Kefi Gold and Copper PLC Investor Webinar and Updated Company Presentation

TIDMKEFI

Kefi Gold and Copper PLC

15 March 2022

REACH

15 March 2022

KEFI Gold and Copper plc

("KEFI" or the "Company")

KEFI Focused on Three Initial Open Pit Gold Operations

Rescheduled Investor Webinar and Updated Company Presentation

KEFI (AIM: KEFI), the gold and copper exploration and development company with projects in the Federal Democratic Republic of Ethiopia and the Kingdom of Saudi Arabia, is pleased to announce that its next Investor Webinar will be held at 3pm London time on Friday 8 April 2022 via the Investor Meet Company platform, following the anticipated release of the Company's Q1 2022 Quarterly Operational Update.

The Company also advises that an updated presentation is available today on the Company's website at https://www.kefi-goldandcopper.com .

This presentation sets out the Company's position that following recent positive developments in both Ethiopia and Saudi Arabia, and the improved gold price outlook, the Company is refining its development strategy by focusing on sequentially developing three initial open pit gold (and silver) operations - Tulu Kapi in Ethiopia, Jibal Qutman in Saudi Arabia, followed by Hawiah in Saudi Arabia. The initial developments at each project would then planned to be followed by deeper self-funded developments at all three projects which, at Hawiah, would also yield copper and zinc.

Tulu Kapi, planned to be c. 70%-owned by KEFI, has a granted mining licence and is construction-ready for a start-up at the initial production rate of 140,000 oz per annum of gold. The current focus is on satisfying the conditions precedent for completing its project financing in mid-2022. The Company believes that all capital requirements have been arranged via the indicative offers and non-binding commitments received.

At Jibal Qutman, planned to be 30%-owned by KEFI, development planning has been re-activated following indications from the regulatory authorities that the Mining Licence would be clarified in 2022. The original 2015 Preliminary Economic Assessment was for an initial production rate of 35,000 oz pa of gold with capital requirement of US$39 million, targeted to be project-financed as to 75% by project debt, 70% by partners' equity and the remaining US$3 million by KEFI.

Hawiah, planned to be 30%-owned by KEFI, reported its maiden Mineral Resource Estimate ("MRE") in 2020 and an increased MRE in January 2022. It is part-way through a Preliminary Feasibility Study ("PFS"). It is likely that Hawiah's development would follow that of Tulu Kapi and Jibal Qutman. Given recent successful exploration results showing near-surface gold at Hawiah and the nearby Al Godeyer exploration licences, the PFS is being refocused onto the possibility of initial open pit gold mining, to be followed by underground mine development to also recover copper and zinc. Capital requirements for this 2.2 million oz gold-equivalent project (Hawiah MRE announced on 4 January 2022 of 24.9 Mt at 0.90% copper, 0.85% zinc, 0.62 g/t gold and 9.81 g/t silver), are anticipated to be covered by project-level funding combined with projected surplus cash flows in due course from Tulu Kapi.

Harry Anagnostaras-Adams, KEFI Executive Chairman, commented: "It is great to see the recent turnaround in Ethiopia coinciding with a take-off of our projects in Saudi Arabia. KEFI has turned onto the front foot in both jurisdictions, after some particularly frustrating years in both.

"We have focused the development planning teams onto starting with gold open pits in all three projects, to minimise start-up timetables and capitalise on what seems a very positive gold price outlook."

Investor Webinar

The Company will provide a Quarterly Update presentation via the Investor Meet Company platform at 3.00 pm London time on Friday 8 April 2022.

Investors can register to attend using the following link:

https://www.investormeetcompany.com/kefi-gold-and-copper-plc/register-investor

Questions can be submitted pre-event via your Investor Meet Company dashboard up until 9 am the day before the meeting, or at any time during the live presentation. Investors who already follow KEFI on the Investor Meet Company platform will automatically be invited.

