Fundamental Insights About The Kavango Resources Plc

  • May 21, 2019 BST
  • Team Kalkine
Fundamental Insights About The Kavango Resources Plc

Kavango Resources plc (KAV) is a mineral exploration group focused on Botswana. The company majorly focus on two projects: the Kalahari Suture Zone project (KSZ) and Northwestern Botswana project. Its start-up stage exploration projects comprise of Kavango Copper Project and KSZ Project. The group’s subsidiaries include Kavango Minerals (Proprietary) Limited (Botswana) and Navassa Resources Ltd (Mauritius).

Financial Highlights (FY 2018, US$)

(Source: Annual Report, Company Website)

The company’s total assets increased from $2.9 million in 2017 to $3.4 million in 2018. Loss before taxation stood at $534,242 in FY18, a decrease from the previous year profit of $5,945. For the current period, the Group incurred a total comprehensive income loss of $755,307. In FY18 the Botswana Pula (BWP) and Pounds Sterling (GBP) depreciated around 8 per cent and 6 per cent respectively as compared with the USD, which produced a foreign exchange loss was $221,065. The group executed a placement of 60m ordinary shares at 2.5p per share to raise GBP 1.5 mn (before expenses). A further placement of 26.8 million ordinary shares at 2.8 pence per share to raise about £0.75 million was also completed on March 12, 2019. Around 1,000m of drilling is being completed at the Ditau prospect (higher probability of cobalt, copper, nickel and zinc have been identified).

Share Price Performance

Daily Chart as at April-21-19, before the market closed (Source: Thomson Reuters)

On May 21, 2019, at the time of writing (before the market closed, at 8:33 am GMT), KAV shares were trading at GBX 3.95 and remained flat against the previous day closing price. Stock's 52 weeks High and Low is GBX 4.61/GBX 1.40. At the time of writing, the share was trading 14.32 per cent lower than the 52w High and 182.14 per cent higher than the 52w low. Stock's average traded volume for 5 days was 2,207,157.60; 30 days – 923,796.33 and 90 days – 626,584.86. The average traded volume for 5 days was up by 138.92 per cent as compared to 30 days average traded volume. The outstanding market capitalisation of the company was around GBP 6.35 mn.

Conclusion

In H1 of FY2019, the group will focus on interpretation and modelling of the extensive geochemical, geophysical, and geological information and its now available for the drilling at Ditau prospect. The Ditau potential will grow in further work. The Company is imagining imminent results from the AEM (airborne electro- magnetic) survey on the northern part of the KSZ (Kalahari Suture Zone). The targets will be followed up on the ground with CSAMT (Controlled Source Audio-frequency Magneto Tellurics) surveys and geochemistry to delineate in more detail locations of conductors ahead of the drilling. The company has acquired 100 per cent of Navassa (Navassa Resources Ltd) in November 2017. The group was also reviewing other highly selective but potentially very interesting natural resource opportunities in Botswana.

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