KEFI Gold and Copper is an exploration and development company with three projects focused on the Arabian-Nubian Shield – namely, the Tulu Kapi project in Ethiopia (projected 70% interest) and the Hawiah and Jibal Qutman projects (both 25%) in Saudi Arabia.
As of January 2024, we calculate that KEFI is capable of generating free cash flow of c £82.6m pa from 2027–32, driving average (maximum potential) dividends of 0.66p/share and valuing the company at 2.47p/share (cf 2.19p/share in December 2022). At spot metal prices however, this valuation rises to as high as 5.50p in FY27.
Metals & Mining |
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Metals & Mining |
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Metals & Mining |
Flash note
Metals & Mining |
Flash note
Harry Anagnostaras-Adams
CEO
Jeff Rayner
Managing Director
laki Catsamas
Group financial controller
Forecast net debt (£m)
1.5
Forecast gearing ratio (%)
6
% | 1M | 3M | 12M |
---|---|---|---|
Actual | 37.88 | 27.94 | 16.78 |
Relative | 37.35 | 24.48 | 19.8 |
52 week high/low | 10.9p/4.1p |
On 4 March, KEFI announced a firm placing of 750m new shares to raise £4.5m at a price of 0.6p/share plus a further 83.3m shares (subject to approval by shareholders at a general meeting on 26 March), also at 0.6p, in direct settlement of a number of the company’s liabilities. Finally, on 5 March, it announced the closure of a simultaneous retail offer via PrimaryBid to raise a further £0.5m via the issue of a further 82.7m shares. Assuming approval at the company’s general meeting, in aggregate, KEFI will be raising £5.5m (gross) via the issue of 916.0m shares, such that the final total, post-presumed 26 March approval, will be 5,881.1m.
Y/E Dec | Revenue (£m) | EBITDA (£m) | PBT (£m) | EPS (fd) (p) | P/E (x) | P/CF (x) |
---|---|---|---|---|---|---|
2021A | 0.0 | (2.3) | (3.4) | (0.2) | N/A | N/A |
2022A | 0.0 | (2.7) | (3.3) | (0.1) | N/A | N/A |
2023E | 0.0 | (3.0) | (3.5) | (0.1) | N/A | N/A |
2024E | 0.0 | (1.0) | (11.4) | (0.1) | N/A | N/A |
thematic
Metals & Mining