Enquiries

 
 KEFI Gold and Copper plc 
 Harry Anagnostaras-Adams (Managing Director)    [phone] 
 John Leach (Finance Director)                   [phone] 
 SP Angel Corporate Finance LLP (Nominated 
  Adviser)                                       [phone] 
 Jeff Keating, Adam Cowl 
 Tavira Securities Limited (Lead Broker)         [phone] 
 Oliver Stansfield, Jonathan Evans 
 WH Ireland Limited (Joint Broker)               [phone] 
 Katy Mitchell, Andrew de Andrade 
 IFC Advisory Ltd (Financial PR and IR)          [phone] 
 Tim Metcalfe, Florence Chandler 
 

Notes to Editor

KEFI Gold and Copper plc

KEFI started as a grassroots explorer equity-funded via AIM and is now the operator of large exploration and development joint ventures with strong local partners in the Arabian-Nubian Shield, with most funding being sourced at the project level.

KEFI is focused primarily on the development of its advanced development projects in both Ethiopia and Saudi Arabia, plus the expansion of its resource base at these projects and through exploration of its other prospects in the Arabian-Nubian Shield. KEFI targets that production at its three development projects, starting with Tulu Kapi Gold in Ethiopia and adding production from Jibal Qutman Gold and Hawiah Copper-Gold in Saudi Arabia will generate cash flows for capital repayments, further exploration and dividends to shareholders.

The following tabular summary presents KEFI's updated estimated share of the projects' aggregate NPV's, as at mid-2022:

 
                                                                                                  Pence 
                                      Tulu Kapi     Hawiah     Jibal Qutman    Total     Issued   Per 
                                      NPV           NPV        NPV             NPV       Shares   Share 
 Net Present Value 
  for KEFI as 31 December 
  2021 metal prices 
    30/06/2020                        GBP114m       0          0               GBP114m   1,867m   6 
    31/12/2020                        GBP164m       GBP80m     0               GBP244m   2,137m   11 
    30/06/2021                        GBP205m       GBP74m     0               GBP279m   2,153m   13 
    31/12/2021                        GBP191m       GBP128m    GBP29m          GBP348m   2,939m   12 
 Footnotes: 
  Assumed exchange rate was US$1.35:GBP1.00 
 JV ownership levels: Ethiopia 45% in 2020 and 70% in 2021; 
  Saudi 34% in 2020 and 30% in 2021 
                                       31 January 2021 Analyst Consensus 
 31 December 2021 Metal Prices:         Long Term Prices 
 Gold Price is US$1,830/oz             Gold Price is US$1,607/oz 
 Copper Price is: US$9,750/t           Copper Price is: US$7,590/t 
 Zinc Price is US$3,590/t              Zinc Price is US$2,442/t 
 Silver Price is US$23/oz              Silver Price is US$21/oz 
 Explanatory Notes: 
 * NPV is derived by KEFI using independently created financial 
  models of net cash flows after tax 
 and debt service, using a discount rate of 8%; 
 * Tulu Kapi open pit model is based on the Definitive Feasibility 
  Study ("DFS") as updated for any 
 refinements during project contracting and in-country experience; 
 * Tulu Kapi underground mine model is based on the internal Preliminary 
  Economic Assessment ("PEA"); 
 * Hawiah assumes preliminary mine modelling for open pit and 
  underground because the MRE has only recently been updated. Also 
  includes preliminary debt leverage; 
 * Jibal Qutman model is based on the internal PEA, preliminary 
  debt-leverage applied. 
 
 

Note that aggregate NPV's in mid-2025 using the same underlying assumptions as above, are estimated to be approximately 80% higher than those at 2022, reflecting that production will have commenced at Tulu Kapi, assumed to be imminent at Jibal Qutman and soon-to-follow at Hawiah. This project sequencing will be refined as the Saudi development studies progress. The scale of the projects in value terms to KEFI is highlighted by the table above as at mid-2022, but of equal importance from a financing viewpoint is the emphasis of project-level capital funding as well as the sequencing of their development. These aspects are illustrated in the tabulation below:

