Kefi set to complete financing of Tulu Kapi gold project

(Sharecast News) - Kefi Gold and Copper said on Tuesday that it is set to complete the financing and launch development of its flagship Tulu Kapi gold project in Ethiopia, as it welcomed new investors following a recent placing.

Speaking at the company's general meeting, executive chairman Harry Anagnostaras-Adams said participants in the recent fundraising would own around 20% of Kefi on a fully-diluted basis, marking what he described as a "particularly important and propitious moment" for the group.

He said that, subject to shareholder approval of resolutions at the meeting, Kefi would have "financed and launched the start-up of perhaps the highest grade-highest recovery, and therefore highest margin, gold development in Africa," adding that the project was being advanced during a period of strong gold prices as global capital increasingly shifts towards the metal.

The company recently held a ground-breaking ceremony for Tulu Kapi in February, attended by Abiy Ahmed and Oromia regional president Shimelis Abdisa, with Kefi highlighting support from local communities, contractors and financing partners including African development banks.

Anagnostaras-Adams said the group had now assembled a "powerful financial structure" for the project, backed by development finance institutions and new shareholders, some of which are multi-billion-dollar financial institutions.

Tulu Kapi had also been officially classified as a 'Strategic Priority Project' by the Ethiopian government.

Kefi said it expected to begin production at Tulu Kapi by mid-2028 and outlined significant potential returns, estimating average EBITDA of £264m to £520m across the first three years of production at gold prices of $3,000 to $5,000 per ounce.

Beyond the initial development, the company said it aimed to identify additional projects in Ethiopia, drawing comparisons between parts of the country and the gold-rich regions of Western Australia, while also advancing its portfolio of critical materials assets in Ethiopia and Saudi Arabia.

Anagnostaras-Adams said Kefi's priority remained the delivery of Tulu Kapi.

"We have an exciting chapter ahead which our great team has been looking forward to.

"We look forward to providing regular progress reports as everything progresses."

At 1503 BST, shares in Kefi Gold and Copper were up 7.78% at 1.49p.

Reporting by Josh White for Sharecast.com.

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