Shares in the gold developer surge after work restarts at its flagship Ethiopian project following a safety review triggered by a fatal incident.
Kefi Gold and Copper (AIM: KEFI) saw its shares rebound 26.7% to 0.7575p after the company confirmed it has recommenced development work at the Tulu Kapi gold project in Ethiopia, drawing a line under weeks of uncertainty following an incident at the site that left one worker dead and others injured.
The sharp bounce reflects relief among investors that the stoppage, which had cast doubt over the project's near-term timeline, has been resolved. Kefi said the restart followed a period of internal reviews and consultations covering both local community involvement and site security arrangements, suggesting management has moved to address the underlying causes of the incident before resuming operations.
Tulu Kapi sits at the heart of Kefi's investment case, and any extended suspension risked delaying the project's path towards production and denting confidence in a stock that has already endured a volatile run on AIM. The fatality earlier this year had raised questions over safety protocols at the site, making the resumption of works a pivotal moment for the company.
The rebound puts Kefi among the standout movers on AIM, alongside a broader session of sharp swings across the junior market that included a steep fall for ActiveOps after it flagged the loss of a major customer, and a smaller gain for Borders & Southern Petroleum on the back of a £2m fundraise.
Attention now turns to whether Kefi can maintain momentum on-site without further disruption, and to updates on construction progress and financing as the project moves back towards development. Investors will be watching closely for confirmation that the security and community measures put in place are sufficient to prevent a repeat of the earlier incident.
This report is based on Kefi Gold and Copper’s announcement and coverage by UK Investor Magazine. Company announcements can be tracked via London Stock Exchange RNS and Investegate, and the full results calendar is worth watching for the next update.
This article is for general information only and does not constitute investment advice or a recommendation to buy or sell any security. Photo: Daniele Levis Pelusi on Unsplash.
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