AUS
NZ
UK
CA
USA
IND
KEFI Gold and Copper PLC, a major player of Gold stock sector has provided an update on the Tulu Kapi gold mine development in Ethiopia, noting that the current high gold prices could significantly impact the project's cash flow. The company estimates that at the current gold price of $2,500 per ounce, the first full year of net cash flow from Tulu Kapi operations could match the project's expected debt.
Harry Adams, the executive chairman, stated that based on bankable plans for the open pit mine and the plant's nameplate processing capacity, the first full year of net cash flow from Tulu Kapi is estimated at $196 million (£154 million). This projection highlights the financial potential of the project given the favorable gold price environment.
On the ground at Tulu Kapi, KEFI (LSE: KEFI) has commenced construction activities, including the building of camps and the drilling of water wells. These developments are part of the broader infrastructure plans that are currently being finalized. Additionally, resettlement surveys are underway as part of the preparations for the project.
Regarding the financing of the Tulu Kapi project, KEFI mentioned that a second site survey is currently being conducted for the co-credit lender. This step is part of the ongoing efforts to secure the necessary funding for the project.
Adams also noted the progress made in Ethiopia, where KEFI is advancing the project as quickly as land access permits. He highlighted the improved conditions on the ground, which have been facilitated by the deployment of substantial safety-protection forces over the past two months, creating a more favorable environment for mining activities.
Overall, KEFI's update reflects the company's focus on advancing the Tulu Kapi gold mine project amidst a supportive market environment. The combination of high gold prices and progress on the ground in Ethiopia positions the project for potential financial success as development continues.
