KEFI Gold and Copper Plc (KEFI) Earnings Call Transcript & Summary

In KEFI's case, we're actually going to have 3 mines producing and contributing to shareholder wealth and some diversification because of that instead of being a 1-legged stool, if you like, to be a 3-legged stool. That's the fundamental, putting aside prospectivity and the excitement of what's going to be happening in Saudi Arabia, that very fundamental thing changes the nature of KEFI risk, if you like, to an owner of KEFI shares.

Hello, you are watching Proactive. I'm joined by KEFI Golden Copper Executive Chairman, Harry Adams. Harry, very good to speak with you and happy New Year. What were the main points of last week's highly detailed and long RNS?

Happy New Year, Stephen. Well, the company is a different company today than it was a month ago. And therefore, we felt it was important to spell it out in great detail, partly in response to a plethora of questions we'd received on our info line and partly just courtesy and due process. But the main point really is that we've got the money to develop the Tulu Kapi project with barely any reliance on the shareholders for that process. And secondly, the principal contractor and our teams in country have been triggered. And I suppose certainly that the community, the government and all the other local stakeholders are all lined up and pushing hard to do whatever they need to do, whatever their responsibilities are. So quite a transformational moment, hard to overstate its importance from being an aspiring developer in a frontier market to being a developer in a market that's now taking off in other sectors and is experiencing gold rushes and in the midst of this very strong bull market that's occurring for metals and gold in particular, it's a different company. And that's why the long RNS.

Harry, we're used to seeing you as KP, but who are the other key parties involved in Ethiopia?

Well, I'm the spokesman and we have a one spokesman rule on each agenda and with each stakeholder, but it's not to say that this is a one-man band, there's a full team around me and working in the company, quite bespoke, if you like, for the task at hand. We brought in the Development Managing Director last year into Ethiopia and highly experienced Chief Operating Officer type former Western Mining man from Western Australia. So a classic pedigree for the task, knows Ethiopia well, actually was instrumental in our buying it, helped us do our due diligence and then came back to develop it. driven, if you like, to do it. The Finance Director, project manager, social environmental manager, they're all in place in country dealing with the realities on the ground. And there's a full team around them, mostly Ethiopian that we've groomed for the position. And so yes, it's a powerful team, all African experienced and nearly all African. So it's a bespoke team with the right pedigree, and I'm very, if you like, thankful and proud to be working with them.

Launching the Ethiopian flagship projects, the key news items. So why details on Saudi Arabia?

Well, that's a pretty neat question. And an unstated risk for a single asset developer that is a systemic risk that should be addressed if it can be, and that's what we've done is that it's a single asset developer. And therefore, in KEFI's case, we're actually going to have 3 mines producing and contributing to shareholder wealth and some diversification because of that instead of being a 1-legged steel, if you like to be a 3-legged stool. That's the fundamental putting aside prospectivity and the excitement of what's going to be happening in Saudi Arabia, that very fundamental thing changes the nature of KEFI risk, if you like, to an owner of KEFI shares.

So how does KEFI deliver on Saudi Arabia at the same time as in Ethiopia?

Yes. Well, we wouldn't take on the responsibility to lead the charge on all of those assets. We wouldn't do that because the company whilst some of us have been around a long time and been involved in many mine developments, in Australia in particular, the leadership team has all the experience that you need, but building the production shop in Ethiopia means that it's sort of all hands on deck with a clear focus and a clear mandate. And we -- so we don't distract the Ethiopian team on to Saudi Arabia. In Saudi, the joint venture company we have with the Al Rashid family is a powerful entity in its own right now. We appointed the Managing Director for Development there last year also. And the Al Rashid family is a conglomerate of interest under the family. The large construction interests and other interests. And therefore, the wrapping of governance and oversight provided by our partner there complements us and means that on the one hand, we have the benefit of those assets for KEFI, but we don't have the operator's primary responsibility for those assets. And that means that KEFI indeed, as an operator is focused on Tulu Kapi.

Just finally, why does the RNS talk about moving to the main markets in 2028?

Well, the company is growing before our eyes rapidly. And one of the aspects of its growth is its market capitalization as it's transforming quickly into a developer and then into a producer. And in so doing, as the market cap grows, it needs a deeper and broader stock market for its shares, for the company's shares. I'm told that today, we're the second largest traded stock on AIM, and we barely started in terms of our growth. We're up 3, fourfold over the last 6 or 8 months, whatever it is. But that's going to keep going that sort of response, if you like, as we put runs on the Board and deliver on our mandate. We need to be in a bigger market and the obvious one is the main board in London.

So good news to start 2026. Harry, thank you very much for your time today.

You're very welcome, and thanks for giving me the opportunity. Happy New Year.

Harry Adams, Executive Chairman of KEFI Gold and Copper.