KEFI Gold and Copper PLC (AIM:KEFI, OTC:KFFLF) chair Harry Anagnostaras-Adams this week joined Proactive for an interview during the Resourcing Tomorrow conference, where he highlighted the company’s progress and plans for its next phase in Ethiopia.
The flagship project, Tulu Kapi in Ethiopia, is a $320 million high-grade gold development.
Anagnostaras-Adams said the project recently began early works following a successful capital raise. KEFI plans to commence major construction early next year.
Here, we look closer at what was said.
Proactive: Harry, great to speak to you in person. What brings you to Resourcing Tomorrow 2024?
Anagnostaras-Adams: Well, we have a stand here where we have people answering questions from the investment community.
I've attended this event for several years, so it's nice to be back to see how it's going.
Proactive: Are there meetings set up over the next few days, Harry?
Anagnostaras-Adams: Yes, I've been asked to sit in on 31 one-on-one meetings with different people, so I'll be busy.
Besides that, the general public and investment community will visit our stand to ask questions.
Proactive: For viewers not familiar with the company, Harry, could you give a brief overview of KEFI Gold and Copper?
Anagnostaras-Adams: Sure. We're a frontier market explorer launched in 2006, focused on the Arabian-Nubian Shield, which includes Saudi Arabia and Ethiopia.
It's been a long journey in both countries, but both have improved significantly in recent years. Saudi Arabia has become a top jurisdiction for mining with major players entering the space.
In Ethiopia, our flagship project is the high-grade Tulu Kapi gold project.
We acquired it from a distressed seller and turned it around. It's a $320 million development, and we launched early works two months ago after raising capital for that phase. We're now moving to the major works phase.
The broader context is that these frontier markets were not ready for modern mining development until recently. Now they are, and we're at the forefront of this transition.
We’ve built strong positions in both countries and will soon exit Saudi Arabia to focus on majority-controlled projects in Ethiopia. We anticipate further opportunities in Ethiopia, where we have a leading standing.
Proactive: You talked about a capital raise. That was a £10 million raise, with £500,000 from a retail offer. Are you seeing interest from both institutional and retail investors?
Anagnostaras-Adams: Retail investors can’t provide the full capital needed for a large project like Tulu Kapi, but their participation is important.
The capital raise was a success, bringing in long-term investors from North America, Australia, Europe, and the Middle East.
After securing these institutional funds, we opened the opportunity to retail investors. Of the £500,000 raised from retail, 90% came from existing shareholders, which is a good outcome.
Proactive: What milestones should investors and new shareholders look out for?
Anagnostaras-Adams: By mid-2025, we should be in major construction after launching earlier in the year.
We expect to have significant cash from the Saudi exit and a growing pipeline of projects in Ethiopia.
It’s a pivot point for the company, reflecting the country’s improved conditions, a favorable gold price, and our readiness for this next stage.
Proactive: I hope you'll keep us updated on progress and have fruitful discussions over the next few days.
Anagnostaras-Adams: Thank you for following us and providing this opportunity.