(Alliance News) - Kore Potash PLC reported on Thursday its loss widened in 2021 as it made "good progress" on its flagship potash project in Republic of Congo.
Kore Potash is a potash development company that owns the Kola and DX Potash projects in the Sintoukola basin, located in the Republic of Congo.
For 2021, Kore Potash saw its pretax loss widen to USD2.0 million from USD1.0 million in the prior year.
The group recorded revenue of USD834,158 in 2021 after generating none previously. This topline growth came from intra-group services. The company's current activities do not generate any revenue or positive operating cash flow. The group said future development necessary to commence production will require significant capital expenditures.
Kore Potash said it will be required to raise funds to meet its ongoing contracted and committed expenditure.
Kore Potash shares were down 3.0% to ZAR0.32 each in Johannesburg, and were dwn 2.8% to 1.75 pence each in London.
In 2021, the group successfully raised USD14.0 million through equity funding. Cash and cash equivalents stood at USD11.1 million as at December 31, up sharply from USD5.6 million in 2020 due to equity injection.
"We have made good progress during 2021. Despite the difficult circumstances facing the global economy, Kore Potash has been able to advance the Kola project," said Kore Potash Chief Executive Brad Sampson.
Rising food prices and the growing global demand highlight the importance of fertilisers, including potash, a vital agri-nutrient required for quality plant growth and crop yield to the global economy, Sampson said.
Key milestones, he said, were delivered in 2021 to progress the Kola project.
"We expect to inform shareholders of our progress on the Kola project optimisation study shortly and to provide an update on the EPC and financing proposals we expect to receive later in 2022," Kore Potash boss said.
EPC stands for engineering, procurement and construction.
By Artwell Dlamini; artwelldlamini@alliancenews.com
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Kore Potash (KP2)