Kefi Gold And Copper Share Discussion Threads

[topicel] 08/2/2020 08:55

How these things are measured by an imperfect market is obviously down to many factors, but largely the number and liquidity of shares available in any 'venture' gives it 'value' and, of course, the prospects for making profits that, in turn, reflect in the share price and either capital appreciation or dividend income.

The latter is not likely for some years so we are left with the capital appreciation on our 'assets'. Many on here have used different metrics - NPV seems favoured at the moment - that leads to different market caps which, as of this weekend stands at £20m, give or take.

I don't know if we've ever been valued so high but we have the potential it seems to be multiples of that in the eyes of 'future' investments should the firing gun finally go off and ANS release their initial funds to start our initial 'cash cow' at TK in Ethiopia.

This leads to a 18-month to 2 year construction timetable that will produce gold income that will enable Kefi to be largely independent of further dilution that is, well, dilutitive! It is to be imagined that once a producer we are underscoring the Saudi mega-mines potential in that regard, and it may even be accepted by the market from the receipt of the ANS monies.

So the mention of 6p is not too fanciful as, ironically, it would take us back to the price when we consolidated in February/March 2017. Three long years ago folks!

Sure more shares have been issued since, but we have completed much value enhancing work too that offsets it all. It is probably a tough target, but as EUA has shown, once the true value enhancer comes in to play - sentiment - a 3 or 4-fold increase in our future value of £60-80m should be entirely possible.

Does any of that make sense? Lol.

Topicel

[bejubiant] 08/2/2020 03:25

agreed Rio.. receipt of imminent 1st stage equity funding = trigger for momentum & share price growth. Fuse lit on broader prospectus. 6p = short term milestone to pass through...

[taxlosstone] 08/2/2020 01:39

Score so farMr Market 1000 Oilisgold 0

[riotinted_specs] 07/2/2020 23:45

I think 5-6p on news is likely

[1deedee] 07/2/2020 20:19

4.00 would be a respectful price at the moment but I'm looking at the long term I think I'll buy some more next week;)

[oilisgold] 07/2/2020 17:16

1.75p. Slowly everyone buying in . If all goes to plan 4p be here on news day. Its how AIM works. Only fair now for this to recover after 8 years of pain.

[oilisgold] 07/2/2020 17:14

Where have all those ARMCHAIR CEOs gone predicting sub 1p. Pathetic, next werk they be paying 3p plus on funding news.

[topicel] 07/2/2020 17:07

Or a churning urn of burning fire - James Taylor, 'Steamroller Blues', etc. etc.

I can't quite believe that 1.75p is all we get for a £20m m/cap though. There are many here who have paid dearly for this moment in Harry's sunshine, and by hook or by crook he's bled us all dry to get there.

Almost. Did I say that I still expect another twist here? Lol. Good weekend dreamers.

Topicel

[gibrewog] 07/2/2020 17:02

“Pent up mass of bullish fury“ - I like the sound of that, bring it on.
Roll on next week and let’s hope it’s a good one for a change and promises are met for once. We have had so many missed targets, surely this time Rodney.

[pediment] 07/2/2020 16:06

Very good tax, but seriously it is a pent up mass of bullish fury atm ;-)

[taxlosstone] 07/2/2020 16:04

I used to have a nice wedge but then I invested in Kefi. :-(

[pediment] 07/2/2020 16:00

Nice wedge, breakout shortly,

[smackeraim] 07/2/2020 14:39

Looks like anticipation.. roll on next week!

[easwarareddy] 07/2/2020 13:15

Oow starting to pick up now...

[bejubiant] 07/2/2020 11:30

there will however be an evolving/increasing enterprise value (collateral) and the ability to service debt. Whichever way you play this out, it’s likely that success in Ethiopia will bleed through to assisting with funding the up front percentage cost element of scaling Saudi.
In all likelihood the Saudi asset will quite probably become the subject of an entirely different conversation in a shorter timeframe. However, a crystal ball is needed for that one....
Bed time this end... all tbd and GLA

[unionhall] 07/2/2020 11:13

"........TK, first off the rank in Ethiopia will throw off cash from operational activities early doors......"


"early doors" will be at least three years before there will be surplus cash being generated....

[outlawinvestor] 07/2/2020 10:53

Bejubiant - in that case, definitely yes, the shareholder can use their income as they please, no question about that!

Anyway, thanks fellas for the comments, I'm switching back to reading mode. GLA.

:)

[bejubiant] 07/2/2020 10:42

TK, first off the rank in Ethiopia will throw off cash from operational activities early doors. The 25% cash requirement (difference between100% and 75% from aforementioned Saudi debt fund) will need to come from liquidity. Liquidity will be achieved via early revenue.

[bejubiant] 07/2/2020 10:36

Outlaw: I’m not talking about subscription funds. Kefi is much further ahead in Ethiopia than it is in Saudi.

[outlawinvestor] 07/2/2020 10:27

Bejubiant - I don't think we can consider it "spoils" as such. If 3 of us join up to start a company one of us couldn't decide to use subscription funds for other purposes. The money is project specific equity funding to which KEFI contributed $10m (as reported).

Apologies if I am coming across as pedantic.

[estseon] 07/2/2020 10:17

TKGM holds the licence for TK. The exploration licences for the satellites and other areas will be awarded to KME or special purpose subs of KME. ANS seem to want part of that action, which is why they propose to take 20% of KME.

They've done a fair amount of exploration on the narrow, shallow Guji-Komto belt, including recovery tests using basic heap leaching. Look at the presentation of 10/04/2018 slide 15 for instance:


• Potential for more than 250koz at 1.0-1.5g/t gold of oxides in a series of shallow open-pits (40m depth) along the more than 9km of Komto-Guji Belt

• Heap leach operations could quickly be brought into development and produce an
additional 30-35koz per annum for Tulu Kapi at low stripping ratios and high gold
recoveries (>94% recovery from CN bottle rolls has been achieved on surface samples)

• Low opex and capex as most infrastructure would be provided by the Tulu Kapi site
Tulu Kapi – Opportunities for Satellite Deposits


If you plug an additional 30-35k ozs/yr production into the NPV assuming that it is brought on stream at commencement of production of the pit, it adds 40-50% to attributable NPV because the main pit is loaded with the capital cost of the mine (including access, power and water infrastructure) and a much higher minority interest.

[bejubiant] 07/2/2020 10:10

Outlaw: As a very substantial minority shareholder in a given entity, are you saying it’s not possible to use the spoils from said entity elsewhere as you choose?

[edgein] 07/2/2020 09:43

Outlaw,

They could probably raise a little money or secure debt against the value of the subsidiary. But the Eth drilling will mainly be to prove up the extra ug reserves and LoM at TK. Those Eth satellite targets are probably within the subsidiary too I'd imagine.

Regards,
Ed.

[outlawinvestor] 07/2/2020 09:41

Ed - my contention relates to using ANS subscription funds for Hawiah or other non-TK operation. Perhaps it is a case of crossed lines but I have read others make similar comments. Someone even once suggested KEFI can use monies from Eth govt for working capital purposes!

[edgein] 07/2/2020 09:24

Outlaw,

And who for example holds the licence for TK? Company has already stated that Eth drilling will be in parallel with pit development. After all there's about another 1m oz inferred below the current pit reserve. Also plans are to continue to explore Saudi up to JORC.

Regards,
Ed.