(Alliance News) - Kropz PLC shares jumped on Friday after the company said it achieved the first phosphate rock concentrate production from its Elandsfontein operation in the Western Cape in South Africa.
Shares in Kropz were shot up 19% at 8.74 pence on Friday morning in London.
The Hertfordshire, England-based phosphate explorer said its plant delivered phosphate rock concentrate grade in line with expectations.
Kropz continued that concentrate samples will now be prepared for shipment to a number of potential buyers to confirm product specifications. The sales to smaller local customers in South Africa will start in late March.
Looking ahead, the firm stated that its focus at Elandsfontein will shift to increasing the ramp-up of operations to achieve nameplate capacity and enable the first large scale commercial shipment of concentrate.
Kropz said that all the required reagents have been received on-site for the commissioning and the initial ramp-up of activities. The full production capacity is expected by the early fourth quarter of 2022.
It added that the phosphate rock market remains "strong" and has shown good interest in its Elandsfontein's low cadmium concentrate.
"We are delighted to have reached this significant production milestone for the company. The interest that we are receiving from the market and industry is positive. We look forward to providing further updates as we optimise processing recoveries and make our first bulk sales," Chief Executive Mark Summers commented.
By Abby Amoakuh; abbyamoakuh@alliancenews.com
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Kropz Plc (KRPZ)