KEFI Gold and Copper (LON:KEFI) has taken an important step forward, according to the latest research note from SP Angel, which says the company has now completed funding for its flagship Tulu Kapi Gold Project in Ethiopia.
SP Angel has retained its Buy rating on the shares and set a target price of 4.2p, compared with a share price of 1.2p at the time of publication.
The main takeaway from the note is clear. KEFI has completed an oversubscribed fundraise of around £35 million, and SP Angel believes this completes the funding package required for the development of Tulu Kapi. The raise included around 2,964 million new shares at 1.2p, made up of a placing of roughly £34 million, a retail offer of about £0.9 million, and a further £0.9 million to settle outstanding expenses.
That equity raise sits within a much broader project financing package. SP Angel says the funding mix includes $240 million of secured bank debt, a $20 million government equity contribution earned through project infrastructure, $30 million of prior KEFI investments since January 2026, and a $20 million Chancery Royalty equity ranking royalty. The note also says the company has capital offers totalling more than $70 million, including up to $46 million in birr-linked redeemable preference shares.
This matters because it moves KEFI closer to construction and execution. SP Angel expects KEFI to retain an 83% effective interest in Tulu Kapi, after accounting for the Ethiopian government’s 5% free carry and 12% earn-in. Maiden production is targeted for early 2028, with nameplate capacity expected by mid-2028.
Research Analyst Sergey Raevskiy wrote, “The Company has now secured > $350M, covering the $340M Tulu Kapi project development, with additional funds earmarked for cost overrun reserves and exploration.”
That is an important statement because it suggests the project is moving beyond financing uncertainty and towards delivery. The same research note adds that, after shareholder approval for the new shares, development works are expected to ramp up and investor attention is likely to shift more squarely towards project execution.
Project economics remain a key attraction
SP Angel’s note also highlights why Tulu Kapi continues to draw attention. Using a gold price assumption of $4,000 an ounce, the broker outlines revenue of $638 million, EBITDA of $452 million, an EBITDA margin of 71%, an NPV of $1,114 million and an IRR of 73%.
Annual gold production is estimated at 166,000 ounces across a seven-year mine life, with all-in sustaining costs of $1,136 an ounce.
On the resource side, the note points to open pit reserves of 15.4 million tonnes at 2.12g/t for 1.1 million ounces, alongside total resources of 20.2 million tonnes at 2.65g/t for 1.7 million ounces across open pit and underground material.
SP Angel values the Tulu Kapi open pit and underground project at $694 million on a risked basis and places total company NAV at $752 million, or 4.2p per share.
Highlights from the latest research note
• Oversubscribed fundraise of around £35 million completed.
• Total secured funding now exceeds $350 million, covering the estimated $340 million project development cost.
• KEFI is expected to retain an 83% effective interest in Tulu Kapi.
• Maiden production is targeted for early 2028, with nameplate capacity by mid-2028.
• At SP Angel’s assumptions, the project delivers a 73% IRR and a 71% EBITDA margin.
• Annual gold production is estimated at 166,000 ounces over a seven-year mine life.
• Further catalysts include major development work in 2026, first debt drawdown, GMCO JV exploration results, Jibal Qutman FID and a Hawiah feasibility study.
Why the market may keep watching KEFI closely
The latest research note from SP Angel presents KEFI Gold and Copper as a company moving into a more decisive phase. Financing has long been one of the biggest questions around Tulu Kapi, so completing this package is an important marker.
While execution remains the next challenge, the note makes clear that the combination of project scale, forecast economics and a clearer funding route gives investors more to work with than before.
Final Thoughts
KEFI Gold and Copper now appears to have a more clearly defined path towards development at Tulu Kapi, and SP Angel’s latest assessment suggests the project’s economics remain robust even after the broker’s target price revision. For investors following near-term milestones, the next phase looks set to be less about funding and more about delivery.
