Shuka Minerals Plc (LSE:SKA) has completed the acquisition of 100% of Leopard Exploration and Mining Limited, giving the Group full ownership and operational control of the Kabwe Zinc Mine. Kabwe is regarded as one of the world’s highest-grade zinc deposits, with historic ore grades reaching up to 43% and remaining resources estimated to hold a value in excess of US$2 billion.
The company plans to commence an extensive 2026 work programme covering geological and geophysical surveys, drilling, environmental baseline studies and reserve upgrades. Shuka has highlighted the scale of the opportunity, noting that Phase 1 development of the project is expected to deliver estimated pre-tax cash flow of US$1.84 billion and an NPV10 of US$561 million. Management believes this potential is not reflected in the company’s current market capitalisation of under £5 million. In parallel, CEO Richard Lloyd has been awarded 2 million warrants, aligning management incentives with long-term shareholder value as on-site work at Kabwe is set to begin imminently.
Despite the transformational nature of the acquisition, Shuka’s near-term outlook remains challenged. Significant funding requirements, delays in capital deployment and weak technical indicators continue to weigh on sentiment, while negative valuation metrics limit the stock’s immediate appeal. The Kabwe acquisition nonetheless represents a potentially material growth opportunity if financing and execution risks can be effectively managed.
More about Shuka Minerals
Shuka Minerals Plc is an Africa-focused mining operator and developer listed on London’s AIM market and the JSE’s AltX. The Group focuses on the ownership, development and operation of mineral assets, with a core emphasis on zinc and lead through its flagship Kabwe Mine project in Zambia.
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