Namib Minerals posts production and operational Update, Zimbabwe
Namib Minerals [Nasdaq: NAMM] provided an operational update, including production guidance for 2025 and an overview of its mandate to WSP Global Inc. (WSP).
2025 Operational Guidance: The company expects 2025 to continue as a year of grade consolidation and optimization at its flagship How Mine operation, Zimbabwe. Based on current mine plans and market conditions, the company anticipates the following ranges. Production: 24,000- 25,000 oz; Adjusted EBITDA US$ millions): 22-26; and All-in Sustaining Coast (AISC US$/oz): 2,700-2800.
The 2025 focus at the How Mine remains on stabilizing grade performance and completing throughput-capacity improvements. These improvements are expected to yield geared production and grades in the upcoming year. Furthermore, the company continues advancing early-stage restart preparation work at Redwing Mine and Mazowe Mine.
Pathway to Resource and Production Expansion:
Namib Minerals is pursuing a phased, technically driven growth plan designed to transform the Company from a single-asset producer into a multi-asset operator. The Company has in the past informed investors of its objective to resume operations at Mazowe Mine and Redwing Mine. These restarts represent the first phase of the company’s pathway to expansion and have commenced with the appointment of WSP. WSP has been appointed to begin feasibility studies at both mines simultaneously.
The company appointed WSP not only for its expertise but also the firm’s understanding and familiarity with the company’s assets. The company’s objective is to align the future production levels of Redwing Mine and Mazowe Mine with their respective resource sizes therein increasing their production capacities.
WSP have been mandated to verify the company’s ability to meet this strategic objective. WSP have been mandated to execute a SK-1300 compliant feasibility study on the following terms, amongst others –
Feasibility Studies — 12 to 18 Months: These studies will validate our exploration program to increase, convert and upgrade these resources.
The program is expected to be completed over 12 to 18 months and will provide the technical foundation for reserve conversion, permitting, and financing discussions.
In conjunction with the feasibility studies, the Company shall execute on phase two, namely the following strategic objectives –
Dewatering and Infrastructure Preparation: Dewatering at Redwing is scheduled to commence during the Feasibility-study phase and is expected to take approximately eight months to reach the targeted mining levels.
Concurrently, surface-infrastructure and power-supply upgrades will be planned to align with the restart timeline.
The third phase of the company’s expansion will be to proceed with financing of its CAPEX.
CAPEX Financing: Upon completion of the Feasibility Studies, Namib Minerals intends to initiate the procurement process for major equipment and plant components required for the restart of the Redwing and Mazowe Mines.
The company’s preliminary estimate is that the total funding requirement for the expansion program is expected to fall within a range of US$300 million to $400 million, with the majority allocated to the Redwing Mine. However, such estimate is preliminary and subject to the completion of the feasibility studies and final engineering outcomes as well as a number of assumptions, risks and uncertainties, including the timing of the completion of the feasibility studies, market conditions, and the cost of equipment and construction, many of which are beyond the company’s control and subject to change.
The company plans to pursue a balanced funding mix that may include project debt, strategic partnerships, and internally generated cash flows to help minimize shareholder dilution.