KEFI Gold and Copper (LSE:KEFI) has announced further progress toward developing the Tulu Kapi gold project in Ethiopia, including the award of an engineering, supply and labour hire contract to Lycopodium.
The company said the appointment supports its development timetable, which targets first gold production in early 2028 and full-scale output by mid-2028. KEFI also confirmed that major project agreements, including loan facilities, have been finalised and are largely executed, with the remaining documentation expected to be completed in the coming weeks.
Funding progress has also advanced, with commitments secured for approximately US$310m of the project’s US$330m development budget. The company said this level of support demonstrates strong backing from project partners and financiers as the project moves closer to the construction phase.
KEFI highlighted coordinated progress across several key partners involved in the development. Ethiopian Electric Power Company is responsible for grid connection, while the Ethiopian Roads Authority is developing new access routes. Lycopodium will oversee the process plant and infrastructure, Dashen is managing resettlement housing, and BCM is handling bulk earthworks and mining activities.
With the financing and construction arrangements nearing completion, the company said the Tulu Kapi project is transitioning from the planning stage into implementation. This shift is expected to reduce funding risks and strengthen KEFI’s strategy to bring the long-planned Ethiopian gold asset into production.
Despite these operational milestones, the company’s outlook remains constrained by its financial profile as an early-stage developer, including no current revenue, ongoing losses and continued cash burn. Technical indicators are relatively supportive, with the share price trading above key moving averages and a positive MACD reading, although valuation metrics remain limited due to negative earnings and the absence of a dividend yield.
More about KEFI Gold and Copper
KEFI Gold and Copper plc is a mining exploration and development company focused on gold and copper assets in emerging markets. Its primary project is the Tulu Kapi gold development in Ethiopia, which is being advanced through its subsidiary Tulu Kapi Gold Mines S.C. The company works with a consortium of international and local contractors, financiers and government stakeholders to develop and operate large-scale precious metals projects.
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