Namib Minerals H1 Revenue Jumps 40% as How Mill Nears Start

Namib Minerals (Nasdaq: NAMM) announced on October 1, 2026 that first-half revenue rose 40% to $50.8 million from $36.4 million a year earlier, while Adjusted EBITDA climbed 76% to $19.0 million. The Zimbabwe-focused gold miner said the expanded milling plant at How Mine is substantially complete and commissioning is expected in mid-October, lifting monthly processing capacity roughly 36%. The company also said dewatering at Redwing Mine finished on September 21, 2026, ahead of schedule, and brought its restart forward, with first gold targeted no later than January 2027.

Context — Why Namib Minerals' Half-Year Results Matter Now

The report gives its own yardstick. A year ago, gross profit was $13.5 million on $36.4 million of revenue; this half it doubled to $27.0 million, a 53% gross margin against 37%. Adjusted EBITDA margin moved from 30% to 37% over the same span.

Gold was the driver, not volume. The company said its average net realized price, stated after royalties, rose 48% to $4,195 per ounce from $2,827 per ounce. Ounces sold fell 7%, and that decline was more than offset by price.

What changed the story now is capacity. How Mine milled 233,000 tonnes in the half, close to what the existing plant can process. The company said the mine had been constrained by its mill, so when grade fell there was no spare tonnage to replace lost ounces.

Two catalysts sit behind the timing. First, the mill expansion moves from construction to commissioning within the second-half window management had already communicated. Second, Zimbabwe's Ministry of Mines and Mining Development published a policy framework requiring foreign-owned operators to clear prescribed production and capital investment thresholds by January 1, 2027.

How Mine already operates above those thresholds, the company said. Redwing, on care and maintenance, does not. That deadline, not the feasibility study, is what pulled Redwing's restart forward.

Data — What the Numbers Show

The headline comparison is price against volume. Revenue rose 40% while ounces sold fell 7%, because the realized gold price rose 48%. Gross profit doubled to $27.0 million. Adjusted EBITDA rose 76% to $19.0 million, and net cash generated from operating activities rose 61% to $9.3 million from $5.8 million.

Metric	H1 2026	H1 2025
Revenue	$50.8m	$36.4m
Gross profit	$27.0m	$13.5m
Adjusted EBITDA	$19.0m	$10.8m
Net realized price	$4,195/oz	$2,827/oz
Ounces produced	11,373	12,741
C1 cash cost	$1,576/oz	$1,510/oz

Production costs fell 3% to $17.9 million from $18.5 million despite a 15% rise in power tariffs, and dropped to 35% of revenue from 51%. Royalties rose 70% to $3.1 million, reflecting both higher revenue and a higher royalty rate that applies when the gold price exceeds $5,000 per ounce, effective January 1, 2026.

Group all-in sustaining cost rose to $3,078 per ounce from $2,462. At How Mine alone, AISC was $2,534 per ounce against $2,265. The company attributed the group figure to fewer ounces, higher royalties, and corporate costs from a first full period as a Nasdaq-listed company.

Two non-cash items hit reported earnings: an $8.5 million loss from the rising fair value of the earnout liability and a $2.7 million warrant mark-to-market loss. Both are excluded from Adjusted EBITDA. After those and a $6.1 million tax charge, the loss was $4.8 million, or 9 cents per share.

Analysis — What It Means for Gold Miners and NAMM Holders

The second-order read is about operating use. Namib's cost base is largely fixed, so fewer ounces push unit costs up. C1 rose 4% per ounce even as absolute costs fell. The mill expansion attacks that directly: spreading a similar cost base across 36% more monthly tonnage is the mechanism behind management's expectation of lower second-half costs.

Exposure sits in two places. For NAMM holders, the swing factor is the commissioning ramp, not the gold price alone. For the wider gold sector, the report illustrates what a $4,195 realized price does to margins when volume is flat: revenue and EBITDA can expand sharply without a single extra tonne mined.

The counter-argument is balance sheet risk. At June 30, 2026, the company reported $1.8 million of cash, $20.4 million of current assets, and $63.3 million of current liabilities, a $42.9 million working capital deficit. Management breaks that down: $7.5 million is the current portion of the earnout, which settles in shares; roughly $15.9 million sits in the Redwing and Mazowe entities and is ring-fenced; and $3.6 million of excise tax is matched by an indemnification asset. The company said it was in compliance with all debt covenants at June 30.

On positioning, the report points to non-dilutive funding rather than equity. The company drew a $5.0 million Ecobank facility in full in July 2026, repayable monthly from gold sales over a 36-month term to May 2029, and on September 29, 2026 announced an increase to its BancABC facility of $6.5 million, taking it from $6.7 million to $13.2 million. It said no new equity issuance is planned.

Outlook — What to Watch Next

The near-term calendar is operational. Commissioning at the expanded How Mine mill is expected in mid-October, followed by a six-to-eight-week ramp, with the plant expected at full rate by the end of December 2026. The Redwing restart program runs three months from October 2026, with first gold targeted no later than January 2027.

On guidance, the company cut full-year 2026 production to 26,500–27,000 ounces from 28,000–31,500, citing mill timing rather than asset capacity. It kept C1 cash cost guidance at $1,400–$1,650 per ounce but raised group AISC guidance to $2,650–$2,850 per ounce from $2,400–$2,700.

Management said How Mine can produce at an annualized rate above 30,000 ounces at current grades once the plant runs at full rate, and that this is the rate at which it expects to enter 2027. Formal 2027 guidance, including Redwing's contribution, is due in the first quarter of 2027. The company did not disclose the terms of the BancABC increase beyond the facility size.

Frequently Asked Questions

Why did Namib Minerals' loss widen despite higher revenue?

The reported loss of $4.8 million, or 9 cents per share, followed two non-cash items totaling $11.3 million: an $8.5 million loss from the rising fair value of the earnout liability and a $2.7 million warrant mark-to-market loss. Both move primarily with the share price, which rose from $1.01 to $1.88 over the period. The company said neither affects cash and both are excluded from Adjusted EBITDA. Excluding those items, it said the business was profitable after tax.

Why did Namib cut 2026 production guidance?

The company framed the revision as timing, not capacity. The expanded mill is commissioned in mid-October and needs six to eight weeks to ramp, so fewer high-throughput months fall inside 2026. The top of the new 26,500–27,000 ounce range assumes a quicker ramp and grades toward 1.9 grams per tonne; the bottom assumes a slower ramp at first-half grades of 1.7 grams per tonne.

What does the Redwing restart mean for Namib's 2026 output?

Very little. The company said the initial restart is not expected to contribute materially to 2026 production, and Redwing's contribution will be included when 2027 guidance is issued in the first quarter of 2027. The restart begins at reduced capacity but above Zimbabwe's prescribed thresholds, funded from internally generated cash flow. Stages 2 to 5 of the development pathway, including the feasibility study concluding in early Q1 2027, are unchanged.

Bottom Line

Namib Minerals doubled gross profit and lifted Adjusted EBITDA 76% on price alone, and the How Mine mill now decides whether volume follows.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. CFD trading carries high risk of capital loss.