8th Jun 2026 13:14
(Alliance News) - Kefi Gold & Copper PLC swung to a pretax loss in 2025, although it said it is now moving from development towards production and is positioned for strong future cash generation from its flagship Tulu Kapi gold project in Ethiopia.
The gold and copper exploration and development company, which has projects in Ethiopia and Saudi Arabia, reported a pretax loss of GBP9.7 million for 2025, compared with a pretax profit of GBP1.2 million a year earlier.
The swing to loss reflected a GBP533,000 fair value loss on investments, compared with a GBP6.1 million gain in 2024, alongside higher finance costs of GBP2.6 million from GBP2.4 million. Administrative expenses narrowed slightly to GBP6.0 million from GBP6.2 million.
Kefi reported an operating loss of GBP6.7 million, widening from GBP3.6 million a year before.
Executive Chair Harry Anagnostaras-Adams said 2025 was a "defining year" for the company, marking the transition of its Tulu Kapi project from planning into execution.
Kefi said it launched the full 27-month development schedule for Tulu Kapi in March 2026 after securing more than USD400 million of funding, including USD240 million of project finance debt, contractor commitments of around USD60 million and over USD100 million in equity contributions.
Construction is now underway, with first gold production targeted for mid-2028.
The company said Tulu Kapi hosts ore reserves of 1.05 million ounces and mineral resources of 1.7 million ounces. Based on gold prices of USD3,000 to USD5,000 per ounce, Kefi estimates the project could generate average annual Ebitda of USD355 million to USD697 million during its first three years of production.
Kefi said the project's net present value ranges from USD1.1 billion at the start of construction using a USD3,000 gold price assumption to USD2.4 billion at the start of production using USD5,000 gold.
"These metrics position Tulu Kapi as a highly cash-generative project," Anagnostaras-Adams said, adding that even at USD2,500 per ounce, operating cash flow is expected to exceed total project debt in the first full year of production.
Looking ahead, Anagnostaras-Adams said Kefi is entering "a new phase centred on rapid progress and significant cash generation".
"Kefi has never been better positioned than it is today," he said. "The successful delivery of the next phase will mark a transformational milestone for the company and, we believe, the beginning of a new and rewarding period for our shareholders."
Shares in Kefi Gold & Copper were up 0.7% at 1.15 pence in London on Monday afternoon.
By Eva Castanedo, Alliance News reporter
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