(Alliance News) - Kore Potash PLC on Tuesday said it needs additional capital for its potash project in Africa after reporting its interim loss narrowed, while it managed to remain solvent.
The London-based owner of the Kola and DX potash projects in Republic of Congo. Potash is used mainly as an agricultural fertiliser.
For the six months that ended June 30, pretax loss narrowed to USD464,983 from USD903,210 a year earlier.
Both loss per share and headline loss per share shrank to 0.01 US cents from 0.03 cents.
As at June 30, total liabilities fell by 29% to USD572,443 from USD803,090 as at June 30, 2022. Current assets were USD2.7 million as at June 30, while current liabilities were USD572,443.
Cash and cash equivalents dwindled to USD2.5 million as at June 30, down 67% from USD7.6 million at June 30, 2022. They stood at USD5.0 million as at December 31. Kore said the decline in cash resources was due to exploration and evaluation expenditure, and Kore Potash operating expenditure.
Kore said it will need to access additional capital in fourth quarter of 2023 for the working capital requirements for Kore for the period up to receiving and accepting the engineering, procurement and construction contract proposal from SEPCO Electric Power Construction Corp.
Early last month, Kore said it had entered into a revised agreement that will see SEPCO provide the company with an engineering, procurement and construction contract by the end of January 2024 for the construction of the Kola Potash project.
It said then it will contribute up to USD5 million to get this contract ready for the construction of the Kola project.
On August 8, the company announced the successful completion of a USD1.0 million fund raise.
In London, shares in Kore were flat at 0.62 pence on Tuesday morning, while it was unchanged at 16 rand cents in Johannesburg.
By Artwell Dlamini, Alliance News reporter
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Kore Potash (KP2)