Kefi Gold reports wider annual loss as it advances Tulu Kapi

(Sharecast News) - Kefi Gold and Copper reported a wider annual loss for 2025 as it continued to advance the Tulu Kapi gold project in Ethiopia, which had now moved into full development after the company assembled a funding package of more than $400m.

The AIM-traded company said it made no revenue in the year ended 31 December, unchanged from 2024.

Its loss before tax widened to �9.7m from a restated profit of �1.2m a year earlier, while administrative expenses were broadly stable at �6.0m, compared with �6.2m.

Finance costs rose to �2.6m from �2.4m, while the company recorded a �0.5m fair value loss on its investment in Gold & Minerals Co, compared with a �6.1m gain in 2024.

Cash and cash equivalents increased to �8.8m at year-end from �0.2m, while total assets rose to �64.4m from a restated �45.5m.

Net assets increased to �57.2m from �39.1m. Intangible assets, mainly relating to the Tulu Kapi project, rose to �44.2m from �38.4m after �5.8m of additions during the year.

Kefi said 2025 was a transformational year, with the company finalising a funding package for Tulu Kapi comprising $240m of secured project finance debt, contractor commitments estimated at $60m and more than $100m of equity contributions.

It said the full 27-month development schedule was launched in March 2026, targeting first production in mid-2028.

The company said early works had been completed, infrastructure work was progressing and the community resettlement programme had begun.

A formal groundbreaking ceremony was held on 18 February 2026, attended by Ethiopian prime minister Abiy Ahmed and other senior government and community representatives.

Tulu Kapi has maiden ore reserves of 1.05 million ounces and mineral resources of 1.7 million ounces, at an average grade of 2.7 grams per tonne and metallurgical recovery of around 94%.

Kefi said the project was expected to produce an average of about 166,000 ounces a year for more than seven years under its initial base plan, with underground expansion studies targeting overall production of around 200,000 ounces a year.

At gold prices of $3,000 to $5,000 an ounce, Kefi said Tulu Kapi was expected to generate average EBITDA of about $355m to $697m a year over the first three years of production, equivalent to about $305m to $599m net to KEfi.

All-in sustaining costs were estimated at $1,114 to $1,254 an ounce, while all-in costs after debt servicing were put at $1,366 to $1,506 an ounce.

The company said the project's net present value, based on its expected 86% beneficial interest and net of all capital servicing, ranged from $1.1bn at the start of construction with gold at $3,000 an ounce to $2.4bn at the start of production with gold at $5,000 an ounce.

Total net cash flow over seven years was estimated at $1.8bn to $3.4bn across the same gold price range.

Executive chairman Harry Anagnostaras-Adams said Kefi had reached "a pivotal moment at a pivotal time", adding that the company had assembled "the right teams and the right financing in the right locations at the right time".

"Our focus in Ethiopia is now clear: to deliver Tulu Kapi into production," he said.

"With the development financing structure in place, contractors appointed and early works completed, the project has moved into the full development program, targeting production from mid-2028."

In Saudi Arabia, Kefi said its investment in GMCO had been diluted to about 13% during 2025 as the company prioritised capital allocation towards Tulu Kapi.

GMCO's portfolio includes the Jibal Qutman gold project, which was finalising its definitive feasibility study, and the Hawiah copper-gold project, described by Kefi as one of the most significant discoveries in the region.

The company said GMCO had also been selected for Saudi Arabia's Exploration Enablement Program, a government initiative backed by about $180m of funding to accelerate exploration.

Kefi's investment in GMCO was recognised at a fair value of �6.0m at year-end, down from �6.4m.

After the year end, Kefi also entered into a $20m equity-ranking gold royalty agreement with Chancery Royalty and secured a further $10m equity-ranking royalty at subsidiary level with Mithril Royalties.

The company also issued 2.96 billion new shares in March 2026 at 1.2p each, raising �35.6m.

At 1147 BST, shares in Kefi Gold and Copper were up 0.35% at 1.15p.

Reporting by Josh White for Sharecast.com.

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