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.
In the wake of its March equity fund-raising, we calculated that KEFI was capable of generating free cash flow of c £82m pa from 2027 to 2032, driving average (maximum potential) dividends of 0.59p/share and valuing the company at 2.21p/share. However, at spot metal prices, this valuation rose to in excess of 5.50p/share in FY27.
Metals & Mining |
Update
Metals & Mining |
Update
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 20 May, KEFI announced that the board of its operating subsidiary had formally launched the Tulu Kapi gold project in Ethiopia, following an initiative for dedicated on-site policing and conditional confirmations from all members of the project’s finance syndicate. As such, we are continuing to expect plant commissioning in late 2025 and commercial production shortly thereafter. Since 2022, KEFI has experienced a turnaround in its working environments in both Ethiopia and Saudi Arabia, where it has completed a pre-feasibility study at Hawiah and is working on a definitive feasibility study and a mineral resource update at Jibal Qutman.
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 |