£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) |
EBITDA (£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
Sector |
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| Metals & mining |
Share price graph
Balance sheet |
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| Forecast net debt (£m) | 47.8 |
| Forecast gearing ratio (%) | 76 |
Price performance
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Key management |
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| Harry Anagnostaras-Adams | CEO |
| Jeff Rayner | Managing Director |
| laki Catsamas | Group financial controller |
