Kefi Gold And Copper Share Discussion Threads

[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.

[outlawinvestor] 07/2/2020 09:08

Ed - unfortunately "that ANS money" is not coming directly to KEFI. It belongs to TKGM Share Company for developing and operating the TK mine.

[outlawinvestor] 07/2/2020 09:04

Mitsubishi buys 30% stake in Chilean copper mine Mantos Copper for $263m.

The mine contains an estimated 2.1m tonnes of copper reserves.

Japanese companies have been active buyers of South American copper assets. In 2018 Sumitomo bought 30% of QB2 Chilean copper mine for $1.2bn.

[edgein] 07/2/2020 09:00

Estseon,

It all depends on the pit design. Pretty much all of those high grade intercepts are less than 250m for both the copper and gold. Imo the pit will be designed to take in all the zones that are suitable to open cast for the gold and the copper. Yes HAA has suggested that while TK pit is under construction that exploration will occur at both Eth and Saudi throughout this time. Presumably putting a few mill of that ANS money to good use proving up JORC compliant at both TK and Hawiah. Its highly likely that it will be the TK cash flow that pays for pit development in Saudi imo. They could easily spend another couple of years drilling shallow infill holes into that very large VMS,

Regards,
Ed.

[easwarareddy] 07/2/2020 08:38

Hopefully be a strong rise today with it being Friday. Would be happy with 10 percent

[robbo 44] 07/2/2020 08:26

The move to electric vehicles now is gonna happen quicker than we think. Pressure to hit zero emissions etc. Once a secondhand market starts in full electric cars, then the prices of new ones will start to fall and become more affordable for the every day Joe blogs.

[easwarareddy] 07/2/2020 08:24

Hm they have let it go!

[easwarareddy] 07/2/2020 08:22

Strange to have dropped when its just big buys coming through. They wanting our shares?

[bejubiant] 07/2/2020 01:43

It surprised me too Outlaw.. that is a LOT of money. I think it meaningfully evidences just how serious Saudi is when it comes to growing their hugely exciting and highly prospective mining sector. The potential here is stratospheric.
Saudi needs a succession from oil over the longer term and it’s possibly not going to mirror the UAE.
I also understand that they are in a hurry. So, wanting to get things accelerating quickly with no shortage of Dev-Cap. It’s reassuring to be associated with that level of realistic ambition and drive. GLA

[outlawinvestor] 06/2/2020 22:45

Bejubiant, you are absolutely correct and it is mentioned in SA related RNS.

KEFI anticipates Hawiah can be advanced to a development decision at relatively low cost due to the continuous nature of the mineralisation and, in due course, development funding will be readily available. For example, KEFI not only has a strong partner in G&M but also the Saudi Industrial Development Fund provides loans for up to 75% of the capital cost of mine development at attractive interest rates.

The Kingdom of Saudi Arabia has announced policies to encourage minerals exploration and development, and KEFI Minerals supports this priority by serving as the technical partner within G&M. ARTAR also serves this government policy as the major partner in G&M, which is one of the early movers in the modern resurgence of the Kingdom's minerals sector.

The exciting info in the news article is the fund bump from $17.3b to $100b which was news to me.

[bejubiant] 06/2/2020 21:51

Outlaw.. my understanding is that this is precisely how Kefi will fund the opening of a progressive series of mines over time in SA. Just what the fund is there for.

[bejubiant] 06/2/2020 21:30

Estseon.. a spot on post, just as I see it.
Once we finally get the cork out of the bottle this month, this flows ad infinitum due to early, surface based success paying for discovery work and consequent extraction. ‘Show us the money’ (next) then it’s game on long term.... GLA

[outlawinvestor] 06/2/2020 19:29

Minister: ‘Mind-blowing’ prospects for Saudi mining
hxxps://arab.news/macvx

Hopefully KEFI can tap into that $100bn fund to fast track Hawiah.