After a period of uncertainty, the peaceable conclusion of the recent general election in Ethiopia should provide KEFI with the opportunity to fund Tulu Kapi in an environment in which the Ethiopian government is keen to both encourage investment and generate tax and export earnings.
Since our last note on the company, we have updated our project timings, costings and funding assumptions to come up with a valuation for KEFI of 4.35p/share (cf 4.05p/share previously), based largely upon its greater equity interest in the project (75% cf 45% previously) and notwithstanding its delayed start up.
KEFI Gold and Copper plc (LON:KEFI) is an exploration and development company focussed on gold and copper deposits, primarily in the highly prospective Arabian-Nubian Shield.
