KEFI Gold and Copper - Counting down to production

In its release of 21 November, KEFI announced the formal approval of the updated finance plan by all the Tulu Kapi syndicate contractors, investors and lenders. Financing continues to be almost entirely at the project or subsidiary level and is consistent with previous guidance. The detailed breakdown of the sources and uses of the US$320m project funding will be detailed at the time of signing definitive documentation, but we have a reasonable understanding based on our detailed modelling and management guidance (see Exhibit 2). An important feature is that nearly all of KEFI’s equity contribution is arranged with regional investors who convert into KEFI shares in years 3–4 (FY26 onwards), which (a) avoids unnecessary dilution and (b) provides major regional investors with an opportunity to avoid the devaluation of locally retained earnings. The balance of equity requirements, if any, will be dealt with in H123 after the signing of definitive agreements at year-end.