Final Results
03 June 2011
AIM: KEFI
KEFI Minerals Plc
("KEFI Minerals" or the "Company")
Preliminary Annual Results for the 12 months ended 31 December 2010
Notice of Annual General Meeting
KEFI Minerals, the AIM-quoted gold and copper exploration company, is pleased
to announce its audited results for the year ended 31 December 2010.
Highlights
* The Company completed private placements that raised £664,000 at 1.6p per
share in January 2010 and £625,000 1.25p per share in October 2010.
* KEFI Minerals continued to progress effective exploration programmes that
aim to fast-track gold discovery and eventual development of new mines in
Turkey and Saudi Arabia.
* The loss for the half-year period totalled £687,000 and reflects the
Company's conservative accounting policy of writing off all expenditure
until a commitment to develop a project is made by the Board.
Post Period Highlights
* Exploration licence application procedure in Saudi Arabia continued with a
revised Exploration Technical Report ("ETR") formally submitted and
accepted by the relevant government department. The Company understands
that the expected first Exploration Licence is undergoing final processing
procedures.
* The Company's Derinin Tepe (also known as Kizilcukur), Muratdag and Yatik
West projects (the "Properties") in western Turkey were sold to Ariana
Resources plc.
* In February 2011 the Company raised £1,300,000 via a placing at 5p per
share.
The annual report and financial statements together with the Notice of AGM and
Proxy form will be despatched to shareholders on or before 07 June 2011. The
Annual General Meeting will be held at the offices of Bishopsgate
Communications Ltd, 3rd Floor, 3 London Wall Buildings, London Wall, London
EC2M 5SY on 29 June 2011 at 11.00 a.m.
Additional copies of the Annual Report and Accounts, Notice of AGM and Proxy
Form may be requested directly from the Company and will be available following
distribution to shareholders on the Company's website www.kefi-minerals.com.
Further copies will be available from Fox-Davies Capital Limited, 1 Tudor
Street, London EC2Y 0AH.
KEFI Minerals' Managing Director, Jeff Rayner, commented:
"We continue to progress exploration programmes that aim to fast-track gold and
copper discoveries and the eventual development of new mines. The recently
announced sale of projects in western Turkey is in line with our priorities. We
are further progressing the licence application procedure in Saudi Arabia and
will update shareholders with developments on this front in due course."
Enquiries:
KEFI Minerals www.kefi-minerals.com
Jeffrey Rayner +90 533 928 19 13
Fox-Davies Capital
Simon Leathers +44 203 463 5010
Bishopsgate Communications
Nick Rome +44 20 7562 3350
Michael Kinirons
Managing Director's Statement
KEFI Minerals Plc has continued to apply its proven exploration strategy to its
projects in Turkey and in the Kingdom of Saudi Arabia. Targets at various
prospects have been tested cost effectively and enabled the Company to move
onto other prospects with a greater chance of exploration success.
The Company's current projects and licence applications are located in:
* Turkey, a country in which a number of world-class gold and base metals
deposits have been discovered during the past two decades; and
* Saudi Arabia, a country with a long history of mining that dates back over
5,000 years and set for a resurgence under modernised mining laws that
encourage investment.
Our team is very keen to commence field exploration in Saudi Arabia as soon as
Exploration Licences are granted, which has unfortunately taken longer than
expected.
Exploration Strategy
Our reputation has been built on treating safety, environment and community
relations as a priority at all times.
KEFI Minerals' exploration strategy remains the same and is based on the
following concepts:
* Combining strong international and local knowledge in exploration models
and techniques;
* Selecting areas within prospective stratigraphic and structural settings
with a high potential for gold mineralisation in particular;
* Exploring projects as a package rather than individual isolated prospects;
* Rapidly identifying, prioritising and assessing targets; and
* Creating effective working relationships and further developing knowledge
using an established local team.
