The company, whose subsidiaries include KEFI Minerals Limited and Mediterranean Minerals Eood, attributed the loss to delays to its Tulu Kapi flagship project in Ethiopia, which it had attempted to make progress on. The last update on the project was posted back in March on the Company’s social media:
We’ve published an update on financing our Tulu Kapi project in Ethiopia: https://t.co/dXnroNSWIM
— KEFI Minerals plc (@kefiminerals) March 13, 2019
The latest round of figures, however, state that losses for the full year through December 2018 came to £5 million, which narrowed from £6.3 million on-year.
Kefi Minerals’ statement
Attached to this latest update, the Company’s chairman, Harry Anagnostaras-Adams, stated.
“2018 was a year of two halves for Kefi,”
“Whilst the first half was orientated around consolidation as Ethiopia exited its states of emergency, the second half was one of significant development and progress as the company formalised its strategic partnerships with the government of Ethiopia and Ethiopian investors at the asset level of its flagship Tulu Kapi project.”
“Accordingly, Kefi now finds itself in the enviable position that, subject to receiving a confirmatory letter from the Ethiopian central bank as regards already-agreed project finance terms, we will have received all regulatory consents and financial commitments to trigger the development program at Tulu Kapi with our project contractors Lycopodium and Ausdrill.”
“This may have taken longer than we had hoped, but the management team of Kefi remain resolute in their belief that, despite the historic delays, our Tulu Kapi project continues to be a very attractive near term production project, with significant additional upside.”
Following the announcement, the Company’s shares dipped from 1.6p to 1/37p per share. However, by the end of trading on Wednesday this stabilised to a drop of 3.06% or 0.045p, down to 1.47p per share as markets closed on Wednesday. So far on Thursday, the Company’s shares are up 4.02% to 1.48p per share 06/06/19 10:06 GMT. Cantor Fitzgerald analysts have ‘Reiterated’ their ‘Buy’ stance on Kefi stock.