Kefi - lifting of state of emergency in Ethiopia, good news BUY

By HotStockRockets | Tuesday 8 August 2017

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.

Kefi Minerals (KEFI) has its flagship operation, the Tulu Kapi gold mine ( to be) in Ethiopia. One by one the checklist of things needed to complete to get this mine into production has been dealt with.

Last month we had the really significant news that project financing is almost done. $135 million has been secured, as little as $20 million now needs to be found. That will not be a problem and does not mean dilution. So we can now really start to look at what Tulu Kapi is worth.

But today we checked one more item off the list. Kefi states that the Government of the Federal Democratic Republic of Ethiopia has announced the lifting of the state of emergency implemented in October 2016, following a vote in the country's parliament. Frankly this was not making much difference anyway. The world bank was still forecasting Ethiopia to be the world's fastest growing economy in 2017 in its latest edition of "Global Economic Prospects" published in June 2017. That is a pub quiz question we bet no-one would get right!

But it adds clarity. On Fundamentals Kefi is clearly worth a multiple of today's 4.75p-5.25p. Our stance remains BUY at up to 6.5p with a target to sell of 13p+

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