(Alliance News) - Kropz PLC said Thursday its interim loss widened substantially as a result of an impairment in the value of property plant and equipment at Elandsfontein phosphate mine in South Africa.
For the six months to the end of June, the Africa-focused explorer and developer of plant nutrient feed minerals reported a pretax loss of USD54.7 million versus USD7.6 million the year before, mainly due to an impairment cost of USD48.9 million from Elandsfontein.
The impairment related to a delay in recommissioning due to test work indicating that a reverse flotation modification to the current circuit will produce a saleable product at a lower grade than expected.
Further test work is required up to the end of 2019 to find an alternate process modification, with the impairment. There is also currently depressed phosphate process which contributed to the impairment.
Looking ahead, Kropz said it will continue to progress the development of its Hinda phosphate project in the Republic of Congo and the Aflao project in Ghana.
Shares in Kropz were untraded on Thursday, last quoted at 9.5 pence in London.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Kropz Plc (KRPZ)