KEFI Gold and Copper Plc. executive chairman Harry Anagnostaras-Adams says that “these are very exciting times” for the company, with an increasing number of boots on the ground at its Tulu Kapi gold project in Ethiopia.
This follows all principal conditions precedent having been met for launching development at the project, with initial construction and security camps completed.
This week, community compensation payments for Phase 1 resettlement have begun, he said in a pre-released statement ahead of the AGM.
“This is being funded from KEFI’s existing cash resources following the company’s recent capital raise and the company will be reimbursed from the drawdown of the broader Project funding package.
“This is a very significant milestone for the community in particular and it reflects our confidence that the remaining normal procedural conditions precedent will be satisfied as a result of the well-advanced effort by the various counterparties.”
Project financing documents are now in circulation and updated capital estimates place total development costs at roughly US$420 million.
The expected funding mix includes approximately US$110 million in contractor funding, US$240 million in bank debt and US$70 million in equity risk capital. The equity portion has been reduced from US$110 million.
Local Ethiopian institutions and international private equity groups are participating at the project level.
Institutional investors, including Ruffer Gold, Konwave/Gold 2000 and Phoenix Precious Metals joining the share register, as well as Premier Miton and RAB Capital, took part in the recent capital raise.
Gold production at Tulu Kapi is targeted to begin in late 2027. Net operating cash flow from the first full year in 2028 is estimated at approximately US$300 million, assuming a gold price of US$3,000 per oz.
In Saudi Arabia, KEFI’s joint venture company GMCO expanded resources by 20% to 3.8 million gold-equivalent ounces and doubled its exploration area to over 2,200 sq km.
Stage 1 development of the Jibal Qutman project is expected to require equity participation from KEFI of £2-3 million.
KEFI is currently reviewing its GMCO stake and has received expressions of interest for its shareholding and future project funding.
The company’s combined projects in Ethiopia and Saudi Arabia could deliver more than 200,000 ounces of gold equivalent per year.
