31st Mar 2015 12:40
LONDON (Alliance News) - Kennedy Ventures PLC Tuesday said it plans buy even more tantalite mines once the mine held by its majority-owned Aftan entity begins production and the company is generating cash.
Kennedy Ventures, which bought 75% of Namibia's African Tantalum (Pty) Ltd, known as Aftan, for about GBP660,000 in August 2014, expects the 60%-owned mine acquired by that entity to enter production within four months. It is eyeing demand for tantalum from the electronics and technology industries, highlighting mobile devices as one specific area.
"The successful 75% acquisition of African Tantalum (Pty) Ltd is the first step in building Kennedy Ventures into a producer of high grade tantalum. I am very excited by the dynamics of the tantalum market, particularly for producers which comply with the US conflict mineral regulations. The demand for tantalum is set to grow with the demand for electronic devices we so rely on today," Chairman Giles Clarke said in a statement.
The company said it made a GBP57,000 pretax loss in the six months ended December 31, 2014, compared with GBP60,000 in the corresponding period the prior year. It had GBP350,000 in cash at the end of 2014, compared with GBP531,000 six months earlier.
"When production commences Kennedy Ventures will be a producer of what is a highly valuable commodity in a stable market. We are confident that the investment we have made in Namibia will be the start of a strong period of growth for the company and we look forward to updating shareholders as to future developments," Clarke said.
Kennedy Ventures shares were down 3.7% at 3.25 pence on Tuesday.
By Samuel Agini; [email protected]; @samuelagini
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