Kefi stock falls after "serious security incident" at Tulu Kapi

Kefi Gold & Copper PLC on Monday reported an unspecified "incident" at its Tulu Kapi Gold Project in Ethiopia, and said it was currently unclear how the disruption will affect the development schedule.

In response, its shares plummeted 39% to 0.72 pence each on Monday afternoon in London.

The gold and copper exploration and development company, which has projects in Ethiopia and Saudi Arabia, said the "serious security incident" occurred on Friday. This resulted in "multiple fatalities involving security personnel and community members, including one company employee."

Kefi did not provide further details due to "the sensitive and ongoing nature of the situation".

Kefi said it immediately suspended Tulu Kapi's development activities, and is "[engaging] with relevant community representatives, Ethiopian government authorities and security stakeholders to determine the appropriate conditions for a safe and orderly resumption of activities." It said it will not resume work "until appropriate measures have been established to provide a safe and secure operating environment".

Kefi intends to "carefully manage its expenditure" while work is suspended, and to now draw down or deploy further project financing "until the circumstances have been fully assessed and appropriate measures are in place."

"It is too early to assess what impact, if any, the suspension may have on the project development timetable," Kefi stated. "The company will provide further updates as soon as it is appropriate to do so."

Prior to the incident, Kefi noted, Tulu Kapi's development "remained on schedule and focused on commencing gold production in mid-2028." This included the ordering of the plant and equipment, with deliveries expected throughout 2027.

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