(Sharecast News) - Keras Resources reported "substantial progress" in its first half on Wednesday, towards building its business into a cash-generative producer of high-grade premium organic fertiliser in the North American market.
The AIM-traded firm increased its ownership of the Diamond Creek phosphate mine in Utah to 100% in the six months ended 30 June, with it now in full control of mine-to-market activities.
All permits and authorisation approvals were renewed in line with the project's licence obligations, in the process of expanding the permitted mining footprint.
Keras reported record sales in August of 700 tons - 40% higher than budget - with repeat forward orders resulting in an extended mining campaign to produce additional tonnage.
Sales guidance of between 7,500 tons and 8,000 tons of phosphate product was forecast between September 2022 and June 2023, at an all-in sustaining cost margin of between $80 and $100 per ton.
The company said it was targeting 25,000 tons of phosphate product per annum as its medium-term annual sales objective, into a market which was expected to grow at 8% per year in tonnage terms, as well as 14% in value terms.
As a result of the extended mining season, a drilling programme to further define the ore reserve at Diamond Creek would now start in spring next year.
A successful placing of £1.95m before expenses was raised at a premium supported by cornerstone investor First Uranium Resources.
The company also implemented a number of board changes, with Graham Stacey appointed as chief executive officer in June, and Russell Lamming moving to the post of non-executive chairman, and Brian Moritz moving to non-executive director.
Claire Parry was also joining as an independent non-executive director, with Dave Reeves stepping down.
Keras said its continued focus for 2022 and beyond weas increasing its market share in the North American organic fertiliser market, and building Diamond Creek into "the premier organic phosphate producer" in the United States.
"Our vision remains to build Diamond Creek into the premier organic phosphate producer in the US and we have made real progress over the past few months having acquired 100% in the business and focussing our efforts on resetting the business, starting to ramp up sales and timing production from our mine and milling facilities to meet our sales targets," said CEO Graham Stacey.
"We produce a high-grade, premium phosphate product that supports soil health, regenerative agriculture and provides investors with direct exposure to the buoyant global fertiliser industry.
"We believe we are ideally positioned to capitalise on the robust fundamentals of the sector and look forward to further building on the foundations we have laid to date, producing both a valuable and essential commodity whilst generating returns for our stakeholders."
At 1233 BST, shares in Keras Resources were down 3.64% at 5.3p.
Reporting by Josh White at Sharecast.com.
Keras Res (KRS)