By: African mining market

Consolidation and Guidance for the Year Ahead

Namib Minerals has provided its operational update and production guidance for 2025, signaling a year focused on consolidation at its flagship How Mine. The company anticipates production to fall within a range of 24,000 to 25,000 ounces, with an All-in Sustaining Cost (AISC) projected between US$2,700 and US$2,800 per ounce. This operational stability is expected to generate an Adjusted EBITDA of US$22 million to US$26 million, based on current mine plans and market conditions. The primary objectives for the How Mine in 2025 are to stabilize ore grade performance and complete ongoing throughput-capacity improvements.

A Phased Pathway to Multi-Asset Production

The company is actively executing a technically driven growth strategy designed to transition from a single-asset producer to a multi-asset operator. This expansion is centered on the planned restart of its Redwing and Mazowe mines. To advance this goal, Namib Minerals has appointed the global consulting firm WSP Global Inc. to conduct concurrent feasibility studies for both assets. These studies, mandated to be SK-1300 compliant, are scheduled for completion over the next 12 to 18 months and will serve to validate the company's exploration program and provide a technical foundation for reserve conversion and future financing.

Concurrent Advancements in Mine Restart Preparation

In a significant parallel initiative, Namib Minerals will commence critical preparatory work during the feasibility study phase. The company plans to begin dewatering the Redwing Mine, an process estimated to take approximately eight months to reach the targeted mining levels. Concurrently, engineering and planning for essential surface-infrastructure and power-supply upgrades will be advanced to align with the projected restart timeline for both mines. This concurrent approach is designed to accelerate the overall development schedule once a final investment decision is made.

Preliminary Funding Strategy for Expansion

Upon successful completion of the feasibility studies, Namib Minerals intends to proceed with the capital expenditure (CAPEX) phase of its expansion. The company has provided a preliminary estimate that the total funding requirement for restarting the Redwing and Mazowe mines will fall within a range of US$300 million to US$400 million, with the majority allocated to Redwing. To fund this expansion, the company plans to pursue a balanced mix of project debt and strategic partnerships, aiming to minimize shareholder dilution while advancing its growth objectives.

Forward-Looking Considerations and Risks

The company's update includes standard forward-looking statements that outline the inherent uncertainties and risks associated with its plans. Namib Minerals cautions that its preliminary cost estimates, timelines, and production targets are subject to change based on the final outcomes of the feasibility studies, market conditions, and equipment costs. Key risks identified include the company's ability to secure necessary financing, the political and social landscape of its operating jurisdictions, and the fluctuating price of gold, all of which could impact the successful execution of its expansion strategy.