KEFI Gold and Copper has been active in Ethiopia and Saudi Arabia and recently released its annual report for 2023. The report highlights significant progress, including the commencement of Early Works at the Tulu Kapi Gold Project in West Welega. These Early Works involve activities with the community and stakeholders to ensure thorough communication and site preparation for the upcoming Major Works. The Major Works are set to begin in 2024, with gold production expected to start in 2026.
In a statement, KEFI emphasised that this is Ethiopia’s first gold mine compliant with World Bank IFC Performance Standards, applying regulations used in advanced mining regions like Scandinavia, Australia, and North America. The focus in Ethiopia is on completing the Early Works at Tulu Kapi to secure a US$320 million project finance package and begin Major Works by October 2024. This would lead to gold production starting in mid-2026. Tulu Kapi’s projected net cash flow to KEFI’s planned 80% beneficial interest is estimated at approximately £80 million per annum, and at the current gold price of $2,346/ounce, KEFI’s interest in the cash flow is estimated at around £100 million. The project aims to be Ethiopia’s first industrial-scale mining project, the largest single export generator, and compliant with World Bank IFC Performance Standards, creating direct and indirect employment for 5,000 to 10,000 people.
In Saudi Arabia, KEFI and its partners are receiving strong regulatory support for the Jibal Qutman and Hawiah projects. Extensive drilling programmes over the past year have better defined known Mineral Resources and discovered nearby deposits. The ongoing development feasibility studies are aimed at determining the best start-up strategies and potential scale given the expected resource expansion.
Regarding the KEFI group’s funding, recent volatility and weakness in financial markets, particularly the AIM Market, due to global and UK political events, have reinforced KEFI’s strategy to source predominantly project-level and subsidiary-level financing to develop their projects. The successful implementation of these plans is expected to position KEFI as a leader in the Arabian-Nubian Shield, with three production assets coming on stream sequentially from 2026.
London-listed company KEFI Gold and Copper plc (LON:KEFI) is an exploration and development company focused on gold and copper deposits in the highly prospective Arabian-Nubian Shield. The Company operates in Ethiopia and Saudi Arabia with projects including Tulu Kapi project, Jibal Qutman EL and Hawiah.
