Kefi Minerals: a gold miner to watch
This AIM miner has recently shown some reasonable potential. Our chartist looks for a catalyst.
5th August 2020 09:35
by Alistair Strang from Trends and Targets
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This AIM miner has recently shown some reasonable potential. Our chartist looks for a catalyst.
Kefi Minerals (LSE:KEFI)
It was a surprise to discover that in addition to oil wealth, Saudi Arabia may also enjoy reserves of gold, silver, copper, and zinc. KEFI Minerals (LSE:KEFI), which is mainly focused on Ethiopian reserves, jumped across the Red Sea in 2019 to explore a few locations in Saudi.
What really caught our eye was their baseline cost of around $900 (£688.5) per ounce, on a day when gold finally exceeded the $2,000 benchmark! Kefi’s share price, trading at around 1.8p at the time of writing, is starting to show some reasonable potential.
In the event of the price next exceeding 1.88p, we’re looking for price recovery to an initial 2.51p with secondary, if exceeded, at 3.17p.
Either one of these numbers represents a surprising gain from the current share level.
Historically, the adjust price has traded substantially higher than at present and the visuals suggest closure above 4p shall be regarded as game-changing for the longer-term.
We mention this as, should 3.17p somehow be exceeded, we calculate a third target level of 4.1p.
For it all to go horribly wrong, the price needs to slip below 1p, retreating below the level of the blue downtrend since 2016.
We feel that sufficient early warning shall be given if anything is discovered that could take the share below 1.5p, as this threatens an initial 1.2p with secondary, if broken, down at 0.98p, meaning real trouble.
In short, Kefi is an interesting share worthy of some investigation.
Source: Trends and Targets Past performance is not a guide to future performance
Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.
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