KEFI Minerals


£8.7m market cap

1.7p last close

KEFI Minerals is an exploration and development company focused on gold and copper deposits in the highly prospective Arabian-Nubian Shield – principally the Tulu Kapi project in Ethiopia and, to a lesser extent, the Jibal Qutman project in Saudi Arabia.

Investment summary

After raising £5.5m in equity (at 2.5p/share) and mandating the placing of US$160m of Luxembourg-listed infrastructure bonds, KEFI has now expanded its binding agreement with local investors to sell an effective 26% project-level stake for US$38m (cf US$30m previously). In so doing, it has assembled the full funding consortium necessary to progress Tulu Kapi, while all outstanding government consents have now been granted ahead of community resettlement and construction in H119.

Y/E Dec
Revenue (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2016A 0.0 (2.3) (2.5) (1.6) N/A N/A
2017A 0.0 (3.5) (3.6) (1.2) N/A N/A
2018E 0.0 (3.2) (3.8) (0.9) N/A N/A
2019E 0.0 (3.4) (11.6) (0.9) N/A N/A
Last updated on 23/09/2018
Industry outlook

Once developed, we calculate that Tulu Kapi is capable of generating free cash flow of c £41.7m a year, which we value at 7.21p/share in FY19 (at a 10% discount rate) or 5.27p/share assuming full conversion of its convertible loan facility and effectively unchanged at 5.26p with the expanded local participation in the project (at updated forex). However, this valuation increases to c 10p in the event that KEFI is successfully able to leverage its cash flow from the mine into other assets in the region.

Last updated on 23/09/2018
Share price graph
Balance sheet
Forecast net cash (£m) 38.4
Forecast gearing ratio (%) N/A
Price performance
Actual (8.7) (23.2) (61.6)
Relative* (8.8) (16.1) (58.9)
52-week high/low 10.9p/4.1p
*% relative to local index
Key management
Harry Anagnostaras-Adams CEO
Jeff Rayner Managing Director
laki Catsamas Group financial controller

Content on KEFI Minerals