KEFI Gold And Copper (KEFI) H2 2024 earnings summary

Executive summary

• Advanced Tulu Kapi Gold Project in Ethiopia to major works, with government-funded infrastructure and project financing nearing completion; targeted production in 2027.

• Reduced stake in Saudi JV GMCO to 15% amid strategic review, focusing on Jibal Qutman Gold and Hawiah Copper-Gold projects, both progressing to feasibility and development stages.

• Raised £12.3M in equity placements and secured $240M in project debt for Tulu Kapi; additional equity and government commitments in place.

• Maintained compliance with ESG standards, conducted extensive community engagement, and advanced resettlement and infrastructure programs.

Financial highlights

• Group loss before tax reduced to £5.2M (2023: £7.9M), mainly due to a £6.8M gain from dilution of Saudi JV interest.

• Net cash outflow for the year was £6.8M; cash at year-end stood at £185K.

• Non-current assets increased to £38.4M, reflecting capitalized Tulu Kapi project costs.

• No revenue generated; all Saudi exploration costs expensed, Ethiopian project costs capitalized.

Outlook and guidance

• Tulu Kapi production targeted for late 2027, with commissioning scheduled for mid-2027.

• Jibal Qutman and Hawiah projects in Saudi Arabia advancing towards development, with updated resource estimates and feasibility studies underway.

• Ongoing focus on securing final equity and debt financing, and expanding exploration in both Ethiopia and Saudi Arabia.