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As I have said for months ( often ridiculed) Artar have the right to buy ALL kefis share in saudi Arabia for a nominal sum - It's right there in the annual report. That means for kefi shareholders Saudi Arabia assets are materially worthless so all talk of dual listing's or anything else is just irrelevant though costly to kefi no doubt - Artar have the legal right to acquire it for peanuts - you all may not want to admit it but I'm putting the actual facts out there again for any newbies.
Next Ethiopia - harry has decided again to award himself and the Board over 1m quid on a bank agreement - never mind the economics of it, never mind the decade delay and the decimation of shareholder value even if that money is never paid over - after his board have paid him 3m - 5m over the last decade for failing to do his job ? In what world is reducing shareholders value by over 99% worthy of a bonus? I feel sorry for current holders but you have only yourself to blame - anyone new avoid like the plague for your own financial health
Sigh. How tedious you've become SB. You were wrong when you bought in too early - it happens, nothing to be ashamed of, but there's no need to act like a jilted bride for the rest of your life either. The actual fact is Artar have not ripped Kefi off yet, nor is there any actual sign of them doing so. Here's another actual fact - good investers don't hang around like a bad smell on a share they no longer have any interest in. They move on.
To out things into perspective, here's the full extract
"KEFI’s GMCO joint venture partner, ARTAR, is currently funding the ongoing programme to ensure that
swift progress is maintained while we jointly optimise our collective plans for GMCO and KEFI triggers
project launch in Ethiopia at the high-grade Tulu Kapi Gold Project. KEFI’s interest in the joint venture
has reduced from its original 40% interest to 24.75%. While ARTAR has the right to buy-out KEFI at
fair market value as things stand, and while KEFI has the right to seek acquirers of its GMCO
shareholding, we are examining a number of scenarios to optimise the future GMCO ownership
structure for mutual benefit and to reciprocate to ARTAR its support of the joint venture relationship.
This much-appreciated support from ARTAR reflects the strong partnership relationship and the
combined priority given to production start-up in both countries"
There is clearly a great relationship between Kefi & Artar as they are funding the JV whilst TK financing is finalised. People who have worked in Saudi understand the importance of handshakes there. Dual listings are very pertinent as could be a great way to cover our share of the exploration cost
SB - question for you - how do you define "nominal sum"? Obviously that is quite a loaded term and is clearly not the wording used in the RNS which is instead "fair value". Are you extrapolating based on previous dilution by Artar in return for work performed on site?
Smelly “As I have said for months ( often ridiculed)” you get ridiculed because you lose the argument every time as you cannot explain why if Artar wanted to do it they had not already done so and what is the actual benefit in Artar in doing so. There Is not any benefit for Artar in replacing kefi with another operation that would want the same deal or better and there would be a lose of expertise and time. Its more likely that the JV will be weighing up the options to expand the exploration operation and faster development of the prospects maybe with a farm in or another kind deal. Artar had a choice not long ago to help kefi by carrying them for a while or not and chose to massively help kefi out.
As for the bonus replacement plan it gets paid out on success maybe there is a case to adding a clause (as it’s a replacement) that mirrors what was before that the share price should be at certain level as well like previously. Maybe make that case and give the Artar conspiracy theories a rest.
STI Bonus 1: This bonus is awarded upon the granting of credit approvals by the lenders to the Tulu Kapi Gold Project¹.
STI Bonus 2: Upon project finance lenders having permitted debt disbursement to commence for Tulu Kapi and not earlier than 12 months after STI Bonus 1 was earned¹.
STI Bonus 3: Upon Tulu Kapi having commenced production and not earlier than 12 months after STI Bonus 2 was earned¹.
Rob - Artar HAVE been taking over kefi for a year or more - kefis share used to be 40 but the below 25 per cent is significant because it bestows the right to buy out kefi - no ifs no buts.
As to the amount / fair value - 3 months or so ago artar bought their latest 2% slice for a couple of hundred grand - that would value the remaining somewhere in the 8 to 12m pound range BUT separately kefi owe Artar around 5m so net to kefi would be 3 to 7 million - I call that nominal
SB,try reading the annual report,you'll see (page 90) it's not currently actionable. Not that Artar would since the kefi,Artar relationship is strong and supportive.
Don't know what your problem is?
You don't own any shares and yet are determined to constantly post bs.
People have done their due diligence and invested their hard earned money,so show some respect.
I suppose you'd have preferred big dilution to maintain that 40%? Can't have your cake and eat it.
Genuine question though, while we're on the subject - what do Kefi owe Artar for exactly? Is it in addition to the dilution down to 25% (or whatever), or, if Kefi re-paid the sum, would we buy back some of the share in the JV?
Smelly answered all your points and you just ignored the counter arguments just repeating the same points when they have been shot down does not make them any more valid.
HtTps://www.2merkato.com/news/energy-and-mining/7905-ethiopia-national-bank-ups-gold-incentives-to-fight-black-market
htTps://www.2merkato.com/news/energy-and-mining/7904-ethiopia-ministry-of-mines-misses-revenue-target
htTps://www.fanabc.com/english/ethiopia-to-reinforce-devt-endeavors-in-mineral-bamboo-resources-as-key-spheres-for-prosperity-dpm/
htTps://uk.marketscreener.com/quote/stock/GLENCORE-PLC-8017494/news/Along-Peru-s-mining-corridor-Big-Copper-faces-a-snarl-of-trucks-47000948/ (Copper)
htTps://gulfbusiness.com/saudi-arabia-world-first-licenced-autonomous-air-taxi-hajj-2024/ (first cab off the rank sorry could not resist)
Only my opinion but do not see Artar letting kefi buy back over the 25 percent as kefi going to be more a takeover target at parent level as it makes more progress and while its not in Artars interest to replace kefi they might want it as a bargaining counter if kefi taken over by someone else.
