KEFI Gold and Copper, which has been operating in Ethiopia and Saudi Arabia, issued its annual report for the year ended 2023.
The highlight of the KEFI annual report was that we had commenced Early Works at the Tulu Kapi Gold
Project in West Welega. “Early Works comprise a number of activities with the community and other stakeholders to ensure that everyone is fully informed and consulted and the site is prepared for the Major Works to commence. Major Works would lead to production starting in 2026,” the company said in a statement released today.
“This is the first gold mine in Ethiopia that complies with World Bank IFC Performance Standards. We apply the same rules that are applied in advanced mining jurisdictions like Scandinavia, Australia and North America,” it said.
The major highlights of the annual report include:
– In Ethiopia, with our partners and banks:
– The company’s focus is now on successfully completing the Early Works at Tulu Kapi so that we can close the US$320 million project finance package and launch Major Works in October 2024. Gold
production would then commence in mid-2026;
– Tulu Kapi’s projected net cash flow to KEFI’s planned 80% beneficial interest is estimated at approximately £80 million per annum. At current spot of $2,346/ounce, KEFI’s planned beneficial interest in the cash flow is estimated to be approximately £100 million;
– The end result will be the launch of Ethiopia’s first industrial-scale mining project and its largest
single export generator and, in so far as environmental, social and governance aspects are
concerned, the project is designed to be in compliance with World Bank IFC Performance
Standards, creating direct and indirect employment for 5,000 to 10,000 people.
– In Saudi Arabia, with our partner and bank:
– Jibal Qutman and Hawiah are enjoying very positive regulatory support as we assess the choices
of development plans. Substantial drilling programmes at both projects over the past year have
better defined the known Mineral Resources as well as discovering nearby deposits’
– Given the expected expansion in resources, the ongoing development feasibility studies are
focused on establishing the optimal start-up strategies and ultimate potential scale.
– As regards the KEFI group’s funding:
– Financial markets, and the AIM Market in particular, have recently shown some volatility and
weakness flowing from global and UK political events. This continues to reinforce KEFI’s strategy
of sourcing predominantly project-level and subsidiary-level project financing to develop our
projects.
– Successful implementation of our plans will result in KEFI being a leader in the Arabian-Nubian
Shield with holdings in three production assets coming on stream in sequence from 2026.
London-listed company KEFI Gold and Copper plc (AIM: KEFI) is an exploration and development company focused on gold and copper deposits in the highly prospective Arabian-Nubian Shield.