KEFI Gold and Copper is making significant strides with its Tulu Kapi gold project in Ethiopia, buoyed by positive financial developments and strong governmental support. The company is on track to finalise key agreements by March 31, 2025, setting the stage for the project’s full launch.
The Tulu Kapi project has garnered substantial regional financial backing, with assembled debt and equity development capital totalling $320 million, complemented by a $70 million mining fleet provided by the mining contractor. This financial security has allowed KEFI to minimise reliance on the stock market, ensuring steady progress. With regional investors familiar with Ethiopia, KEFI has established separate corporate structures for its individual projects, streamlining operations and management.
Government support for the project is evident through ongoing infrastructure investments, including the construction of a road connecting the site to the main highway, which is already 50% complete. Additionally, initial community compensation payments have been distributed, and a construction camp is being built for the mine. The Ethiopian government is also upgrading security protections around the country and preparing the community for the project launch.
KEFI’s project development plan includes launching the Tulu Kapi open-pit mine in Ethiopia in 2023, with the first production expected by the end of 2025. Following this, the Jibal Qutman Gold open-pit in Saudi Arabia is slated for launch in 2024, also targeting production by the end of 2025, and the Hawiah Copper-Gold open-pit in Saudi Arabia is planned for launch in 2025, with production starting in 2027. An underground mine development at Tulu Kapi and Hawiah is scheduled for launch in 2026, with first production two years later.
The Tulu Kapi open pit is bankable with a 1 million ounce Ore Reserve. Combined with the first preliminary planned 200,000 ounce contribution from the underground mine, Tulu Kapi is planned to produce approximately 144,000 ounces per annum, at All-In-Sustaining Costs of approximately US$950 per ounce, at gold prices of US$1,600-2,000 per ounce.
London-listed company KEFI Gold and Copper plc (LON:KEFI) is an exploration and development company focused on gold and copper deposits in the highly prospective Arabian-Nubian Shield. The Company operates in Ethiopia and Saudi Arabia with projects including Tulu Kapi project, Jibal Qutman EL and Hawiah.
