KEFI posts results for year to December 2024
KEFI Gold and Copper () booked a loss of £5.2 million in the year to December 2024.
The company had £185,000 in cash at the period end, though new money from a raised in December was on the way in, and there was a subsequent fundraising in May this year.
“KEFI's key focus over the past year has been to complete the steps required to bring Tulu Kapi into production in Ethiopia,” said KEFI’s executive chairman Harry Anagnostaras-Adams, speaking of the company’s flagship gold project.
“This process has required assembling, preserving through in-country challenges, working with, and occasionally refining the project syndicate which is comprised of a number of stakeholders including community, government, contractors, lenders and equity providers. We are now very close to completing this process, closing the circa US$320 million project finance package and deploying substantial capital into developing Tulu Kapi.”
He also highlighted ongoing work on the company’s Saudi portfolio, characterising KEFI as “the leading private sector explorer/developer in the fast-emerging Saudi mining sector.”
KEFI continues to progress towards mining the oxidised gold portions of the Jibal Qutman and Hawiah deposits, and is undertaking exploration programs over 14 recently granted exploration licences and a new 50/50 joint venture with Australian major mining group Hancock Prospecting.
For now, though, the focus is on Tulu Kapi, where construction is just about to get underway. At a gold price of US$3,000 per ounce, Tulu Kapi's net operating cash flow after royalties and taxes for the first full year of production is estimated at around US$304 million. This would be more than sufficient cash flow to repay the planned US$240 million debt in the first full year of operation.
View from Vox
2024 was a year of much progress for KEFI, as financing partners for Tulu Kapi lined up, and the robust project economics were established more thoroughly. At the same time the gold price moved sharply in the company’s favour, to the point where a green light for construction now looks inevitable. KEFI’s share price has begun to move too. Much of the ground lost since December’s placing last year has now been made up.
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