Kavango’s H1 2025: Busy drills, a new plant, and fresh cash for Zimbabwe gold
Kavango Resources has packed a lot into the first half of 2025. The unaudited interims show rapid operational progress on its Zimbabwe gold portfolio, a secondary listing in Zimbabwe, and a meaningful strengthening of the balance sheet.
This is still an exploration-led business, but the company is clearly pushing towards near-term production growth at Hillside while lining up a larger foothold via Nara. Below I break down the moving parts, what looks encouraging, and what to watch.
Key numbers investors should know
| Metric | H1 2025 |
|---|---|
| Revenue | US$420,000 |
| Gross (loss)/profit | US$(410,000) |
| Pre-licence exploration costs | US$4,817,000 |
| Loss before tax | US$6,076,000 |
| Basic loss per share | 0.22 cents |
| Cash and cash equivalents (30 June) | US$3,262,000 |
| Net assets | US$22,283,000 |
| Intangible assets (exploration & evaluation) | US$16,036,000 |
| Shares in issue (30 June) | 3,048,706,821 |
Hillside Gold Project: drilling hard and building capacity
Hillside, in Zimbabwe’s Filabusi Greenstone Belt, remains centre stage. The company has been producing small amounts of gold at Bill’s Luck since August 2024 and wants to scale up to 250 tonnes per day (tpd) at an average grade of 2.6g/t Au. The long-term ambition is 500-1,000 tpd via modular plants and spiral declines (a coiled underground ramp for efficient access).
Bill’s Luck – resource drilling and a new CIP plant
- H1 drilling included 1,296.82m of diamond core, 2,358m of reverse circulation (RC), and 910.40m of underground diamond core. RC is a faster, lower-cost drill method often used for resource definition; diamond core gives higher-quality geological data.
- Construction has started on a 50 tpd carbon-in-pulp (CIP) test plant at Bill’s Luck. CIP is a standard processing route where dissolved gold is adsorbed onto activated carbon for recovery. A 200 tpd plant is expected to be commissioned in H1 2026.
- Post period, a resource campaign began: 4,000m of diamond drilling and 4,500m of RC, aiming to underpin a three-year mine plan.
Opinion: this is the clearest pathway to near-term cash flow in the portfolio. The build of a test plant alongside a larger 200 tpd plan suggests confidence, but the proof will be in consistent mined grades and plant performance. Capex amounts for the plants were not disclosed.
Nightshift – potential selective open pit then underground
- 1,504.53m of diamond core resource drilling completed.
- Following trenching and drilling, the company says it now has sufficient geological information and positive assays to start its first direct resource definition. Specific grades from this round were not disclosed.
Steenbok – high-grade underground target taking shape
- 3,231.89m of diamond drilling in H1, intersecting multiple zones of mineralisation across 400m of confirmed strike.
- Work is now focused on testing 1.5km of potential strike based on structural interpretations.
Britain – optionality
Kavango is assessing follow-up drilling to see if Britain can support small-scale selective mining to supplement Hillside processing.
Nara Gold Project: option exercised for US$4 million
Kavango served notice to exercise its option to acquire 100% of Nara (45 claims, 414.9Ha) for US$4,000,000, with completion due on or before 9 December 2025. US$260,000 has already been paid.
Two tailings dumps at Nara carry a JORC mineral resource:
| Category | Tonnage | Grade (Au) | Contained gold |
|---|---|---|---|
| Measured | 77,664 t | 0.54 g/t | 1,346 oz |
| Indicated | 221,934 t | 0.65 g/t | 4,637 oz |
| Inferred | 12.2 t | 0.66 g/t | 258 oz |
| Total | 299,610 t | 0.62 g/t | 6,241 oz |
Technical studies are ongoing to determine the best processing route at a nearby facility. The primary exploration target is around the historic N1 mine, looking to extend artisanal workings at depth and along strike.
Opinion: exercising the option signals conviction following 2024 core analysis. The tailings resource is modest but could provide straightforward ounces if processing economics stack up. Processing costs and timelines are not disclosed.
