KEFI has revealed plans to raise approximately £10.6 million through the issuance of around 1.9 billion shares, priced at 0.55p each. The raise is structured in five parts: a firm placing, a retail offer, a conditional placing, a conditional subscription, and a conditional issue. The first two phases have already been completed, securing £5.4 million through the issuance of 988.5 million shares. The remaining three phases, requiring shareholder approval at a meeting on 2 January, will raise an additional £5.1 million through the issuance of 933.2 million more shares.
The funds raised will be used to settle outstanding liabilities of approximately £4.6 million, leaving KEFI with around £6.0 million in gross proceeds. These funds will primarily support the Early Works programme at Tulu Kapi, including site and community preparations, and help cover costs related to finalising financial commitments for the US$320 million capital expenditure required for the project. KEFI aims to finalise these agreements within the next month and is preparing to launch Major Works upon receiving independent certification confirming the final capital budgets and the readiness of the community and transport routes. Additionally, the capital raising is expected to facilitate the granting of further licenses in Ethiopia, such as the recent award of the Konso Cu/Ta/Ni/Co/PGM licence, which will complement operations at Tulu Kapi.
Edison analysts have calculated that Tulu Kapi, along with a 15% residual interest in the Saudi Arabian joint venture G&M, could generate an average free cash flow of £81.7 million for KEFI between FY27 and FY32. This suggests the potential for average dividends of 0.47p per share from FY28 to FY34, down slightly from previous projections. At this rate, KEFI’s valuation is estimated to be 1.71p per share on 1 January 2024, rising to 1.88p per share by 1 January 2025. Based on current metals prices, the valuation increases to 5.25p per share now, and up to 6.99p per share by FY28, representing an internal rate of return of 56.1% for shareholders over the next 12 years, assuming Tulu Kapi begins commissioning in late 2026.
KEFI’s capital raise positions the company for key project milestones at Tulu Kapi, including substantial community and site development, as well as continued progress towards securing additional licences in Ethiopia. This capital raise supports KEFI’s ambitions to move forward with Major Works and secure long-term value for its shareholders.
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.
