Disclosure: Financial Investigative Media Limited, which is not owned by Tom Winnifrith but by a trust for his dependants, owns shares in companies mentioned in this article. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Most of us probably did not know or had forgotten that Kefi Minerals (KEFI) had a $12 million contingent legacy liability. Well that has now been 96% disappeared.
The claim was lodged against Kefi in 2014 but was based on the alleged impact of exploration field activities conducted between 1998 and 2006, a period which pre-dated KEFI's involvement in the Tulu Kapi project. These exploration activities comprised the construction of drill pads and access tracks. No objections had been made until 2014 when certain parties from outside the Tulu Kapi district raised this matter and initiated court action.
The Oromia Regional Supreme Court has now rejected 95% of these claims as having no basis in fact or law and reduced Kefi's potential liability to $600,000. Moreover, Kefi has appealed to the Federal Supreme Court with regards to that remaining $600,000. That case will take a couple of years and the $600,000 should disappear too. If it does not, in the greater scheme of things, it is small beer.
This is another small item on the checklist as Kefi moves to starting building work later this year. The shares are still terribly cheap. Our target to sell is 13p+ as investors wake up to the Tulu Kapi maths, we suspect when project financing is secured. The shares are a buy at a 5.95p offer and at up to 6.5p.
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