Last close As at 05/08/2026
GBP0.01
▲ 0.14 (12.78%)
Market capitalisation
GBP166m
Research: Metals & Mining
KEFI has announced that it is raising c £10.6m by issuing c 1.9bn shares at a price of 0.55p. The full raise is in five parts: a firm placing, a retail offer, a conditional placing, a conditional subscription and a conditional issue. The first two have now been completed, raising £5.4m (gross) via the issue of 988.5m shares. The remaining three require shareholder approval from a general meeting on 2 January. Assuming this to be the case, they will raise a combined £5.1m (gross) via the issue of a further 933.2m shares.
KEFI Gold and Copper |
Clearing the decks |
Equity raising |
Metals and mining |
4 December 2024 |
Share price performance
Business description
Next events
Analyst
KEFI Gold and Copper is a research client of Edison Investment Research Limited |
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KEFI has announced that it is raising c £10.6m by issuing c 1.9bn shares at a price of 0.55p. The full raise is in five parts: a firm placing, a retail offer, a conditional placing, a conditional subscription and a conditional issue. The first two have now been completed, raising £5.4m (gross) via the issue of 988.5m shares. The remaining three require shareholder approval from a general meeting on 2 January. Assuming this to be the case, they will raise a combined £5.1m (gross) via the issue of a further 933.2m shares.
Year end |
Revenue (£m) |
PBT* |
EPS* |
DPS |
P/E |
Yield |
12/22 |
0.0 |
(3.3) |
(0.2) |
0.0 |
N/A |
N/A |
12/23 |
0.0 |
(4.6) |
(0.2) |
0.0 |
N/A |
N/A |
12/24e |
0.0 |
(17.0) |
(0.4) |
0.0 |
N/A |
N/A |
12/25e |
0.0 |
(4.4) |
(0.0) |
0.0 |
N/A |
N/A |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles and exceptional items.
Capital raising funds KEFI to Major Works
In total, the equity issues are expected to raise gross cash proceeds of c £6.0m after also settling c £4.6m of outstanding liabilities. The company expects the net proceeds of the capital raising to cover the incurred and planned expenditure associated with site and community preparations at Tulu Kapi (the Early Works programme) and costs related to finalising the definitive agreements for financial commitments for operating and, in particular, upfront capital expenditure of US$320m. Management expects these agreements to be finalised during the next circa one month to enable the launch of Major Works as soon as independent certification confirms final capital budgets and the readiness of the community and the project site and transport routes. It also expects that the capital raising will facilitate the granting of additional long-targeted licences in Ethiopia (eg the Konso Cu/Ta/Ni/Co/PGM licence awarded today), which will be complementary to operations at, and the value proposition of, Tulu Kapi.
Valuation: Potential 56.1% internal rate of return
We calculate that Tulu Kapi (plus a 15% residual interest in Saudi Arabian joint venture G&M) could generate average free cash flow for KEFI of c £81.7m in FY27–32 (almost unchanged from £82.4m previously), making average (maximum potential, fully diluted) dividends of 0.47p per share in FY28–34 possible (cf 0.59p/share previously). Like-for-like, this would value KEFI at 1.71p per share (cf 2.15p/share previously) fully diluted as at 1 January 2024. With the passage of time however, this rises to 1.88p/share as at 1 January 2025. Moreover, at current metals prices, the valuation increases to 5.25p now and to 6.99p in FY28 (plus a potential further c 1.69p per share for Guji-Komto), implying an internal rate of return of 56.1% in sterling terms to buyers of the shares at their current price over the next 12 years. Note: all our timings assume that Tulu Kapi starts commissioning in late 2026.
