Kennedy Ventures PLC Investee Company Operational Update (9637Q)

TIDMKENV

RNS Number : 9637Q

Kennedy Ventures PLC

18 September 2017

18 September 2017

Kennedy Ventures plc

Investee Company Operational Update

Kennedy Ventures plc ("Kennedy Ventures" or "the Company"), the AIM quoted investment company, who through its stake in African Tantalum (Pty) Limited ("Aftan") has an interest in the Namibia Tantalite Investments mine ("NTI") (historically referred to as the Tantalite Valley Mine) in Namibia, is pleased to provide an operational update.

Highlights:

-- Second shipment of industry leading high purity tantalum has been shipped to Aftan's customer with a third and fourth shipment to follow during Q4 2017.

-- The current shipment has continued to meet the stringent specifications of our key customer. This reflects Aftan's focus on quality of output and was accomplished as a direct result of continued improvements to the mine operations as well as building out our technical team to meet the increasing demand.

-- Aftan's plant upgrades are progressing as planned with three new conveyors installed and with commissioning having started on 14 September to both the Crusher Circuit and Second Screen.

-- Positive cost savings are being achieved with parts being now sourced from Namibia rather than South Africa, saving on logistic costs and taxation and further improving Namibian in country relations.

   --     Further successful plant upgrades include: 
   --     New roller technology installed and commissioned 
   --     Screen number two with new panels installed and commissioned 

-- Repositioned Thickener Feed Piping to improve the quality of water going downstream to our James Tables

   --     Eight James Tables now in position and all functioning 
   --     Installed expanded lighting 

-- Preventative Maintenance program in its second full month showing excellent machine efficiency improvements in the double digits

-- Added Quality Change Controls implemented whereby multiple management signoff is required from multiple skill sets to improve overall communication of change and demonstrate control and repeatability of any changes requested

The plant upgrades and improved processes have resulted in the NTI mine now producing tantalum grades at the specification required by its end user - a leading manufacturer of electronic components. Aftan's second shipment has been sent with the third expected to be delivered during Q4 with further shipments to follow. In line with receipt of approval for extended shifts, the mine is now successfully running two shift operations which are benefiting mine efficiencies and productivity. Furthermore, Aftan, together with Larry Johnson's consultation, is realising improvements in fixed costs and working capital through such initiatives as outsourcing catering and cleaning services as well as negotiating extended payment terms.

Relations with the Namibian Miners Union continues to improve as Aftan elevates its commitment to ensuring its mine workers are safely transported to and from the mine to local pickup points.

Water is a key component of the NTI plant operation and to further improve the efficiency of the operation, a local drill operator will, during week commencing 18 September, drill three to four fresh boreholes near the plant to provide water closer than Aftan's current source. These boreholes will also provide future water reserves and support upcoming core drilling under Aftan's Lithium Exploration advancements which are expected to commence during Q4 2017 and will include expanded Tantalum and other mineralization studies, with the guidance of MSA, Aftan's JORC third party competent person from South Africa. Details of the planned core drilling are in the final stages with selection of the drilling company to take place shortly.

As part of its drive to enhance community relations, Aftan, together with Kennedy, has established a new collaborative relationship with the Karasburg Regional Council to provide educational learning through mine visits to science pupils from Karaburg CS. Following a successful visit of Grade 12 science students and their teachers to the NTI mine, the Directorate of Education, Arts and Culture, Kharas Regional Council, has expressed his gratitude and wish to further strengthen the relationship with the NTI mine acting as a learning resource for the Science pupils who are interested in mining as a career. Aftan looks forward to working with Karasburg CS as we further cement our position as a key employer within the region.

Larry Johnson, CEO of Kennedy Ventures, commented:

"Aftan continues to make considerable progress and is now in a stronger position both at an operational level and with onward sales with Kennedy's assistance. Aftan are continuing to drive out variable costs, bringing on stronger technical localisation, improving relationships with the Namibian government and establishing partnerships with educational institutes whilst always maintaining focus on its customer's needs. Aftan is confident in its drive to become the leading Tantalum Underground Mine in the world, producing the highest quality tantalum."

 
 Kennedy Ventures plc 
 Larry Johnson (CEO), c/o          Tel: [phone] 
  Camarco                           4983 
 finnCap (Nominated Adviser        Tel: [phone] 
  and Joint broker)                 0500 
  Christopher Raggett / Scott 
  Mathieson / Anthony Adams 
  (corporate finance) 
  Simon Johnson (corporate 
  broking) 
 Shore Capital (Joint broker)      Tel: +44 (0) 207 
  Mark Percy / Toby Gibbs           408 4090 
  (corporate finance) 
  Jerry Keen (corporate broking) 
 Camarco (PR)                      Tel: +44 (0) 203 
  Gordon Poole / Billy Clegg        757 4980 
  James Crothers 
 

The data included in this press release may vary as operations continue, and also due to the factors involved in operating in the geography. These factors could include inclement weather, social issues and shut downs for technical works undertaken among others.

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

This information is provided by RNS

The company news service from the London Stock Exchange

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September 18, 2017 02:00 ET (06:00 GMT)