KEFI Gold and Copper (LSE:KEFI) reported interim results covering the start of full development activities at its Tulu Kapi Gold Project in Ethiopia, alongside financing, exploration and governance developments across the group.
The project funding arrangements include a US$240 million senior debt facility, more than US$400 million of contracted services and over US$100 million of equity-risk capital.
A construction start ceremony was held in February, while KEFI also entered into a mining services agreement with BCM valued at more than US$400 million over nine years.
Tulu Kapi Development Suspended Following Fatal Security Incident
Following the end of the reporting period, a security incident occurred at Tulu Kapi on 4 September that resulted in multiple fatalities, including a KEFI employee.
The company subsequently suspended development activities at the project and said work would resume through a sequenced restart process.
KEFI has held consultations with local communities, Ethiopian and Oromia authorities, contractors, lenders and investors following the incident. According to the company, these parties have reaffirmed their support for the project.
The timing and implementation of the development restart remain subject to the company’s security and operational arrangements.
Saudi Arabian Joint Venture Advances Exploration
In Saudi Arabia, KEFI’s interest in Gold and Minerals Company, or GMCO, was diluted during the period as the group prioritised capital allocation to Tulu Kapi.
GMCO secured new exploration licences covering Umm Hijlan and Al Hajar North and continued definitive feasibility study work at the Jibal Qutman and Hawiah projects.
The joint venture was also selected for Saudi Arabia’s Exploration Enablement Program, which provides funding to support mineral exploration activities.
KEFI Considers Move to LSE Main Market
KEFI appointed Stifel Nicolaus Europe as financial adviser and joint broker as it evaluates a potential move from AIM to the London Stock Exchange’s Main Market.
The company also made changes to its board during the period, including the appointment of independent directors and new committee chairs covering areas including ESG, risk, operations and remuneration.
KEFI said it is planning a future transition towards a CEO-led management structure around the commencement of production.
Net Assets Rise to £87 Million
KEFI reported net assets of £87 million following an equity placing completed in March.
The group’s comprehensive loss for the half-year increased to £4.6 million, reflecting higher administrative expenses as activity increased during the development phase.
More About KEFI Gold and Copper
KEFI Gold and Copper plc is a London-listed gold and copper exploration and development company with projects in Ethiopia and Saudi Arabia.
Its principal development asset is the Tulu Kapi Gold Project in Ethiopia, held through TKGM, where KEFI expects to retain an 86% beneficial interest alongside Ethiopian government participation.
In Saudi Arabia, the company participates through GMCO, which is progressing gold and copper projects including Jibal Qutman and Hawiah.
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