Record breaking end to year

RNS Number : 8085V

Kazera Global PLC

16 December 2021

 

16 December 2021

Kazera Global plc

("Kazera" or the "Company")

Record breaking end to year

Kazera Global plc, the AIM quoted investment company, is pleased to announce that diamond production for the current production cycle (ending in January 2022) is already in excess of 750 carats, with a target of 1,000 carats for the entire cycle. In addition, the Tantalite Valley mine is now in the final phase of testing, with Tantalum production on schedule to commence imminently.

Highlights

· Production in excess of 750 carats during current production cycle, beating previous highest diamond production of 242 carats.

· Production target of 1,000 carats now set for the current cycle.

· Extensive work has been undertaken on the processing plant at Tantalite Valley in order to enable it to start production.

o  The focus has been on water recycling and conservation so as to be able to produce Tantalum using the water supplies currently available.

· The first shipment to the Company's Tantalum off-take partner is expected by the end of December, with a steady increase in production during 2022

· With production increases across its business, the Company expects to be significantly cash flow positive during 2022 which will be reinvested into resource definition and mining across the business.

Background

The past year has been a difficult one operationally due to Covid and the difficulties in getting diamond gravels mined and processed. Despite this, the Company has succeeded in getting the processing plant fully operational and has accordingly been able to start processing diamond gravels in accordance with its original business plan. In the year in which it has been operational (the Company announced its first production of 52 carats in December 2020), the Company has made enormous strides.

At Tantalite Valley, production has always been constrained by lack of water. The current focus is on producing water from boreholes and then ensuring that over 65% of the water is recaptured and reused. The plant has now been totally repurposed to achieve minimum water loss with plans to cover the entire plant with a roof to minimise water loss through evaporation. With the available water now being sufficient to permit production on a commercial scale, the first consignment of Tantalum is now being produced and is anticipated that it will be dispatched to the Company's off-take partner by the end of the year.

Forward Strategy

The Company is confident that it has now overcome the various difficulties which face all start up mining operations. Both of its projects are now in production and the Company expects significantly positive cash flows from the combined operations during 2022. This will mean that the Company will be able to spend cash in Namibia on identifying further reserves and on beneficiating its lithium and other mineral resources. It will also be able to invest in improving the current plant and sinking further boreholes to step up production.

The grant of the Mining Permit for Heavy Mineral Sands, expected before the end of 2021, has not yet been received. The expectation is that it will finally be received early in 2022. Upon receipt of this, as previously announced, we expect that within 6 months the Company will begin generating additional profits of up to $300,000 per month. It is our expectation that these numbers will be improved even further by introducing a third party to build and operate a separation plant for which discussions are already underway with a number of interested entities. Simultaneously, the Company is pursuing an application for a Prospecting Right over an area which is approximately 34 times larger than the current site.

Dennis Edmonds, Kazera Chief Executive Officer, commented: 

"2021 has been a very good year for the Company, despite the difficulties we have had to overcome. With minimal cash we have succeeded in getting both our diamond and tantalum operations into commercial production. We look forward with increased confidence to building upon that foundation in 2022.

"Apart from the material growth of revenues, we see major upsides from proving up further resources at Tantalite Valley and developing our lithium resources - a commodity in extremely high demand as the global economy continues its transition to Net Zero and increased electrification. We are also enormously excited by the opportunity to finally commence mining Heavy Mineral Sands.

"My thanks go to all the people who have gone the extra mile to get the Company to the stage at which we now are. I believe that 2022 will be a transformational year in the fortunes of Kazera."

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No. 596/2014 ('MAR').

For further information on the Company, visit:  www. kazeraglobal .com

Kazera Global plc (c/o Camarco) Dennis Edmonds (CEO)	Tel: [phone]
finnCap (Nominated Adviser and Joint Broker) Christopher Raggett / Tim Harper (Corporate Finance)	Tel: [phone]
Camarco (PR) Gordon Poole / James Crothers / Hugo Liddy	Tel: [phone]

**ENDS**

 

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