Kavango Resources (KAV) AI Stock Analysis

• Market Cap: £33.62M
• Dividend Yield: N/A
• Average Volume (3M): 1.40M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.02
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: UK
• Employees: 107
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): >-0.01
• Shares Outstanding: 3,736,048,600
• 10 Day Avg. Volume: 2,590,708
• 30 Day Avg. Volume: 1,403,294
• PEG Ratio: -0.06
• Price to Book (P/B): 1.13
• Price to Sales (P/S): 34.01
• P/FCF Ratio: -1.59
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: 0.73p ▼(-6.28% Downside)

The score is held down primarily by weak financial performance—large operating losses and significant cash burn despite only early-stage revenue—partly offset by a balance sheet with positive equity and moderate leverage. Technicals are mixed with neutral momentum and short-term stabilization, while valuation is difficult to support due to a negative P/E and no dividend yield provided.

Positive Factors

Initial revenue growth

Kavango reported its first meaningful revenue (GBP 445k) with ~206.7% revenue growth, a durable signal that early-stage commercialisation or monetisation activity is beginning. For an explorer, growing revenue provides a foundation to validate targets and attract partners over months.

Positive equity and moderate leverage

A positive equity base (GBP 13.3m) and modest debt-to-equity (~0.36) give Kavango balance-sheet resilience relative to many explorers. This structural cushion supports continued drill programs or negotiations with farm-out partners without immediate insolvency risk over the next several months.

Monetisation-focused business model

Kavango’s stated strategy—seeking value via farm-outs, joint ventures, asset sales or royalties—is a durable advantage for early-stage explorers. It allows the company to de-risk projects by attracting partner funding, limiting direct capex and accelerating value realisation without needing production.

Negative Factors

Large operating losses and cash burn

Reported net loss (~GBP 8.7m) and substantial negative operating and free cash flows reflect persistent cash burn far exceeding current revenue. For a non-producing explorer this creates structural funding pressure, increasing likelihood of dilutive raises or halted programs absent partner funding.

Weak cash generation

Operating and free cash flows are materially negative and deteriorated in 2024, indicating ongoing consumption of liquidity. Over a multi-month horizon this undermines the company’s ability to self-fund drilling or evaluation, increasing dependency on external financing and timing risk to value creation.

Erosion of shareholder equity and returns

Equity fell materially year-over-year and return on equity is deeply negative (~-65%), a durable indicator of capital erosion. Persistent negative returns reduce investor confidence, heighten need for capital raises, and can limit the company’s bargaining power with partners over the medium term.

Kavango Resources Business Overview & Revenue Model

Company Description

Kavango Resources Plc, together with its subsidiaries, engages in the exploration of base and precious metals in Botswana. The company explores for nickel, copper, platinum group metals, silver, and rare earth deposits. Its projects include the Kalahari Suture Zone project that consists of 12 prospecting licenses, which covers an area of 7,554 square kilometers located in the southwest of Botswana; the kalahari copper belt project, which comprise of 4 prospecting licenses covering an area of 2,385 square kilometers situated in Botswana; and the Ditau project consists of 2 prospecting licenses that covers an area of 1,386 square kilometers. The company is based in London, the United Kingdom.

How the Company Makes Money

Kavango Resources Financial Statement Overview

Summary

Financials remain weak: 2024 shows initial revenue (445k) but profitability is deeply negative (net loss 8.7m; net margin ~-1,947%) and cash burn is sizable (operating cash flow -5.8m; free cash flow -9.5m). The balance sheet is comparatively steadier with positive equity (13.3m) and moderate leverage (debt-to-equity ~0.36), but equity has declined versus 2023, reflecting ongoing loss pressure.

Income Statement

The company is still in a very weak earnings phase. While 2024 shows the first meaningful revenue base (445k) and a sharp year-over-year increase from prior periods with no revenue, profitability remains deeply negative: gross profit is slightly negative and operating losses are very large relative to sales (net loss of 8.7m and a net margin around -1,947%). Overall, the trajectory shows commercialization starting, but cost structure is far ahead of revenue, keeping near-term earnings quality and visibility low.

Balance Sheet

The balance sheet is mixed but comparatively more stable than earnings. Equity remains positive (13.3m in 2024), and leverage is moderate with debt-to-equity around 0.36 (total debt 4.8m). However, equity has declined versus 2023 (18.2m), and returns to shareholders are materially negative (return on equity around -65% in 2024), reflecting ongoing losses that can continue to pressure capital over time.

