Kefi Gold And Copper Share Discussion Threads

[whu0319] 04/6/2021 10:28

"Whilst final approval of this updated plan is awaited as a condition precedent of the Project financing, TKGM has exchanged formal confirmations with the licencing authority regarding TKGM's commitment to honour the already outlined Project timetable;"

Ask your self , if Kefi was not given Warning by the regulator before, why all of sudden Kefi talks to the License Authority to "assure its commitment " with ZERO Money ??? Did HAA told us all true and has Kefi been given the guarantee that EG will not revoke its License ? Placing way below 1.5p is definitely on the cards and the whole thing drags on after July when rain season starts so nothing will be done on site ! GLA

[scrappycat] 04/6/2021 10:27

Topicel,

I cannot be bothered to dissect the majority of your recent postings, which continue to reflect your negativity - despite the risk/reward ratio going very firmly in the reward direction.

However, i would like to address one point. It concerns Ausdrill/Corica. From the RNS, this involved a retendering process, viz:

'A new Project mining contractor, Corica Group, which is now the largest mining contractor in Africa, has been appointed, replacing the previous mining contractor on better terms after re-tendering of the contract.'

Ausdrill obviously lost out in the tender. There is no evidence whatsoever to say the were 'spooked' and withdrew. It as Kefi who requested the retender - much as you might do periodically when you review your power suppliers. Nothing dramatic, but the change of contractor does seem to require the amendment of the feasibility plan. I doubt this will prove an issue, but did require to be mentioned in the RNS.

[robjm66] 04/6/2021 09:58

Topical expect formal confirmation of the date time and place next week Kefi were probably desperate to get the news out that the AGM would be taking place this month. Where and when if it’s online or not might be down to covid restrictions.Think the rns is a bit rushed maybe they also wanted to get out the info that the contractor had been replaced before anyone knew they had left.

formal confirmations... to honour the already outlined Project timetable. Basically think Kefi are reassuring the Ethiopian government that things are still on track could be the the Ethiopian government was annoyed by the fact news would be coming out post election but thats only a theory.

procurement any time from July 2021;...well AGM is on last day of June...Kefi will have the mining and construction plan and not as if they will need every bit of plant and machinery from day one.

Responses are up to date in respect of the senior lenders' due diligence requirements for credit approval....means the banks and so on are still happy to lend the money without a whole new round of due diligence

150 local personnel...compensation procedures...starter homes..

Photos well there are some security risks and the company has provided some photos in the past, main plus is the company is spending to do these things which is probably the best indication

[katsy] 04/6/2021 09:56

I don't know what to make of that RNS and by all accounts neither does the market. On the face of it it all looks good but closer inspection tells me it's another can kick RNS. Still no idea who this £billion company is!

[belfastboyo] 04/6/2021 09:44

Hmmm...I was hoping that we would get the full finance closing RNS...but on balance this is still a very positive RNS...employing 150 locals and starting to move local families must mean this is going ahead & the EG & local Gov. are supportive. New contractor is interesting...but I will reserve judgement until I see the AGM resolutions & final funding RNS...TBA.

[topicel] 04/6/2021 09:37

You would have to suspect with the surprise change of operator that many would be wanting out and sitting back.

MMs are making it possible perhaps. I hope not but there are too many developments today - a Friday for goodness sake - and it seems probable this was the root of the EG warning too.

They know this will not be a quick fix. How long has Harry known Ausdrill wanted out?

Like I say, reasoned and non-emotional answers are welcome, I don't want this back to 1p to keep the lights on. More averaging down is not what anyone will want, but can we hold out until end of June - or 'anytime from July'...?

The share price is all I care about now (as ever).

Topicel

[topicel] 04/6/2021 09:27

Rob - how do you feel about these observations:

"which is expected to be convened in due course for 30 June 2021" - 'expected'?

Why not be precise?

"TKGM has exchanged formal confirmations with the licencing authority regarding TKGM's commitment to honour the already outlined Project timetable;”

Wtf are 'formal confirmations'? Are they more or less onerous that an LOI or with the legal teams for checking? It is saying nothing more than a nod and a wink, and is hardly solid. It is really only saying we - as TKGM - are standing by our commitment...

“procurement any time from July 2021;” - equally it is anytime this year. As I mentioned, the greatly admired Ausdrill have pulled out at significant confirmed cost to them and we expect the new lot to just immediately start the procurement process without months of looking at it all themselves?

“Responses are up to date in respect of the senior lenders' due diligence requirements for credit approval. The timetable for Project finance remains for execution of detailed documentation as soon as possible after the KEFI AGM on 30 June 2021,” - 'responses up to date'? What does that mean? 'as soon as possible after' - or as long as it takes? And it only 'remains for execution' - never 'will be executed'...

“· 150 local personnel have been employed to prepare new host lands. TKGM have commenced compensation procedures”

“starter homes have been fabricated and are being delivered to site for assembly.”

Photos? Let's face it, Harry is on record as saying the first families would move in October 2017...he can't lie straight in bed so I hold no store by these comments.

Action not words.

Topicel

[megordon] 04/6/2021 09:24

Of course they're confident, they can easily raise money by diluting us all to hell as usual.
We need to know it's all funded and we're safe from future confetti showers.
Over 7 million traded and no significant move, who's dumping ? Or more Importantly why if it's all rosy.

[robjm66] 04/6/2021 08:57

Yes would have meant re jigging things then getting the nod from everyone. Hence the radio silence till things were back on track. However the main thing is they do seem to be back on track.

