In a chat with Proactive's Stephen Gunnion, Harry Anagnostaras-Adams, chairman of KEFI Gold and Copper PLC (AIM:KEFI, OTC:KFFLF), shared the latest achievements and future directions of the company, particularly focusing on its ventures in Ethiopia and Saudi Arabia.
With a recent discovery at the Jibal Qutman Gold project and significant financial strides, KEFI's narrative is one of resilience, strategic growth and promising prospects.
Stephen Gunnion (SG): Harry, KEFI has reported encouraging updates this quarter. How do these align with the company’s long-term strategic goals?
Harry Anagnostaras-Adams (HA): Our journey in frontier markets over the last 15 years has been about identifying and capitalizing on low-cost, high-yield opportunities, a strategy that has yielded around 5 million ounces of gold discoveries. With a discovery cost of $32 per ounce, we've substantially undercut the industry benchmark. Our approach, anchored in strong local partnerships and a keen focus on cost-effective discoveries, has positioned us exactly where we aimed to be.
SG: Operating in Ethiopia and Saudi Arabia presents unique challenges. Can you provide updates on these jurisdictions?
HA: Indeed, both regions presented their fair share of hurdles, from security concerns to regulatory and property rights issues. However, recent years have seen a positive shift, with both Ethiopia and Saudi Arabia demonstrating a strong commitment to developing their mining sectors. This change has significantly benefited KEFI, positioning us at the forefront of these emerging mining hotspots.
SG: The recent discovery in Saudi Arabia is quite significant for KEFI. Could you elaborate on its importance?
HA: The discovery at Jibal Qutman, our first in the country, marks a significant milestone for us, especially after an eight-year regulatory hiatus. This discovery not only underscores our resilience but also opens up exciting prospects for further exploration and development on the property, much of which remains unexplored.
SG: How does the funding from your joint venture partner ARTAR contribute to KEFI’s operations?
HA: ARTAR's support is a testament to our strong, trust-based partnership, allowing us to maintain momentum across our projects despite financial constraints. This collaborative approach is somewhat unique in the corporate world but underscores the deep mutual commitment to advancing our shared objectives.
SG: The financing package for the Tulu Kapi gold project is a significant development. Can you detail the structure of this financing?
HA: The $320 million financing package is led by the Eastern and Southern African Trade and Development Bank and the African Finance Corporation, covering approximately 70% of the project costs. The Ethiopian government and multinational corporations' subsidiaries contribute to the funding, showcasing the diverse and strategic support for the project. This financing underscores the robust backing for KEFI's initiatives and our strategic approach to project development.
SG: Looking ahead, what developments can investors anticipate from KEFI Gold and Copper?
HA: In the coming months, investors should watch for progress on the Tulu Kapi gold project's finance closing, community preparation, and legal formalities. Additionally, we'll be defining the development project for Jibal Qutman in Saudi Arabia and ramping up exploration efforts to maintain and expand our project pipeline. The positive shifts in Ethiopia and Saudi Arabia's mining sectors have allowed us to accelerate our activities, promising a rich news flow and significant advancements.