Botswana portfolio: copper focus with a First Quantum tie-in
At Karakubis in the Kalahari Copper Belt (KCB), Kavango collaborated with First Quantum Minerals. By running geophysical surveys over First Quantum’s 1,266.40m deep hole, Kavango calibrated its models for the D’Kar/Ngwako Pan contact – the key control on KCB copper-silver mineralisation. Final drill targets for a follow-up programme later this year are being prepared.
Elsewhere, the company continues to evaluate Ditau (gold-copper potential with 12 geophysical anomalies) and the Kalahari Suture Zone (Ni-Cu-PGE; a Technical Report is in preparation). A new Botswana law caps a company’s land holding at 10,000km², so Kavango is reviewing its licence footprint and has withdrawn some renewal applications to show good faith.
Opinion: the First Quantum collaboration is a practical de-risking step. The licence-cap law adds some complexity, but refocusing on the best targets is no bad thing. Exact drill metres and budget for the KCB follow-up were not disclosed.
Funding, share moves and liquidity
- 27 January 2025: £6,566,000 raised gross by issuing 938,028,569 shares at £0.007. A further 547,995,076 shares were issued on conversion of unsecured convertible loan notes at 0.7 pence (including accumulated interest at 10% per annum).
- 22 April 2025: US$5 million interest-free convertible loan note facility from a consortium of Zimbabwe-registered pension funds (Comarton) at a conversion price of £0.01 per share, drawable in three tranches.
- Post H1, 8 September 2025: 333,364,773 ordinary shares admitted and listed to trade solely on the VFEX, comprising 69,364,667 shares to the pension fund consortium (first drawdown US$935,660.00), 259,240,056 to Purebond Limited, and 1,850,369 to other Zimbabwean residents.
- Post H1, 9 September 2025: £2.27 million raised via a subscription and placing of 227,751,720 new shares at £0.01. Purebond subscribed for 111,201,720 shares; the Chairman subscribed for 10,000,000 shares.
The company says total proceeds raised on the VFEX are approximately US$13,500,000, alongside £1,500,000 on the LSE Main Market, to progress exploration and development. Management notes that the August/September fundraisings (about US$6.6 million) plus the US$5 million Comarton facility provide sufficient cash for at least 12 months from signing.
Opinion: funding has been decisive, but dilution is material given the jump to over 3.0 billion shares at 30 June and further issues post period. The VFEX listing should help tap local capital and offer Zimbabwe investors a direct route to trade, with an ability to move between VFEX and London via registrars.
What’s going well vs what to watch
- Positive: Continuous drilling at Bill’s Luck, Nightshift and Steenbok, with a clear plan to move from small-scale production towards 250 tpd and beyond.
- Positive: CIP test plant under construction and a 200 tpd plant targeted for H1 2026, indicating operational intent.
- Positive: Nara option exercised for US$4,000,000, backed by 2024 core analysis and a defined tailings resource.
- Positive: KCB technical de-risking through First Quantum collaboration and a follow-up drill programme in the pipeline.
- Watch: Loss before tax of US$6.1 million reflects higher pre-licence spend (US$4.8 million). Continued funding discipline is essential.
- Watch: Dilution from multiple share issues. Future raises, if needed, would be a swing factor for per-share value.
- Watch: Completion risk on Zimbabwe claim transfers and taxes at Hillside and Leopard, which are subject to regulatory formalities.
- Watch: No detailed drill assay tables in this RNS. Resource estimates and mine plans will be key catalysts.
Board and operations bench strengthening
Peter Wynter Bee became Chairman on 30 June 2025. Alexandra Rose Gorman was appointed COO in June and moved to Zimbabwe. Gautam Dalal joined as a non-executive director on 1 July 2025. Shard Capital is now the sole broker.
My take
This is an execution story now. The combination of heavy drilling, a test plant build, and a defined plan to 250 tpd at Bill’s Luck shows intent to become a gold producer of scale in Zimbabwe. Exercising Nara adds strategic heft and optionality.
The flip side is classic early-stage risk: losses, working capital needs, and dilution. Investors should look for three near-term validations: steady progress on the CIP plant, tangible results from the Bill’s Luck resource campaign, and clarity on Nara processing.
If Kavango can convert the current drilling into a mine plan and keep the funding window open across London and VFEX, the step-up from small-scale production could be meaningful. For now, the operational momentum and funding runway look improved, with data and delivery the next tests.
Further information is available at www.kavangoresources.com.
