Kefi Gold And Copper — Tulu Kapi Update

KEFI confirms all staff are safe but Tulu Kapi remains halted after a fatal security incident.

What the company is saying

KEFI Gold and Copper plc reports that all employees affected by the recent security incident at the Tulu Kapi Gold Project in Ethiopia have been accounted for, with no further injuries or fatalities. The company states that it has conducted detailed consultations with community representatives, Ethiopian and Oromia Government officials, and other stakeholders, all of whom are described as fully supportive of the project and the company's cautious approach to resuming work. KEFI highlights ongoing collaboration with principal contractors, lenders, and local investors, and specifically names Lycopodium as the lead design and construction contractor with oversight teams on the ground. The announcement emphasizes renewed and increased non-dilutive interest from Ethiopian institutions and high net worth family offices in subsidiary-level preference shares, presenting this as a source of financial flexibility. The company makes clear that no development activities will resume until a full investigation is completed and safety measures are in place. Executive Chairman Harry Anagnostaras-Adams personally traveled to Ethiopia and is quoted expressing relief at the safety of staff and the importance of government and community support.

What the data suggests

The announcement confirms that all employees affected by the security incident have been accounted for, with one fatality and no further injuries. There are no disclosed financial figures, operational metrics, or binding funding agreements in this update. The company reports 'renewed and increased indications of interest' from local investors for Ethiopian redeemable preference shares, but provides no amounts, terms, or documentation. Lycopodium is identified as the lead contractor with oversight teams active in Ethiopia, but no progress metrics or timelines are given. The company reiterates that development will not resume until a full investigation is complete and safety can be assured. All claims of stakeholder and government support are qualitative and non-binding, with no evidence provided beyond management statements. The project remains on hold, and the only concrete outcome is the accounting for staff and the burial of the deceased employee.

Analysis

The announcement is primarily a qualitative update following a security incident, with no new operational or financial milestones disclosed. While the tone is measured and focused on safety and stakeholder engagement, several claims reference future intentions or support (e.g., renewed investor interest, government commitment, and project 'Ethiopianisation') without providing any quantitative evidence or binding agreements. The forward-looking ratio is high, as most key claims concern plans, intentions, or expressions of support rather than realised outcomes. No timeline is given for the resumption of development, and the capital intensity flag is triggered by references to ongoing financing needs and project scale, with no immediate earnings or operational impact. The gap between narrative and evidence is moderate: the company highlights stakeholder support and potential funding, but provides no concrete data or binding commitments to substantiate these claims. The language is not overtly promotional, but the absence of specifics on funding, timelines, or operational progress means the signal is neutral and the hype level is moderate.

Risk flags

• ●Operational risk remains high due to the recent fatal security incident, which has halted all development activities at Tulu Kapi. The company cannot resume work until a full investigation is completed and new safety measures are established, introducing significant uncertainty about timing and execution.
• ●There is a material risk around project financing, as the only funding references are non-binding 'indications of interest' from local investors for preference shares. No amounts, terms, or binding commitments are disclosed, leaving the project's financial position unclear.
• ●Disclosure risk is present because the company provides no quantitative data on financial health, operational progress, or specific milestones. All claims of support from stakeholders, government, and investors are qualitative and unsupported by documentation.
• ●Execution risk is elevated by the need to coordinate between multiple stakeholders, including government agencies, local communities, contractors, and investors, in a challenging security environment. The process of 'Ethiopianisation' and alliance-building is described in aspirational terms with no measurable benchmarks.

Bottom line

KEFI's update confirms that all staff are now safe following a fatal security incident at Tulu Kapi, but the project remains suspended with no disclosed timeline for resumption. The company cites strong stakeholder and government support and reports non-binding interest from local investors in subsidiary-level preference shares, but provides no concrete financial figures or binding agreements. Operational and execution risks remain high, as development cannot restart until a full investigation is complete and new safety protocols are in place. The absence of quantitative disclosures or clear milestones means investors have little basis to assess when or if the project will move forward. The most important takeaway is that Tulu Kapi is effectively in limbo, with progress dependent on resolving security and funding uncertainties.

Announcement summary

(AIM: KEFI) KEFI Gold and Copper plc provides an update on the Tulu Kapi Gold Project in Ethiopia following the serious security incident announced on 7 September 2026. The company reports that all employees affected by the incident have been accounted for, with no further fatalities or injuries sustained. The colleague who lost his life in the incident has now been laid to rest. Senior management and the local management team have held detailed consultations with community representatives, Ethiopian and Oromia Government leaders, and other stakeholders, all of whom reiterated the strategic importance of the Project and expressed full support for both the Project and the company's careful approach to resuming development activities. KEFI remains in close communication with principal contractors, lenders, and local investors, who continue to support the Project. Lycopodium, the Project's lead design and construction contractor, has its project oversight team in Ethiopia working closely with the wider Project team and local contractors as the situation is assessed and plans are reviewed. The company has received renewed and increased indications of interest from Ethiopian institutions and high net worth family offices for Ethiopian redeemable preference shares at the subsidiary level, which would be non-dilutive to KEFI shareholders and provide further financial flexibility and mitigation of funding risk. KEFI will not resume development activities until a full investigation is completed and appropriate safety measures are established. The company will provide further updates as appropriate. The Government has committed to do whatever it can to overcome this serious setback. KEFI will further strengthen and expedite the momentum towards the Ethiopianisation of the Project at all levels, including community participation, alliancing between foreign industry-specialist contractors and strong locals, and local participation in the funding syndicate.

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