KEFI Minerals plc (LON:KEFI) Executive Chairman Harry Anagnostaras-Adams caught up with DirectorsTalk for an exclusive interview to discuss the Tulu Kapi gold project projections, relationships within the consortium and what the planned increased gold production means for KEFI and its shareholders
Q1: Harry, can you tell us a bit more about the Tulu Kapi gold project projections for expanded production?
A1: As part of our closing due diligence, there’s an agreement reached with the financier and with the government now to a) expand the process facility up to plus or minus 2 million tonnes per annum and b) to be granted a lot more ground around the area to add other deposits to the system as we proceed.
The extra capacity gives KEFI Minerals quicker cash flow from the existing reserves but also allows us to process additional ore from the satellite deposits. At the same time, it also protects us on the downside by simply allowing us to process more quickly anyway so we able to build up stock, so we can process lower grade stocks if need be. So, it’s both a risk mitigant as well as a return maximiser.
Q2: So, how are your relationships with the other members of the consortium developing?
A2: Well, it’s a very intense workload for example, we’re dealing with 4 levels of government, 3 federal ministries, central bank, the roads authority, the power authority and probably a few other agencies I’ve forgotten at the moment. Of the contacts listed of the people engaging on this closing, there’s over 100 people because of the various departments, various companies, various jurisdictions so it’s an intense workload, everybody going through their own processes administratively to allow us all to sign off as counter-parties to the various agreements. So, very good relationship, just a lot of work.
Q3: What does the planned increased gold production from 116,000 ounces per annum to 144,000 ounces per annum mean for KEFI Minerals and its shareholders?
A3: It means, in essence, quicker production and higher value uplift therefore these would be the current value of KEFI’s investment in the project and the current value of existing and new equity investors in the company and the project. So, it means we can take quicker advantage of what’s coming out of the ground at Tulu Kapi as well as the other deposits in the district and it all serve to kick us up higher again than where we were before. So, to us, it’s just adding to the potential to generate quicker and higher returns quickly.
