KEFI Minerals (KEFI)

Business description

KEFI Minerals is an exploration & development company focused on gold and copper deposits in the highly prospective Arabian-Nubian Shield, principally the 95%-owned Tulu Kapi project, Ethiopia and also the 40%-owned Jibal Qutman project, Saudi Arabia.

Stock data

Market cap.£9.8m
Last close2.95p
High / Low (52 weeks)10.9p / 4.1p
Stock market listingLN
Forecast net debt (£m)2.2
Forecast gearing ratio (%)18
TeamResources - Mining
SectorMining

Price performance

%1m3m12m
Actual(3.3)(13.9)(41)
Relative *(7)(10.1)(43.1)

* % Relative to local index

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Company news

Investment summary

KEFI has formally mandated the placing of US$160m of Luxembourg-listed infrastructure bonds, which are expected to fund ownership by the Luxembourg-regulated SPV of the gold processing plant and ancillary infrastructure at the Tulu Kapi Gold Mines Share Company (TKGM), jointly owned by KEFI Minerals (Ethiopia) and the Ethiopian government. This initiative follows a positive draft independent technical expert’s report on the project. Subject to completion of all due diligence, documentation and government approvals, drawdown and development is planned for the end of the Ethiopian wet season, in September. While originally designed as a 1.2Mtpa operation, plant throughput at Tulu Kapi has since been increased to 1.9–2.1Mtpa for around the same overall capital cost.

Last updated on 08/05/2018

Y/E Dec Revenue (£m) EBITDA (£m) PBT (£m) EPS (p) P/E (x) P/CF (x)
2015A 0.0 (1.6) (2.0) (3.0) N/A N/A
2016A 0.0 (2.3) (2.5) (1.6) N/A N/A
2017E 0.0 (2.7) (2.9) (0.9) N/A N/A
2018E 0.0 (2.5) (2.8) (0.4) N/A N/A

Last updated on 08/05/2018

Latest research

Blue sky and beyond

Outlook | Mining | 08/05/2018

Greater exposure to gold price beckons

Update | Mining | 01/02/2018

Up to 90% of the way there

Update | Mining | 28/11/2017

Tulu Kapi financial projections update

Update | Mining | 02/11/2017

Plant capacity expansion beckons

Update | Mining | 09/10/2017

83% of the way there

Update | Mining | 20/07/2017

Small refinements and robust numbers

Update | Mining | 31/05/2017

Securing Lanstead: Tulu Kapi financing underway

Update | Mining | 13/02/2017

Maintaining flexibility

Update | Mining | 21/12/2016

Still aiming high

Update | Mining | 21/11/2016

Steady as she goes

Update | Mining | 27/07/2016

Reduced capex estimate

Update | Mining | 07/06/2016

Latest video

Executive interview - KEFI Minerals

Industry outlook

Once developed, we calculate that Tulu Kapi is capable of generating free cash-flow of c £37.0m a year and pay (maximum potential) dividends of 1.57p/share for the five years from 2024 to 2028, which we value at 6.43p/share (fully diluted at a 10% discount rate). However, this valuation increases to 13.08p in the event that KEFI is successfully able to leverage its cash flow from the mine into other assets in the region. In the meantime, the stock is trading on a resource multiple of just US$7.39 per resource ounce, which is 27% below our estimate of the global average discovery cost of an equivalent resource.

Last updated on 27/04/2018

Key management

Harry Anagnostaras-Adams, CEO
Malcolm Stallman, Exploration Manager
laki Catsamas, Group financial controller
Jeff Rayner, Managing Director

Company address

Office 21, 2nd Floor
Nicosia
35600
Cyprus
+357 22 25 61 61
View website