The object of this strategy is to add value for shareholders by:
* Advancing our projects to resource stage through drilling;
* Targeting resources of >1 million ounces of gold or copper equivalent
through exploration; and
* Identifying and fostering high-quality joint venture opportunities, with
both international and local partners, in order to source capital and
spread financing risks.
KEFI Minerals is a small, dynamic company that has the flexibility to move
quickly and become an early entrant in countries that are becoming attractive
for mining investment and are suitably prospective.
Strategic Alliances
KEFI Minerals leverages its technical expertise and available funding by
entering into strategic alliances.
KEFI Minerals has been recognised within the industry for its technical
abilities and the quality of its projects. This has led to the formation of
joint ventures in Turkey with a wholly-owned subsidiary of Centerra Gold Inc.
("Centerra Gold") and in Saudi Arabia with the Abdul Rahman Saad Al-Rashid &
Sons Company Limited ("ARTAR"). These partnerships have allowed the Company to:
* expand its exploration activities in both countries, whilst reducing its
financial exposure; and
* retain the flexibility to be able to rapidly assess other opportunities in
the region.
Centerra Gold funded drilling programmes and other exploration activities at
the Artvin and Bakir Tepe Joint Ventures in Turkey. Following assessment of
results from these programmes, Centerra Gold has elected not to continue
funding exploration at these projects and full ownership has reverted to KEFI
Minerals. These joint ventures with Centerra Gold enabled both parties to
rapidly evaluate quality prospects while sharing the financial risk.
The primary target of the alliance with ARTAR is the discovery and development
of >1 million ounce gold deposits in the under-explored Precambrian Arabian
Shield of Saudi Arabia. KEFI Minerals is the operating partner with a 40%
interest with ARTAR holding the remaining 60% and providing local support
services.
Technical, commercial and administrative systems are provided to KEFI Minerals
by EMED Mining Public Limited ("EMED Mining") on a cost-recovery basis,
enabling KEFI Minerals to minimise overheads and focus its efforts on
discovering economic mineral deposits.
KEFI Minerals is continuing to assess other opportunities in the region so that
our knowledge can be applied to further prospective areas with similar geology.
These opportunities are likely to be undertaken with strategic partners,
particularly those that we already have strong relationships with.
Funding
The equity funding provided by shareholders since the Company's admission to
AIM in December 2006 is much appreciated. Additional funding provided by
joint-venture partners has enabled KEFI Minerals to leverage the equity from
our shareholders.
EMED Mining remains a supportive shareholder and retains a 19% interest in KEFI
Minerals. EMED Mining is owned primarily by a range of mining industry
investment specialists, from Australia, Canada, South Africa, United States and
the United Kingdom.
KEFI Minerals completed private placements that raised £665,000 at 1.6p per
share in January 2010 and £625,000 1.25p per share in October 2010.
The Company's share price strengthened considerably in late 2010 and a further
placement was completed in February 2011 that raised £1,300,000 at 5p per
share.
KEFI Minerals' share price has increased substantially over the past year to
currently being more than 7p per share, with the Company's market
capitalisation now approximately £20 million.
Outlook
Turkey and Saudi Arabia are both under-explored countries with excellent
potential for discovery of major gold and copper mines. We will continue to
progress effective exploration programmes that aim to fast-track gold discovery
and eventual development of new mines.
Our team continues to strive towards these objectives with an appropriate focus
on the trade-off between costs and the potential returns generated if our
efforts are successful.
During 2011, our priorities are to:
* obtain approvals for our Exploration Licences in Saudi Arabia and commence
fieldwork;
* continue to assess our projects in Turkey; and
* generate new projects in Saudi Arabia, Turkey and neighbouring regions.
KEFI Minerals' prospects in Saudi Arabia are particularly exciting as many
areas we have applied for contain historical workings, some contain previous
trenching and shallow drilling with encouraging results from past exploration
conducted by the USGS and BRGM. There is an excellent chance of rapid success
once these Exploration Licences are granted and field activities can proceed.
