KEFI Gold and Copper

Primary ticker: AIM:KEFI
Stage of development: Exploration, Development
Primary minerals: Gold, Copper
Project to promote: Tulu Kapi Gold, Hawiah Copper-Gold and Jibal Qutman Gold
Project location: Ethiopia and Saudi Arabia
Website: www.kefi-minerals.com

KEFI recently pivoted onto the fast track after some very frustrating years in its frontier markets. We are an early mover in the Arabian Nubian Shield, operating joint ventures with strong local partners in Ethiopia and Saudi Arabia, and have a built a platform with 1st tier operational management, bankers and contractors.

Market cap of £30m versus portfolio NPV of £348M. NPV increased 3X since H1 2020 due to exploration and permitting success (Saudi) and expected greater interest in Tulu Kapi (Ethiopia)

Estimated potential Net Operating Cash Flow (1) £137M (c. US$185M) per annum from the 3 development projects

KEFI targets becoming a mid-tier producer with 3 projects in production by 2026, at a net production rate of 187Koz gold equivalent (155Koz of gold)

Cash: GBP 2.5M
Debt:/

Major shareholder:

RAB Capital 3.5%

Management ownership 7%

Financials

Management Profile

Harry Anagnostaras-Adams – Executive Chair – B. Comm, MBA, Fellow of Australian Institutes of Management & Company Directors

Harry was founder or co-founder of Citicorp Capital Investors Australia, investment company Pilatus Capital, Australian Gold Council, EMED Mining, KEFI Minerals and Cyprus-based Semarang Enterprises. He has overseen a number of start-ups in those and their related organisations principally through the roles of Chairman, Deputy Chairman or Managing Director. He qualified as a Chartered Accountant early in his career while working with PricewaterhouseCoopers.

Eddy Solbrandt – Ethiopia

Plus People & Systems

Eddy began his career in the mining industry in 1986 and has since worked in open cut and underground metalliferous mines, as well as in coal, gold and mineral sands in Australia, New Zealand, USA, Canada, Mexico, UK, Ukraine, Russia, Kazakhstan, Indonesia, Thailand, South Africa, Mozambique and Namibia.

Eddy is founder of GPR Dehler, an international management consultancy which specialises in productivity improvement for mining companies worldwide, especially in the areas of human resources development and performance improvement.

He is adept at providing swift assessment, analysis and development of solutions and strategies for achieving strategic, operational and financial objectives integrating process, people and technology. He is a seasoned facilitator experienced in designing and conducting strategy workshops.

What is your rationale for taking part in 121 Mining Investment?

We have built a very strong business/project platform but we need to build an equally solid share register at the holding company level.

What recent news would you like to highlight to investors attending?

During the first quarter of 2022 KEFI has made excellent progress on three now-advanced projects in two now-pro-development countries. This is in stark contrast to our situation only months ago when our priority was simply to preserve the Ethiopian project finance syndicate against security challenges and to prove up sufficient resources in Saudi Arabia to warrant development.

“I believe this recent pivot means that the first quarter of 2022 represents KEFI’s watershed quarter and the most important since the IPO in 2006.

What are your key goals in 3 months, 6 months, 12 months?

3 Months:

Closing project finance for first development project and, in the meantime, reporting steady progress across all projects.

6 Months:

Starting construction of the first development project and, in the meantime reporting the grant of a second mining licence, the expansion of resources and the scheduled progress on development studies for projects 2 and 3

12 Months:

Scheduled construction progress in Ethiopia, the expansion of resources and the scheduled progress on development studies for projects 2 and 3

What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?

Political risk in Ethiopia which we have addressed by building a locally-strong syndicate.

What do you think makes your company such a compelling investment?

It is demonstrated vision and resilience. Now that the working environment has dramatically improved, we can move quickly which should help close the 12-fold gap between market cap and NPV

What are the top 3 key investor takeaways?

Low entry price at a point of infection; strong team and structure; should be a mid-cap in 3 years