Marula Mining [AQSE:MARU], the Aquis-listed, exploration company focussed on battery minerals in Africa announced earlier this week that it had found further copper deposits on its Kinusi Copper Mine in Tanzania.
The company said that the assays were taken on mined and processed copper taken for Pit Four of the mine, and reported an average grade of 19.72% copper. Over the full seven sample survey, assays ranged from 14.78% Cu to 22.56% Cu.
The results were well-received by management, proving its premise that the Kinusi Mine is a high quality development, Jason Brewer, Marula’s CEO said: “These assay results are further confirmation of the high-grade copper concentrates that we have ready for sale at the Kinusi Copper Mine […] We are consistently getting these high-grade assays results for our saleable copper and with these additional results now received it allows us to finalise our initial sales from Kinusi.”
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Marula first entered Kinusi Copper Mine in October 2022, acquiring a 49% commercial interest in ten primary licences in the Dodoma Region around a historic mineworks. The licences cover about 91Ha, with eight contiguous licences, and were bought off Takela Mining. Marula has subsequently increased its interest in Kinusi to 75% and from entering the project brought a culture of greater structured exploration, development, and expansion plans to enhance the mine’s production capacity.
Broad geographic and asset spread in Africa
Marula is more than a one-trick copper pony, as it has operations in Kenya, and South Africa as well as Tanzania, which include the Blesberg Lithium and Tantalum Mine, Northern Cape Lithium and Tungsten Project and Kruisrivier Cobalt Mine, all in South Africa; the Larisoro Manganese Mine and Kilifi Manganese Processing Operation both in Kenya; and the Nyorinyori Graphite Project and the NyoriGreen Graphite Project also in Tanzania. The company was also operating in Zimbabwe, prospecting for lithium and copper, but withdrew from the country last December, as it could not find the right quality projects in its exploration programme.
The company isn’t just an explorer, it is also mining and shipping minerals. It completed its first sales of copper from Kinusi last month, shipping 1,000 tonnes of copper ore to Switzerland- and UK-based global commodity trading groups. Additionally, Marula has been progressing sales agreements for by-product minerals from its Blesberg Lithium and Tantalum Mine in South Africa. The company has been in discussions with Fujax UK and other parties for the sale of these by-products, with initial sales and revenue anticipated in the second quarter of 2024.
Furthermore, Marula has signed a sales and offtake agreement with Fujax UK for manganese ore from the Larisoro Manganese Mine in Kenya. This agreement is expected to facilitate the sale of manganese ore produced at the mine.
The company at the end of January drew down GBP250,000 from an existing facility with AUO Commercial Brokerage, due to be paid out on 5th February, with 6,67 million new shares issued at 3.75p in consideration of the drawdown. The money is earmarked for Marula’s Kilifi Manganese Project in Kenya, to complete some minor modifications to the project’s processing plant, and for transport and logistics costs resulting from the Kinusi copper sales. The company also purchased a new mobile separator with mining equipment for its Lariso Manganese project, also in Kenya.
Well-capitalised with GBP8.5m facility
The whole AUO package is for GBP8.53m, of which Marula has drawn down around GBP2.25m. Management has aggressively been penetrating battery mineral projects in Africa, and has been building up its key human resources on the ground and in the boardroom, hiring a new Group COO and Country Managers over the last year.
The company is still a relative youngster and is yet to turn a profit. In its last results, published in September to end of June, Marula reported a loss of GBP947,000, down about one-third from the GBP1.4m loss it made for the same period in 2023. However, the company did increase the value of assets by 20% from the close of 2023.
Marula Mining planning further listings
Marula has been listed on Aquis since 2021 and was promoted to the Apex segment – the top 20% of the exchange – in 2023. The company has ambitions to also list on AIM and on the Nairobi Stock Exchange in Kenya. The company won ‘Company of the Year’ at the Aquis Showcase in November, beating off thirteen other Aquis firms to win the award, as voted for by the audience and a panel of institutional investors.
A lot is expected from Marula in 2025, specifically producing solid minerals sales and getting some of its exploration projects into production. It is a stock that The Armchair Trader will be watching closely this year.
With high-grade copper discoveries at Kinusi, expanding sales agreements, and growing operational footprints across Africa, Marula Mining is positioning itself as a serious contender in the battery minerals sector. While still in its early stages, the company is proving its ability to transition from exploration to production, and investors will be monitoring Marula closely as it works towards profitability and further expansion in 2025.
Here’s what our readers think…
Definitely worth a read. Demonstrates how good an investment @MarulaPlc is
Especially the #copper play, entering revenue generation any day#manganese close behind #maru @JB_MiningAfrica @armchairtweets @A2X_Markets #SouthAfrica #kenya #Tanzania @NSE_PLC https://t.co/lI2jFBkvDU
— Chuggs (@Chuggley1) February 10, 2025
