Kendrick Resources says its flagship Teufelskuppe rare earth project in Namibia has an estimated gross value of US$400 million (about N$7.3 billion), following an internal review that confirmed the scale and continuity of mineralisation at the asset.
The London-listed explorer announced this week that an assessment of historical and current exploration data had reinforced its belief that the Teufelskuppe (TK) and Kieshöhe (KH) projects in south-west Namibia have the potential to become a Tier 1 rare earth development. The projects are held under a 70% earn-in agreement with Bonya Exploration Namibia, which owns exploration licence EPL 6691.
According to Kendrick, the unaudited in-house valuation applies to verified light rare-earth oxide-bearing carbonatites at Teufelskuppe. It is based on prevailing rare-earth prices, as well as mining, labour, and processing costs typical of southern Africa.
The company estimates that Teufelskuppe hosts approximately 14 million tonnes of above-ground mineralised carbonatite material, containing a gross rare-earth inventory of 448,000 tonnes of light rare-earth oxides at an average grade of 3.12% total rare-earth oxides.
Kendrick said drilling has already demonstrated that the mineralised carbonatites continue below the surface. Boreholes at the TK1 and TK2 targets intersected mineralisation at depths of between 80 metres and 115 metres, suggesting the deposit could be substantially larger than the current estimate based solely on surface mineralisation.
The review also identified high-grade carbonatites containing up to 4.5% total rare earth oxides in the central zone and dyke stockwork at Teufelskuppe. Of particular interest is the dominance of neodymium and praseodymium, two rare-earth magnets essential to electric vehicles, wind turbines, and other clean-energy technologies. Kendrick said these elements account for about 70% of the economic value of the project’s light rare earth inventory.
Executive chairman Colin Bird said the scale of mineralisation exceeded expectations.
“We are very pleased with the amount and quality of data we inherited for the projects. What has surprised our geologists and engineers is the tenor and continuity of rare earths that exist on both properties and rather than looking for independent small potential resources, we are looking at substantial potential resources on both projects,” Bird said.
He said the company remains focused on delivering a maiden resource estimate by the end of the third quarter of 2026 and finalising an optimised metallurgical flowsheet.
“The board and management team are single minded in their approach to produce a maiden resource by the end of the third quarter 2026 and to nail down an optimised metallurgical flow sheet. The team has done extremely well in a short time, and the recent fundraising will allow progress on all fronts mentioned above,” Bird said.
The valuation comes a day after Kendrick announced a £1.764 million (about N$43 million) fundraising involving directors, a United States-managed fund, a US family office and existing shareholders. The company said the proceeds will be used primarily to advance the Bonya rare earth project in Namibia, where drilling is already underway, with a maiden JORC-compliant resource targeted by the end of the third quarter of 2026.
Kendrick entered the Namibian rare earth sector through a definitive earn-in agreement with Bonya Exploration Namibia. Under the agreement, the company can earn a 70% interest in the Teufelskuppe and Kieshöhe projects by funding exploration and development activities. The projects form part of Kendrick’s broader “Mine to Magnet” strategy aimed at supplying critical minerals used in permanent magnets, renewable energy systems and electric vehicles.
The company said the global rare earth market remains heavily dominated by China and is projected to grow by 130% by 2034, creating significant opportunities for new rare earth producers outside the Asian giant. Kendrick believes the Teufelskuppe and Kieshöhe projects could help meet that future demand.