Our exploration portfolio, combined with the very positive outlook for gold and
copper prices, provide an exciting opportunity to create exceptional value for
shareholders.
Jeffrey Rayner
Managing Director
KEFI MINERALS PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Year ended 31 December 2010
2010 2009
GBP'000 GBP'000
Revenue - -
Exploration costs (247) (203)
Gross loss (247) (203)
Administrative expenses (604) (677)
Share-based payments (16) (94)
Share of loss from jointly controlled entity (230) (329)
Other income 153 389
Negative goodwill 314 -
Operating loss (630) (914)
Foreign exchange loss (53) (46)
Finance costs (4) (4)
Loss before tax (687) (964)
Tax (15) -
Loss for the year (702) (964)
Other comprehensive income: 44 41
Exchange differences on translating foreign (658) (923)
operations
0.01 0.01
Total comprehensive loss for the year
Loss per share (GBP)
The Company has taken advantage of the exemption conferred by section 408 of
Companies Act 2006 from presenting its own statement of comprehensive income.
Loss after taxation amounting to GBP0.6 million (2009: GBP2.3 million) has been
included in the financial statements of the parent company.
KEFI MINERALS PLC
STATEMENTS OF FINANCIAL POSITION
31 December 2010
The The The The
Group Company Group Company
2010 2010 2009 2009
GBP'000 GBP'000 GBP'000 GBP'000
ASSETS
Non-current assets
Property, plant and equipment 27 - 42 -
Intangible assets - - - -
Fixed asset investments 181 182 2 2
208 182 44 2
Current assets
Trade and other receivables 206 442 64 205
Cash and cash equivalents 539 530 322 319
745 972 386 524
Total assets 953 1,154 430 526
EQUITY AND LIABILITIES
Equity attributable to owners
of the Company
Share capital 3,311 3,311 2,382 2,382
Share premium 1,697 1,697 1,413 1,413
Share options reserve 396 396 382 382
Foreign exchange reserve (207) - (251) -
Accumulated losses (4,459) (4,344) (3,773) (3,743)
Total equity 738 1,060 153 434
Non-current liabilities
Share of loss in joint 95 - 150 -
ventures
95 - 150 -
Current liabilities
Trade and other payables 120 94 127 92
120 94 127 92
Total liabilities 215 94 277 92
Total equity and liabilities 953 1,154 430 526
On 1 June 2011, the Board of Directors of KEFI Minerals plc authorized these
financial statements for issue.
KEFI MINERALS PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Year ended 31 December 2010
Share Share Share Accumulated Foreign Total
capital premium losses exchange
options reserve
reserve
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 January 2009 1,296 1,347 256 (2,824) (292) (217)
Loss for the year - - - (964) - (964)
Other comprehensive - - - - 41 41
income
Recognition of share - - 141 - - 141
based payments
Exercise of warrants (15) 15 -
Issue of share capital 1,086 121 - - - 1,207
Share issue costs - (55) - - - (55)
At 31 December 2009 2,382 1,413 382 (3,773) (251) 153
Loss for the year - - - (702) - (702)
Other comprehensive - - - - 44 44
income
Recognition of share - - 30 - - 30
based payments
Issue of share capital 929 375 - - - 1,304
Cancellation/forfeit - - (16) 16 - -
of options/warrants
Share issue costs - (91) - - - (91)
At 31 December 2010 3,311 1,697 396 (4,459) (207) 738
The following describes the nature and purpose of each reserve within owners'
equity:
Reserve Description and purpose
Share capital amount subscribed for share capital at nominal value
Share premium amount subscribed for share capital in excess of nominal value,
net of allowable expenses
Share options reserve reserve for share options granted but not exercised or
lapsed
Accumulated losses cumulative net gains and losses recognised in the statement
of comprehensive income, excluding foreign exchange gains within other
comprehensive income
Foreign exchange reserve cumulative net gains and losses recognised on
consolidation
KEFI MINERALS PLC
COMPANY STATEMENT OF CHANGES IN EQUITY
