KEFI Gold and Copper plc (LSE:KEFI) has secured a US$20 million equity-ranking royalty investment from Chancery Royalty for its Tulu Kapi gold project in Ethiopia, effectively completing the funding coverage for its US$340 million development package.
The remaining US$30 million of equity-risk capital is being finalised through a combination of KEFI share-settled development costs and additional royalty arrangements. The company also retains the option to raise Ethiopian birr-denominated preference shares to cover potential cost overruns, exploration activity and community-focused initiatives.
With bank debt facilities, equity participation from the Ethiopian government and KEFI’s previous placings already in place, the group has begun mobilising contractors, progressed resettlement compensation and scheduled a formal groundbreaking ceremony this month. Major contracts covering infrastructure, housing, plant construction and mining services are close to completion, supporting a planned two-year build period. First gold production is targeted for 2028, with projected all-in sustaining costs of around US$1,000–1,150 per ounce and an estimated post-capital-servicing break-even price near US$1,400 per ounce.
KEFI estimates that its 83% beneficial interest in Tulu Kapi could generate a post-capital-servicing net present value (5% discount rate) of between US$700 million and US$1.5 billion at the start of construction, increasing further at production depending on gold prices in a US$3,000 to US$5,000 per ounce range. Factoring in an initial valuation of its 13% stake in Saudi-based GMCO, the company calculates a fully diluted per-share value of 7 to 17 pence, positioning itself as a leveraged exposure to higher gold prices with limited additional default risk under its royalty and preference share structures.
Despite the funding milestone, KEFI remains pre-revenue and continues to report losses and cash outflows, weighing on its financial profile. Technical indicators are comparatively supportive, with the share price trading above key moving averages and momentum signals turning positive, though valuation remains constrained by negative earnings and the absence of dividend support.
More about KEFI Gold and Copper
KEFI Gold and Copper is a mineral exploration and development company focused primarily on gold and copper assets in Ethiopia and Saudi Arabia. Its flagship project is the high-grade Tulu Kapi gold development in Ethiopia, complemented by a minority interest in GMCO in Saudi Arabia, where several gold and base metal deposits are being advanced toward potential production.
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