MINING REFINING

KEFI highlights cashflow benefit of record gold price

Fri Aug 16 2024

KEFI Gold and Copper PLC (AIM:KEFI, OTC:KFFLF) has estimated that current gold prices should mean the Tulu Kapi gold mine development in Ethiopia will generate cashflow equivalent to its expected debt in one year. Harry Adams, executive chairman, said: "At the current all-time high gold price of US$2,500 per ounce, the first full year net cash flow from Tulu Kapi operations is estimated at US$196 million (£154 million).

“This is based on the bankable plans for the open pit with the plant to run at designed nameplate processing capacity,” he added. KEFI added that on the ground at Tulu Kapit, construction of the building camps has started alongside the drilling of water wells. Budgets for infrastructure are also being finalised with resettlement surveys underway. On financing, a second site survey is underway for the co-credit lender.

“KEFI is pressing ahead on the ground in Ethiopia as fast as permitted by land access," Adams added. “The situation has turned decidedly pro-mining with site activities made possible over the past two months with the deployment of large safety-protection forces.”

Source: https://www.proactiveinvestors.co.uk/