Botswana Diamonds PLC Embraces AI and Diversifies into Critical Minerals in Annual Results

AI-powered exploration puts Botswana Diamonds back on the front foot

It has been a grim year for the diamond market, but Botswana Diamonds PLC has used the downturn to retool. The annual results show a business leaning hard into technology and broadening its horizons, with a strategic collaboration with Planetary AI Ltd front and centre.

The AI programme is not window dressing. It integrated more than 375,000 km of airborne geophysics, 228,000 soil samples, 32,000 drill logs and over 57 mineral deposit models to scan Botswana’s data troves for overlooked opportunities. The output is punchy: seven new kimberlite targets and eleven critical metal targets across copper, nickel, PGMs, zinc-silver and gold.

Why it matters: faster, cheaper, smarter targeting is a genuine edge in early-stage exploration. In a market short on new mines, getting first pick of overlooked ground is valuable optionality.

Critical minerals pivot – eight new applications across 6,550 km²

While diamonds remain the core, BOD has formally diversified. Following the AI work, the company submitted eight Prospecting Licence (PL) applications covering 6,550 km², focused predominantly on copper. For context, PLs are exploration licences that give you the right to explore but not to mine.

Botswana is underexplored for copper and allied metals, yet it offers a stable mining code and strong rule of law. That combination – first mover plus low entry cost – is attractive. The company says partner discussions are underway, which would help stretch scarce equity capital further.

New diamond ground granted – 2,644 km² targeting kimberlite

On the diamond side, four new PLs were granted in 2025: PL298, PL303, PL304 and PL305, together covering 2,644 km². Targets sit:

• North west of Mahalapye in the Serowe area
• South west of Jwaneng near the South African border
• North east of Lerala in eastern Botswana
• Close to the KX36 resource in the Kalahari

The south west Jwaneng licence looks especially interesting. Historical sampling in the broader Jwaneng South-West zone included abraded diamonds – a clue you can be near a primary kimberlite source – and the anomaly suggests more than one potential kimberlite. Kimberlite is the volcanic rock that can host diamonds.

Legacy assets still matter – KX36, Maibwe and South Africa

Legacy projects anchor the pipeline. KX36 remains a SAMREC-compliant resource of 12-13 million carats, with AI work identifying new nearby targets. Maibwe licence renewals are in process and BOD has increased its ownership. The company has also digitised decades of data into an AI-ready archive – a quiet but meaningful upgrade.

In South Africa, the first Mining Permit has been granted at Thorny River, where independent work points to a viable small open pit. A second permit is awaited to unlock the full plan. Management flags that the weak diamond market will delay commercial production. Marsfontein retains strong potential given historically high grades, and Reivilo is a kimberlite cluster opportunity secured via a data licence with minimal capital exposure.

FY2025 numbers – loss widens after impairment

The P&L reflects a sector under pressure and a company in investment mode. Revenue was not disclosed for 2025 beyond the statement that there was no revenue, compared with £23,606 of royalties in 2024. An impairment of £557,937 was taken against exploration and evaluation assets due to lower diamond prices, pushing the operating loss to £1,013,350.

Metric	FY2025	FY2024
Revenue	£0	£23,606
Administrative expenses	£455,413	£577,916
Impairment charge	£557,937	£0
Operating loss	£1,013,350	£564,106
Loss per share	0.09p	0.05p
Cash at year end	£59,091	£77,546
Current liabilities	£1,170,552	£937,731
Net assets	£4,386,798	£5,135,714
Intangible assets	£5,021,436	£5,512,127
Ordinary shares in issue	1,198,002,899	1,119,877,899

Cash decreased slightly to £59,091 after net operating cash outflows of £195,716 and exploration additions of £67,246. Financing came from a £250,000 placing on 7 August 2024 at 0.32p with one-for-one warrants exercisable at 0.50p for two years. At year end, 154,125,000 warrants were outstanding at 0.5p and 11,410,000 options at an average 5.14p.

Balance sheet and going concern – candidly tight

The balance sheet shows net current liabilities of £842,278 and low cash. The auditors’ report was unqualified, but the directors highlight material uncertainties that may cast doubt on going concern without fresh funding. The model remains clear: as a non-revenue explorer, BOD relies on equity raises to keep moving.

Investors should therefore watch for near-term funding actions, potential farm-ins or partnerships on the new copper and kimberlite ground, and the timing of the second permit at Thorny River. Any early-stage cash flow at Thorny River would help, but management has said market conditions are likely to delay commercial production.

Sector backdrop – why exploration quality matters now

The RNS outlines a tough market. US jewellery spending softened amid inflation, China remained weak and lab-grown diamonds kept pressure on lower-to-mid value segments. Several majors cut production or paused sales to balance inventories, which steadied prices, and polishing activity improved later in the year.

BOD’s strategy leans into the part of the diamond market that still commands a premium: higher-value stones from robust kimberlite sources. That is a sensible focus if you believe, as management does, that new large-scale kimberlite mines are scarce and many marginal operations are uneconomic.

Investment take – cautious near term, intriguing optionality

My read is twofold. Near term, funding risk is real. Cash is low, current liabilities are high and there is an impairment in the year. Any raise will likely come with more dilution, and warrants at 0.5p cap upside if the shares run.

Strategically, the optionality has improved. AI-driven target generation, four new diamond PLs including the Jwaneng south west area, a credible copper pivot with eight PL applications, and a mining-permitted asset at Thorny River together create several shots on goal. If even one of the kimberlite or copper corridors turns up something tangible, the valuation could rerate from a very modest asset base.

Key near-term catalysts to watch:

• Approval of the eight critical mineral PL applications and start of fieldwork
• Updates from Jwaneng South-West and other newly granted diamond licences
• Second permit at Thorny River and any early-stage mining plan details
• Funding – structure, size and partner participation

Jargon buster

• Kimberlite – volcanic rock that can host diamonds.
• PGMs – platinum group metals such as platinum and palladium.
• SAMREC – South African code for reporting mineral resources.
• PL (Prospecting Licence) – an exploration licence granting the right to explore, not mine.

Key dates and housekeeping

The Annual Report for the year ended 30 June 2025 will be available at www.botswanadiamonds.co.uk. The AGM will be held at Canal Court Hotel, Merchants Quay, Newry, BT35 8HF, United Kingdom on 29 January 2026 at 11.00 am. No material post balance sheet events were reported.

Bottom line

Botswana Diamonds has chosen to play offence in a weak market, using AI to refresh its pipeline and adding copper exposure. The financials are thin and funding is needed, but the exploration story has more angles than it did a year ago. For investors comfortable with early-stage risk, this is one to watch for licensing, funding and first-pass field results.