Kefi Gold And Copper Share Discussion Threads

[riotinted_specs] 23/7/2020 20:59

I would add to this that there are and rightfully so, some very frustrated long term investors. This has been a very long and winding road. And they have stuck with this investment some- with initial investments of over 1 pound per share. There has been dilution, more dilution, false promise, missed deadlines, consolidation, civil strife. They are fed up but they do see the light at the end of the tunnel. And it is close. Suffice it to say if they were coming in at sub 2p or even 5p - they would really feel the winds in their sails. They can be cranky and they will be. They have been waiting a generation, for many this is there children and grandchildrens inheritance. They are not to be ignored and they are seasoned mining investors. They, however, can be grumpy. Do not let their comments dissuade you from investing. These guys are still down size averaging and they would cut off their right arm to be coming in now at this price with so little time before real value is finally reealised

[riotinted_specs] 23/7/2020 20:43

To potential NEW INVESTORS. TULU KAPI gold mine formally received the green light from the Ethiopian Government last November. There are to be no more permits, environment, security and social considerations. The mine will open and we await final funding with agreed terms with two of the mightiest African banks. Once we have financial closure there will be no dilution There has been real difficulty in getting some additional private funding with ANS, a mining bank comprised of a consortium of the wealthiest individuals and businesses across Ethiopia and set up for the very purpose of kickstarting mining in Ethiopia. Unfortunately with a liquidity crisis they have pulled back after teasing us along for several years. But that is now yesterdays news and the EG have via an RNS provided assurances that this funding will be covered. This is the imminent news we await and it may very well be in the form of an IMF loan or come from initial offtakes leading up to having a fully producing mine. The critical date is October and the EG are committed to full closure at this time. The EG are currently constructing critical transport and security infrastructure directly attributed to this mine. This includes roads, and an airport. The TULU KAPI mine - on its own - when in production will be the single largest export revenue generator in the fastest growing country on the planet. It's no wonder the Nobel Peace winning EG Prime Minister is directly involved and has his hands are all over this project. And nor is it a surprise that the military will be securing this very prized asset. The current declared TULU KAPI NPV is at bare minimum a 10-15x multiple of our current market capitalisation. This stock is grossly undervalued even when based on this single JORC Certified Gold asset. The TULU KAPI NPV, however doesn't take into account all the other KEFI assets. It doesn't take into account the phenomenal Saudi Assets which is what initially attracted most long term investors who are still here. It doesn't include the equivalent gold mining opportunity directly below the TULU KAPI mine. Nor does it include the surrounding catchment area where KEFI have first movers advantage and first pegging rights of refusal. So when we look at subsequent phases there will be enormous cost efficiencies in Ethiopia and increased profit margins due to the - in place - critical transport, military, mine and human resource infrastructure. Regarding humans, I have never seen a social contract so boot strapped. This has included a comprehensive and detailed family by family relocation compensation assessment. KEFI have gone well beyond the government declared remuneration requirement with what equates to life changing money to said community. So this is definitely not some dodgy, early stage fly by night, pie in the sky banana republic, exploitative mine with speculative AIM promises. It is rather a superb pre-production mining find, best explored and developed by an outfit both lead and full of Australians. The Aussies, as we all know are among the best miners this world has to offer. And for this shield geology they are, without question the very, very, very best and indeed the pioneers of such mining on their own land. This is the real deal, and it's been inching forward for near on 15 years. There have been all sorts of challenges and impediments, such as jurisdictional instability - now very much so resolved by dramatic, sweeping, Ethiopian Nobel Peace prize winning democratic reforms. The added frustration of being the first public private mine in a quarter of a century; the bureaucracy and being the guinea pig for a sector to which the Ethiopian Govt are highly committed.The market is clearly not factoring in KEFIs additional assets in the Saudi Arabian Nubian shield. Exploration has uncovered easily accessible, shallow depth VMS Volcanic Massive Sulfide. BIG mineral NUGGETS in the Hawiah mine incredibly rich in high concentrated copper. As was quoted it's like a mattress on its side certification expected in the very near term. And even more assays are to come as we uncover just how big this nugget is. And then of course there is Jibal Qutman also in Saudi - another 700 millions ounces of gold. This could fund all sorts of KEFI development and at very low cost - easy open pit stuff - just need to grab a shovel. And the Saudis are and will continue to be an easier and less bureaucratic nation to deal with from a mining and resource perspective. Saudis are much more sophisticated and accustomed to such foreign investment and have been for a century in the oil sector. Here again KEFI have pegging rights that far exceed the specific area we are currently exploring. Early finding have copper grades upwards of 5 percent. This grade is 10-fold to that of many, if not most, of the existing existing profitable largest copper mines. Incidentally those mines will now go deeper into existing pits at much higher costs and lower grade to that of what they are doing now. So the profitability of shallow depth combined with high grade copper has an exponential order of magnitude on profitability. All at a time when the worlds cooper supply is dwindling, demand is increasing and Saudi oil production is reducing. We are moving to an electrified world and away from fossil fuels. Exactly what Saudi Arabia needs To note but a few examples.. electric cars, busses, and charging points, infrastructure, solar, wind and any renewable energy, the ambitious Chinese Belt and Road infrastructure initiative, and the recent bill that was passed for US reinfrastructuring. Biden gets in and you should expect a lot more green energy.I reiterate my near term 6p forecast and minimum 40p within 15-18 months. I do not see any patience required for those that have invested in the mid to long term as we have this in spades. But for recent entrants, hold your position, then continue to hold - it will not be long now. And with the price of gold and copper rising - it will be one hell of a ride. Welcome

