Kefi Gold & Copper PLC reported a pretax loss for 2025, despite stating that the company is now entering a major transition phase as its flagship Tulu Kapi gold project in Ethiopia moves from development toward production.
The gold and copper exploration and development company, which has projects in Ethiopia and Saudi Arabia, recorded a pretax loss of GBP 9.7 million in 2025. This compares with a pretax profit of GBP 1.2 million in the previous year.
The company said the shift into loss was mainly due to a GBP 533,000 fair value loss on investments, compared with a GBP 6.1 million gain in 2024. Finance costs also increased to GBP 2.6 million from GBP 2.4 million, while administrative expenses declined slightly to GBP 6.0 million from GBP 6.2 million.
Kefi’s operating loss widened to GBP 6.7 million, compared with GBP 3.6 million a year earlier.
Executive Chair Harry Anagnostaras-Adams described 2025 as a “defining year” for the company, saying it marked the transition of the Tulu Kapi project from planning into execution.
According to Kefi, the full 27-month development schedule for Tulu Kapi was launched in March 2026 after the company secured more than USD 400 million in funding. This includes USD 240 million in project finance debt, around USD 60 million in contractor commitments, and more than USD 100 million in equity contributions.
Construction of the project is now underway, with first gold production targeted for mid-2028.
Kefi said Tulu Kapi contains ore reserves of 1.05 million ounces and mineral resources of 1.7 million ounces. Based on gold price assumptions ranging from USD 3,000 to USD 5,000 per ounce, the company estimates that the project could generate average annual EBITDA of between USD 355 million and USD 697 million during its first three years of production.
The company also said the project’s net present value ranges from USD 1.1 billion at the start of construction, based on a USD 3,000 gold price assumption, to USD 2.4 billion at the start of production, based on a USD 5,000 gold price assumption.
Anagnostaras-Adams said these figures show that Tulu Kapi is positioned to become a highly cash-generative project, adding that even at a gold price of USD 2,500 per ounce, operating cash flow is expected to exceed total project debt in the first full year of production. He said Kefi is now entering a new phase focused on rapid progress and significant cash generation, describing the successful delivery of the next phase as a transformational milestone for the company and the beginning of a potentially rewarding period for shareholders.
Shares in Kefi Gold & Copper were up 0.7% at 1.15 pence in London on Monday afternoon.
Source: Alliance News
