KEFI Gold and Copper PLC (AIM: KEFI) has secured the full US$340 million financing package for its Tulu Kapi Gold Project, with the final key element being a US$20 million equity-ranking royalty agreement with Chancery Royalty Limited.
With funding now in place, the company is moving ahead with project implementation. Activities include a ground-breaking ceremony scheduled for later this month, alongside the mobilisation of field teams and contractors.
Updated economic projections estimate the Tulu Kapi Project could deliver a net present value (NPV) of between US$700 million and US$1.5 billion attributable to KEFI’s stake. Forecast all-in sustaining costs are expected to range from US$1,004 to US$1,144 per ounce, with a break-even gold price of around US$1,400 per ounce.
In addition, KEFI reported a preliminary valuation of approximately US$148 million for its 13% shareholding in Saudi Arabian Gold and Minerals (SLA).
KEFI Founder and Executive Chairman Harry Anagnostaras-Adams said the launch of the Tulu Kapi Gold Project marks a major milestone for the company, describing it as one of Africa’s highest-margin new gold mine developments.
He highlighted that the project is already backed by bank financing and has been structured to remain resilient over the long term, with an all-in break-even gold price of around US$1,400 per ounce. He also noted that KEFI has secured substantial equity funding at the subsidiary level in a way that has limited shareholder dilution while keeping the project’s cost base unchanged.
Based on gold prices in the range of US$3,000 to US$5,000 per ounce, Anagnostaras-Adams said average EBITDA over the first three years of production is forecast to be between US$345 million and US$683 million per year, figures that would significantly exceed KEFI’s current market capitalisation.
He added that the company’s ambitions extend beyond Tulu Kapi, with dedicated teams already working on future growth opportunities in both Ethiopia and Saudi Arabia. These initiatives are expected to be funded and managed through tailored structures in consultation with partners, financiers, and shareholders.
Anagnostaras-Adams described the current environment as a convergence of key inflection points, with strong momentum in the gold sector, growing mining activity in Ethiopia and Saudi Arabia, and KEFI’s development pipeline now progressing into execution. He expressed appreciation for the efforts of KEFI’s teams, shareholders, and in-country partners, including the Ethiopian government, the Oromia regional authorities, and the Al Rashid family of Saudi Arabia.
Chancery Royalty Founder and Managing Director Jeremy Gray welcomed the partnership, saying he was pleased to bring Chancery Royalty into KEFI’s syndicate of backers for the Tulu Kapi Project. He described Tulu Kapi as one of the best undeveloped gold mines in Africa and praised KEFI’s long-term discipline and commitment to industry best practice, adding that Chancery Royalty looks forward to supporting the project over the long term.
