KEFI Minerals plc (LON:KEFI) offers potential upside of 200% if the uncertain political situation in Ethiopia eases, suggests house broker Beaufort Securities.
An update yesterday highlighted that its Tulu Kapi mine development is still viable at current gold prices and that the expectation is for the state of emergency in the country to be lifted at the end of the first quarter.
In addition KEFI added it has “received formal confirmation its [£2.5m] refund is due for payment” from the Ethiopian tax authorities.
“KEFI has been very unfortunate in 4Q17 with the double whammy of political volatility and a weak gold price,” said Beaufort.
“However, in 2017 we anticipate these dynamics to improve, for its share price to recover, and for financing to be achieved.”
While Beaufort says its share price target is being reviewed due to the political situation, it expects it to be above 0.75p and be upgraded again once financing for the gold mine at Tulu Kapi is in place.
Shares today were trading at 0.242p.