Proactive Investors - Run By Investors For Investors

KEFI Minerals increases size of bond and equity issues for Tulu Kapi

Bond funding is now expected to be US$160mln, up from US$150mln, while the amount of equity rises to US$50mln from US$40mln
Tulu Kapi
Construction is expected to start this year

KEFI Minerals (LON:KEFI) intends to raise more than previously indicated through bond and share issues for the construction of its Tulu Kapi gold mine in Ethiopia.

The formal mandate process for the listed infrastructure bonds has now started, though the loan funding is now expected to be US$160mln, up from US$150mln, while the amount of equity rises to US$50mln from US$40mln.

WATCH: KEFI Minerals in a 'terrific position' and on track for Tulu Kapi financing

The equity element includes US$20mln already agreed with the Ethiopian government with KEFI to raise the additional US$30mln.

Harry Adams, executive chairman, said the additional US$20mln of debt and equity would provide a bigger safety buffer for contingencies and pay for an exploration programme. 

Adams added that the net present value (NPV) indicated in last year’s definitive feasibility study had risen to US$192mln from US$159mln due to higher throughput via the processing plant in the early years than assumed in 2017.

Forecast production rises to 135,000oz from 115,000oz, while all-in-costs increase to US$973 per oz from US$937 per oz.

NPV also gets a boost from the expected better finance terms, said Adams.

"Independent reviews of the project plans and associated economics have been completed and re-affirm their robustness and attractiveness."

View full KEFI profile View Profile

KEFI Minerals PLC Timeline

August 14 2018

Related Articles

gold mine
September 07 2018
The company says it is on track to hit production targets for 2018 of 27,000 ounces of gold and 1.7mln ounces of silver
gold mining operation
November 13 2018
The company has expanded its claim package at the mine site
Picture of green hills in Serbia
July 20 2018
Taor held two exploration licences totalling around 100 sq km adjacent to the Suva Ruda licence

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use