KEFI Minerals (AIM: KEFI), the gold exploration and development company with projects in the Kingdom of Saudi Arabia and the Federal Democratic Republic of Ethiopia, is pleased to advise that the IMF has forecast Ethiopia to be the fastest growing economy in Africa this year.
Links to relevant media reports are provided below:CNN - Ethiopia is now Africa's fastest growing economy https://edition.cnn.com/2018/04/24/africa/africa-largest-economy/index.html
Bloomberg - IMF Sees Ethiopia Beating Ghana as Fastest-Growing Africa Economy
The IMF data these articles are based on is available here .
A detailed report on Ethiopia was published by the IMF on 24 January 2018. The summary of this report states:
Ethiopia has an impressive record of human development improvements and output growthaveraging about 10 percent in the last decadeunderpinned by public investment and productivity gains. However, over the last three years, droughts and weak international prices for agricultural commodities dampened growth and opened an external imbalance. Ethiopia is now experiencing a growth recovery after the 2015/16 drought. The authorities determined actions to control public borrowing and imports has reduced the current account deficit; and foreign direct investment is rising fast. However, exports remained stagnant in 2016/17 and drought conditions lingered in some areas.
which is sourced from here. A PDF of the full IMF report is available here.
andysand15 May '18 - 12:41 - 54511 of 54511
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The market will not respond until one question has been answered. Dilution.
No news=drift down.
You can't value a share unless you know what percentage of the company it represents.
(My thoughts on his comment)
The extra money buffer planned could mean no dilution at company level post deal/start of construction just the gap before. How much is left in thepiggybank now for working capital purposes. People likely to wait till final year end results?
estseon15 May '18 - 07:46 - 54503 of 54506
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Re the RNS released today:
Previously, the company had suggested a gold price linked coupon on the bonds. The coupon would have been 8% at $1100, 16% at $1700 and would have varied proportionately between those two gold price levels. At $1300, the coupon would have been almost 10.7%.
Now HAA is saying that the bonds will carry a flat coupon of about 7%. At the current PoG, that represents a saving of about one third of the interest bill.
If that is a correct interpretation of the RNS, it is not only good news from the perspective of project NPV but is also good news from the perspective of investors' appetite for buying the bonds. Not only has the market shown appetite for an increased issue but it is also willing to accept a reduced coupon.
Investors should stop worrying about the bond issue. The bond issue arranger has been sounding out prospective investors in order to price the coupon and the prospectus must be well advanced.
https://www.shareprophets.com/views/35968/uk-investor-show-2018-video-harry-adams-of-kefi-minerals last minute of video local community in contact with Kefi and the local community want ot get on with things
The ministry spokesman promised an independent investigation into MIDROC and said operations would resume if and when all stakeholders agree on the result of that investigation. Think little chance of the mine reopening without further protests unless compensation is paid and work done on the mine to make it more environmentally friendly. Probably would have been closed before except all the gold being pulled out of it.
Accordingly, we have increased the funding plan to US$160 million (previously anticipated US$150 million) of bond-financed on-site infrastructure. Whilst we can prepay any unused bond funds, this provides a bigger safety buffer for contingencies. We have, in parallel, increased the project-equity raising to US$50 million (previously anticipated US$40 million)
equity into the project includes US$20 million from the Government of Ethiopia (as already formally committed), further equity of US$30 million (being negotiated with third parties) and completion of registration by the relevant Ethiopian authorities of the equity capital that has already been invested of c. US$60 million
On the downside will kefi have to raise money for working capital purposes before a deal is done?
All the rest looks good though with an emphasis with raising investment at project level and a new investor to give TK a JV flavour. Things people have been suggesting h for ages in some cases years.
Kefi will have a smaller slice of the cake in Ethiopia but it will be a bigger cake with some exploration even before TK really gets underway. Have no doubt kefi will find other opportunities in Ethiopa as unlike some mining companies that has never been a problem with kefi.
If the KSA operations can get rebooted at some stage that would be like getting a brand new company for free.
Overall less chance of dilution and more chance of a new partner make kefi a better longterm bet, but short/meduim term potential shareholders will be put of by more delays and the high chance (imo) of kefi coming back to the market for more money.
Amazes me Ripley94 that a broker can go bust its bit like a bookies or estate agent going bust both areas where you would think they have a license to print money and they would have to be truly incompetent to stuff things up.
In the era of Purple bricks, Yopa ,crowdfunding and peer to peer lending maybe we need Diy brokering services. Probably the only thing holding someone back from launching a service is working out what brokers actually do for their money.
