KEFI Minerals Plc — Deep Value Gold Play in Ethiopia

KEFI Minerals PLC (LON:KEFI) is an emerging gold developer looking to commence construction of its flagship 115,000oz pa Tulu Kapi Project in Ethiopia. KEFI has been looking to finalise financing arrangements for this 980,000oz LoM project, but a state of emergency declared in Ethiopia in October 2016 has delayed this process. The project enjoys a high level of government backing, with US$20m of direct investment committed at the project level in the form of investments in the project’s infrastructure requirements, and plans to provide long-term debt through the Development Bank of Ethiopia.

We reiterate our BUY rating and revise our target price to 10.5p. We are revising our target price based on the share consolidation, recent financing, and our lower gold price forecast. While the upside to the current share price implied by our target price is substantial, it is worth noting that the current share price is trading at 0.2x P/NAV based on our unrisked NAV. We believe the stock offers a substantial re-rating opportunity once the state of emergency has ended and financing is secured.

RFC Ambrian acts as Broker to this company

Click to view all articles for the EPIC:
Or click to view the full company profile:
Facebook
X
LinkedIn
KEFI Minerals Plc

More articles like this

Gold surge signals deepening doubts in the dollar

As gold prices shatter records and global central banks quietly shift their reserves, investors are seeing more than just a rally in precious metals—they’re witnessing a growing global scepticism about the future of the US dollar.

KEFI Gold and Copper

Gold soars to new heights

Gold prices surged past previous records on Monday, driven by a wave of safe-haven demand following fresh tariff threats from U.S. President Donald Trump. As global trade tensions escalate, investors are piling into the precious metal,