Year ended 31 December 2010
Share Share Share Accumulated Total
capital premium losses
options
reserve
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 January 2009 1,296 1,347 256 (1,457) 1,442
Loss for the year - - - (2,301) (2,301)
Recognition of share based - - 141 - 141
payments
Exercise of warrants - - (15) 15 -
Issue of share capital 1,086 121 - - 1,207
Share issue costs - (55) - - (55)
At 31 December 2009 2,382 1,413 382 (3,743) 434
Loss for the year - - - (617) (617)
Recognition of share based - - 30 - 30
payments
Issue of share capital 929 375 - - 1,304
Cancellation/forfeit of - - (16) 16 -
options/warrants
Share issue costs - (91) - - (91)
At 31 December 2010 3,311 1,697 396 (4,344) 1,060
The following describes the nature and purpose of each reserve within owners'
equity:
Reserve Description and purpose
Share capital amount subscribed for share capital at nominal value
Share premium amount subscribed for share capital in excess of nominal value,
net of allowable expenses
Share options reserve reserve for share options granted but not exercised or
lapsed
Accumulated losses cumulative net gains and losses recognised in the statement
of comprehensive income
KEFI MINERALS PLC
CONSOLIDATED STATEMENT OF CASH FLOWS
Year ended 31 December 2010
2010 2009
GBP'000 GBP'000
CASH FLOWS FROM OPERATING ACTIVITIES
Loss before tax (687) (964)
Adjustments for:
Depreciation of property, plant and equipment 17 17
Negative goodwill (314) -
Share-based payments 16 94
Issue of warrants 14 47
Share of loss from jointly controlled entity 230 -
Exchange difference on translation of subsidiaries (26) 39
(750) (767)
Changes in working capital:
Trade and other receivables 4 45
Trade and other payables (13) (262)
(9) (217)
Net cash used in operating activities (759) (984)
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for purchase of property, plant and (1) (21)
equipment
Acquisition of jointly controlled entity (181) (2)
Advances from Centerra Gold (KB) Inc. - (266)
Share of cash from jointly controlled entity (55) 150
Net cash used in investing activities (237) (139)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of share capital 1,304 1,207
Listing and issue costs (91) (55)
Net cash from financing activities 1,213 1,152
Net increase in cash and cash equivalents 217 29
Cash and cash equivalents:
At beginning of the year 322 293
At end of the year 539 322
KEFI MINERALS PLC
COMPANY STATEMENT OF CASH FLOWS
Year ended 31 December 2010
2010 2009
GBP'000 GBP'000
CASH FLOWS FROM OPERATING ACTIVITIES
Loss before tax (617) (2,301)
Adjustments for:
Impairment of intercompany balances 142 1,646
Share-based payments 16 94
Issue of warrants 14 47
(445) (514)
Changes in working capital:
Trade and other receivables (378) (200)
Trade and other payables 2 (141)
(376) (341)
Net cash used in operating activities (821) (855)
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of jointly controlled entity (181) -
Advances from Centerra Gold (KB) Inc. - (266)
Net cash used in investing activities (181) (266)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of share capital 1,304 1,207
Listing and issue costs (91) (55)
Net cash from financing activities 1,213 1,152
Net increase in cash and cash equivalents 211 31
Cash and cash equivalents:
At beginning of the year 319 288
At end of the year 530 319
The financial information set out in this announcement does not constitute the
Company's financial statements (as defined by s434 of the Companies Act 2006)
for the year ended 31 December 2010. The results for the year ended 31 December
2010 are extracted from the Annual Report of KEFI Minerals plc, on which the
auditors have issued an unmodified opinion. Their report contains an Emphasis
of Matter paragraph in relation to going concern uncertainty.
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