KEFI Minerals (AIM: KEFI), the gold and copper exploration and development company with projects in the Kingdom of Saudi Arabia and the Democratic Republic of Ethiopia, announces that it has recently assembled and submitted applications for over 1000km2 of strategically selected copper and gold tenements near the Company's Tulu Kapi development project in Ethiopia (via its wholly-owned subsidiary KEFI Minerals Ethiopia) and also a similar-sized area near the Company's Hawiah exploration project in Saudi Arabia (via the Company's 40%-owned Joint Venture with ARTAR).
Presentation at Indaba
KEFI has been invited to present at the Investing in African Mining Indaba Conference base metals session, being held in Cape Town this week, as well as giving its corporate presentation. The presentation being given at the conference has been uploaded to the Company's website at http://www.kefi-minerals.com/ alongside the Company's corporate presentation.
Three people have been appointed to the Company's senior management team ("Excom") which currently comprises Harry Anagnostaras-Adams (Executive Chairman) and John Leach (Finance Director). The three new appointments are the members of International Mining Performance: David Munro to serve as Head of Operations, Eddy Solbrandt as Head of Systems and Brian Hosking as Head of Human Resources and Technical Planning as from March 2018. Wayne Nicoletto remains as Managing Director, Ethiopia and Jeff Rayner as Adviser-Exploration Strategy.
The Options have an exercise price of 4.5p per Ordinary Share, representing a c. 23% premium to the VWAP for the week commencing 22 January 2018. The Options expire after 6 years and, in normal circumstances, vest in two equal instalments, the first upon the achievement of practical completion of the planned processing plant at the Tulu Kapi Gold Project and the second upon the achievement of nameplate capacity for a twelve-month period.
jaylett1 Feb '18 - 07:33 - 53864 of 53868
0 1 1
They clearly intend on building a mine then, or this is the greatest wind up in history.
I would've liked to see a slightly more ambitious strike price than 4.5p if I'm being honest, but I suppose that's the way of the (AIM) world these days. None of them are going to be in it for a small increase so this doesn't add to any overhang, but it certainly doesn't align their average price with most of ours. Still, another small step taken on the road to production.
0 3 0
I agree with the comments. The recruitment of these new bods is a sign of confidence. It's also good to see confirmation that Jeff Rayner is still around.
The new options don't start vesting until the mine development is completed and the balance of the new options do not vest until it has been producing at the 140kozs level for 12 months.
jaylett18 Jan '18 - 12:54 - 53755 of 53758
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KEFI Minerals scheduled to start work at Tulu Kapi this year
"During the next two years Tulu Kapi is to be built as a 140,000 oz pa gold producer"
KEFI Minerals PLC (LON:KEFI) expects to start construction of its Tulu Kapi gold mine in Ethiopia in the second quarter of 2018.
A consortium compromising mining contractor Ausdrill, engineer Lycopodium, and the Ethiopian government is responsible for the infrastructure and building work.
Lycopodium will build the on-mine infrastructure (including the plant) under a hybrid EPC/EPCM contract, said broker
This is planned to be funded through the issue of US$140mln, 9-year debentures with a gold price-related interest rate, which the broker anticipates will be 10% at a gold price of US$1,250/oz (rising to 15% at US$1,700/oz).
Some US$12mln of pre-production mining costs are planned to be deferred for a year and up to US$20mln of off-site infrastructure is set to be funded by the Ethiopian government.
That will leave US$42mln to be funded from other sources including an equity raise and working capital loan.
Production will amount to 980,000oz over a 7.5-year mine life at average sustaining costs of US$773/oz over its life.
Reserves stand at 1.05Moz, grading 2.1 g/t, with operations to be a conventional open pit and CIL-based project.
A scoping study on a potential underground resource at Tulu Kapi suggests the production rate can rise to 150,000oz pa from Year 4,
In addition, KEFI has identified more satellite targets within trucking distance of the mine site.
"The final Tulu Kapi project models were agreed within the consortium and uploaded into the formal financing data rooms, said Harry Anagnostaras-Adams, executive chairman, in January 2018.
They show some improvements for shareholders, as compared with recent company guidance," he added.
During the next two years Tulu Kapi is to be built as a 140,000 oz pa gold producer and, at the current gold price of $1,300/oz combined with any of the contemplated financing scenarios, KEFI shareholders' beneficial interest in the net free cash flow per annum (after debt service and tax) exceeds the company's current market capitalisation.
A project-level transaction on the same terms as with the Government would imply a project valuation of c.US$100 million (100%) and, under that financing scenario, KEFI shareholders would expect to retain a beneficial ownership interest in the order of 55% in the project.
