Kazera Global enters 'pivotal phase', says it needs more cash

(Sharecast News) - Kazera Global said on Monday that it had entered a pivotal phase as it works to advance its South African heavy mineral sands operations, reduce costs and progress discussions across its wider project portfolio.

The AIM-traded investment company said the 2A Mining Right at Alexander Bay was progressing through its final stages, with the company continuing to engage with South African regulatory authorities.

Kazera said it had also entered into an arrangement with a locally based stakeholder to support the final stages of the process and provide additional in-country support.

The timing of the award remained subject to regulatory processes and outside the company's direct control, but Kazera said it was positioning the asset for expedited development once granted, while seeking to benefit the local Richtersveld community.

At Whale Head Minerals, Kazera said discussions were continuing with a preferred potential strategic partner for its heavy mineral sands operations.

The discussions were focussed on optimising processing, increasing throughput and producing higher-grade, marketable concentrate.

The company said independent bulk sample test work had confirmed that its heavy mineral sands product could be upgraded through conventional processing routes, with initial processing achieving concentrate grades of about 41% titanium dioxide and potential for further optimisation.

Kazera said the results demonstrated the upgradeability of the material and increased confidence in achieving a higher-grade, marketable concentrate.

The company said it was also developing a clearer understanding of production costs per tonne and future equipment requirements to support operational planning.

It said its objective was to introduce additional capital without recourse to shareholders, alongside on-the-ground technical capability to accelerate the move towards a scalable commercial operation.

Kazera said it was also in discussions with Fujax International to align both parties' interests on a more secure and commercial footing.

Following an operational review at Deep Blue Minerals, Kazera said it had implemented a more focused approach to its diamond activities. Inland diamond mining has been put on hold because of diesel fuel shortages and very high prices, with diamond operations now focused on recovering stones from beach and marine gravels derived from the heavy mineral sands mining process.

Kazera said the strategy was expected to generate significant cost savings and align operations more closely with its core HMS strategy.

A review of equipment and site infrastructure is also underway, including identifying non-core assets for potential disposal.

At African Tantalum, the company said it continued to maintain a strong legal position, with an arbitration award currently subject to review in the Namibian Supreme Court.

Kazera said it remained confident in its position and was monitoring the process pending judgment.

At the same time, the company said it was progressing discussions with existing counterparty Hebei Xinjian over a potential commercial outcome that could provide a near-term pathway to cash generation, recovery of most of the outstanding debt, or accelerated monetisation of the asset.

Kazera said it had also received preliminary expressions of interest in African Tantalum from third parties.

The board said its near-term priorities included supporting the 2A Mining Right process, advancing strategic partner talks for scaled HMS production, increasing HMS volumes and concentrate quality, optimising diamond operations, reducing costs and progressing value realisation across the broader portfolio.

Kazera said it had identified a need for additional short-term working capital to support operations over the coming months as production is optimised and revenues increase.

It said it was in discussions with existing lenders and other stakeholders to ensure appropriate funding was in place.

As part of its cost-cutting measures, all directors had agreed to defer receipt of their fees until 31 August 2026, with the fees continuing to accrue.

Richard Jennings agreed a salary of �5,000 per year as director and interim chief executive, while the company agreed to make a �20,000 donation to charitable causes of his choosing when he steps down as interim CEO.

"In the very short period since my appointment, I have been in country in South Africa meeting with the key counterparts in each of our projects," Jennings said.

"As illustrated through my nominal salary award, my focus is singular - addressing the operational challenges at asset level and improving alignment between operational performance, the company's perception of its underlying asset values and the current market perception.

"Over the past three weeks, with the appointment of new Board members with complementary experience together with renewed engagement with parties in both South Africa and Namibia, I am optimistic that a line has been drawn under the past and the Company is now moving forward with a much clearer focus."

Kazera said that after "many years of frustration" it believed it had entered a pivotal phase, with clearer strategic focus, improving operational visibility and tangible progress across its core assets.

The board said successful execution should support the company's transition to a sustainable, cash-generative business.

At 1259 BST, shares in Kazera Global were down 21.04% at 1.07p.

Reporting by Josh White for Sharecast.com.

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