Namib Minerals (NASDAQ: NAMM)

Namib Minerals is a gold mining company incorporated under the laws of the Cayman Islands.

It holds a portfolio of three gold mines located in Zimbabwe namely the How Mine the Mazowe Mine and the Redwing Mine.

The company has been engaged in gold production for over two decades with the How Mine having produced approximately 1.84 million ounces of gold since 1941.

Namib Minerals aims to become a leading Pan African multi asset mining platform for precious and critical metals while also evaluating opportunities for copper and cobalt in the Democratic Republic of Congo.

Its business strategy focuses on safe sustainable and profitable mining operations that generate value for employees communities and shareholders.

Revenue is generated almost exclusively from the sale of gold extracted at the How Mine.

All gold output is sold to Fidelity the Zimbabwean authority mandated to purchase gold from domestic producers.

Transactions are executed at the London Base Metal Association spot price on the transaction date and are subject to a royalty that varies with the prevailing gold price a five percent rate applies when the price is above one thousand two hundred dollars per ounce and a three percent rate applies below that threshold.

The company receives proceeds in a combination of U. S. dollars and local currency as dictated by Zimbabwean exchange control regulations which currently allocate seventy percent of sales to U. S. dollars and thirty percent to local currency.

Although Namib Minerals is exploring copper and cobalt projects in the Democratic Republic of Congo no revenue from those metals is presently reported.

Namib Minerals operates through the following segments:

• How Mine is an operating underground gold mine situated near Bulawayo in Zimbabwe.

• It has produced approximately 1.84 million ounces of gold since 1941 and continues to extract ore using sub level open stoping methods.

• The mine operates a processing facility with a milling capacity of about 475 thousand tonnes per annum and is currently undertaking a shaft sinking development project and a milling plant expansion expected to increase throughput and commence operations in late 2026.

• The How Mine maintains ISO certifications for environmental management quality and occupational health and safety and follows a comprehensive Safety Health Environment and Quality program aimed at achieving a zero harm environment.

• The Mazowe Mine is a historically producing gold mine located northwest of Harare in Zimbabwe.

• It yielded approximately 1.36 million ounces of gold up to 2018 before being placed on care and maintenance due to economic challenges and milling capacity constraints.

• The mine holds significant measured and indicated gold resources of about 1.17 million tonnes at a grade of 7.77 grams per tonne and inferred resources of about 3.29 million tonnes at 8.65 grams per tonne.

• Preparatory work to restart operations includes dewatering of flooded work areas upgrading surface infrastructure and constructing a new processing plant with the objective of resuming production within three years of obtaining adequate financing.

• The Redwing Mine is the largest asset in the portfolio positioned near Mutare in Zimbabwe.

• It reported approximately 1.19 million ounces of measured and indicated gold resources and 1.33 million ounces of inferred gold resources as of 2023 before entering care and maintenance in 2019 owing to milling capacity constraints and economic headwinds.

• The mine is positioned to restart operations through dewatering of flooded underground areas shaft hoist upgrades tailings storage facility construction and installation of a new processing plant subject to obtaining required capital.

• The timeline for resumption is also targeted within three years of financing availability.

• The Corporate segment comprises the holding company and its subsidiaries that provide strategic oversight financial management and capital allocation for the group.

• It is responsible for securing funding for exploration and development projects managing investor relations and ensuring compliance with regulatory requirements across jurisdictions.

• The Corporate segment also evaluates potential acquisitions in the Democratic Republic of Congo and other African jurisdictions to expand the company’s multi asset platform.

Namib Minerals holds a competitive position as one of Zimbabwe’s established gold producers with a long operating history and a resource base that includes high grade deposits at the Mazowe and Redwing mines.

The company competes with domestic peers such as Caledonia Mining Corporation Plc and with international firms that pursue opportunities in the Democratic Republic of Congo like Ivahoe Mines Zijin Mining Group and CMOC Group.

Its advantages include low cost production at the How Mine stemming from relatively shallow ore bodies free milling mineralogy and the ability to transact a portion of sales in U. S. dollars which mitigates local currency volatility.

Furthermore the firm’s strong commitment to environmental social and governance standards is demonstrated by ISO certifications and by community investment programs that support education health and local infrastructure.

The pursuit of special mining leases for the Mazowe and Redwing assets further improves the company’s ability to export gold directly and reduce exposure to local exchange rate fluctuations.

The company’s customer base consists principally of Fidelity the Zimbabwean entity that is legally required to purchase all gold produced by domestic miners.

All gold sales are conducted with Fidelity at prevailing market prices and the company receives payment in a mix of U. S. dollars and local currency according to the prevailing exchange control regulations.

While Namib Minerals is assessing copper and cobalt opportunities in the Democratic Republic of Congo no sales of those metals have been realized to date.

Should those projects advance the company anticipates selling copper and cobalt to global traders and industrial consumers that require those metals for clean energy applications.