Jibal Qutman still developing
In Saudi, KEFI has a 40%-stake in the Jibal Qutman project, where new country-wide mining laws are being introduced in a bid to encourage the development of the sector into an important part of the economy.
Kefi said it is waiting for final clarification of the country's new policy.
Value undemanding says broker
The broker remains a buyer but has lowered its target price to 6.8p due to recent weakness in the shares.
RFC Ambrian assumes the company will raise US$25m in equity at a price of 3p and secure a US$17m working capital facility.
Shares rose 10% to 3.55p valuing the miner at £10.7mln.
Gold & Minerals ("G&M") Ltd, an incorporated joint venture with 60%-partner ARTAR, Saudi Arabia
New minerals policies announced by the Saudi Government: to facilitate growth and making it the third pillar of the Saudi economy.
Portfolio of Licence Applications: G&M has upgraded its portfolio and now has pegged much of a major structural VHMS belt - a structural corridor containing several systems of volcanic hosted massive sulphides. A separate RNS will be issued when the new regulatory details are clarified along with G&M's particular tenements.
Government approvals being implemented as required:
o The Mining Licence transfer to TKGM has been cleared and execution in process as has regulatory approval of most historical investment by KME, in that 95% of the spending to 31 December 2014 has been formally approved and the balance, along with the spending since 1 January 2015, is now being dealt with.
o The community compensation surveys, calculations and negotiations have been completed.
o The Ethiopian Electricity Power Corporation and Ethiopian Roads Authority have confirmed their budget and schedule commitment to construct the project's off-site infrastructure.
o National Bank of Ethiopia (central bank) has approved most administrative requests and is engaging on the remaining issues
18 Jan '18 - 09:05 - 53705 of 53750 0 3 0
Just spoken with H, the first RNS was regulatory and had to be released in it's format.
He went on to say there is no change to the funding plan and sources of cash, the Oryx agreement is 'simplifying' the structure and agreagreed mutually.
Other than the removal of Oryx, everything remains the same.
This is the key statement:
"-- Planned funding remains unchanged but the structure has been streamlined. Oryx and KEFI mutually agreed to terminate their relationship. The structure for the development of the Company's Tulu Kapi project will otherwise remain the same, with the other existing consortium members still performing all the various required roles as previously outlined."
18 Jan '18 - 09:14 - 53713 of 53750 0 2 0
Andy - He referred to them as 'middle men' and i understand they are a spin off of the main contractor. Oryx were going to operate an SPV in respect of placing/managing the bonds.
My understanding is that this middle link has been removed.
Is was a short phone call, probably cost me £0000s!
During the next two years Tulu Kapi is to be built as a 140,000 oz pa gold producer and, at the current gold price of $1,300/oz combined with any of the contemplated financing scenarios,
It remains the case that additional project-level equity investment may minimise the dilution of KEFI shareholders' beneficial interests. A project-level transaction on the same terms as with the Government would imply a project valuation of c. US$100 million (100%) and, under that financing scenario, KEFI shTulu Kapi Project Financing:
Drawdown: target timing to be synchronised with community resettlement and the triggering of procurement and construction in Q2-18. Remains subject to completion of due diligence, regulatory approvals and execution of binding documentation.
areholders would expect to retain a beneficial ownership interest in the order of 55% in the Project
18 Jan '18 - 10:04 - 53732 of 53750 0 3 0
The original structure involved funding bonds and a finance lease. So the money was to flow from the bond subscribers to the SPV to Oryx who would then use the money to pay for all of the on-site infrastructure (the processing plant, the dams, the on-site roads and housing etc etc). Oryx would own all of that stuff and would lease it to the project company.
The streamlining might be the elimination of the finance lease but I am just guessing. It is possible that they got into a bit of a twist trying to sort out the land interests for that structure. The land is owned by the State. The project company will have a licence - granting is in progress. The project company would then have to grant Oryx a sub-licence so that they can commission the development works and have an interest in the land from which they could grant the finance lease and Oryx would then grant back a sub-sub licence of the developed site, the finance lease, to the project company.
http://www.teausa.com/14531/reading-tea-leaves so boiling it down gold price up resettlement gradually getting there as is government red tape final finance arrangements still up in the air, company communication consists of shareholders phoning harry up to explain the latest explanation.
Probably the most significant long term news for Kefi the KSA The Saudi Arabian Government's new pro-mining policy considering the companies portfolio there probably news of which could explain the recent rise in the share price.
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