NASDAQ-LISTED resource firm Namib Minerals plans to invest nearly US$13 million in its How Gold Mine (How Mine) operations over the next three years, aiming to boost bullion production, businessdigest has learned.
The company, a joint venture between Metallon Corporation and Hennessy Capital Investment Corp VI, operates three gold mines in Zimbabwe: Redwing, How Mine, and Mazowe.
The company controls the mines through its subsidiary, Bulawayo Mining Company Limited (BMCL).
A recent filing with the United States (US) Securities and Exchange Commission revealed that How Mine received a significant capital injection of US$9,28 million in capital expenditures (capex) last year.
This investment is expected to increase steadily to US$22,3 million by 2027, according to documents submitted to comply with Nasdaq requirements.
“Capital costs total US$22,3 million comprising sustaining capital of US$11 million, growth capital of US$3,7 million (only in 2024 for underground and process plant production upgrades) and mine closure of US$7,6 million (assuming a planned closure scenario),” the document reads in part.
“These costs have been proportioned by tonnage (17%) from the overall MII strategic LOM (life of mine) inventory to reflect a mineral reserves only assessment.
“Growth capital of US$3,7 million is incurred only in 2024 for underground mineral reserve block access and process plant production upgrades.”
- Namib plans to inject US$13m into How Mine
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The document revealed that Enmin Consulting (Private) Limited, a local resource and infrastructure development consulting firm, updated the mine closure cost estimate to US$7,6 million in a review conducted in June 2024.
How Mine will spend US$3,62 million in capex for 2025, US$1,81 million in 2026, and US$7,55 million in 2027 as part of its expansion plans.
In 2024, the mining firm channelled US$1,97 million towards exploration, which is expected to dip to US$1,48 million this year.
In 2026, the exploration capital outlay will further drop to US$578 000.
The African Banking Corporation of Zimbabwe Limited granted a US$5,5 million loan to BMCL to finance the company’s working capital requirements for its three mines.
Operating costs total US$74,4 million, comprising direct operating C1 costs (all mining and processing costs less any profits from by-products) of US$63,3 million and fixed overheads US$11,1 million.
The document highlighted potential business improvement initiatives, particularly in power and water supply, that could lower unit operating C1 costs from US$72/tonne to US$68/tonne. Additionally, cost reductions were expected as a function of scale, with production set to increase from 40 000 metric tonnes per month (ktpm) to 47 ktpm in 2025.
