Member Info for chocolatemoney

I was trying to take notes as quickly as possible, so may have a few facts wrong:

The company is still actively running a formal sale process (FSP), now with two interested parties (one original + one new entrant in June). No firm offers yet.

The board clearly stated the FSP is the preferred route, but importantly this also includes bringing in a strategic partner, which may happen even if a full sale does not complete.

Possible outcomes from the FSP:

Full share sale (buyer acquires 100% of Kore Potash), or

Asset sale, which would leave Kore as a cash shell.

Congo government terms clarified:

10% free carry.

Option to increase to 35% total, but the additional 25% is not free (i.e. must be paid for / funded).

Board refused to comment on valuation due to the live process.

Funding for 2027 unclear and depends entirely on whether a deal is completed — no guidance given.

Main takeaway:

Still a live corporate process with multiple parties, (which is positive and should help the valuation - my take)

But no guarantees, no visibility on valuation, and funding risk remains if no deal materialises.

Strategic partner route provides a fallback option, not just an outright sale.

Hey Mitch984, thanks for clearing that up.

On April 8, 2026, Shore Capital Stockbrokers filed Form 8.5, disclosing they surpassed 1% ownership in KP2 relevant securities.

Is anyone else battling to buy shares in KP2 or is my platform just useless?

The Form 8.5 filings are still hitting the LSE every single day . That tells you the Formal Sale Process is live and the Offer Period is still in force. If the suitors had walked, we'd know about it in an RNS pretty quickly. Until an RNS states that discussions have terminated, "no news is good news."

99' I joined the dots the same way about the Canadian Expert, but also very encouraged with the other clues: OWI-RAMS financing, PowerChina EPC—I cannot wait to hear the FSP update - this is like a game a Traitors

I am happy with todays RNS: EWA tests passed (China/independent), geotech done, drilling starts Jan 2026 - this derisks the project further which is good, cash of US$10.5M (post US$12M raise) demonstrates a good runway, there are still 2 parties DD/site visits ongoing, lets hopes bids will follow and finally the OWI-RAMS advancing, DFIs interested which will allow the path to construction. The management seem to be pushing forward on a number of fronts which is encouraging

Thanks 99' - as I thought

Does this not just relate to the extended closing date to "certain investors" who were specifically invited to apply for up to 7,000 CDIs under the cleansing prospectus? If yes this is a very small capital raise - about AUD400. Maybe someone more clued up can explain the RNS.

By my calculations that is about 68% of the shares accounted for in Form 8.3 disclosures. Very reassuring to see all the big guns are holding their corners and committed to the future of KP2

Add a zero?

Catbert, Dingyi did not appear in the shareholders analysis RNS dated 13 October 2025, so it’s safe to assume they have sold out. It’s encouraging to see that the top five shareholders, who collectively hold over 50%, have remained unchanged and have not offloaded any shares. I can’t imagine management giving this company away for anything close to the levels being discussed on this forum. This is a world-class asset, in a sector which is growing, and we are very close to securing the necessary finance (we have not heard otherwise) and starting to dig. Most people on this forum seem happy to sell cheaply, but surely it makes more sense to move forward with the project than to give it away for peanuts. I think KP2 is in a very strong position with 2 companies interested in buying it, and advanced talks re the finance. I don't think we would have received an RNS about the potential sale if these 2 companies were not serious and indicating a realistic offer. Years of management effort and investor patience have brought us to this point, and I’m sure everyone wants to be fairly rewarded for their commitment. DYOR

Stockwocky – I believe he may also be connected to Harlequin Investments Limited. A Google search suggests a possible link. I can’t say for certain, but wasn’t he also associated with Admiral Insurance at some point? Does anyone else have any information on this? Regardless, it seems that KP2 has a very loyal group of major shareholders, which must be a significant advantage for the company.

I may be an optimist, but this is how I see it:

I understand concerns about KP2’s share price slipping to 3.8p, but the fundamental value in the company is far greater than the market currently recognises. Here’s why:

• Current market cap is circa £187m, but the DX project alone could be sold for £75–185m. If management sold DX near the upper end, it would nearly match the entire market cap, and shareholders would still own Kola, essentially “for free”.

• Once Kola is funded and finalised, fair value jumps to around 25p per share (based on the $1.7bn NPV). Bear in mind we are a number of months into satisfying all the finance requirements.

• Once Kola is in production, valuation could reach 89p per share (using an 8x EBITDA multiple).

That’s over 6x to 23x upside from today’s price.

• Even in a “worst case” forced sale, KP2’s assets should fetch more than today’s cap in any reasonable scenario. All the work management has completed so far gives our asset genuine downside protection.

