Caspian Sunrise (LSE:CASP) has reached an agreement to acquire 100% of Kazikhan Limited, a company holding manganese and gold mineral licences in central Kazakhstan. The transaction includes an initial consideration of $25 million in shares, with total potential value rising to as much as $45 million depending on the future certification of gold reserves.
Kazikhan’s assets include the Borly open-pit manganese mine, which holds state-confirmed probable reserves of roughly 8 million tonnes, and the Zhambas prospect, where C2-category gold reserves have been identified. These reserves, however, have not yet been reported under JORC standards.
At present, Borly produces around 1,000 tonnes of manganese ore per month. Caspian Sunrise plans to invest approximately $4.5 million in additional washing and crushing equipment to expand capacity to as much as 20,000 tonnes per month. The upgrade is expected to be funded primarily through industry prepayments alongside a $1 million secured interim loan.
The acquisition is classified as a related-party transaction involving members of the Oraziman family and will be structured through an initial share-based payment with further deferred share consideration tied to project milestones. The company said the move is designed to broaden its revenue base, reduce reliance on oil markets affected by sanctions, and potentially create additional value if the gold resources are formally certified or divested in the future.
Caspian Sunrise’s outlook reflects strong technical indicators and a favourable valuation profile, with the shares trading above key moving averages and a relatively low P/E ratio suggesting possible undervaluation. Financial performance remains mixed, however, as profitability has been offset by declining revenue and pressure on cash flows. Limited earnings call disclosures and fewer recent corporate updates also constrain deeper analysis.
More about Caspian Sunrise
Caspian Sunrise is an energy company primarily engaged in oil and gas operations in Kazakhstan. The group is now pursuing a broader diversification strategy by expanding into the mining sector. By developing manganese, gold and other metal assets with quicker potential cash flow and exposure to international commodity pricing, the company aims to reduce its dependence on the Kazakh oil and gas market, which has faced challenges linked to Russian sanctions.
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