KEFI Gold and Copper PLC (AIM:KEFI, OTC:KFFLF) executive chairman Harry Anagnostaras-Adams spoke with Proactive about the latest developments at the company’s Tulu Kapi gold project in Ethiopia, including funding milestones, construction plans, and expected production timelines.
Here, we take a closer look at the conversation.
Proactive: Harry, very good to speak with you. And congratulations on securing that $240 million debt package that is in place. What are the final steps to close the equity funding and trigger full project drawdown?
Harry Anagnostaras-Adams: The critical thing was the country being ready. The last regulatory hurdle was in May, when the Ethiopian Parliament formally recognised that one of our two banks could officially operate in Ethiopia. Since then, it’s been a fast track to close the debt — with all terms signed off.
That allows us to finalise the equity side. Equity participants wanted to know the missing figure — the last brick in the wall. Some equity funding has already gone in, and now that the debt package is set, we can finalise everything.
With the debt signed off and government permissions in place, it’s the first institutional syndication of a private sector deal in Ethiopia. We’re now balancing between how much we raise locally, from mining funds, or through a stream or gold prepay. Everyone can now negotiate the final structure and pricing.
We’ve allocated about a month to complete that, call a shareholder meeting, ratify everything — and then we're away. It’s a very exciting time. It transforms the company from being an explorer and reformer to a developer.
Proactive: Can you walk us through the key construction milestones between now and first gold production, and when investors might expect cash flow?
Harry Anagnostaras-Adams: Security was the first issue — ensuring we could safely mobilise people and equipment. Over the past two years, we’ve built out logistics, protection systems, route management, and control rooms. The site now has full security infrastructure in place.
Next, we engaged our contractor, Lycopodium, on a fixed-price lump-sum basis. Procurement has started. Once they firm up the price, we have 60 days to go — so the clock is ticking to end-November.
Lycopodium is already on-site, impressed with our preparations. Construction begins with community resettlement. We can’t bulldoze until resettlement and compensation are done. That will happen over three to six months, depending on the phase.
Then come earthworks, including an airstrip and site clearance. By early 2026, construction will be in full swing. Equipment fabrication and delivery will ramp up through 2026. Power will be connected and roads finished that year. Installation and commissioning will run through 2027, with full commissioning by late 2027.
Proactive: With gold prices near record highs, how do the latest Tulu Kapi economics translate to potential value for KEFI shareholders?
Harry Anagnostaras-Adams: Much better than I ever expected. While some may have predicted gold would rise, we couldn't budget based on that. Now, we’re looking at net cash flows of a minimum of $1 billion over seven years — even at conservative prices. At today’s gold prices, it could be multiple times that.
If gold runs higher, the returns increase further. This is now a multi-billion-dollar asset in the making. We’ve been tenacious, working through regulatory and security hurdles, and we’re ready. The timing aligns perfectly with strong gold prices.
It’s arguably the best margin gold project entering development in Africa today.