Kendrick Resources (LSE:KEN) has completed an internal assessment of historic and recent exploration work across its flagship Teufelskuppe and Kieshöhe rare earth projects in southwest Namibia, where the company is earning a 70% interest through Bonya Exploration. The review produced an unaudited in-house net present value estimate of approximately US$400 million for the verified in-situ light rare earth oxide-bearing carbonatites at Teufelskuppe alone. The estimate is based on a current resource tonnage of 14 million tonnes at an average head grade of 3.12%, with evidence suggesting mineralisation continues at depth and could support a materially larger resource base.
Management said high-grade zones containing up to 4.5% total rare earth oxides are concentrated within the central area of the Teufelskuppe project. The company also noted that neodymium and praseodymium — two key magnet rare earth elements — account for around 70% of the project’s light rare earth economic value. Kendrick believes this positions the asset favourably within a global market expected to expand significantly by 2034 and still heavily dominated by Chinese supply chains.
Supported by recent fundraising activity, the company is advancing a Tier 1 “mine to magnet” strategy focused on accelerating development of the projects. Kendrick aims to deliver a maiden resource estimate by the end of the third quarter of 2026 while also finalising an optimised metallurgical flowsheet. Management said the programme is designed to reduce project risk and improve the assets’ attractiveness to downstream rare earth industry participants and potential investors.
The company’s outlook remains constrained by very weak financial fundamentals, including the absence of revenue, ongoing losses, negative cash flow and a significantly weakened balance sheet with negative equity. However, technical indicators remain strongly positive and continue to support market sentiment. Valuation metrics remain difficult to assess given negative earnings and the lack of dividend support.
More about Kendrick Resources PLC
Kendrick Resources Plc (LSE:KEN) is a mineral exploration and development company focused on identifying and advancing resource projects through exploration, technical evaluation and resource development activities. The company aims to move projects toward production through joint ventures, strategic partnerships or asset sales. Kendrick has increasingly concentrated its portfolio on critical minerals opportunities in southern Africa, particularly the Bonya rare earth project in Namibia and the Blue Fox licence area in northwest Zambia.
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