Annual results5 Nov 2017 13:12
African Potash Ltd.: Audited Annual Results year ended 30 June 2017 Fri, 20 Oct 2017 18:18:56 : African Potash Ltd.: Audited Annual Results year ended 30 June 2017 African Potash Ltd. (AFPO) 20-Oct-2017 / 18:18 GMT/BST Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group. The issuer is solely responsible for the content of this announcement. African Potash Limited / Epic: AFPO / Sector: Mining 20 October 2017 African Potash Limited ("African Potash" or "the Company") Audited Annual Results for the year ended 30 June 2017 African Potash Limited, the NEX listed exploration company focussed on the vertical integration of fertiliser operations in Africa and sub-Saharan potash assets, is pleased to report its audited annual results for the twelve months ended 30 June 2017. Chairman's Statement Two years ago, African Potash was a junior exploration company with an early stage project which had just completed a proof of concept drilling program confirming extensive lateral seams of Potash Salts, extending to the edge of the Congolese coastal basin. Notwithstanding the positive results, the funding environment for early stage resource projects has remained difficult. Recognising this, the Company has implemented a strategy to develop opportunities for generating revenue in the fast developing and related fertiliser industry, with a long-term view of ultimately providing access to the market for its resource products. Fertiliser Trading The initial emphasis was on government-focussed trades introduced by COMESA (Common Market for Eastern and Southern Africa). Several Memoranda of Understanding were entered into, and the Company invested significant time and resources in pursuing these opportunities. Severe regional drought adversely affected demand, elections postponed decisions and, most importantly, budget restrictions meant that our customers could not, despite assurances to the contrary, secure the necessary payment required either by way of letters of credit or any other satisfactory payment instruments to enable us to conclude the potential trades. Clearly there is a sizeable business opportunity within this area and that we will be well placed to take advantage of it as time progresses as a result of our established relationship with COMESA. That said, throughout this period, we have learnt that dealing with governments can be slow and unpredictable. As a result our strategy has developed such that we are now looking towards both wholesale and retail trading, with a view to focussing our operations closer to the end user of fertiliser products. Last year, we commenced trading operations in Zambia with Nutri-Aid Trust ('Nutri-Aid'), which has over 2,500 agro-outlets certified by COMESA. This pilot scheme commenced with a partially secured credit-based model whereby the agri-dealers within the Nutri-Aid n