KEFI Gold and Copper (AIM:KEFI), the pre-revenue mine developer, confirmed a loss of £4.6 million for the six months ended 30 June, up from £3.1 million a year earlier, as the Ethiopia and Saudi Arabia-focused gold developer absorbed higher costs tied to advancing its flagship project.
Administrative expenses nearly doubled to £4.3 million from £2.4 million in the first half of 2025, while net finance income of £0.1 million reversed a £0.7 million net finance cost a year earlier.
Net assets rose to £87 million at the end of June, from £57 million at the end of December, after KEFI completed a roughly £35.6 million equity placing in March, approved by shareholders in April to complete the Tulu Kapi funding package and bolster its capital base amid heightened Middle East geopolitical risk.
The period saw KEFI finalise the Tulu Kapi financing package: US$240 million in secured project debt from the Africa Finance Corporation and the Eastern and Southern African Trade and Development Bank, US$60 million in mining fleet financing via contractor BCM Group, and over US$100 million of equity-risk capital including Ethiopian preference shares and royalty instruments.
Construction formally began at a ceremony on 18 February, attended by Ethiopia's Prime Minister and Oromia's President.
Since the period ended, a fatal security incident on 4 September, prompted the company to suspend development activities pending a full investigation and safety measures before any phased resumption.
KEFI said community representatives and Ethiopian and Oromia government officials have reaffirmed support for the project and its cautious approach to restarting work.
In Saudi Arabia, KEFI's 13%-owned joint venture GMCO advanced feasibility studies at Jibal Qutman and Hawiah and was selected for the Saudi government's roughly US$180 million Exploration Enablement Program.