Kefi Minerals PLC (LON:KEFI) is at a 'pivotal point' in its development and expects to spawn ‘several operations’ in the coming years from its projects in Ethiopia and Saudi Arabia, chairman Harry Adams told shareholders.
“It is a well-balanced portfolio,” said Adams.
The company, which is consolidating its shares on 17-for-one basis, has just raised £5.6mln, which will support it for over 12 months as development of the Tulu Kapi project [Ethiopia] moves forward.
The plan is for short term production in Ethiopia and longer term targeted organic growth from Ethiopia and Saudi Arabia.
"The project economics of Tulu Kapi continue to look robust,” he said.
“All-in Sustaining Costs, ignoring finance servicing costs, are estimated at under US$800/oz which places it in the best quartile globally.
“And based on the current front-runner proposed finance plans, all finance servicing costs are also expected to be covered by annual gold prices below the gold price range of the last 7 years of between circa $1,050 and $1,750/oz.
“Today's gold price is approximately $1,250/oz.
Total funding of US150-160mln will be needed to develop Tulu Kapi.
In Saudi Arabia, Adams said the company and its partner had taken the opportunity of current regulatory reviews to upgrade the pipeline of targets.
“We have also been focusing on our near-term development proposition at Jibal Qutman and at Hawiah, we have identified a huge target for precious and base metals based on the surface-sampling of a six kilometre long gossan (oxidised mineralisation exposed on the surface) and the results of the geophysical surveys of the ground beneath the gossan.”