Kavango Resources interim loss widens as exploration costs jumps

(Alliance News) - Kavango Resources PLC on Tuesday reported a sharply wider interim loss, driven by higher exploration spending, as it advanced projects in Zimbabwe and Botswana and prepared final drill targets for its Karakubis copper project.

The London-based, South Africa-focused metals explorer and gold producer said its pretax loss for the six months to June 30 widened to USD6.1 million from USD1.7 million a year earlier.

Revenue rose to USD420,000 from USD209,000, but this was outweighed by significantly higher costs. Pre-licence exploration expenses rose to USD4.8 million from USD1.1 million, cost of sales jumped to USD830,000 from USD168,000, while administrative costs fell to USD661,000 from USD1.0 million.

During the half-year, Kavango advanced its Hillside and Nara gold projects in Zimbabwe. At Hillside, it drilled over 9,000 metres across multiple sites and began building a 50-tonne-per-day gold processing plant at the Bill's Luck mine. At Nara, it completed a second phase of drilling and exercised an option to acquire 45 claims for USD4 million, with completion due by December.

In Botswana, the firm completed a collaboration with First Quantum Minerals over the Karakubis copper project, testing the accuracy of geophysical models of the key D'Kar-Ngwako Pan contact zone. Kavango said it has now defined final drill targets for a follow-up programme later in 2025.

On financing, Kavango raised GBP6.6 million via a January share issue, secured a USD5 million interest-free convertible loan from Zimbabwean pension funds in April, and in September completed a further GBP2.3 million fundraising.

Looking ahead, the company highlighted the start of a new resource drilling campaign at Bill's Luck.

Shares in Kavango were down 5.0% to 0.95 pence in London on Tuesday afternoon.

By Eva Castanedo, Alliance News reporter

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