Research Report: Kennedy Ventures

Kennedy Ventures

Kennedy Ventures

Kennedy Ventures (Kennedy) is an AIM quoted investing company focused on tantalite and lithium through its 75% stake in Aftan, the owner of the NTI mine in southern Namibia. When Kennedy acquired its stake in January 2015, there was a clear strategy to upgrade in order for Aftan to extract the maximum value from the mine and its surrounding licences. Kennedy subsequently raised funds in July 2016 and February 2017. A new experienced CEO in the tantalum industry was appointed in early January 2017 to advance the mine and strategy. However, Kennedy represents a speculative investment opportunity and hence is not without risk. On 27 July 2017, Kennedy announced a firm and conditional placing to raise £3.75m (gross) at 6p. The proceeds will be used for upgrades and expansion at the NTI mine in order to fulfil increasing demand, plus drilling and bulk sampling to establish a JORC lithium resource and extension to the life of the NTI mine. Application has been made for the firm placing shares to be admitted to trading on AIM and it is expected that dealings in these new shares will commence on 3 August 2017. The conditional placing is subject to shareholder approval in General Meeting on 15 August 2017. Non-Executive Chairman, Giles Clarke is subscribing for nearly £50,000 consideration in the conditional placing.