Overview

Kazera Global plc holds a 70% stake in Whale Head Minerals (WHM), which operates the Walviskop heavy mineral sands (HMS) project in Alexander Bay, South Africa. The remaining 30% is owned by Black Economic Empowerment (BEE) partners, ensuring compliance with South African regulations. Located within a restricted diamond zone, the project benefits from synergies between WHM and Deep Blue Minerals (DBP), Kazera’s diamond mining operation.

Resource

The original Walviskop site spanned around 5 hectares of beach sand, with a JORC-compliant Indicated Mineral Resource of 3.11 million tonnes of heavy minerals, grading at 61.2%. This includes garnet (30.29% Run of Mine (ROM)) and ilmenite (27.54% ROM), alongside zircon and rutile, which are present but not yet included in Kazera’s resource estimates.

CREO Design (Pty) Ltd has valued the project at a Net Present Value (NPV) of approximately £150 million, based on a production rate of 6,000 tonnes per month with a 20% discount rate.

In March 2023, the mining permit area was adjusted approximately 100 metres westward due to coordinate discrepancies, placing it within the surf zone. Despite this change, CREO confirmed that the resource volume remains comparable.

The heavy mineral grade in the adjusted area is 49.9%. This reduction is primarily due to the surf zone environment, where wave action increases dilution from lighter materials, reducing overall mineral concentration.

Importantly though, the shift to the surf zone extends the life of the mine. The dynamic nature of the surf zone means that heavy minerals are continuously deposited by wave and tidal action, providing a natural replenishment source. This helps mitigates the impact of the reduced grade and also supports sustainable, long-term production.

Operational Progress

Following the granting of the HMS mining permit in August 2022, WHM began constructing an on-site processing facility. Limited production commenced in December 2022, enabling Kazera to refine the design of a full-scale processing plant. In February 2023, the company ordered specialist equipment, including a centrifugal separation screen, and introduced interim measures like a double-deck 500-micron screen to accelerate production and build HMS stockpiles.

August 2024 marked a major milestone with WHM receiving certification from the National Nuclear Regulator, addressing naturally occurring radioactivity in some HMS elements. This approval allowed the commencement of full-scale mining and processing.

By April 2025, WHM achieved its first commercial sale of 10,000 tonnes of HMS under a 100,000-tonne offtake agreement with Fujax South Africa, representing a significant step forward in the project’s commercial development.

Expansion Potential

Kazera is actively seeking to expand its HMS operations to the Perdevlei (2A) concession, just north of Walviskop. This site covers approximately 3,095 hectares, with around 170 hectares earmarked for immediate mining. Kazera believes that 2A hosts HMS deposits of comparable quality to Walviskop.

Building on its experience at Walviskop, Kazera has applied directly for a Mining Right for 2A, aiming to accelerate development. In November 2024, a major positive milestone was achieved when the Company was requested by the South African Government’s Department for Mineral Resources and Energy to provide a financial guarantee for site rehabilitation.

Financial Outlook

Kazera is well-positioned to capitalise on global demand for HMS, supported by a high-grade resource and an established offtake agreement. The Company’s focus on efficient production and continuous operational improvements, combined with the potential expansion at 2A, provides a strong platform for sustainable growth and long-term value creation for shareholders.