Saudi Arabia isn't the first country that comes to mind for gold exploration - the Gulf nation is better known for its reserves of black gold. But there is growing evidence to suggest there is plenty of the yellow stuff, too, and junior explorer Kefi Minerals (KEFI) is leading the international hunt to find it.
- First-mover advantage in Saudi Arabia
- Well-connected local partner
- Currently drilling first two licences
- Other licences should be granted soon
- Low on cash
- Minority interest in projects
- Odds stacked against early-stage exploration
State-controlled mining company Ma'aden has already discovered 8m ounces of gold in the country's deserts over the past 10 years; it currently operates two underground and three open-cut gold mines producing a combined 148,000 ounces of gold a year. Yet the relatively underexplored region is starting to open up to foreign investment for metals exploration, too - thanks in large part to high prices and increased interest from the Saudi authorities. Canada's largest mining company, Barrick Gold, operates a copper mine there, while London Mining (LOND) owns an advanced iron ore project.