Listed on AIM, Kefi Gold and Copper has reported significant progress according to plan at its Tulu Kapi gold project in Ethiopia. The finance syndicate board processes are progressing as scheduled for final conditional approvals this May, while preparations for the project launch are underway.
Kefi highlights the positive developments not only at Tulu Kapi but also across other gold projects in Ethiopia, signaling a turnaround in the country’s fortunes over the past two years. Financing progress has been reported, with all syndicate parties either confirming final conditional approval or targeting it this month.
Moreover, Kefi aims for an increased beneficial interest of 80% in the Tulu Kapi Gold Mines Share Company, which holds the project. Corporate interest is growing in the Arabian Nubian Shield, with potential participation opportunities in Ethiopia.
In terms of operations, Jacques Kruger has been appointed as the new project development manager, working alongside project director Norman Green. Simon Cleghorn, Kefi’s original resource geologist, has rejoined the company at the executive committee level.
Safety measures and independent checks have been undertaken, with government commitments ensuring a safe construction program at Tulu Kapi. These efforts have facilitated the advancement of syndicate processes for final approvals this month.
The focus remains on launching the Tulu Kapi project by mid-2024 for production in mid-2026. Executive Chairperson Harry Anagnostaras-Adams expresses satisfaction with the progress, emphasizing the importance of closing the $320-million international project finance package.
Anagnostaras-Adams highlights the significance of this achievement in today’s challenging capital market conditions, underscoring Kefi’s resilience and its pivotal position within Ethiopia. He notes the fortuitous timing of the launch coinciding with improved conditions in Ethiopia and a higher gold price.
Projected production targets around 200,000 oz/y of gold, potentially generating significant revenue for Ethiopia. With estimated all-in-sustaining costs and break-even costs, Kefi anticipates substantial net cash flow.
With a targeted beneficial ownership of 80%, Kefi expects a significant annual net cash flow over the initial nine years, starting from the second half of 2026.