“for full Project launch after the Company's Annual General Meeting, which is expected to be convened in due course for 30 June 2021. The Company remains on track to commence Project commissioning in late 2022 and to reach full production by mid-2023, in line with previous guidance.”

“updated detailed Project development and production plan. Whilst final approval of this updated plan is awaited as a condition precedent of the Project financing, TKGM has exchanged formal confirmations with the licencing authority regarding TKGM's commitment to honour the already outlined Project timetable;” would have to re jig it due to new mining contractor but commitment to honour timetable suggest any delay was minimal.

“procurement any time from July 2021;” suggests deal done after AGM”

“early works programme with principal process design and construction contractor, Lycopodium Limited, has commenced this month”

“Responses are up to date in respect of the senior lenders' due diligence requirements for credit approval. The timetable for Project finance remains for execution of detailed documentation as soon as possible after the KEFI AGM on 30 June 2021,”

“· 150 local personnel have been employed to prepare new host lands. TKGM have commenced compensation procedures”

“starter homes have been fabricated and are being delivered to site for assembly.”

The question is would the company be doing all this unless it was confident?

[topicel] 04/6/2021 08:57

How long will it take for Corica to do the due diligence? They have only signed a LOI it seems, hardly a replacement for Ausdrill either, or whatever they now call themselves.

Remember, pulling out has confirmed they lost millions here. Why did they do that?

This and the opening non-committal opening paragraph 'remains' etc., well, it is not just the election and sanctions that spooked Ausdrill - Harry's besties remember...

I'd love to spin it like everyone else, but it seems like the 30 June Harry is buying as much time as he can once more. He has no idea, and nor have we.

Discuss - with a cold clear eye please. I'm happy to be shouted down with reason and not just emotion.

Topicel

[estseon] 04/6/2021 08:45

Replacement operator - no explanation.



Corica has contracts with some big name gold miners like Barrick and Allied Gold.

Consequence of changing operator - approvals required from all other parties + government approvals - note the previous reference to the TKGM board meeting (Kefi + EG) in the 17 May RNS. Documentation change.

It appears from the RNS that all parties have approved the change with only the final approval of the package to be received from the "regulatory authority".

Speculation on 'better terms':

The DFS includes costs for training and for pre-commissioning costs of stockpiling ore. The contractor supplies the vehicles and recovers their costs through its "per cubic metre delivered ore" charge. If Corica is willing to self-fund that pre-commissioning cost, it will be shouldering part of the total funding requirement. That is pure speculation.

Corica also might provide the enhanced 'local participation' in place of pure equity provision.

[shortarm] 04/6/2021 08:39

Hehe, full metal panic mode?

[megordon] 04/6/2021 08:37

Yes, or how much more fundraising to pay for all this since still no financing tied up.
What's the financing problem?
Just another delaying tactic.
Everything's wonderful, waffle waffle waffle, oh but we don't have money to pay for it yet.

[bostanli] 04/6/2021 08:36

I think for lots of reasons having this large African based contractor is good, but probably for Harry it’s all about the “numbers”; stacking up, cheaper costs!!

[rich1e] 04/6/2021 08:25

Naming of the finance partners, next week, would be a good move

[robjm66] 04/6/2021 08:25

Think the company is on track now though not sure if they have been totally up front over last minute hitches.

“150 local personnel have been employed to prepare new host lands. TKGM have commenced compensation procedures for the small part of the community to be resettled that occupies the site for the planned electricity substation and starter homes have been fabricated and are being delivered to site for assembly.”

Company would not be doing all this unless they were pretty confident of go ahead fits in with the adverts we have seen.

[robjm66] 04/6/2021 08:18

Whilst final approval of this updated plan is awaited as a condition precedent of the Project financing, TKGM has exchanged formal confirmations with the licencing authority regarding TKGM's commitment to honour the already outlined Project timetable;

· A new Project mining contractor, Corica Group, which is now the largest mining contractor in Africa, has been appointed, replacing the previous mining contractor on better terms after re-tendering of the contract. A letter of intent has been signed with them covering the major works package due to commence its procurement any time from July 2021;

Maybe I am being too negative looks like any delay will be short or was short. Seems due to re-tendering of contract of course does beg the question why the contractor was replaced could be they came in at the last minute with a better deal or other contractor got cold feet probably a plus that it is a African contractor as they will know the kind of issues with operating in Africa.

[megordon] 04/6/2021 08:09

More can kicking which explains yesterdays drop, should have held off with my top up.
Obviously leaked news caused the drop yesterday and continuing today with still no funding.

[scars] 04/6/2021 08:09

As predicted still no fireworks, maybe later today!

[philjeans] 04/6/2021 08:09

Good time to BUY here - all to play for now.

Bargain!

[scars] 04/6/2021 08:08

Well said Rio! Still holding... have been here a long time through the lows... just above break even through doubling down. Have been a little nervous as I can see others have been recently with the rumours of letters etc. But there seems to be a distinct uptick in action now and a distinct change in tine and wording, which gives me a bit more confidence.

[robjm66] 04/6/2021 08:05

“The timetable for Project finance remains for execution of detailed documentation as soon as possible after the KEFI AGM on 30 June 2021, then equity subscriptions for launch of full development,“

Looks to me timetable maybe slipped a bit but things could be a lot worse.

[dragon35] 04/6/2021 08:05

Looks like a great RNS. What price is the equity being raised at to drawdown and match against the debt finance?