Kavango Resources’ first-half 2026 revenue surged nearly fivefold to US$2.03 million as the Zimbabwe-focused miner moved its Hillside Gold Project towards own production, shifting from processing ore supplied by artisanal miners to developing its own underground feed, Mining Zimbabwe can report.
By Ryan Chigoche
The increase from US$420,000 a year earlier came as processing volumes rose at Hillside, where Kavango has declared a 33,900-ounce JORC-compliant gold resource at an average grade of 2.68 grammes per tonne at the Bill’s Luck mine.
The company has since begun commissioning a 50-tonnes-per-day carbon-in-leach (CIL) plant at Hillside, setting the stage for a transition from artisanal-supplied ore towards a more controlled mining and processing operation.
For Zimbabwe’s gold sector, the development adds another emerging producer to an industry dominated by a mix of large-scale mines and a vast artisanal and small-scale mining sector, with Kavango seeking to formalise production around its own resource and processing infrastructure.
The shift is particularly important because artisanal mining has formed part of Kavango’s operating model at Hillside while the company developed its own underground capacity.
During the six months ended June 30, a substantial portion of Kavango’s revenue came from treating ore produced by artisanal miners, including treatment charges and the further processing of residual material.
The company also reported mining by artisanal partners at the Steenbok and Britain areas.
That arrangement provided Hillside with feed for its processing operations while Kavango advanced its own underground development.
Towards the end of the reporting period, however, the company began processing its own ore from the Bill’s Luck underground mine through existing infrastructure.
The change marks a step towards the owner-operated model that Kavango says is central to its longer-term strategy for Hillside.
Resource gives Hillside defined base
The transition is being built around the Bill’s Luck resource, which stands at 33,900 ounces of gold at 2.68g/t under the JORC reporting standard.
The resource provides Kavango with a defined mineral inventory as it develops underground mining and processing capacity at the Zimbabwe project.
Metallurgical test work has indicated expected operating gold recoveries of between 90% and 93%.
That work has supported the development of the new 50-tonnes-per-day CIL plant, which Kavango began commissioning after the end of the reporting period.
The plant is designed to give the company dedicated processing capacity at Hillside while generating operational data that can be used as the project develops.
Kavango said commissioning progressed during July, with the plant processing material through crushing, milling, gravity concentration and the CIL circuit.
Financial position strengthens
The stronger Hillside performance was reflected in Kavango’s financial results, with revenue rising to US$2.03 million from US$420,000 in H1 2025.
Gross profit turned positive at US$471,000, compared with a US$410,000 loss a year earlier, while the operating loss narrowed to US$1.78 million from US$6.05 million. Basic loss per share improved to 0.04 US cents from 0.22 US cents.
The improved operating performance was accompanied by a stronger balance sheet, with total assets increasing to US$31.59 million at June 30 from US$23.16 million at the end of 2025. Net assets rose to US$30 million, while cash and cash equivalents stood at US$5.52 million.
Kavango invested US$6.92 million during the period, including US$3.76 million placed in escrow for the proposed Nara Gold Project acquisition. Nara comprises 45 gold claims covering about 415 hectares, roughly 22 kilometres south of Hillside, and has a history of underground and small-scale mining.
The investment forms part of Kavango’s broader expansion of its Zimbabwe gold portfolio, while the company continues to advance longer-term exploration in Botswana. Its work there includes three-dimensional magnetic modelling in the Kalahari Copper Belt and hydrogeochemistry programmes in the Kalahari Suture Zone.
The spending was supported by US$10.49 million in financing proceeds, mainly from equity fundraising, but Kavango cautioned that it will require additional funding over the next 12 months to support exploration, Hillside capital expenditure and corporate costs.
For now, the immediate focus remains on Hillside, where commissioning of the 50-tonnes-per-day plant is expected to support the company’s shift towards processing its own underground ore.
