KEFI Gold and Copper (LSE:KEFI) has confirmed that, subject to shareholder approval, it has secured financing and initiated development of the Tulu Kapi gold project in Ethiopia. The company describes the project as one of Africa’s most attractive gold developments in terms of grade, recovery rates, and potential margins.
The project has received strong backing from both new and existing investors, as well as support from development finance institutions including Trade and Development Bank and Africa Finance Corporation. Key contractors such as Lycopodium and BCM Group are also involved. Tulu Kapi has been officially designated a Strategic Priority Project by the Ethiopian government, highlighting its national importance.
Management expects the project to reach first production by mid-2028, with projected average EBITDA ranging between £264 million and £520 million over the first three years of operations, based on gold prices between $3,000 and $5,000 per ounce. Alongside Tulu Kapi, KEFI plans to explore additional similar opportunities within Ethiopia and continue developing its broader portfolio of critical materials assets in both Ethiopia and Saudi Arabia.
From an investment perspective, the company remains constrained by weak financial fundamentals, including a lack of revenue, ongoing losses, and continued cash outflows. However, technical indicators show some positive momentum, with the share price trading above key moving averages and a favourable trend profile. Valuation remains challenged due to negative earnings and the absence of a dividend.
More about KEFI Gold and Copper
KEFI Gold and Copper plc is an AIM-listed exploration and development company focused on gold and copper assets in Ethiopia and Saudi Arabia. Its flagship Tulu Kapi project is a cornerstone asset with Strategic Priority status, while the group continues to expand its portfolio across both regions, targeting long-term growth in precious and critical metals.
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