Kazera Global PLC

Continued progress and momentum into 2022

RNS Number : 6582B
Kazera Global PLC
15 February 2022
 

February 2022

Kazera Global plc

("Kazera" or the "Company")

Continued progress and momentum into 2022

 

Kazera Global plc, the AIM quoted investment company, is pleased to announce that diamond production for the current production cycle (December 2021/January 2022) has achieved a record number of over 1,000 carats, the largest of which is a high value stone of 13 ct. In addition, as per Company projections at year end, the Tantalite Valley mine is expected to become operational shortly, after which the Company will begin exporting commercial quantities of Tantalum to its offtake partner.

 

 

Highlights

 

· Diamond production during current production cycle (December 2021/January 2022) in excess of 1,000 carats, comfortably beating previous highest diamond production of 242 carats.

· The batch contains a number of larger diamonds, the largest being 13 carats.

· The processing plant at Tantalite Valley in Namibia is now nearing completion.

· Water recycling at Tantalite Valley has averaged 95% meaning that projected production can now be achieved without the cost and technical risk of a pipeline from the Orange River.

 

Background

Diamond production within the Company has been restricted historically due to Deep Blue Minerals not having control over the gravel separation process. This problem has been resolved by the Company, together with MV5, taking over the running of the Muisvlak plant. Due to existing stockpiles this has led to record breaking diamond production. By continuing to control the separation process, the Company is now confident of being able to produce a regular and profitable number of diamonds in each cycle.

The size of the diamonds in the current batch has also been record breaking. The biggest diamond is 13 carats, as opposed to 3 previously. Given our experience in the most productive gravel areas, the Company will continue to focus on areas where it anticipates achieving the best returns.

In Namibia, the works undertaken by the Company's wholly owned subsidiary, African Tantalum, in conjunction with DJ Drilling, has led to the entire refurbishment and redesign of the plant. The heavy seasonal rains which had previously caused the plant to be covered in a deep layer of silt caused no operational delays this year. In addition, the Company's water recycling techniques, which were designed to achieve a minimum of 65% water reusage, have surpassed expectations with 95% of water being recovered. The Company is now confident that it can achieve the levels of production anticipated without the capital cost and engineering risk associated with building a pipeline to the Orange River.

The plant is now in test operation and the Company anticipates being able to shortly begin exporting commercial volumes of Tantalum to its Chinese offtake partner.

 

Forward Strategy

With regards to our diamond operations, the Company will continue to focus on controlling the production process and on identifying the most profitable areas for mining activity. The Company is confident that diamonds will be a consistent source of revenue and profit generation during the forthcoming year.

In Namibia, the plant has been significantly upgraded and the water recycling techniques implemented by the Company have been shown to work. Various potential improvements to the plant have been identified and will be implemented over time so as to minimize down time in the plant. The Company remains confident of maintaining a steady increase in production volumes of Tantalum as 2022 progresses and remains confident of this being a major contributor to the Company's bottom line during 2022.

 

The grant of the Mining Permit for Heavy Mineral Sands is still awaited. The only objection received to the application is regarded by the Company's consultants as without merit and the expectation is that the Permit will be received shortly. Upon receipt of this, as previously announced, we anticipate that within 6 months the Company will begin the profitable, and potentially transformative, production of mineral sands.

It is our expectation that profitability 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's application for a Prospecting Right over an area which is approximately 34 times larger than the current site is progressing.

Dennis Edmonds, Kazera Chief Executive Officer, commented: 

"With our diamond operation now contributing directly to the Company's bottom line, Tantalum profits soon to be generated and HMS to come, we can look forward with ever more confidence to a secure economic future in 2022. Adding our Lithium opportunity, which we expect to feature prominently as we progress through 2022 and additional Tantalum and HMS possibilities, it becomes ever more apparent that we are sitting on very valuable resources. The continued electrification of the global economy and end demand for Tantalum and Lithium support our development plans. On the HMS side the supply/demand dynamics in the near- and medium-term work strongly in our favour. In addition, the Board is constantly evaluating new opportunities."

 

 

 

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: +44 (0)203 757 4980

 

finnCap (Nominated Adviser and Joint Broker)

Christopher Raggett / Tim Harper (Corporate Finance)

 

Tel: +44 (0)207 220 0500

 

Camarco (PR)

Gordon Poole / James Crothers / Hugo Liddy

 

 

    Tel: +44 (0)20 3781 8331

 

**ENDS**

 

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