Bottom line: KP2’s current share price doesn’t reflect the true value or the big strategic options available. Whether it’s monetising DX or securing Kola funding, the upside for patient shareholders could be huge compared to where we are now. Short-term market moves don’t change the core fundamentals. I have not seen any actions by management to make me nervous. They are big shareholders, have increased their shareholding and the shareholder base is constantly widening. There is a sold core of large long term investors, and most of the key players are substantial shareholders. I am very happy to hold this for the long term, despite any short term share price noise. DYOR.

Great to see us getting to 4p just after the market closed

I ran the 1/2 year results through AI and here is the feedback:

Bull Case:

• World-Class Asset: The Kola deposit is one of the most significant undeveloped potash resources globally, in the lowest cost quartile, with a long 23+ year mine life and major expansion potential through conversion of additional Inferred Resources.

• Low-Cost Potential: Projected delivered MOP (potash) cost to Brazil is ~$128/t, making KP2 potentially one of the world’s cheapest suppliers. High EBITDA margins (projected 74%) and average annual EBITDA of ~$733 million could be achieved if assumptions play out.

• De-risked Construction: The fixed-price EPC contract with PowerChina (~$1.93bn) limits the risk of capital overruns, includes performance penalties, and shows commitment by a top Chinese contractor.

• Full Project Funding Indicated: The non-binding $2.2bn term sheet with OWI-RAMS GMBH is a major step towards full financing. The platform is backed by Record PLC, with $100bn AUM, and is specialized in strategic investments in food security and energy transition.

• Massive Upside/Re-Rate: The optimized DFS NPV10 (post-tax) is $1.7bn (company 90% basis) vs. market cap of ~$190–200m—offering substantial upside if the project is finally delivered.

• DX Project Optionality: Additional value can be realized from the Dougou Extension project via a sale or development, with a potential NPV in the $135–190m range.

• Compelling Macro Story: Demand for potash should remain robust with the need for fertilizer in Brazil/Africa, making Kola strategically important.

________________________________________

Bear Case:

• Funding NOT Yet Secured: The $2.2bn funding is just a non-binding term sheet. There’s a significant risk that the deal falls through, is delayed, or comes with costly/onerous terms.

• Jurisdiction/Execution Risk: The Republic of Congo poses elevated geopolitical and regulatory risk. Delays, changes in regime, or governance issues could impact the project.

• No Production, No Revenue: KP2 is still a pre-revenue asset. Cash burn is ongoing, and multiple large equity raises have been required, causing dilution. Further equity might be needed.

• Major Capex Required: $2bn+ is a massive sum to raise for a single-asset developer in a challenging region. Construction risk—even with a fixed-price EPC—remains until positive cashflow is proven.

• Commodity Price Fluctuations: NPV and margin projections are highly sensitive to potash price ($449/t CFR Brazil in their DFS). Any material decline in prices or operational cost overruns could decimate the project’s economics.

• Option Grants/Board Remuneration: The company remains out of compliance with parts of the UK Governance Code in granting options to non-executive directors, which, while justified for cash preservation, may concern some investors.

• Shariah Financing Complexity: Final funding package must comply with Shariah principles, adding negotiation/structuri

There are a lot of Google detectives drawing conclusions. Has anyone contacted the Directors for clarity? I am sure they will happily enlighten us if asked.

This is what I managed to get - my phone line was not perfect:

It looks like all the Resolutions will be passed – they will confirm this on their website later today

I could not write the answers submitted to the company quick enough, but here is the gist:

1) Summit, Power China (EPC) and OWI/Rams are all still involved with the company

2) If/when will KP2 move to the main market -> London is the preferred location, and there is no set time to move to the main market

3) What is the relationship with the ROC government -> remains good

4) What is happening with DX -> not actively seeking any options

5) How will they increase awareness with investors -> they are actively engaging the market

The future looks bright:

• Rising Potash Prices and Sector Tailwinds

• Retail Investor Interest and Market Momentum

• Imminent announcement about the non-binding finance agreement

• The welcoming back of loads more keen investors from Australia

• An AGM

I wonder how long until we reach new share price highs?

Zaraah – I noticed you had an issue with my previous comment, so I want to clarify where I’m coming from.

First, everything I post here is my own original thought—I do not copy and paste articles or posts from other boards. Copying others’ work is copyright theft, which is both illegal and, in my view, immoral. It’s not something I would ever do, even though I know it happens elsewhere.

Regarding Kore Potash, my view is that it’s better for management to take the time needed to thoroughly complete due diligence on this complex financing package, even if that means a longer wait. I fully understand and sympathise with the frustration caused by the ongoing suspension of the Australian shares—no one wants to be stuck in limbo. But I’d rather see the company secure the best possible deal for all shareholders, rather than rush into something that could have negative long-term consequences.

I’m not here to “pump” KP2 or mislead anyone. I just want to see the company succeed for everyone’s benefit.

Finally, I think it’s important that we keep things professional on these boards and avoid personal attacks. Open, respectful discussion helps everyone make better decisions.

Best wishes to all holders.