KEFI Minerals said the focus in the quarter to the end of December had been preparing project funding and development of the Tulu Kapi gold project in Ethiopia with its partner the government of Ethiopia, contractors Lycopodium and Ausdrill/African Mining Services and preferred project financiers.
KEFI's executive chairman, Harry Anagnostaras-Adams, said: 'The Saudi Arabian government's new pro-mining policy has now been announced.
'KEFI looks forward to exploring its upgraded portfolio of targets with partner ARTAR, a leading Saudi conglomerate.
'The final Tulu Kapi project models were agreed within the consortium and uploaded into the formal financing data rooms.
'They show some improvements for shareholders, as compared with recent company guidance.
'During the next two years Tulu Kapi is to be built as a 140,000 oz pa gold producer and, at the current gold price of $1,300/oz combined with any of the contemplated financing scenarios, KEFI shareholders' beneficial interest in the net free cash flow per annum (after debt service and tax) exceeds the company's current market capitalisation.
'Our existing project pipeline in Ethiopia and Saudi Arabia provides the opportunity to build a production base of c. 200,000 oz pa of gold during Tulu Kapi's first three production years.'
KEFI also announced that it and Oryx Management Limited had mutually agreed to terminate their relationship.
It said the structure for the development of the company's Tulu Kapi project will otherwise remain the same with the other existing consortium members performing the various required roles as previously outlined.
At 8:24am: (LON:KEFI) KEFI Minerals PLC share price was -0.58p at 2.65p