Aim-listed Kefi Minerals says the current gold price has highlighted the strong investment case for its Tulu Kapi project to both investors and the Ethiopian government.
"The outlook is for the gold price to continue to increase as interest rates remain near zero and Covid-19 responses increase government debt to unprecedented level," chairperson Harry Anagnostaras Adams comments.
Kefi has adjusted its modus operandi owing to Covid-19 and remains focused on the key targets set out in February. These are to allow major site activities to start for the company's Tulu Kapi project from October; and to deliver a maiden mineral resource for the Hawiah project in Saudi Arabia in mid-2020.
Kefi has also reduced its short-term expenditure to reflect the current environment.
Moreover, the board and senior executives have decided not to draw any salaries in the year to date while plans were reviewed and adjusted in light of the pandemic, while ongoing salary reductions by senior management of 25% from January 1, pending progress reviews, have been adopted.
"The Tulu Kapi consortium is focused on closing the full project financing in October 2020. Tulu Kapi is the first modern mine development in Ethiopia for decades and we could not ask for a more committed community and government. This project is a national priority and will be the largest single export generator for Africa's highest growth country,” says Adams.
"We are also encouraged by the results to date of our ongoing drilling programme in Saudi Arabia, which has encountered drill intercept grades of up to 5% copper-equivalent this year.
"Kefi is targeting a maiden Joint Ore Reserves Committee resource for Hawiah in mid-2020 following the completion of the current drilling programme,” he added.