REG - Kefi Gold and Copper - Saudi Arabia Update

KEFI Gold and CopperAnnouncement

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RNS Number : 4713C  Kefi Gold and Copper PLC  30 April 2026

30 April 2026

 

KEFI Gold and Copper plc

 

("KEFI" or the "Company" or the "Group")

 

Saudi Arabia Update

 

KEFI Gold and Copper plc (AIM: KEFI), the gold and copper exploration and
development company with projects in the Federal Democratic Republic of
Ethiopia and the Kingdom of Saudi Arabia, is pleased to provide an update in
respect of the Company's activities in Saudi Arabia.

 

Overview

 

KEFI's Saudi Arabian portfolio is held through its 13% shareholding in Gold
and Minerals SLA ("GMCO"), the Company's joint venture created with
long-standing partner Abdul Rahman Saad Al Rashid and Sons Company Limited
("ARTAR"). GMCO provides KEFI with exposure to one of the most prospective and
rapidly developing mining jurisdictions globally, within the Arabian Nubian
Shield. To-date GMCO has made two discoveries and defined a JORC-compliant
resource base of 3.8Moz Au eq. A total of 16 gold and base metal exploration
licences have been secured so far for GMCO, which has also recently formed a
joint venture over additional areas with major Australian miner Hancock
Prospecting and is formalizing another joint venture with Saudi conglomerate
AJ Lan Bros.

 

Operations - Jibal Qutman and Hawiah

 

Jibal Qutman Gold Project has been finalising its Definitive Feasibility Study
("DFS") for staged development of its 900,000 ounce gold JORC-compliant
resource, similar in physical scale to Tulu Kapi, but lower in grade and strip
ratio. This is targeted to be GMCO's first development, to hopefully be
triggered in 2026. The DFS is currently under third party review for GMCO
Board consideration and refinement of strategy and plans over coming months. A
Mining Licence Application has been lodged. Accordingly, GMCO is advancing the
relevant workstreams to address its Final Investment Decision ("FID") on the
Project.

 

At Hawiah, current resources for just the main Hawiah deposit stand at 36.2Mt,
with estimated contained copper of 297,000 tonnes, 745,000 oz of gold, 11.6
Moz of silver and 310,000 tonnes of zinc.  The resource potential at Hawiah
has been expanded with the award of the Umm Hijlan Exploration Licence which
has doubled the strike length of the Hawiah mineralised system currently under
development study. In parallel, GMCO's new joint venture with Hancock
Prospecting has secured the highly prospective Al Hajar North mineralised
belt, which is parallel with and analogous to the Wadi Bidah Minerals District
("Wadi Bidah") which hosts Hawiah. The broader industry's validation of this
prospectivity is evident, with areas not previously selected by GMCO
subsequently being pegged by a joint venture between Ivanhoe Electric and
Ma'aden.

 

Separation from Tulu Kapi of Financing and Management of Growth Initiatives

 

The financing package recently closed for development of Tulu Kapi included
cost overrun reserves and a capital allocation for the initiation of growth
opportunities.  Going forward beyond the initiation phase, the Saudi projects
and other non-Tulu Kapi initiatives will be funded independently of the Tulu
Kapi project financing - optimising the application of project finance, other
non-ownership dilutive capital structures and joint ventures.

 

In collaboration with ARTAR, GMCO has recently been strengthened as a
standalone entity with a dedicated management team, operating independently of
shareholders and supported by an enlarged board. At the same time, Jeff Rayner
has rejoined KEFI as Head of Exploration. Jeff was KEFI's inaugural Managing
Director, then focused on grass roots exploration which, under his leadership,
led to the Company's Cyprus-based team's early discoveries in Saudi Arabia,
Ethiopia and elsewhere within our selected geological terrains, especially the
Arabian Nubian Shield.  His skills and experience will now again be used to
lead KEFI's exploration initiatives as they are prioritised and to support the
Saudi joint venture wherever appropriate.

 

Independent Assessment of KEFI's GMCO Holding

 

KEFI's historical investment in GMCO is approximately US$13 million and KEFI's
conservative accounting policy has been to write off such exploration
expenditure until a positive FID is reached, at which point an appropriate
book value is recognised.

 

Although KEFI has assigned a nil book value to its current 13% interest in
GMCO, this does not diminish the significance of the Company's involvement in
the project.  The conservative valuation approach reflects KEFI's financial
reporting strategy rather than the operational or strategic value of the
asset.  GMCO has made notable progress, successfully advancing its activities
and strengthening its position within the rapidly expanding Saudi minerals
sector.

 

KEFI is currently taking independent advice on the 'fair market value' of its
13% holding and is also in consultation with its Auditors as to the
appropriate carrying value on the Company's balance sheet.

 

Enquiries

 

 KEFI Gold and Copper plc
 Harry Anagnostaras-Adams (Executive Chairman)       Tel: +357 2225 6161
 John Leach (Finance Director)
 SP Angel Corporate Finance LLP (Nominated Adviser)  Tel: +44 20 3470 0470
 Caroline Rowe / Adam Cowl
 Tavira Financial Limited (Broker)                   Tel: +44 20 7100 5100
 Oliver Stansfield / Jonathan Evans
 IFC Advisory Ltd (Financial PR and IR)              Tel: +44 20 3934 6632
 Tim Metcalfe / Florence Staton

Further information can be viewed at https://www.kefi-goldandcopper.com
(https://www.kefi-goldandcopper.com/)

 

 

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