KEFI (LSE:KEFI) has reported its 2025 results and confirmed that its flagship Tulu Kapi Gold Project in Ethiopia has entered the execution phase following the completion of a financing package worth more than $400 million.
The company said the funding structure allows it to retain an expected beneficial interest of approximately 86% in the project. Development activities are already under way, including infrastructure works and community resettlement programmes, with a 27-month construction schedule having commenced in March 2026. First gold production remains targeted for mid-2028.
Management believes Tulu Kapi has the potential to become Ethiopia’s largest single source of export revenue at current gold prices. The project is expected to produce an average of around 166,000 ounces of gold annually over an initial mine life of more than seven years. Expansion plans could increase output to approximately 200,000 ounces per year, while higher gold prices are expected to support strong project economics, significant EBITDA generation, accelerated debt reduction and substantial future cash flows.
Alongside progress in Ethiopia, KEFI continues to strengthen its position in Saudi Arabia through its GMCO joint venture. The company said GMCO has assembled one of the country’s largest exploration portfolios and has been selected to participate in the Saudi government’s Exploration Enablement Program. The development reflects KEFI’s growing presence in a mining sector that is benefiting from regulatory reforms and increased government support.
Despite the operational momentum, KEFI’s outlook remains constrained by the absence of revenue, continuing losses and ongoing cash burn. Technical indicators provide some encouragement, with the shares trading above key moving averages and supported by a positive MACD signal. However, valuation remains challenged by negative earnings and the lack of a dividend yield.
More about KEFI Gold and Copper
KEFI Gold and Copper is a mineral exploration and development company focused on gold and copper opportunities in Ethiopia and Saudi Arabia. The company has been active in both jurisdictions for more than two decades and aims to capitalise on increasing government support for the mining sector. Its portfolio includes the advanced-stage Tulu Kapi Gold Project in Ethiopia and a range of exploration interests in Saudi Arabia through its joint venture vehicle GMCO, which is partnered with local conglomerate ARTAR.
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