Kefi Gold And Copper Share Discussion Threads

[bostanli] 19/5/2020 19:08

hxxps://www.engineeringnews.co.za/article/kefi-receives-central-bank-approval-for-proposed-tulu-kapi-debt-finance-2020-05-19

[robjm66] 19/5/2020 14:39

hxxps://www.sharesmagazine.co.uk/news/market/6925962/Kefi-Minerals-gets-Ethiopia-central-bank-approvals-for-project-financing

[shortarm] 19/5/2020 11:49

In anticipation of funds this will rise, on receipt - it will get the Zoomies!!

[robjm66] 19/5/2020 11:44

"What, exactly, has been built up to now?"

"We will maximise local participation in all aspects of the Project and have already built a school, provided local water supply" (6th of January)

[robjm66] 19/5/2020 11:19

Not signing but signed old news?

[jaylett] 19/5/2020 11:00

24th April: "Off-site infrastructure construction programmes are continuing for road and electricity connections."

19th May: "The Government has also signed various procurement contracts for building offsite roads and the electricity transmission connection."

Another thing I'm very confused about. What, exactly, has been built up to now? Is this additional procurement, or the first lot? What's the exact schedule for building works? We seem to have been talking about roads for an age, yet they are still signing contracts. Why?

[glennborthwick] 19/5/2020 10:55

taking an interest in these. Seem like a good entry price.

[robjm66] 19/5/2020 10:35

Well says no slippage in final closing which should mean no slippage in first tranche plus the two African banks "now trigger their normal processes for credit approval and documentation" so they must be confident of the first tranche.

[scrappycat] 19/5/2020 10:31

At least this latest RNS does allow the possibility that initial funding may take place earlier than might otherwise be anticipated, with the ANS seemingly strapped for cash, and the EG heavily involved with fighting Covid19 and the locusts.

[scrappycat] 19/5/2020 10:00

Thanks Bostanli. On a cursory reading, it seems pretty much as I surmised from the sensible comments.

[robjm66] 19/5/2020 09:48

Sorry Jaylett of course mean government.

hxxps://www.kefi-minerals.com/files/announcements/approval-received-for-proposed-debt-finance-18may20.pdf

"In addition, the Government and KEFI have agreed changes to their shareholder agreement and the TKGM foundation documents to admit additional Project equity investors into TKGM if required,"

This permits the triggering of the Project lenders’ formal processes for credit approval and documentation with a view full financial closure in October 2020.
“The strengthening gold price and US Dollar exchange rate to Ethiopian Birr have further improved the economics of Tulu Kapi and the robustness of the development to meet the various conventional covenants required by the financing banks.

[jaylett] 19/5/2020 09:46

estseon. Indeed, but "as long as" is the key bit. I have seen nothing so far that categorically says they will do so. I doubt he will, but it would be very helpful if HAA could actually clear this piece up tomorrow with a clear and definitive answer. It's by far the most important open question on the whole TK project.

[estseon] 19/5/2020 09:35

jaylett

As long as the EG stands behind the provision of the project equity, it does not matter if they take the additional interest themselves or find new investors or invest themselves with a view of selling back down to new investors as long as the timetable is not affected and as long as the debt provision is not affected.

The tying up of exchange control formalities is a little heartening in that respect.

[jaylett] 19/5/2020 09:31

"Confirmation that the Ethiopian will step in if needed no delay on project closing."

Where are you seeing this please? Assume you mean "Ethiopian Government"?

[robjm66] 19/5/2020 09:09

Quite a lot to chew on. Now be able to hedge the gold, money going to the region rather than the government banks on board recognition of past spending leading to tax rebates on project closing? Confirmation that the Ethiopian will step in if needed no delay on project closing.

[goatherd] 19/5/2020 08:49

duplicate - sorry

[bejubiant] 19/5/2020 08:48

EG might not want/need to be a replacement equity partner in this current mix (which they are already instrumental in, as structured). If the replacement equity partner were a SPV with some blurred lines...

[taxlosstone] 19/5/2020 08:45

I seem to remember previous statements mentioning direct or indirect, or something to that affect.

[sussexlibran] 19/5/2020 08:44

@jaylett - fair enough - that is a LITTLE significant - but all it does is elaborate slightly on the previous RNS regarding the EG stepping in and looking into alternative funding. It does not contain anything concrete, or timescales, so it is the same old fluff and pretty worthless. See a spike in the share price at 08:10? Yup, RNS issued to spike the share price so someone could bail out.

[cybaajak] 19/5/2020 08:38

It DOES say that the roads and power contract has been signed by the EG, it just doesn't say when. Previous questions about pictures of said infrastructure are obviously null and void now. Can't picture something not built yet.

[jaylett] 19/5/2020 08:29

It does contain something significant, which I've noted above. All the talk has been of the EG happily stepping in to take ANS's place if they don't pay up by the end of June, despite that never actually being explicitly said or promised. Now we have a throwaway paragraph near the end of this RNS stating that KEFI and the EG have agreed to allow replacement equity partners to come in if ANS can't pay up. Why would that be needed if the EG are already the fallback option? Unless, of course, they aren't.

More questions than answers, as usual.