RNS Number : 6582B
Kazera Global PLC
15 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.
-- 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.
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.
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
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
Kazera Global plc (c/o Camarco) Tel: +44 (0)203 757 4980
Dennis Edmonds (CEO)
finnCap (Nominated Adviser and Joint Broker) Tel: +44 (0)207 220 0500
Christopher Raggett / Tim Harper (Corporate
Gordon Poole / James Crothers / Hugo Liddy Tel: +44 (0)20 3781 8331
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(END) Dow Jones Newswires
February 15, 2022 02:00 ET (07:00 GMT)
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