[rich1e] 23/7/2020 20:35

In the interest of balance, long term holders here will point to the fact, that history says Kefi will disappoint, and I’ve taken this into consideration.

[rich1e] 23/7/2020 20:05

Far from a mining expert, I do try to work out what’s happening in the background, observe what’s happened before and estimate the chances of it happening again. I’d posted on the VILX board, back in March, “a glance at the silver chart show a spike, 12 months after the lows of the last financial crisis”. Is silver now in the foot hills of another such spike? LSIL is a way to play it, but if it reverses it can be painful.

One recent point of note here, is that RAB Capital appear to have added to their holding at time of unremarkable movement in the sp, trading sideways at sub 1p. I remember over on Atalaya, Majedie RNS’d that they acquired a sizable portion of shares on the open market, sub a quid, share price slightly drifting, no one had noticed, the bulletin board had the share in free fall, placings etc.

Is this stock worth buying? is it worth considerably more than its current price? Those are the questions holders need to ask. If it is, hold tight. If it’s not there are other opportunities out there. But if it is, worth buying, someone will want to buy it, in whatever quantities they see fit. And the first that we on here may know, is when the RNS’ lands.

[goatherd] 23/7/2020 18:16

You know, it is amazing! There are so many mining experts on this BB!

I can't think why some of you don't get jobs as (overpaid) directors of mining companies.

[czar] 23/7/2020 17:53

Gold $1895! Kefi should be twice this price.

[richsmithsmith] 23/7/2020 16:52

Looks like its about to happen

[scars] 23/7/2020 16:30

One day rodders!

[scars] 23/7/2020 16:29

And KEFI is still heading south!

[digger2779] 23/7/2020 16:20

POG could hit 1900 soon. Maybe tomorrow.

[divmad] 23/7/2020 13:20

The QE to Infinity is mostly going to enrich even further the Super Rich with their large equity share ownership in the major indices. It won't trickle down much and cause any generalised price inflation or economic recovery to the man in the street. Precious metals inflation is part of that whole process.

[estseon] 23/7/2020 13:03

I'm not so sure, Rio. The economy could be calmed by reversal of QE and the Fed did do that for a while before the pandemic. QE will become QT. Maintaining lower interest rates will assist government funding. I also don't think that we will see inflation for a while yet. There will be high levels of unemployment before the economy restructures itself to make the new jobs required. And people are not spending. There is too much uncertainty and the response to that is generally saving.

[riotinted_specs] 23/7/2020 12:14

Hey Tops, on one hand you say you can not predict gold prices at time of production and yet you speak to the current low interest rates as though they will remain the same when production starts. Can not have it both ways. My prediction is that interest rates will go up to combat inflation notably caused by the unparalleled amount of quantitative easing. IMHO, a period of deflation will precede this inflation as people stash not spend their cash. And when things are looking rosier, spend, spend, spend .... inflation, inflation, inflation..... rising interest rates. Like Bank of America and others I believe Gold will be $3,000+ by end of 2021. It certainly will not be $1300.

[robjm66] 23/7/2020 12:03

hxxps://www.businesstimes.com.sg/energy-commodities/wall-street-is-throwing-billions-at-once-shunned-gold-miners

[robjm66] 23/7/2020 11:57

Well i would say a agreement of percentage discount to the spot price at offtake delivery, a set percentage of gold production ring fenced to offtake provider.

