KEFI Gold and Copper PLC (AIM:KEFI, OTC:KFFLF) executive chairman Harry Anagnostaras-Adams says the board believes “we are now well placed to charge ahead” after many demanding years in prospective but challenging jurisdictions.
In a statement released ahead of the company’s annual shareholder meeting, Anagnostaras-Adams highlighted the recent progress with funding Ethiopia’s Tulu Kapi gold project, as had been detailed earlier in the week.
Once all syndicate members have approved the finance package, expected by mid-2024, the next steps will be to sign the definitive documentation between the respective syndicate counterparties; place insurances and complete other administrative tasks; draw down first capital, starting with project equity and then debt months later; begin staged resettlement of approximately 350 households near Tulu Kapi; and begin procurement and tendering local sub-contractors.
“We are following this clear roadmap, and we will report material milestones along the way,” he said, with the end result being “the launch of Ethiopia’s first industrial-scale mining project and its largest single export generator and, in so far as environmental, social and governance aspects are concerned”.
Tulu Kapi is one of three advanced projects with which the company is involved, he said, with the others being Jibal Qutman Gold and Hawiah Copper-Gold in Saudi Arabia, conducted via KEFI’s 25%-owned GMCO operating company.
“Both projects are GMCO’s own discoveries and are enjoying very positive regulatory support as the preferred development plans are considered,” Anagnostaras-Adams said.
Announcements earlier this year revealed further discoveries at both Jibal Qutman and Hawiah.
The fundamental value to KEFI of the three advanced projects is estimated at £372 million, Anagnostaras-Adams said, noting this is roughly 12 times KEFI’s current share market capitalisation.
“This is no more than just one indicator for the estimate of intrinsic valuation and requires that the projects are implemented as assumed.
“However, it is a notable indicator that there is plenty of scope for share price rerating as the projects progress and de-risk.
“The dedication our teams and syndicates have already demonstrated augers well given the expected ongoing improvements to the investment climate in our host countries.”