Cash Flow

Cash generation is weak and deteriorated in 2024. Operating cash flow is negative (-5.8m) and free cash flow is more negative (-9.5m), indicating the business is consuming cash and likely reliant on external funding. Although free cash flow was less negative than the net loss (free cash flow to net income above 1x), that is not a sign of strength here—both figures are negative and cash burn is sizable versus the company’s current revenue scale.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	656.00K	445.00K	0.00	0.00	0.00	0.00
Gross Profit	-490.00K	-39.00K	0.00	0.00	0.00	0.00
EBITDA	-14.18M	-8.40M	-3.15M	-2.27M	-197.00	395.00K
Net Income	-13.02M	-8.66M	-3.29M	-2.21M	-1.74M	-708.00K
Balance Sheet
Total Assets	23.26M	19.01M	19.64M	13.27M	8.09M	5.07M
Cash, Cash Equivalents and Short-Term Investments	3.67M	1.52M	3.77M	2.27M	2.52M	2.42M
Total Debt	0.00	4.76M	0.00	0.00	0.00	0.00
Total Liabilities	938.67K	5.47M	1.28M	571.00K	299.00K	79.00K
Stockholders Equity	22.14M	13.35M	18.17M	12.70M	7.79M	4.99M
Cash Flow
Free Cash Flow	-12.22M	-9.54M	-5.86M	-1.63K	-1.58K	-770.00
Operating Cash Flow	-8.31M	-5.77M	-2.28M	-1.56K	-1.33K	-740.00
Investing Cash Flow	-3.14M	-4.96M	-4.02M	-2.60M	-2.55M	-270.00
Financing Cash Flow	13.19M	8.52M	7.34M	4.33M	4.02M	3.08K

Kavango Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
POW	58 Neutral	£18.19M	―	―	―	―	―
KDNC	53 Neutral	£14.94M	-6.52	-9.95%	―	―	―
ZNWD	52 Neutral	£38.78M	-13.00	-7.78%	―	―	-19.57%
CTL	50 Neutral	£18.77M	-1.34	-35.54%	―	―	―
CRTM	46 Neutral	£14.25M	-0.36	-481.01%	―	―	-0.59%
KAV	45 Neutral	£33.62M	-1.76	-61.43%	―	―	―

Kavango Resources Corporate Events

Kavango Resources Confirms Share Capital and Voting Rights Structure

Kavango Resources, listed on both the London Stock Exchange and the Victoria Falls Stock Exchange, has confirmed its current issued share capital and voting rights structure. As of 19 January 2026, the company has 3,736,048,519 ordinary shares in issue, all carrying one vote each, with 444,589,978 of these shares secondary listed on the Victoria Falls Stock Exchange and none held in treasury, a figure shareholders are advised to use as the denominator when assessing whether they must disclose holdings or changes under UK disclosure rules.

The most recent analyst rating on (GB:KAV) stock is a Hold with a £0.87 price target. To see the full list of analyst forecasts on Kavango Resources stock, see the GB:KAV Stock Forecast page.

Kavango Drilling at Bill’s Luck Delivers High Grades Ahead of Maiden Resource

Kavango Resources has completed a 7,714-metre reverse circulation and diamond drilling programme at the historic Bill’s Luck Gold Mine in Zimbabwe’s Hillside Project, reporting multiple high-grade gold intersections across several parallel mineralised reefs. The company will now use these results to prepare a maiden Mineral Resource Estimate for Bill’s Luck, which is expected to underpin detailed mine planning and support a planned ramp-up of ore supply to its nearing-commissioning 50 tonne-per-day pilot carbon-in-pulp processing plant, marking a key step towards establishing consistent and scalable gold production and strengthening its position in Zimbabwe’s structurally controlled gold sector; the firm also clarified that its assay provider, Performance Laboratories in Harare, is ISO/IEC 17025:2017 accredited, confirming the reliability of previously reported assay data.

The most recent analyst rating on (GB:KAV) stock is a Sell with a £0.71 price target. To see the full list of analyst forecasts on Kavango Resources stock, see the GB:KAV Stock Forecast page.

