RCS - Kefi Gold and Copper - Saudi Arabia Future Minerals Forum Presentation

KEFI Gold and CopperAnnouncement

13/01/2022 08:05

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RNS Number : 2841Y  Kefi Gold and Copper PLC  13 January 2022

Reach

13 January 2022

KEFI Gold and Copper plc

("KEFI" or the "Company")

Saudi Arabia Future Minerals Forum Presentation

KEFI (AIM: KEFI), the gold exploration and development company with projects
in the Federal Democratic Republic of Ethiopia and the Kingdom of Saudi
Arabia, is pleased to advise that Brian Hosking, Managing Director of KEFI
joint venture company Gold & Minerals Ltd ("G&M") and a member of the
KEFI Executive Committee, is presenting this morning at the Future Minerals
Forum being held in Riyadh, Saudi Arabia.

The presentation will cover G&M's activities and projects in Saudi Arabia
and is available on the Company's website at https://www.kefi-minerals.com
(https://www.kefi-minerals.com)  .

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 and Joint Broker)  +44 (0) 20 3470 0470
 Jeff Keating, Adam Cowl
 Tavira Securities Limited (Joint 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 estimated share of the project
NPV's :

                              Tulu Kapi       Hawiah          Jibal Qutman    Total           Issued        Pence Per
                              NPV             NPV             NPV             NPV             Shares        Share
 Net Present Value

 for KEFI
     30 June 20               £114 mill       N.A             N.A             £114 mill       1,867 mill    6
     31 Dec 20                £164 mill       £80 mill        N.A             £244 mill       1,876 mill    13
     30 June 21               £191 mill       £80 mill        N.A             £271 mill       2,159 mill    13
     31 Dec 21                £191 mill       £124 mill       £33 mill        £348 mill       2,939 mill    12

 Footnotes:
 Gold Price is US$1,830/oz
 Copper Price is: US$9,750/t                  Assumed exchange rate was rate US$1.35:£1.00.
 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;
 Tulu Kapi underground mine model is based on the Preliminary Economic
 Assessment ("PEA");
 Hawiah at this stage assumes preliminary mine modelling for open pit and
 underground because the MRE has only recently been updated;

 

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 Ltd ("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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