KAVANGO RESOURCES PLC
STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBER 2025
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in Zimbabwe covering an area totalling 12.72km
2
. The Board considers the area size and operations across two
countries significantly mitigates against risk. The Board understands the importance of regularly reviewing its
strategy and regularly assessing other opportunities in the Botswana and Zimbabwe market and/or internationally.
Exploration risk
Exploration at the KCB, KSZ, Ditau, Hillside, Lonely, and Nara Projects may not result in the discovery of
economically viable mineral deposits.
Whilst the Directors endeavour to apply what they consider to be the latest technology to assess projects, the business
of exploration for and identification of minerals and metals, is speculative and involves a high degree of risk. The
mineral and metal potential of the Group’s projects may not contain economically recoverable volumes of minerals,
base metals, or precious metals of sufficient quality or quantity. To mitigate this risk, the Group continues to evaluate
additional opportunities, and where possible and appropriate, to acquire options over ground to enable some
exploration to be conducted before completing an acquisition.
Even if there are economically recoverable deposits, delays in the construction and commissioning of mining
projects or other technical difficulties may make the deposits difficult to exploit. The exploration and development
of any project may be disrupted, damaged, or delayed by a variety of risks and hazards which are beyond the control
of the Group. These include (without limitation) geological, geotechnical, and seismic factors, environmental
hazards, technical failures, adverse weather conditions, acts of God and government regulations or delays.
Exploration is also subject to general industrial operating risks, such as equipment failure, explosions, fires and
industrial accidents, which may result in potential delays or liabilities, loss of life, injury, environmental damage,
damage to or destruction of property and regulatory investigations. The Group may also be liable for the mining
activities of previous miners and previous exploration works. Although the Group intends, itself or through its
operators, to maintain insurance in accordance with industry practice, no assurance can be given that the Group or
the operator of an exploration project will be able to obtain insurance coverage at reasonable rates (or at all), or that
any coverage it obtains will be adequate and available to cover any such claims. The Group may elect not to become
insured because of high premium costs or may incur a liability to third parties (in excess of any insurance cover)
arising from pollution or other damage or injury.
Mining Risk
The company’s technical team is experienced in mining vein-hosted gold in Zimbabwe, and continuously work to
continuously assess risk to production, the ongoing economic viability of operations, and to the safety and wellbeing
of those working on site. As the company continues to grow, Kavango has implemented proactive risk management
strategies, focusing on environmental, operational, and safety concerns. The Company engages in regular training
programs for its workforce to ensure adherence to best practices and safety protocols. By fostering a culture of risk
awareness and resilience, the Company remains committed to minimizing potential disruptions and enhancing the
safety and efficiency of its mining activities.
Environmental, social, and related regulatory risks
In relation to the Group’s existing projects the environmental impact to date is limited to activities associated with
mining and exploration. The ultimate development of any project into a mining operation will inevitably impact
considerably on the local landscape and communities. Some of these projects sit in an area of considerable natural
beauty, or in areas where local communities are engaged in artisanal mining, and therefore there could be opposition
to mining by some parties. This may impact on the cost and/or the Group’s ability to sell or move these projects into
production.
While the Group believes that its operations and future projects are currently, and will be, in substantial compliance
with all relevant material environmental and health and safety laws and regulations, including relevant international
standards, there can be no assurance that new laws and regulations, or amendments to, or stringent enforcement of,
existing laws and regulations will not be introduced.
Nevertheless, the Group will continue to vigorously apply international standards to the design and execution of any
and all of its activities, including engagement and consultation with local communities, and non-governmental and
Governmental organisations to ensure any impacts of current and future activities are minimised and appropriately
managed. The Group has established a comprehensive suite of health, safety, environmental and community policies
which will continue to underpin all future activities.
