TIDMKEFI
RNS Number : 6628A
Kefi Gold and Copper PLC
04 February 2022
4 February 2022
KEFI Gold and Copper plc
("KEFI" or the "Company")
Tulu Kapi Gold Project Update and Rescheduling of Investor
Webinar
KEFI (AIM: KEFI), the gold and copper exploration and
development company with projects in the Federal Democratic
Republic of Ethiopia and the Kingdom of Saudi Arabia, is pleased to
provide an update in respect of the Company's Tulu Kapi Gold
Project (the "Project" or "Tulu Kapi"), part of the KEFI-operated
Ethiopia joint-venture Tulu Kapi Gold Mines Share Company
("TKGM").
Project Update
-- Ethiopia's civil war abated at the end of Q4-2021 and its State of Emergency is being lifted
-- Security conditions at the Tulu Kapi site, district and transport routes are improving
-- The Project finance syndicate remains in place to launch the
Project as soon as normal conditions that govern the execution of
such a project and its financing are satisfied
-- TKGM is in extensive consultations with the Ethiopian
Ministry of Mines (the "Ministry"), to provide the assurances being
sought to minimise further project delays. Meetings have now been
scheduled for next week, including high-level meetings on 7
February 2022
-- Operationally our activities continue:
o this month's Project priorities include reviewing detailed
resettlement plans for the affected households with the
newly-appointed local government administration and to complete all
outstanding documentation with the Ministry and other Government
agencies; and
o in the following few months to finalise documentation for
execution whilst, on the ground, finish preparing the new lands for
resettling households.
-- All parties are acting in good faith to prepare to implement
the Project launch. Progress is intended to be quick but will rely
on the continued improvement of security and completion of all
documentation and other standard confirmations, such as insurance,
to the satisfaction of the Ministry and other authorities, the
senior lenders and other syndicate members.
Investor Webinar
In light of the unavailability of certain members of the
Company's senior management team next week, due to official
meetings due to take place in Ethiopia, the Company is postponing
the Investor Webinar on the Investor Meet Company platform, which
had been scheduled for 7 February 2022. The Company apologises for
any inconvenience and will reschedule as soon as possible.
KEFI Executive Chairman, Harry Anagnostaras-Adams, commented
:
"We are proud to be continuing to work tirelessly on the ground
in Ethiopia, alongside the Tulu Kapi community and the Ethiopian
Government to progress the Project. This work has continued
throughout the recent challenges, which are now rapidly abating,
and we anticipate making further progress in the coming weeks.
"KEFI have exciting projects in both Ethiopia and Saudi Arabia
and the minerals sector is taking off in both countries. We have
lots of milestones to achieve in 2022 to further de-risk our
projects and hopefully to start closing the valuation gap between
the stock market price and the underlying fundamentals."
Market Abuse Regulation (MAR) Disclosure
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the Company's obligations under Article 17 of MAR.
Enquiries
KEFI Gold and Copper plc
Harry Anagnostaras-Adams (Managing Director) +357 99457843
John Leach (Finance Director) +357 99208130
SP Angel Corporate Finance LLP (Nominated
Adviser) +44 (0) 20 3470 0470
Jeff Keating, Adam Cowl
Tavira Securities Limited (Lead Broker) +44 (0) 20 7100 5100
Oliver Stansfield, Jonathan Evans
WH Ireland Limited (Joint Broker) +44 (0) 20 7220 1666
Adrian Hadden, Andrew de Andrade
IFC Advisory Ltd (Financial PR and IR) +44 (0) 20 3934 6630
Tim Metcalfe, Florence Chandler
Notes to Editor
KEFI Gold and Copper plc
KEFI is focused primarily on the development of the Tulu Kapi
Gold Project in Ethiopia and its pipeline of highly prospective
exploration projects in the Arabian-Nubian Shield. KEFI targets
that production at Tulu Kapi will generate cash flows for capital
repayments, further exploration and dividends to shareholders.
The following tabular summary presents KEFI's updated estimated
share of the project NPV's :
Pence
Tulu Kapi Hawiah Jibal Qutman Total Issued Per
NPV NPV NPV NPV Shares Share
Net Present Value
for KEFI
30/06/2020 GBP114m 0 0 GBP114m 1,867m 6
31/12/2020 GBP164m GBP90m 0 GBP244m 1,876m 13
30/06/2021 GBP205m GBP74m 0 GBP279m 2,159m 13
31/12/2021 GBP191m GBP128m GBP29m GBP348m 2,939m 12
Footnotes:
Assumed exchange rate was rate
US$1.35:GBP1.00
31 December 2021 Metal Prices:
Gold Price is US$1,830/oz
Copper Price is:
US$9,750/t
Zinc Price is US$3,590/t
Silver Price is
US$23/oz
Explanatory Notes:
* NPV is derived by KEFI using independently created financial
models of net cash flows after tax
and debt service, using a discount rate of 8%;
* Tulu Kapi open pit model is based on the Definitive Feasibility
Study ("DFS") as updated for any
refinements during project contracting and in-country experience;
* Tulu Kapi underground mine model is based on the internal Preliminary
Economic Assessment ("PEA");
* Hawiah assumes preliminary mine modelling for open pit and
underground because the MRE has only recently been updated. Also
includes preliminary debt leverage;
* Jibal Qutman model is based on the internal PEA, debt-leverage
applied.
KEFI Gold and Copper in Ethiopia
Ethiopia is currently undergoing a remarkable transformation
both politically and economically.
The Tulu Kapi gold project in western Ethiopia is being
progressed towards development, following a grant of a Mining
Licence in April 2015.
The Company has now refined contractual terms for project
construction and operation. Estimates include open pit gold
production of c. 140,000oz pa for a 7-year period. All-in
Sustaining Costs (including operating, sustaining capital and
closure but not including leasing and other financing charges)
remain c. US$800/oz. Tulu Kapi's Ore Reserve estimate totals 15.4Mt
at 2.1g/t gold, containing 1.1Moz.
All aspects of the Tulu Kapi (open pit) gold project have been
reported in compliance with the JORC Code (2012) and subjected to
reviews by appropriate independent experts.
A Preliminary Economic Assessment has been published that
indicates the economic attractiveness of mining the underground
deposit adjacent to the Tulu Kapi open pit, after the start-up of
the open pit and after positive cash flows have begun to repay
project debts. An area of over 1,000 square kilometres adjacent to
Tulu Kapi has been reserved for exploration by KEFI's wholly-owned
Ethiopian subsidiaries upon commencement of development by TKGM,
with a view to adding satellite deposits to development and
production plans.
KEFI Gold and Copper in the Kingdom of Saudi Arabia
In 2009, KEFI formed Gold & Minerals Limited ("G&M") in
Saudi Arabia with local Saudi partner, ARTAR, to explore for gold
and associated metals in the Arabian-Nubian Shield. KEFI has a
31.2% interest in G&M and is the operating partner.
ARTAR, on behalf of G&M, and G&M directly hold over 16
Exploration Licence (EL) applications pending the introduction of
the new Mining Law. These new regulations have recently been
proclaimed and G&M now holds 3 EL's. ELs are renewable for up
to three years and bestow the exclusive right to explore and to
obtain a 30-year exploitation (mining) licence within the area.
In addition, G&M has a Mining Licence Application over the
Jibal Qutman Gold Project which recent informal indications by the
authorities provide some confidence that the licence will be
granted in 2022.
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