Kazera reports strong increase in diamond production

Kazera Global said on Thursday that diamond production for the current cycle through to January was already in excess of 750 carats, with a target of 1,000 carats for the entire cycle.

The AIM-traded firm also announced that the Tantalite Valley mine was in the final phase of testing, with tantalum production on schedule to begin “imminently”.

It said the production of more than 750 carats in the current production cycle was well ahead of the previous highest diamond production of 242 carats.

The board said “extensive” work had been undertaken on the processing plant at Tantalite Valley in order to enable it to start production.

It said the focus was on water recycling and conservation, so as to be able to produce tantalum using the water supplies currently available.

The first shipment to the company's tantalum off-take partner was expected by the end of December, with a “steady increase” in production during 2022.

With production increases across its business, Kazera said it expected to be “significantly” cash flow positive during 2022, which would be reinvested into resource definition and mining across the business.

“2021 has been a very good year for the company, despite the difficulties we have had to overcome,” said chief executive officer Dennis Edmonds.

“With minimal cash we have succeeded in getting both our diamond and tantalum operations into commercial production.

“We look forward with increased confidence to building upon that foundation in 2022.”

Edmonds said that, apart from the material growth of revenues, the firm saw “major upsides” from proving up further resources at Tantalite Valley and developing its lithium resources, which was in “extremely high demand” as the global economy continued its transition to net zero, with increased electrification.

“We are also enormously excited by the opportunity to finally commence mining heavy mineral sands.”

At 1506 GMT, shares in Kazera Global were up 5.37% at 1.08p.