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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 $6.1 million from $1.7 million a year earlier.
Revenue rose to $420,000 from $209,000, but this was outweighed by significantly higher costs. Pre-licence exploration expenses rose to $4.8 million from $1.1 million, cost of sales jumped to $830,000 from $168,000, while administrative costs fell to $661,000 from $1.0 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 $4 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 £6.6 million via a January share issue, secured a $5 million interest-free convertible loan from Zimbabwean pension funds in April, and in September completed a further £2.3 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.
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