 
                                              TULU               JIBAL 
                                              KAPI     HAWIAH    QUTMAN    TOTAL 
                                            Current                        ALL 3 
                                            Estimate                      PROJECTS 
                                              US$m      US$m     US$m       US$m 
                                           ---------  -------  --------  --------- 
 
 Assumed Year of Commencing Construction      2022      2025     2024 
-----------------------------------------  ---------  -------  --------  --------- 
 
 Total Applications, including 
  Mine Fleet                                  356       160       39        555 
 
 Less Mine Fleet Provided by 
  Corica                                       56        0         0         56 
 
 Senior Debt                                  140       120       29        289 
 
 Equity-Risk Capital Requirement              160        40       10        210 
                                           ---------  -------  --------  --------- 
 
 Project Partners' Share Subscriptions 
  into TKGM/G&M                                38        28        7         73 
 
 Offtake-Linked Mezzanine Finance              45        0         0         45 
 Cost Overrun Facility, Part 
  of Mezzanine Facility                        15        0         0         15 
 
 TKGM/G&M Share Capital to be 
  subscribed by KEFI                           62        12        3         77 

                                           ---------  -------  --------  --------- 
 
 Funded by Subordinated Convertible 
  into KEFI Shares at Year 3 market 
  price                                        15        0         0         15 
 
 Funded by KEFI Shares Issued 
  at end Year 2 at the then market 
  price                                        7         0         0         7 
 
 Budgeted internal spare cash 
  generated                                    12        12        0         24 
 
 KEFI Convertible Note Issued 
  after signing, at premium to 
  market in H2-2022                            20        0         0         20 
 
 KEFI Share Issue after closing 
  each project financing in 2022, 
  2024, 2025                                   8         0         3         11 
 Note that the Dec 2021 warrants 
  at 1.6p bring in approximately 
  US$8m 
 Residual Requirement                          0         0         0         0 
                                           ---------  -------  --------  --------- 
 

KEFI Gold and Copper in Ethiopia

Ethiopia is currently undergoing a remarkable transformation both politically and economically.

The Tulu Kapi gold project in western Ethiopia is being progressed towards development, following a grant of a Mining Licence in April 2015.

The Company has now refined contractual terms for project construction and operation. Estimates include open pit gold production of c. 140,000oz pa for a 7-year period. All-in Sustaining Costs (including operating, sustaining capital and closure but not including leasing and other financing charges) remain c. US$800/oz. Tulu Kapi's Ore Reserve estimate totals 15.4Mt at 2.1g/t gold, containing 1.1Moz.

All aspects of the Tulu Kapi (open pit) gold project have been reported in compliance with the JORC Code (2012) and subjected to reviews by appropriate independent experts.

A Preliminary Economic Assessment has been published that indicates the economic attractiveness of mining the underground deposit adjacent to the Tulu Kapi open pit, after the start-up of the open pit and after positive cash flows have begun to repay project debts. An area of over 1,000 square kilometres adjacent to Tulu Kapi has been reserved for exploration by KEFI's wholly-owned Ethiopian subsidiaries upon commencement of development by TKGM, with a view to adding satellite deposits to development and production plans.

KEFI Gold and Copper in the Kingdom of Saudi Arabia

In 2009, KEFI formed Gold & Minerals Limited ("G&M") in Saudi Arabia with local Saudi partner, ARTAR, to explore for gold and associated metals in the Arabian-Nubian Shield. KEFI has a 30% interest in G&M and is the operating partner.

ARTAR, on behalf of G&M, and G&M directly hold over 16 Exploration Licence (EL) applications pending the introduction of the new Mining Law. These new regulations have recently been proclaimed and G&M now holds 3 EL's. ELs are renewable for up to three years and bestow the exclusive right to explore and to obtain a 30-year exploitation (mining) licence within the area.

In addition, G&M has a Mining Licence Application over the Jibal Qutman Gold Project which recent informal indications by the authorities provide some confidence that the licence will be granted in 2022.

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March 15, 2022 03:00 ET (07:00 GMT)