Serious question. What kind of dreamworld are you living in?
They’ve demonstrated they can’t fund or get funding for the mine in a workable timescale.
They are now proposing to sell the meagre resource remaining in SA in a fire sale to the only bidder simply to keep the doors open in hope that the above just may happen.
They can’t service the directors wage bill and have been throwing confetti at them for as long as anyone can remember.
They will be further hundreds of millions in the hole (on what terms, all dread to think) should it ever happen.
Yet, despite all this. You claim they will be in a position to both clear the debt in year 1 of production and pay a substantial dividend.
Of course… |
"What is an acceptable dividend payout ratio?
between 30% and 50%
Determining a “good” dividend payout ratio depends on factors such as the industry, the company's growth stage and an investor's financial goals. For most companies, a ratio between 30% and 50% is considered optimal.27 Oct 2024"
"Dividend payouts vary widely by industry, and like most ratios, they are most useful to compare within a given industry. For example, real estate investment trusts (REITs) are legally obligated to distribute at least 90% of earnings to shareholders as they enjoy special tax exemptions.
3
U.S. Securities and Exchange Commission. "Investor Bulletin: Real Estate Investment Trusts (REITs)," Page 1.
Master limited partnerships (MLPs) tend to have high payout ratios, as well. " |
Interesting links Rob thanks for posting |
Thanks @goatherd.
My very rough calculations suggest that if I bought a million shares now then I could get back more than the cost in dividends in one year. |
A vote down, I note.
Who is it that receives 50% of profit in dividends, we are all dying to know? |
6708
BOL
There comments an avatar that is unfamiliar with receiving dividends. |
I do see the ditching of the Saudi projects as meaning HA is confident the TK go-ahead is very near. |
I would suggest a useful "rule of thumb" is about half the profit. |
Once the debt is repaid what guesses do we have for how much dividends will be paid per share? |
Nobody because it isn't 0.64 |
TW, a staunch supporter, it takes 2 days for dimwits to catch on.
Crackin short from 0.64, but who will take the bet? |
Quite remarkable.
One wonders how these POS keep going for years longer than they ever should, then you read some of the comments from holders (LTH, natch) and all becomes instantly clear. |
I like the fact were solely concentrating on one project. I've seen many companies on aim, junior miners with stakes in different places get stretched financially. It does nothing for the share price as it looks risky, taking on debt. Having a world class project that is funded seems almost mythical. Forget the jam tomorrow stuff, it never materialises. Concentrate on the tangible asset we have. |
 “Final approvals from the second bank are subject to remaining conditions including Ethiopia formally ratifying its already approved Country Membership. KEFI is targeting finalisation of these formal approvals and of definitive documentation this quarter. This is expected to be a significant positive catalyst for the shares”
“Harry Anagnostaras-Adams with Federal State Minister of Finance Dr Eyob Tekalgn Tolina and
President African Finance Corporation Samaila Zubairu, Addis Ababa last week”
“Based on this Business Plan, Tulu Kapi is expected to boast a levered, post-tax NPV5 of US$688m at a gold price of US$2,100/oz, at the start of construction. Taking KEFI’s expected 80% stake in the project, and assuming an exchange rate of GBP:USD1.275, this amounts to an NPV5 of 7.1p/share. At US$2,600/oz gold, the NPV5 is US$1,046m, representing an NPV5 of 10.8p/share. These figures are 11-17x the current share price. As Tulu Kapi is developed over the next two years and risks are mitigated, the share price would be expected to increase towards the NPV.” |
“Broadly, benchmarking the Saudi Arabian assets against recent African gold M&A deals suggests a valuation of KEFI’s 15% stake of US$50-78m. This represents 1.0-1.6x KEFI’s current market capitalisation. This could provide significant funding flexibility for Tulu Kapi or other projects.”
“Upside scenarios based on a 15% increase in resources at each project could underpin a valuation range of US$67-89m.”
An updated Mineral Resource Estimate is expected in the next three months. Hawiah A new Mineral Resource is expected in the next three months Jibal Qutman.
“Recent M&A transactions The estimated valuation range for Gold and Minerals is based on the current resources of Jibal Qutman and Hawiah, and the estimated valuations of recent M&A transactions in the region” |
On a different notehttps://cryptoslate.com/blackrocks-bitcoin-etf-climbs-to-top-1-in-record-breaking-211-days/ |
Think the main problem could be that Artar decided that kefi was simply too small to keep up with what they wanted done especially with its focus split between two countries.
I would not be surprised if Artar got approached by another mining company with much deeper pockets that could put tens of millions or more into exploration and could put the money in now. |
Ten million is a lot to find when the whole company is valued at 35 million!I find it hard to believe that you find it hard to believe that issuing a few billion more shares at the required discount is unpalatable?! |
Find it unbelievable that ten million can't be easily raised to stay in the Artar partnership and then funded it on an ongoing basis. We don't need the cash, we need to develop the future business in SA. Terrible decision. |
Even if they sold their remaining percentage and become a little less stressed financially, it doesn't stop them going back into Saudi at a later date and certainly with a lot more knowledge and cash, hopefully!!! |
Maybe a big issue not been talked about is its more in the companies hands in Ethiopia rather than Saudi where where it was a junior partner.
Another factor is though the Saudi government has been supportive kefis success is more critical to the Ethiopian government than it is to the Saudi one hence Harry being made an ambassador, the listing, the law changes, the wide consortium.. |
Is going over of the top not lying? |
Register to chat with like-minded investors on our interactive forums.
Hot Features
Premium