Exhibit 1: Financial summary
£000s |
2020 |
2021 |
2022 |
2023 |
2024e |
2025e |
||
Year end 31 December |
IFRS |
IFRS |
IFRS |
IFRS |
IFRS |
IFRS |
||
PROFIT & LOSS |
||||||||
Revenue |
|
|
0 |
0 |
0 |
0 |
0 |
0 |
Cost of Sales |
(2,663) |
(2,257) |
(2,744) |
(3,527) |
(6,548) |
(1,000) |
||
Gross Profit |
(2,663) |
(2,257) |
(2,744) |
(3,527) |
(6,548) |
(1,000) |
||
EBITDA |
|
|
(2,663) |
(2,257) |
(2,744) |
(3,527) |
(6,548) |
(1,000) |
Operating profit (before amort. and excepts.) |
|
(2,706) |
(2,274) |
(2,768) |
(3,556) |
(6,566) |
(1,018) |
|
Intangible Amortisation |
0 |
0 |
0 |
0 |
0 |
0 |
||
Exceptionals |
174 |
(47) |
(268) |
1,623 |
893 |
0 |
||
Other |
0 |
0 |
0 |
0 |
0 |
0 |
||
Operating Profit |
(2,532) |
(2,321) |
(3,036) |
(1,933) |
(5,673) |
(1,018) |
||
Net Interest |
(100) |
(1,121) |
(527) |
(1,000) |
(10,460) |
(3,419) |
||
Profit Before Tax (norm) |
|
|
(2,806) |
(3,395) |
(3,295) |
(4,556) |
(17,026) |
(4,437) |
Profit Before Tax (FRS 3) |
|
|
(2,632) |
(3,442) |
(3,563) |
(2,933) |
(16,133) |
(4,437) |
Tax |
0 |
0 |
0 |
0 |
0 |
0 |
||
Profit After Tax (norm) |
(2,806) |
(3,395) |
(3,295) |
(4,556) |
(17,026) |
(4,437) |
||
Profit After Tax (FRS 3) |
(2,632) |
(3,442) |
(3,563) |
(2,933) |
(16,133) |
(4,437) |
||
Minority interests |
0 |
0 |
0 |
0 |
0 |
887 |
||
Net income (normalised) |
(3,894) |
(4,877) |
(6,087) |
(9,519) |
(21,504) |
(3,550) |
||
Net income (FRS3) |
(2,632) |
(3,442) |
(3,563) |
(2,933) |
(16,133) |
(3,550) |
||
Average Number of Shares Outstanding (m) |
1,663.2 |
2,178.9 |
3,537.3 |
4,508.2 |
5,959.1 |
7,968.0 |
||
EPS - normalised (p) |
|
|
(0.2) |
(0.2) |
(0.2) |
(0.2) |
(0.4) |
(0.0) |
EPS - normalised and fully diluted (p) |
|
|
(0.2) |
(0.2) |
(0.1) |
(0.2) |
(0.3) |
(0.0) |
EPS - (IFRS) (p) |
|
|
(0.2) |
(0.2) |
(0.1) |
(0.1) |
(0.3) |
(0.0) |
Dividend per share (p) |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
||
Gross Margin (%) |
- |
- |
- |
- |
- |
- |
||
EBITDA Margin (%) |
- |
- |
- |
- |
- |
- |
||
Operating Margin (before GW and except.) (%) |
- |
- |
- |
- |
- |
- |
||
BALANCE SHEET |
||||||||
Fixed Assets |
|
|
24,545 |
28,424 |
31,481 |
34,816 |
38,798 |
132,189 |
Intangible Assets |
24,510 |
28,361 |
31,356 |
34,716 |
38,716 |
42,716 |
||
Tangible Assets |
35 |
63 |
125 |
100 |
82 |
89,473 |
||
Investments |
0 |
0 |
0 |
0 |
0 |
0 |
||
Current Assets |
|
|
1,817 |
685 |
683 |
720 |
8,535 |
2,052 |
Stocks |
0 |
0 |
0 |
0 |
0 |
0 |
||
Debtors |
448 |
291 |
463 |
528 |
1,155 |
1,155 |
||
Cash |
1,315 |
394 |
220 |
192 |
6,483 |
0 |
||
Other |
54 |
0 |
0 |
0 |
897 |
897 |
||
Current Liabilities |
|
|
(3,125) |
(6,791) |
(5,182) |
(9,420) |
(10,460) |
(8,960) |
Creditors |
(3,125) |
(5,556) |
(4,002) |
(7,307) |
(5,929) |
(4,429) |
||
Short term borrowings |
0 |
(1,235) |
(1,180) |
(2,113) |
(4,531) |
(4,531) |
||
Long Term Liabilities |
|
|
0 |
0 |
0 |
0 |
(4,478) |
(92,429) |
Long term borrowings |
0 |
0 |
0 |
0 |
0 |
(87,951) |
||
Other long term liabilities |
0 |
0 |
0 |
0 |
(4,478) |
(4,478) |
||
Net Assets |
|
|
23,237 |
22,318 |
26,982 |
26,116 |
32,395 |
32,852 |
CASH FLOW |
||||||||
Operating Cash Flow |
|
|
(2,092) |
(329) |
(2,634) |
(861) |
(8,557) |
(2,500) |
Net Interest |
(100) |
(1,121) |
(527) |
(1,000) |
(10,460) |
(3,419) |
||
Tax |
0 |
0 |
0 |
0 |
0 |
0 |
||
Capex |
(4,389) |
(3,064) |
(5,245) |
(3,257) |
(4,000) |
(93,409) |
||
Acquisitions/disposals |
0 |
54 |
0 |
0 |
0 |
0 |
||
Financing |
6,996 |
826 |
6,405 |
2,550 |
26,890 |
4,894 |
||
Dividends |
0 |
0 |
0 |
0 |
0 |
0 |
||
Net Cash Flow |
415 |
(3,634) |
(2,001) |
(2,568) |
3,873 |
(94,434) |
||
Opening net debt/(cash) |
|
|
814 |
(1,315) |
841 |
960 |
1,921 |
(1,952) |
HP finance leases initiated |
0 |
0 |
0 |
0 |
0 |
0 |
||
Other |
1,714 |
1,478 |
1,882 |
1,607 |
0 |
0 |
||
Closing net debt/(cash) |
|
|
(1,315) |
841 |
960 |
1,921 |
(1,952) |
92,482 |
Source: Company sources, Edison Investment Research
|
|
Research: Investment Companies
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