(Alliance News) - Kore Potash PLC on Tuesday reported a widened loss for the first half of 2020, but an improved cash position, following a completed pre-feasibility study for the Dougou extension of the Sintoukola potash project.
The potash explorer also announced that its significant shareholders will take part in Kore Potash's fundraise for USD8 million to complete the definitive feasibility study for the Dougou extension sylvenite project in the Republic of Congo.
The placing involves the issue of 946.1 million shares at 0.65 pence each. Shareholder Princess Aurora Co Pte Ltd will take up 265.4 million shares. Sociedad Quimica y Minera de Chile SA will subscribe for 260.6 million shares and Chair David Hathorn for 58.7 million shares.
For the six months to the end of June, Kore's pretax loss was USD1.3 million, widened from USD1.2 million a year earlier, as a result of higher salary, employee benefits and re-domicile expenses. Kore booked no revenue in either period.
However the company cash position as at June 30 increased to USD1.8 million from USD1.0 million the same date the year before.
In May, Kore completed a pre-feasibility study of the Dougou extension, with its production target standing at 400,000 tonnes per year of potash over an initial 18-year life. From this, the company said it expects to generate average annual earnings before interest, tax, depreciation and amortisation of USD118 million.
Kore Potash said it expects project construction to take 21 months. The company estimates an initial pre-production capital cost of USD286 million, including contingency.
Looking ahead, the company expects to finalise the definitive study in due course, to allow the work programme to start in the next quarter of 2020.
Shares in Kore Potash were up 2.1% at 0.740 pence in London, while Johannesburg shares remained flat at ZAR0.19.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Kore Potash (KP2)