KEFI Gold And Copper (KEFI) H2 2023 earnings summary

Executive summary

• Advanced gold and copper projects in Ethiopia and Saudi Arabia, with Tulu Kapi at funding stage and Jibal Qutman and Hawiah at feasibility study stage.

• Early Works launched at Tulu Kapi, targeting gold production by mid-2026; project finance package of $320 million being finalized.

• Saudi joint venture GMCO progressing feasibility studies at Jibal Qutman and Hawiah, with significant resource expansion and new discoveries.

• Strategic focus on project-level financing, regional alliances, and maximizing local stakeholder alignment.

Financial highlights

• Group loss before tax for 2023 was £7.9 million, compared to £6.4 million in 2022.

• Net cash outflow for the year was £5.1 million, with £1.8 million used in operating activities and £3.3 million on exploration and evaluation.

• Non-current assets increased to £34.8 million, mainly due to capitalized Tulu Kapi project costs.

• £6.8 million raised through share placements for working capital and debt repayment.

Outlook and guidance

• Tulu Kapi gold production expected to commence mid-2026, with projected net cash flow to KEFI's 80% interest estimated at £80–100 million per annum at current gold prices.

• Hawiah and Jibal Qutman feasibility studies to be completed in 2024, with project financing expected to be sourced within Saudi Arabia.

• Ongoing exploration in both countries to expand resources and advance new targets.