Kaoko Metals Ltd (ASX:KAO) last week outlined its strategy to capitalise on growing global copper demand as it approaches an imminent ASX listing, with managing director Gerard O’Donovan highlighting two fully permitted projects in Namibia.
O’Donovan said the company had positioned itself to benefit from structural shifts in copper demand, driven by the expansion of AI, data centres and electrification. He noted that copper remains the key metal underpinning these trends and pointed to a widening supply-demand imbalance alongside declining exploration investment globally.
The company’s primary focus is its sediment-hosted copper-silver project in the underexplored Kaoko Copper Belt. O’Donovan reported that the project spans approximately 80,000 hectares and sits within a geological subgroup known for hosting significant copper deposits. He highlighted surface mineralisation extending over 700 metres, with grades reaching up to 69.6% copper and more than 2,000 grams per tonne silver.
He stated that the presence of both oxide and sulphide mineralisation at surface provides encouragement for future exploration, adding that the broader project area remains largely underexplored despite its location in a proven copper-producing region.
In parallel, Kaoko Metals holds exposure to a copper-gold project in the Karibib Gold Belt, where it can earn up to an 85% interest. O’Donovan said this asset has already returned encouraging drilling intercepts, including copper, gold and tungsten, and offers additional upside in a region that has seen recent exploration success.
The company is seeking to raise approximately $6.5 million through its initial public offering, which O’Donovan said had been strongly supported. Following the raise, Kaoko Metals is expected to have a market capitalisation of around $12.1 million and cash reserves of approximately $6.8 million.
O’Donovan indicated that exploration activity would commence shortly after listing, with drilling planned within months. He emphasised that the company’s immediate priority is to test high-grade surface mineralisation at its flagship Kaoko project, with the aim of delivering a discovery.
Potential catalysts for investors include the commencement of drilling, initial assay results and any confirmation of mineral continuity at depth. Further progress on the Karibib project could also provide additional upside.
Key highlights
- Kaoko Metals preparing for imminent ASX listing (KAO)
- Raising ~$6.5 million with strong investor backing
- Focus on copper due to rising demand and supply deficits
- Flagship Kaoko Copper Belt project:
- 80,000-hectare land package
- 700m copper outcrop at surface
- Grades up to 69.6% copper and 2,030 g/t silver
- Located in a proven, highly prospective geological region
- Secondary asset in Karibib Gold Belt:
- Copper-gold-tungsten potential
- Historic drilling with promising intercepts
- Earn-in agreement up to 85%
- Fully permitted projects enabling rapid exploration
- Drilling expected within months of listing
Proactive: Welcome back to Proactive Investors. I'm your host Kerry Stevenson. I’m joined by Gerard O’Donovan, founder and managing director of Kaoko Metals. The ASX code is KAO. The company has two fully permitted copper projects in Namibia and is nearing listing. Gerard, welcome.
Gerard O’Donovan: Thanks Kerry, thanks for having me.
Proactive: Talk to us about your projects, why Namibia, and what makes them attractive.
Gerard O’Donovan: We’re really excited about what we’re bringing to market. We focused on copper about 18 months ago due to strong thematic demand, particularly from AI and data centres. There’s a growing supply deficit and declining exploration investment. We targeted Namibia because it’s a top-tier jurisdiction with a strong mining history.
We identified two projects: a sediment-hosted copper-silver project in the Kaoko Belt and a copper-gold project in the Karibib Belt.
Proactive: Tell us more about the Kaoko project.
Gerard O’Donovan: It’s a large land package of about 80,000 hectares in a highly prospective geological subgroup. We’ve identified 700 metres of copper outcrop with grades up to 69.6% copper and over 2,000 g/t silver. The broader area is underexplored but sits in a proven copper-producing region.
Proactive: And the second project?
Gerard O’Donovan: That’s in the Karibib Gold Belt. It has had limited drilling but returned copper, gold and tungsten intercepts. It’s a multi-commodity opportunity, and we can earn up to 85% through staged investment.
Proactive: How does that earn-in work?
Gerard O’Donovan: It’s structured in tranches tied to spending and milestones, allowing flexibility while we prioritise our flagship Kaoko project.
Proactive: You’re listing soon—what are you raising?
Gerard O’Donovan: We’re raising $6.5 million, strongly supported. We’ll have about $6.8 million in cash and a market cap of around $12.1 million. We’re ready to begin drilling within months.
Proactive: Final thoughts?
Gerard O’Donovan: Our focus is on discovery at Kaoko. We see mineralisation at surface and are excited to start drilling and deliver value to shareholders.