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(Alliance News) - Kropz PLC on Wednesday said its half-year pretax loss narrowed after a sizeable impairment the year before that did not repeat.
Kropz is developing plant nutrient feed minerals, with phosphate projects in South Africa and the Republic of Congo. Its pretax loss for the six months ended June 30 narrowed to USD14.1 million from USD54.7 million a year before.
This narrowing resulted from USD48.9 million of impairment losses the previous year which did not repeat.
The company reported no revenue in either period as it is still developing its projects. It made a UD3.2 million operating loss, narrowed from USD4.8 million, due to lower operating expenses.
Finance expense was notably higher at USD11.7 million versus USD2.2 million a year before.
Back in June, the company completed a GBP304,092 equity placing and later raised GBP1.7 million from an open offer.
The first USD10 million drawdown under its ARC Fund convertible loan facility took place at the end of June and was settled though the issue of 130.2 million shares, with USD30 million remaining to be drawn down. This money is for development of Kropz's Elandsfontein project in South Africa.
Kropz has concluded a competitive tender to update the feasibility study of its Hinda project in the Republic of Congo, the government having approved new terms of reference for an updated environment and social impact assessment.
The company has decided to divest its interests in Aflao in Gana and is in talks with other shareholders in the project to implement this decision, with other shareholders possibly taking up its interest. Kropz will cease to provide additional funding for Aflao.
The company in early August said it had appointed interim chief executive Mark Summers as its permanent CEO. Summers was acting CEO starting late February as well as chief financial officer.
In terms of outlook, Kropz said is Elandsfontein project is advancing on schedule despite the national lockdown in South Africa due to Covid-19. The firm was noted that a three-day water tribunal hearing against its integrated water use licence was set for September 3 to 5. It will be resumed after postponement, which was ordered by the tribunal chair, after Covid-19 concerns. Government guidelines in South Africa had prevented the reconvening of the tribunal since March.
At Hinda, engineering and construction firm Hatch has been chosen to conduct an assessment on export logistics capacity at the proposed Pointe-Noire port site. Results will help determine capacity for the first phase of the Hinda mining and beneficiation plant.
Shares in Kropz were untraded on Wednesday, having last closed at 8.50 pence.
By Anna Farley; annafarley@alliancenews.com
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