Aim-listed Kefi Gold and Copper is on track with early works at its Tulu Kapi gold project, in Ethiopia, which is expected to start production at a rate of 140 000 oz/y from mid-2026.

Some of the early works include building construction camps, drilling water wells, geotechnical drilling to confirm foundation design of certain infrastructure, final infrastructure budget updating with the principal contractor and studies to increase processing activity.

Kefi anticipates the principal contractor signing a fixed price construction agreement next month with international plant fabricators.

As Kefi looks to add an underground component to the mine development, the company is evaluating increasing processing capacity by at least 20% – within existing capital expenditure and operational expenditure forecasts.

From government’s side, authorities have surveyed new host lands and will update a survey of existing properties of resettlers within the Tulu Kapi community, which is a precursor for starting main works on the mine property.

Meanwhile, secured lenders have visited the site for a second time, which is helping to facilitate final credit approval expected to occur next month. Kefi says its financing agreements no longer require negotiation, just documentation finalisation and formal execution.

However, Kefi still awaits local investors to confirm their level of participation by the end of August so that other regional investors know what is available for finalisation by them in September.

Chairperson Harry Anagnostaras-Adams assures shareholders that the company and its subsidiary are pressing ahead on the ground in Ethiopia as fast as permitted by land access.

“The situation has turned decidedly pro-mining with site activities made possible over the past two months with the deployment of large safety-protection forces.

“During the same period, the proclamation of national pro-development reforms is putting Ethiopia in the top ten growth countries globally where it had been for nearly 20 years until recently,” he explains.

In these same two months, reforms have included the floating of the currency, the launching of the first initial public offering on the new Ethiopian Stock Exchange, the opening of foreign investment into the local financial sector, international creditor rescheduling and a major International Monetary Fund financial support package.

"We are fortunate to have very supportive government partners, financiers and contractors, and it is fortuitous that major economic reforms are being unveiled in Ethiopia as we launch our works. A nearby multimillion-ounce gold mine has also started its initial site works,” Anagnostaras-Adams states.

At the current all-time-high gold price of $2 500/oz, the first full-year net cash flow from the Tulu Kapi operations is estimated at $196-million, or £154-million, which is more than sufficient to prepay all debt.

This is based on the bankable plans for the openpit and the plant running at designed nameplate processing capacity.