If I was Kefi a option to buy back or out the offtake agreement and dangle the carrot of doing future deals in Saudi Arabia.

If was on the other side of the table depends on how comfortable I was doing business in Ethiopia or Africa how big a discount to the price I would push for. Would see progress in Saudi as a bonus and an insurance against anything going wrong in Ethiopia especially if Jibal Qutamn came back to life as gold production could come from there.

So not maybe not totally straightforward but could be simpler than getting a new investor on board.

Maybe another option would to be ask those that are already going to provide most of the funds to just cover the shortfall as much likely higher gold price going to mean faster and earlier payback of money.

Or could just ask the Ethiopian government to provide the money maybe from the IMF money it is getting giving them the option to transfer their holding to local government at a later date if it wants.

So there are options just need kefi to go for one.

[topicel] 23/7/2020 10:54

Ok, gold off-take negotiations might be underway but what would you agree to if you were the party involved?

They know we are in a bind. They are also as unsure as the rest of us what Civid-19 is going to be like in a year as far as the economy and so on goes but, in the main, we have seen these gold bug spikes before and back down it comes as the new normal or things, as far as the markets are concerned, quieten down.

I'd not be bargaining on $2,000 when we begin production, which is what presumably is the metric cost any off-take agreement will be working on. All things considered, with interest rates so low, if we got told off-take at $1300 would it be wise to accept?

My feeling is yes as I don't want more dilution, but then again the money men might differ and not want to be fleeced by almost so much. Of course it is more complex than this, but I really would be surprised if Harry has the skills to do a deal quickly...

He hasn't ever shown that ability. Plenty of interest is one thing, come a vaccine and nothing is settled would be quite another.

Meandering now, but you get the gist. We could be as far away as ever!

Topicel

[scrappycat] 23/7/2020 09:33

jaylett,

True, but there are probably a few offers on the table, and a decision will be required as to which one offers the more advantageous terms for Kefi. After all, from the company's point of view, they have plenty of time to peruse the options, since full project funding is not anticipated until October. PIs may well not appreciate this delay, but they will get their rewards ultimately IMHO.

[1deedee] 23/7/2020 09:30

Just been doing a bit of reading prediction gold price at $2,000 an ounce in 3 weeks time

[jaylett] 23/7/2020 09:20

Frank Spencer could get funding for a gold mine at this spot price.

[robjm66] 23/7/2020 08:51

Thanks Exiledweegie Estseon. Topical asked as they updated a page just before Saudi news dropped , agree it would be nice if we held onto recent momentum investors but they will be replaced or back on the next bit of big good news.

Extra frustrating waiting for good news while the gold price goes up but every extra dollar makes it more feasible to do a deal forward selling the gold at a discount to not need a new investor just take a greater share of TK.

Would think if the numbers are crunched now that would be the preferred option as the higher gold price combined with kefi having a greater share means faster paying of of costs of whole project and more money generated.

[estseon] 23/7/2020 08:40

No but it was after his visit to Perth and finalisation of the mining plan this year. AISCs have increased partly because of the increased gold price assumption, which increases the Ethiopian royalty included in AISCs. The price assumption is $1400, which is history now. The payback period at $1400 of 3 years is history as well. At current price of gold, they will be making an additional $50m/year net of a full tax charge.

[topicel] 23/7/2020 08:37

Nope. Tbh I have little interest in their presentations, webinars and other announcements.

Harry has one thing to do and he never manages to get it done. Funding. Fixed, firm no-backing out deadline day and who the backers are.

We were asking what all the new management do, so I guess we know they are all on admin duty shuffling the papers. Or rearranging the blooming deck chairs? Or fiddling while we burn through cash?

Two years since those very nice Ethiopians who are simply a pleasure to do business with called ANS were brought to the table and we have no idea if they are still touching elbows and saying their goodbyes or what?

Just watched an item where electric train link has been announced for rapid cross-Pennine travel between Manchester and Leeds. Mayor of Greater Manchester said it was the fourth such announcement and it felt a bit like groundhog day - but he backed it.

I thought of dear Harry and our friends in Ethiopia and smiled to myself...

If only we had been round just four times. Hot money on T-trades leaving again I see.

Topicel

[exiledweegie] 23/7/2020 08:26

Robjm66, it looked like that last week, but I'm not sure when it changed.