KEFI Gold and Copper (KEFI) continues apace with the development of the Tulu Kapi gold mine in Ethiopia.
In the past month, the company has completed the final project contracting packages, covering all capex as well as over half of seven years’ worth of opex, via the arrangements for mining services and electricity supply.
Meanwhile, Lycopodium has begun work as the lead design and construction contractor for the process plant and all on-site infrastructure.
The development finance package assembled now includes US$340 million, comprising US$240 million in debt and US$100 million in equity, US$60 million for a mining fleet via a mining services agreement, and US$30 million in non-dilutive capital for contingencies and growth in both Ethiopia and Saudi Arabia.
Commissioning is envisaged in late 2027 and full production in 2028.
All told, KEFI’s portfolio now comprises 1.7 million oz of gold and silver at Tulu Kapi, which is 87%-owned, just under a million ounces of gold and silver at Jibal Qutman, and a further 2.6 million gold-equivalent ounces at Hawiah. The Saudi assets come under the umbrella of GMCO, which is 13%-owned.
These three advanced projects offer extensive growth prospects, and KEFI reckons that their combined gold-equivalent resources, currently over five million ounces, might double in the long run, not accounting for additional opportunities in the broader portfolio.
Exploration continues in Saudi Arabia and is planned to recommence in 2026 in Ethiopia. But the focus now moving to development in both jurisdictions.
In Ethiopia, the strong African-experienced start-up team is now well embedded.
In Saudi Arabia, KEFI has developed a powerful partnership with the Al Rashid family's holding company ARTAR, with whom GMCO has been built into a self-sufficient operating entity designed to operate independently.
This avoids distracting KEFI from the current operating focus on Ethiopia.
GMCO is now also launching programmes in joint venture with mining major Hancock Prospecting. A Saudi listing of GMCO may be considered after production has commenced and, in that respect, it is notable that a profitable mining company in Saudi with very similar projects to those of GMCO, but with a smaller resource base, is capitalised on the local stock exchange at US$2.1 billion.
During a recent review of the Saudi assets, resources were increased, the Umm Hijlan exploration licence was awarded, located directly south of Hawiah, and roughly doubling the prospective strike length of the mineralised structure undergoing development feasibility study. In addition, GMCO's new joint venture with major miner Hancock Prospecting was awarded a major mineralised belt at Al Hajar North.
KEFI allowed its shareholding in GMCO to dilute to around 13% as at 31 December 2025 in order to focus the company's capital on Ethiopia pending the now-achieved launch of development at Tulu Kapi.
KEFI also said that it intends to move the company's listing to the main market of the London Stock Exchange as soon as appropriate, probably in 2028.
"Our successful funding of the high-grade and high-recovery Tulu Kapi Gold development took many years of intense effort as the first-mover, against a changing, and at times challenging, geopolitical landscape,” said KEFI founder and executive chairman, Harry Anagnostaras-Adams.
"Our strong African-experienced development and start-up team is now well embedded in Ethiopia, our specialist development contractors are mobilising, and recruitment is now in full swing to install operational readiness during the two years of development. The current development phase 1 is community resettlement and plant procurement, followed by earthworks and installation of infrastructure, followed by open-pit mining starting six months before plant commissioning.”
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At gold prices of between US$3,000 and US$5000 per ounce, the net present value of KEFI’s stake in Tulu Kapi as at start of construction runs at between US$710 million to US$1,667 million.
This equates to between 5p and 11p per KEFI share, excluding value attributable to the company's Saudi assets.
Developments at the company's Saudi joint venture highlight its materiality to KEFI shareholders by providing significant additional value without operational risk and distraction from the start-up in Ethiopia, and without the need for KEFI to raise further capital.