Momentum is building for KEFI Gold and Copper as regulatory roadblocks lift and market conditions tilt firmly in its favour. With strategic joint ventures and institutional financing now secured, KEFI is positioning itself to accelerate project development at precisely the right time—just as metal prices ride a favourable wave. This confluence of timing and opportunity is giving investors fresh reason to take a closer look.
KEFI Gold and Copper is entering a transformative phase, capitalising on newly cleared regulatory pathways and enhanced regional stability. This shift allows the company to progress with project launches under highly supportive conditions, notably buoyed by strong metal pricing. The flagship Tulu Kapi gold project in Ethiopia is gaining substantial traction, with major financial institutions coming on board. The African Finance Corporation has now followed Trade and Development Bank in giving board-level ratification, signalling robust institutional confidence. Project financing and preparatory work are rapidly aligning, with a launch scheduled for Q2 2025.
In parallel, KEFI is deepening its strategic footprint in Saudi Arabia. Its wholly-owned vehicle, GMCO, has just entered into a joint venture with local heavyweight ARTAR and Australian mining major Hancock. The JV targets a highly prospective 900km² mineral belt situated 50km east of the belt where GMCO has already identified one of the world’s top decile volcanogenic massive sulphide (VMS) deposits. This follows significant resource upgrades across its Saudi portfolio, including the Hawiah and Al Godeyer VMS sites, as well as the gold-rich Jibal Qutman project.
Valuations for GMCO’s assets alone are compelling. Based on the 2023 pre-feasibility study, Hawiah’s NPV8 stands at US$301 million, translating to a US$45 million stake for KEFI, equivalent to 0.44p per share. Jibal Qutman, valued through internal assessments, holds an NPV10 of US$112 million, equating to a US$17 million stake or 0.16p per share. Together, these figures put GMCO’s worth to KEFI at around 0.60p per share. However, at today’s higher metal prices, Edison estimates these projects’ combined value at US$97 million—or 0.96p per share—offering a substantial uplift from official figures and excluding the long-term strategic value of GMCO’s proprietary database and exploration potential.
The broader picture for KEFI is even more promising. At long-term gold prices of US$1,794/oz from FY2030, KEFI’s projected free cash flow from Tulu Kapi and its GMCO interest could average £88.2 million annually between FY28 and FY33. This underpins a valuation of 2.03p per share based on potential dividend flows discounted to present value. Yet, under current metals pricing, that valuation climbs sharply to 5.93p today and could reach 7.90p by FY28. This outlook implies a striking internal rate of return of 58.2% for shareholders entering at today’s share price.
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.