As for covering any money owed to Artar they might be open to a farm in at JV level if it means the exploration could be maintained at high level that would mean some dosh to kefi as well. An obvious candidate being Ivanhoe as it is there as an explorer and has areas near kefis and Robert Friedland is a copper fan. The problem there is the more Ivanhoe knows about kefis Saudi prospects the more tempting it might be to make a move on the company when it hits 100 million dollar plus mark.
From Kefi Telegram:
TW was informed of the bs about the kefi/artar situation and thus has done a bonus bearcast after speaking to Harry. First Artar "DON'T"want kefi out,but if they did,an independent assessor would determine fair value.He did the rough calculations(before DFS)exploration asset valuation. The figure was considerably more than the current mcap.
Nice. Thanks.
Yes, he suggest KEFI would receive about $65m if they were bought out in an arms length transaction
SB was a respected poster here until multiple trades went pear shaped. Always hurts to lose money but most peeps move on to pastures new. Sadly SB just can't let go....
Multiple attacks at once !
1. Bear - I may be misunderstanding but I cant see a page 90 in the results I just see a 51 page report so not sure what you are referencing.
I am referencing from PAge 9 on the report from the Finance Director
"KEFI’s interest in the joint venture
has reduced from its original 40% interest to 24.75%. While ARTAR has the right to buy-out KEFI at
fair market value as things stand,"
which is pretty definitive.
2. Re valuation - while HA may well have assured TW of his estimate of $65m - when has HArry ever been proved right on timing sor valuations ! - he has lied on multiple occassions as we all know - sign off on TK always a magical 3 months away.
Instead there are 2 sources of arms length transactions that I can see
a. the market cap of Kefi right now. Artar can argue along the lines of - Kefis market cap is circa £35m - say 50% of that is due to Saudi and 50% due to Ethiopia (you can argue with the split and adjust ) - then Saudi is valued at £17.5m - again Kefi would still owe Artar the £5m so Kefi gets £12.5m in that scenario
b. Artar recently bought 2% of the JV for circa £400k - that would value the rest of Kefis share 25% at around £4m-£5m - again owing £5m - so zero to Kefi.
both of these are market based and any independent valuer would use them as a benchmark.
HAA can spout any numbers he likes but it is out of his hands - why in gods name would he allow them to drop below 25% - total incompetence and so yes a fundraise would have been preferable to this.
Rob asks why Artar would split up with Kefi - well that is a completely naive question - if you could get an asset on the cheap why wouldnt you - billionaire Saudis arent prone to gifting millions of pounds to London PIs if they dont have to - they are in their country and they will all the contacts at banks and in government - Kefi is a minnow with zero influence. I'm sure they are happy for Kefi employees to continue working through problems/issues while Kefi are paying them and then Artar will swoop in and grab the lot
As to my motivation - well yes I have been abused by HA over the years and managed to get out on one of the pump and dumps with a small profit but had been sitting on a big loss - and I am trying to warn potential shareholders of his history - several rampers here should be ashamed - spouting potential 10 baggers etc - without any caveats and poopooed me when I said they had the legal right to but Saudi some months ago - now it is in an RNS you can no longer deny.
SB,get a life and f off!
“Rob asks why Artar would split up with Kefi - well that is a completely naive question - if you could get an asset on the cheap why wouldnt you - billionaire Saudis arent prone to gifting millions of pounds to London PIs if they dont have to” Except Artar did agree to carry kefi did not go for the option of getting assets on the cheap (I.e a lot than kefi more than kefi present market cap that was worked out by an expert) and I put the arguments forward as why they did not none of which Smelly could counter.
If you do not like being ridiculed Smelly stop being ridiculous.
Smelly, talking of naive, it’s pretty evident that you do not understand “arms length transaction” and you have not worked with “billionaire Saudis” despite stating as fact how they operate (yes before you ask, I worked directly with a Saudi family at this level for over 8 years). The red mist that has consumed you from previous losses here has made you lose a lot of perspective. Some of the points you make are not unreasonable except for the extreme positioning you are taking to try to prove yourself right for selling out. Quite why you waste so much of your time posting about a company you have no financial interest in is beyond me - it’s an absolutely bonkers waste of time. Surely you have better things to do with your life than continue in this loop of negativity?!
No Rob - again you are wrong - it was only when Kefis share dropped below 25% that the legal right came into existence - that is why it was so stupid to drop below that level - just because they haven't pulled the trigger yet doesn't mean they cant AT ANY TIME when the timing suits them best when they have rung whatever juice they can from Kefi.
And Bear - so I point out your mistake deliberate or otherwise about what you posted - point you to the factual info you cant dispute and just abuse people - charming
Discussion boards are for sharing info and opinions - are we just allowed to listen to unending ramping from you lot while ignoring FACTUAL information.
But on another point. At end of Dec 23 the account show net liabilities (after offsetting current assets) of £8.6m. They lose £8m a year so by mid June that would have been around £12.6m. They did raise 5.5m back in March so their current debt must be circa £7m. Undisputable figures - I can smell another fundraise before the end of summer
You should read the annual report. Dropping below 25% does not necessarily give them the legal right. IAS 18...regs Vs contract.
Well said!!!!
Now s** off, Smelly