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

KEFI has now raised equity, mandated the placing of US$160m of Luxembourg-listed infrastructure bonds and expanded its binding agreement with local investors to sell an effective 26% project-level stake for US$38m (cf US$30m for 23% previously). As such, it has assembled the full funding consortium necessary to progress Tulu Kapi, while all outstanding government consents (with the single exception of that relating to the project finance structure from the Prime Ministry) 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

Prior to its last fund-raising, we calculated that Tulu Kapi will generate free cash flow of c £41.7m pa, which we valued at 7.21p/share in FY19 (at a 10% discount rate) or 5.27p/share assuming full conversion of its convertible loan facility and 5.26p with the expanded local participation in the project. However, this increased to c 10p in the event that KEFI is successfully able to leverage Tulu Kapi’s cash flow 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

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