TIDMKEFI
RNS Number : 2753Y
Kefi Gold and Copper PLC
13 January 2022
13 January 2022
KEFI Gold and Copper plc
("KEFI" or the "Company")
General Meeting Statement
KEFI Gold and Copper (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,
announces that at today's General Meeting of the Company, Executive
Chairman, Harry Anagnostaras-Adams will make the following
statement from Riyadh, Saudi Arabia:
"The approval by shareholders of the resolutions at today's
General Meeting will mean that KEFI can conclude the GBP6.4 million
placing announced on 21 December 2021, which significantly de-risks
the Company's balance sheet by issuing shares to remove liabilities
of GBP5.7 million, adds GBP0.5 million of net cash to working
capital and issues warrants (one warrant for every two shares
placed), the exercise of which would complement the Tulu Kapi
project finance plan.
The financing we are seeking shareholder approval for today
reinforces KEFI progress on our two major fronts: in Ethiopia to
launch the Tulu Kapi Gold Project, and in Saudi Arabia to complete
the Preliminary Feasibility Study for developing the Hawiah
Copper-Gold Project and to receive the Mining Licence for
developing the Jibal Qutman Gold Project.
Upon the start-up of all three KEFI-managed projects over the
next few years, combined projected revenue at today's metal prices
is estimated to approximate US$560 million per annum (comprising
each of Tulu Kapi and Hawiah at c.US$250 million and Jibal Qutman
at US$60 million). KEFI's share of projected revenue is estimated
to be c.US$280 million per annum, and c.US$200 million of EBITDA
per annum (approximately 50:50 from Ethiopia and Saudi Arabia).
Our Tulu Kapi finance syndicate sits on standby for when
Ethiopia is ready and we note that the widely publicised military
hostilities of 2021 have abated and that the Government has
announced the formation of a national dialogue commission to be
elected with the objective to seek a long-term solution. We are
working closely with all relevant government departments to start
the development of Tulu Kapi as soon as possible in 2022 once
normal conditions can be satisfied.
In Saudi Arabia, notwithstanding some COVID-related delays,
KEFI-managed Gold & Minerals LLC completed its large Phase 4
drilling programme and reported expanded resources. As a
scale-comparison with the Tulu Kapi Gold Project, Hawiah's
recoverable in-situ metal, which we expect will keep getting
bigger, is now estimated to be in the order of 2.2 million
gold-equivalent ounces versus Tulu Kapi's 1.2 million ounces
assumed in the economic appraisals. We have also been granted two
new exploration licenses near Hawiah and expect further progress on
our Jibal Qutman Gold Project where we plan heap leach gold
operation.
We will continue to press forward with our projects in both
Ethiopia and Saudi Arabia and bring them online as soon as
conditions in each jurisdiction allow. Our work is sometimes in
challenging circumstances and we deeply appreciate the support,
patience, dedication and understanding shown by our shareholders,
employees, suppliers and host communities."
Enquiries
KEFI Gold and Copper plc
Harry Anagnostaras-Adams (Managing Director) +357 99457843
John Leach (Finance Director) +357 99208130
SP Angel Corporate Finance LLP (Nominated
Adviser and Joint Broker) +44 (0) 20 3470 0470
Jeff Keating, Adam Cowl
Tavira Securities Limited (Joint Broker) +44 (0) 20 7100 5100
Oliver Stansfield, Jonathan Evans
WH Ireland Limited (Joint Broker) +44 (0) 20 7220 1666
Adrian Hadden, Andrew de Andrade
IFC Advisory Ltd (Financial PR and IR) +44 (0) 20 3934 6630
Tim Metcalfe, Florence Chandler
Notes to Editor
KEFI Gold and Copper plc
KEFI is focused primarily on the development of the Tulu Kapi
Gold Project in Ethiopia and its pipeline of highly prospective
exploration projects in the Arabian-Nubian Shield. KEFI targets
that production at Tulu Kapi will generate cash flows for capital
repayments, further exploration and dividends to shareholders.
The following tabular summary presents KEFI' s estimated share
of the project NPV's :
Pence
Tulu Kapi Hawiah Jibal Qutman Total Issued Per
NPV NPV NPV NPV Shares Share
----------- -------- -------------- -------- ------------ ------
Net Present Value
for KEFI
----------- -------- -------------- -------- ------------ ------
GBP114 GBP114
30 June 20 mill N.A N.A mill 1,867 mill 6
----------- -------- -------------- -------- ------------ ------
GBP164 GBP80 GBP244
31 Dec 20 mill mill N.A mill 1,876 mill 13
----------- -------- -------------- -------- ------------ ------
GBP191 GBP80 GBP271
30 June 21 mill mill N.A mill 2,159 mill 13
----------- -------- -------------- -------- ------------ ------
GBP191 GBP124 GBP348
31 Dec 21 mill mill GBP33 mill mill 2,939 mill 12
----------- -------- -------------- -------- ------------ ------
Footnotes:
Gold Price is US$1,830/oz
Copper Price is: Assumed exchange rate was rate
US$9,750/t US$1.35:GBP1.00.
Zinc Price is US$3,590/t
Silver Price is
US$23/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;
Tulu Kapi underground mine model is based on the
Preliminary Economic Assessment ("PEA");
Hawiah at this stage assumes preliminary mine modelling for open
pit and underground because the MRE has only recently been updated;
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
31.2% 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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