KEFI Gold and Copper (KEFI) is in “an excellent position,” according to executive chairman Harry Anagnostaras-Adams.
It hasn’t always been plain sailing, though.
In a statement prepared for the company’s AGM today, Anagnostaras-Adams reminded shareholders that “we lost years of anticipated progress between 2016 and 2022 emanating from local political unrest and, in the Kingdom of Saudi Arabia, we lost an even longer period for progress due to local regulatory overhauls of the mining sector.”
But Anagnostars-Adams went on to highlight that the "turnaround year" in both countries proved to be 2022.
“In Ethiopia the national state of emergency was lifted early 2022 and by mid-2022 the Tulu Kapi Gold Project syndicate formally agreed to recommence preparations for launch of development subject to three principal conditions precedent along with the normal procedural requirements for mining project finance,” he said.
“At the time, we spelt out that we needed the installation of security protection of the highest standard, designation as strategic project in respect of exchange controls and Parliamentary ratification of Country Membership for both, not just one, of our principal banks. We achieved the third and last of these principal condition precedent in May 2025 and I am pleased to report that we have now already built the initial camps for security and construction and this week advised stakeholders that community compensation payments are being triggered this month, with payment of compensation for Phase 1 of the Resettlement Action Plan.”
As we reported here on Vox yesterday, this is being funded from KEFI's existing cash resources following the company's recent capital raise. KEFI will be reimbursed from the drawdown of the broader project funding package in due course.
“This is a very significant milestone for the community in particular and it reflects our confidence that the remaining normal procedural conditions precedent will be satisfied as a result of the well-advanced effort by the various counterparties,” added Anagnostaras-Adams.
“On the Ethiopian Tulu Kapi project financing front, the full package of updated finance and other documentation is in circulation for the multi-party approvals, and we are well-advanced in updating and certifying development budgets and schedules, last done in 2023, to be incorporated into detailed definitive documentation for execution and full project launch. The tentatively updated running estimate is that we require circa US$420 million of development capital, including the mining fleet, to be met by contractor-funding as to circa US$110 million, bank debt US$240 million and further equity risk capital of circa US$70 million.”
Another notable development highlighted by Anagnostaras-Adams is the recent entry into KEFI’s share register of global public investment institutions, including Ruffer Gold, Konwave/Gold 2000 and Phoenix Precious Metals. Premier Miton and RAB Capital also participated in the recent capital raise.
“These are very exciting times for our company as we move towards the full development of Tulu Kapi, with increasing numbers of boots on the ground,” continued Anagnostaras-Adams.
“Successful implementation of our plans will result in Tulu Kapi commissioning gold production in late 2027. At a gold price of US$3,000 per ounce, Tulu Kapi's net operating cash flow after royalties and taxes for the first full year of production is estimated at circa US$300 million. Such a result from the first full year of production in 2028 would allow the board to then consider prepaying much of the planned US$240 million Tulu Kapi project debt, declaring a special dividend and also supporting our large project development pipeline.”
He spoke of growth, too.
“We see the development of the Tulu Kapi Underground Mine and the expansion of the plant as readily available opportunities to quickly lift KEFI's beneficial interest in gold production to over 150,000 ounces per year.”
Then, talk turned to Saudi Arabia, where resources in the joint venture GMCO vehicle now amount to 3.8 million gold equivalent ounces.
“The pipeline of projects being prepared for development starts with Stage 1 of the Jibal Qutman Gold project, which is focused on oxide ore and comprising open pit mining and CIL processing,” said Anagnostaras-Adams.
“This initial GMCO development is targeted to transform GMCO into a self-funding Saudi explorer. Together with our partner ARTAR, we continue to nurture relationships with the mining finance specialists for optimising project development finance in due course, analogous to the approach successfully taken by KEFI in Ethiopia. Accordingly, Stage I at Jibal Qutman would likely require equity participation from KEFI of only £2-3 million, which at present is targeted to be funded from Tulu Kapi project financing refunds due to KEFI.”
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Anagnostaras-Adams went onto highlight a key number: that the theoretical value of KEFI's development projects on a per share basis stands at 8p. This is a long way higher than the current 0.54p. Now, the market usually discounts exploration and development projects significantly, but expect that discount to start narrowing as KEFI moves towards executing on Tulu Kapi, and closes in on cashflow and production. The company is currently worth less than some explorers. But if all goes well, that’s likely to change. And fairly rapidly.