London-listed Kazera Global has reported operational advances across its heavy mineral sands and diamond projects as the company transitions from development into early commercial production, while remaining in a build-up phase financially.

Kazera CEO Dennis Edmonds said on December 12 that the financial year ended June 30, 2025, had been “defined by delivery”.

“Having spent several years planning, building and refining our core projects, this was the year in which our operational work began translating into commercial output, improved production capability and clearer visibility of future revenues.

"We have taken meaningful steps forward at both Whale Head Minerals (WHM) and Deep Blue Minerals (DBM), progressed the Aftan arbitration process to a successful ruling, and strengthened the Group’s ownership structure, partnerships and technical capacity. Our task now is to scale these foundations into sustained, profitable production,” he said.

At WHM, the company received the National Nuclear Regulator (NNR) permit in August 2024, enabling mining activities and delivery of heavy mineral sands samples to potential customers.

Edmonds noted that WHM entered into an initial supply arrangement for 10 000 t of material in April, but that it did not constitute a commercial sale for the period, with funds recorded as a loan until accounting standards require reassessment.

Technical work at WHM continued throughout the year.

“Throughout the year, our focus remained firmly on technical optimisation. We completed commissioning activities, improved material handling and upgraded key elements of the flowsheet to support higher recoveries,” Edmonds said.

Post period-end, a 12-stage spiral circuit was installed on time and within budget.

“Early results have been encouraging, with titanium dioxide levels consistently exceeding market specification thresholds. The new circuit also increases flexibility, allowing us to add further spirals or additional stages as we scale,” Edmonds added.

Work with two mineral processing equipment suppliers on future expansion also produced positive findings.

Edmonds reported commercial progress, noting a major offtake agreement signed in December 2024, which included an advance against future sales of $600 000.

He said interest from a specialist garnet company had emerged for additional spirals dedicated to garnet and silica removal. The 2A concession, about 34 times the size of the Walviskop site, had received Environmental Authorisation in November 2024, and post period end the remaining objection was withdrawn, allowing the potential for large-scale, long-life production once the mining right is granted.

At DBM, Edmonds said the operation had moved from development to consistent recoveries.

“During the year, we installed our in-house processing solution, including a pulsating jig and FlowSort recovery machine, giving us full control of the initial beneficiation process and reducing reliance on third-party infrastructure. The extended mining contract awarded in April 2025 provides the stability required to scale operations responsibly,” he said.

Post period end, DBM reported its strongest results, recovering 45 ct from the first 100 t processed, three times higher than initial forecasts. A full-scale test run confirmed the plant could process up to 20 t/h, producing 133 diamonds weighing 68 ct, including a 6.13-ct stone. Edmonds said the average stone size of 0.51 ct exceeds the regional norm. A new high-grade block was awarded in September, and improved commercial terms agreed in October are expected to enhance gravel supply and revenue sharing.

Edmonds also addressed the Aftan arbitration. Following Hebei Xinjian’s failure to meet payment obligations, Kazera initiated arbitration in September 2024. In May this year, the tribunal ruled in Kazera’s favour, awarding $11.9-million plus interest and costs.

“In the meantime, the interest from three independent parties to date, is indicative of the underlying commercial value of the asset. We will continue to balance enforcement with the potential for value-realising transactions,” he said.

Corporate developments included increasing Kazera’s equity ownership of WHM and DBM, with the acquisition of Tectonic Gold’s remaining 10% stakes raising beneficial interests to 70% and 100% respectively, while 26% of DBM shares are reserved for black economic empowerment partners.

Edmonds said shareholder support had been significant, with participation from Tracarta Limited and Catalyse Capital contributing to a £1.3-million fundraise completed after year end. Cash at financial year-end was £155 000, reflecting ongoing investment in operational build-out.

Looking ahead, Edmonds said the focus would be on scaling production, improving recoveries and preparing WHM for the 2A concession. At DBM, the priority is to increase throughput sustainably.

“We expect both assets to begin contributing more significantly to group revenues during the year ahead,” he said.

“This has been a year in which the group has made real progress toward becoming a reliable producer of heavy mineral sands and diamonds. Demand for heavy mineral sands is underpinned by long-term industrial growth and a tightening global supply picture.

"Early production at WHM provides a solid platform from which to build, while the 2A concession, being WHM’s pending mining right application covering about 3 095 ha, of which an estimated 170 ha contain high-grade heavy mineral sands suitable for near-term extraction, represents our most important long-term growth opportunity,” Kazera chairperson Dr John Wardle said.

He added that the company’s equity increases, new strategic shareholders and CEO and board share purchases strengthened corporate foundations. He said the post year-end fundraise provides capital to support production growth and readiness for the 2A concession.

“Kazera has entered the new financial year with growing operational momentum, firmer commercial positioning and a clearer route to scale and our portfolio is now better placed to capture the opportunities ahead,” Wardle said.