KEFI Minerals


£9.3m 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

KEFI has now raised equity, mandated the placing of US$160m of listed infrastructure bonds and expanded its binding agreement with local investors to sell an effective 26% project-level stake for US$38m. As such, it has assembled the full funding consortium necessary to develop the Tulu Kapi project, which is expected to be triggered imminently.

Y/E Dec
Revenue (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2017A 0.0 (3.5) (3.6) (1.2) N/A N/A
2018A 0.0 (4.1) (4.6) (1.0) N/A N/A
2019E 0.0 (3.6) (3.6) (0.3) N/A N/A
2020E 0.0 (1.0) (9.0) (0.5) N/A N/A
Industry outlook

On the current timeframe, the plant is now expected to start commissioning by end-2020, with first gold in April 2021 and full production by mid-2021. At the time of our last note, we calculated that Tulu Kapi was capable of generating free cash flow of c £53.9m pa, which we valued at 5.50p/share. This valuation assumed the drawdown and conversion of KEFI’s £1.5m convertible loan facility but no more of the original loan facility – thereby offering investors at a share price of 0.9p an internal rate of return of up to 85.5% on their investment in sterling terms over 11 years. At the same time, exploration has restarted on KEFI’s Saudi tenements.

Last updated on 23/09/2018
Share price graph
Balance sheet
Forecast net debt (£m) 47.8
Forecast gearing ratio (%) 76
Price performance
Actual (28.8) (36.9) (58.4)
Relative* (24.7) (35.6) (55.5)
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

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