KEFI Gold and Copper (AIM:KEFI), the gold and copper explorer and developer focused on Ethiopia and Saudi Arabia, said development of its Tulu Kapi Gold Project in Ethiopia remains on schedule for commissioning in late 2027 and full production by mid-2028.
The Phase 1 Resettlement Action Plan, which clears the mining licence area for initial infrastructure, has reached 100% completion on compensation agreements, with roughly 90% of payments made.
Preparation has now begun on Phase 2, covering the open pit and plant areas. More than half of the major plant equipment, including the SAG mill, jaw crusher and electrowinning cells, is now ordered or ready for order.
Contractors Lycopodium, EEP, ERA and BCM are mobilising personnel and subcontractors on site, following completion of an access road and electrical substation.
Project debt drawdown remains on track to trigger in the fourth quarter, with KEFI saying it remains well funded following its equity raise in the first half of the year.
"Whilst global markets have been volatile for our sector, in particular since the start of the Iran War, our implementation programme remains on track," said Harry Anagnostaras-Adams, KEFI's executive chairman.
Separately, GMCO, the Saudi Arabian venture 13% owned by KEFI, is targeting a final investment decision on its Jibal Qutman oxide project in the second half of the year, at which point KEFI will confirm its own participation level.
News Intelligence what this means for the company
KEFI reports its flagship Tulu Kapi gold project in Ethiopia remains on schedule for late-2027 commissioning and mid-2028 production, with resettlement compensation now fully agreed and over half of major plant equipment ordered or ready for order. The company has also begun Phase 2 resettlement work and confirmed project debt drawdown remains on track for Q4, anchoring execution risk to concrete milestones rather than forward guidance alone.
- GMCO's Jibal Qutman oxide project in Saudi Arabia is targeting a final investment decision in H2 2024, at which point KEFI will confirm its participation level—timing this decision against Tulu Kapi's debt drawdown in Q4 may signal capital allocation priorities between the two jurisdictions.
Tulu Kapi remains the core value driver; moving resettlement to 100% compensation agreement and advancing equipment procurement to >50% ordered reduces execution risk on the 27-month construction schedule. Debt drawdown in Q4 will unlock the project finance package (USD 240m secured debt, USD 60m contractor commitments, USD 100m+ equity) and mark the transition from development risk to operational delivery risk.
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