KEFI Gold and Copper plc (LSE:KEFI) has appointed Stifel Nicolaus Europe as financial adviser and joint broker, with the firm also expected to act as sponsor for KEFI’s planned move to the Main Market of the London Stock Exchange in 2027.
The appointment reflects the company’s ambition to expand its investor base and raise its market profile as development of the Tulu Kapi Gold Project in Ethiopia moves closer to production.
Tulu Kapi development milestones remain on schedule
KEFI said implementation milestones at the Tulu Kapi project are currently progressing on or ahead of schedule, with commissioning targeted from late 2027 and full-scale production expected by mid-2028.
The company has advanced a range of critical development activities, including detailed engineering work, procurement of long-lead items such as the SAG mill, community resettlement programmes, grid power connection infrastructure and access road construction.
Major EPCM and mining contracts have also either been finalised or significantly progressed, which management said reinforces operational readiness ahead of full construction.
Funding structure revised to improve flexibility
KEFI has strengthened the project’s capital structure by replacing a proposed US$15 million short-term working capital facility with an equivalent amount of long-term subsidiary-level equity-ranking capital.
The revised package includes Ethiopian preference shares and a gold royalty arrangement involving specialist financing partners. According to the company, the new structure preserves project net present value and cash flow metrics while improving balance sheet flexibility and maintaining access to standby liquidity through the still-undrawn working capital facility.
Drawdown of senior project debt is planned for the third quarter of 2025, with management stating that the timing is intended to reduce financing costs without affecting the construction timetable.
The company believes the updated financing framework, alongside secured principal contracts and plans for a Main Market listing, strengthens the overall investment case for Tulu Kapi while reducing execution risk and improving institutional appeal.
Financial profile remains the main constraint
KEFI’s outlook continues to be constrained by weak financial fundamentals, including the absence of revenue generation, ongoing losses and continued cash burn.
However, technical indicators remain relatively supportive, with the shares trading above key moving averages and accompanied by a positive MACD signal. Valuation metrics remain challenging due to negative earnings and the absence of a stated dividend yield.
More about KEFI Gold and Copper plc
KEFI Gold and Copper plc is a mineral exploration and development company focused on gold and copper assets in Ethiopia and Saudi Arabia. Listed on London’s AIM market, the company is advancing the high-grade Tulu Kapi Gold Project in Ethiopia with the aim of becoming a significant regional precious metals producer through future commercial production.
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