Kendrick Resources Secures Majority Stake in Namibian Rare Earth Licences

Kendrick Resources PLC ( (GB:KEN) ) has shared an announcement.

Kendrick Resources has exercised its option and signed a definitive agreement to acquire a 70% interest in two Namibian exploration licences, EPL4458 and EPL6691, prospective for a rare earth mining project near Lüderitz. The deal follows technical due diligence and reconnaissance work indicating strong potential, supported by extensive inherited data including drill holes, unassayed core, trenches, geophysics and initial metallurgical tests.

Management plans to fast-track a drill programme and further metallurgical work to advance the project towards a preliminary economic feasibility study, focusing on magnetic rare earth elements used in electric vehicles, wind turbines and smartphones. The transaction involves staged cash and share consideration, a carried interest and royalty structure for local partners, and the appointment of Namibian businessman Wilhelm Shali as a non-executive director, while the issuance of 22 million new shares slightly dilutes existing shareholders and expands the company’s capital base.

The most recent analyst rating on (GB:KEN) stock is a Hold with a £0.98 price target. To see the full list of analyst forecasts on Kendrick Resources PLC stock, see the GB:KEN Stock Forecast page.

Spark’s Take on GB:KEN Stock

According to Spark, TipRanks’ AI Analyst, GB:KEN is a Neutral.

The score is held down primarily by weak financial performance (no revenue, ongoing losses, negative cash flow, and a material 2024 decline in equity/assets). Technicals provide some offset due to strong upward trend vs moving averages and positive MACD, but overbought momentum indicators increase near-term risk. Valuation is also constrained by negative earnings and no dividend yield support.

To see Spark’s full report on GB:KEN stock, click here.

More about Kendrick Resources PLC

Kendrick Resources PLC is a London-listed mineral exploration and development company focused on advancing mining projects, including rare earth assets, through early-stage evaluation to economic feasibility. The company targets critical minerals with applications in renewable energy, electric vehicles and advanced technologies, aiming to build a portfolio of high-value strategic resources.

Average Trading Volume: 5,303,072

Technical Sentiment Signal: Buy

Current Market Cap: £5.13M

Find detailed analytics on KEN stock on TipRanks’ Stock Analysis page.