the development capital. Hereafter, financing of the project’s funding requirement of US$320m is assumed to be via US$240m in senior debt, US$20m in Ethiopian government participation at project level and US$60m in US dollar-linked preference shares. As a result, KEFI will be developing Tulu Kapi from a relatively small equity capital base, albeit the potential GMCO sale proceeds will provide a buffer as well as a source of growth capital.
Sign In
Follow the stocks