Kavango Drilling Confirms Extensive High-Grade Gold System at Bill’s Luck Mine

Kavango Resources has reported successful results from a 7,714-metre diamond and reverse circulation drilling campaign at the historic Bill’s Luck Gold Mine within its Hillside Project in Zimbabwe, confirming a mineralised system that extends beyond 220 metres depth and includes multiple parallel reef structures in the hanging wall and footwall in addition to the currently mined Main Reef. High-grade gold intercepts from both surface and underground holes, including assays above 100g/t over narrow widths, will feed into a maiden Mineral Resource Estimate now being prepared to support mine planning and longer-term production assessments, underpinning Kavango’s strategy to increase gold output at Bill’s Luck and reinforce its position as an emerging mechanised gold producer in Zimbabwe alongside its other Hillside targets at Nightshift and Steenbok.

The most recent analyst rating on (GB:KAV) stock is a Hold with a £0.64 price target. To see the full list of analyst forecasts on Kavango Resources stock, see the GB:KAV Stock Forecast page.

Kavango Resources Expands Zimbabwe Pension Fund Backing With New Share Issue

Kavango Resources will issue 74,016,243 new ordinary shares on or around 16 January 2026 to Comarton Consultants and nine pension funds that are part of the Comarton Managed Pension Funds Investments Consortium, at an issue price of £0.01 per share using a pre-defined FX rate. This latest drawdown increases the Consortium’s participation to 12 pension funds with a combined holding of 143,380,910 shares, or 3.84% of Kavango’s enlarged share capital, and supports the build-out of its Zimbabwean investor base via secondary listing on the Victoria Falls Stock Exchange. Following admission, Kavango’s total shares in issue will rise to 3,736,048,519, of which 444,589,978 will be secondary listed on VFEX, a change that also updates the denominator shareholders must use for regulatory disclosure of voting rights under UK transparency rules.

The most recent analyst rating on (GB:KAV) stock is a Hold with a £0.71 price target. To see the full list of analyst forecasts on Kavango Resources stock, see the GB:KAV Stock Forecast page.

Kavango Resources Awards 240 Million Share Options to Management and Staff

Kavango Resources has granted a total of 240 million new share options, comprising 90 million options to directors and persons discharging managerial responsibilities and 150 million options to employees and consultants, all exercisable at 1p per share. The options, which vest after three years and run for a 10-year term, are intended to align management and staff incentives with shareholder interests and could, if exercised, lead to a significant increase in the company’s share capital, underscoring the board’s focus on long-term value creation and retention of key personnel as it advances its Southern African metals and gold projects.

The most recent analyst rating on (GB:KAV) stock is a Hold with a £0.71 price target. To see the full list of analyst forecasts on Kavango Resources stock, see the GB:KAV Stock Forecast page.

Kavango Resources Updates Total Voting Rights and Share Capital

Kavango Resources has confirmed that, as of 16 December 2025, it has 3,662,032,276 ordinary shares in issue, all carrying one vote each, with 370,573,735 of these shares secondary listed on the Victoria Falls Stock Exchange and no shares held in treasury. The updated total voting rights figure provides shareholders with the denominator needed to assess and report any notifiable holdings or changes in their stake in the company under UK disclosure rules, ensuring continued compliance and transparency in its shareholder reporting.

Kavango Resources Seeks Joint Venture for Kalahari Copper Belt

Kavango Resources PLC is exploring strategic options for its Kalahari Copper Belt mineral portfolio in Botswana, which includes a 6,200km² license area. The company has reported promising initial results from diamond drilling at the Karakubis prospect, indicating copper mineralization and favorable geological conditions, but there is no certainty of a transaction or its terms.

Kavango Resources Secures Additional Funding for Zimbabwe Operations

Kavango Resources PLC has successfully raised $373,323.19 through a subscription in Zimbabwe, issuing 27,651,514 new ordinary shares. The funds will be used for general working capital and further exploration and mine development in Zimbabwe, with shares expected to commence trading on the London Stock Exchange and the Victoria Falls Stock Exchange on 16 December 2025.

Kavango Resources Extends Nara Gold Project Acquisition Deadline

Kavango Resources PLC has announced an extension for the completion of its acquisition of the Nara Gold Project in Zimbabwe, with the new deadline set for 27 February 2026. This extension allows for the finalization of legal formalities, and both parties remain committed to completing the transaction, which could enhance Kavango’s portfolio and strengthen its position in the Southern African mining industry.