KEFI Gold and Copper plc (LON:KEFI), the gold exploration and development company with projects in the Democratic Republic of Ethiopia and investment in the Kingdom of Saudi Arabia, has announced its unaudited interim results for the six months ended 30 June 2026.
Highlights
Tulu Kapi Gold Project
Post-period
- On 4 September 2026, a serious security incident at the Tulu Kapi Gold Project (“Tulu Kapi” or the “Project”) resulted in multiple fatalities, including a Company employee. The Company’s thoughts remain with his family and with all those affected. All other affected employees have been accounted for, and there have been no further fatalities or injuries.
- Development activities were immediately suspended with a view to resumption in a carefully sequenced manner.
- Consultations with representatives of the local community and the Ethiopian and Oromia Governments, and their respective agencies have reaffirmed support for the Project and for the Company’s careful approach to resuming development. Principal contractors, lenders and local investors also remain supportive.
During the period
- Full development of the Project was launched following signing of the US$240 million senior debt facility documentation and completion of the equity risk capital package
- Tulu Kapi is held through KEFI’s Ethiopian subsidiary, Tulu Kapi Gold Mines Share Company (“TKGM”), in which KEFI expects to retain a beneficial interest of approximately 86%, with the Government of Ethiopia holding the balance (including a 5% free-carried interest under Ethiopian mining legislation).
- A ceremony marking the start of construction was held on 18 February 2026. It was attended by representatives of the community, the Prime Minister of Ethiopia and the President of Oromia plus representatives of Government agencies, contractors, lenders and local and international investors.
- A mining services agreement with BCM Group Limited (“BCM”) was signed, valued at more than US$400 million over the initial nine-year Tulu Kapi mine life, and announced on 18 June 2026.
Financing
- The Project’s development finance package, confirmed as fully assembled in the period, comprises:
- US$240 million in secured project debt from the Africa Finance Corporation (“AFC”) and the Eastern and Southern African Trade and Development Bank (“TDB”)
- US$60 million of mining fleet financing provided via BCM
- over US$100 million of equity-risk capital, structured through a combination of:
- Ethiopian Preference Shares (“KEFI EthioPrefs”),
- Royalties (including a US$20 million royalty transaction with Chancery Royalty announced in February 2026, of which US$10 million has been drawn);
- Government of Ethiopia equity participation at the TKGM level; and
- an equity fundraising of approximately £35.6 million undertaken by the Company in March 2026 and approved by shareholders on 14 April 2026, to complete the Tulu Kapi funding package and to strengthen the Company’s capital base given the recently heightened regional geopolitical risk in the Middle East.
Project economics
As outlined in the Company’s 2025 annual report, at gold prices of US$3,000–5,000/oz, Tulu Kapi is expected to generate average EBITDA of c.US$355–697 million per annum over the first three years of production (c.US$305–599 million net to KEFI), All-in Sustaining Costs of US$1,114–1,254/oz, and a Net Present Value (5% discount, KEFI’s c.86% interest) ranging from US$1.1 billion at the start of construction (with gold at US$3,000/oz) to US$2.4 billion at the start of production (with gold at US$5,000/oz).
Saudi Arabia — GMCO
- KEFI holds its Saudi Arabian interests through Gold & Minerals Co. Limited (“GMCO”), a joint venture company with ARTAR (Abdul Rahman Saad Al-Rashid & Sons Company Limited). During 2025, KEFI’s shareholding diluted to approximately 13% (from 15.34%) as the Company prioritised capital allocation to Tulu Kapi.
- GMCO now operates with its own management team and an enlarged board, with KEFI’s support being via its representation on the Board and the Board’s Operating Oversight Committee.
- Key H1 2026 developments:
- GMCO was awarded the Umm Hijlan Exploration Licence, extending the mineralised strike of the Hawiah copper-gold system, and (with joint-venture partner Hancock Prospecting) the Al Hajar North licence.
- The Saudi Arabia Update announced by the Company on 30 April 2026 confirmed continued advancement of Definitive Feasibility Studies at Jibal Qutman (gold) and Hawiah (copper-gold-zinc-silver), with GMCO’s own leadership team being expanded and regional exploration activity increased.
- GMCO was selected as one of six participants (from 49 applicants) in the Saudi Government’s Exploration Enablement Program, which provides approximately US$180 million in funding to accelerate exploration and de-risk early-stage investment.
Board, Governance and Listing Strategy
During the period
- Stifel Nicolaus Europe Limited was appointed financial adviser and joint broker on 26 May 2026. The appointment supports KEFI’s objective of moving its listing venue from AIM to the LSE Main Market.
- The following Board changes took effect from the close of the AGM:
- Richard Robinson retired as a Non-Executive Director;
- Dr Alistair Clark was appointed Senior Independent Director and Deputy Chairman; and
- Maleda Bisrat was appointed an independent Non-Executive Director.
Post-period
- Danny Callow was appointed an independent Non-Executive Director on 1 September 2026, filling the vacancy left by Richard Robinson. He is an experienced African mine builder, formerly with Glencore, Mopani, Mutanda and Toubani Resources.
- At the date of this report, the Board comprises the Executive Chairman, the Finance Director and four independent Non-Executive Directors. Each Non-Executive Director chairs a committee:
- Dr Alistair Clark: ESG and Sustainability
- Addis Alemayehou: Nomination and Remuneration
- Maleda Bisrat: Audit and Risk
- Danny Callow: Operations and Physical Risks
- The KEFI Directors, Executive and Non-Executive are to join the boards of the principal subsidiaries, KME Minerals Ethiopia Holding Share Company (“KMEH”) and TKGM for fullest transparency and oversight.
- Around the start of production, planned for 2028, the Board expects to appoint a Chief Executive Officer. At that point:
- the Executive Chairman plans to become Non-Executive Chairman; and
- the Finance Director will retire and a successor appointed.
Financial Review
As at 30 June 2026 (and as at today’s date), the Company had not drawn any working capital facilities other than small loan facilities in Ethiopia. Net assets increased to £87 million as at 30 June 2026 (31 Dec 2025: £57 million) following completion of the March 2026 placement.
The Company’s comprehensive loss for the period increased to £4.6 million (H1 2025: loss of £3.1 million). This primarily reflected an increase in the Group’s administration expenses from £2.4 million in H1 2025 to £4.3 million and a Net Finance income of £0.1 million (H1 2025 Net finance cost £0.7 million).
