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Extracts from financial results for the year ended 31 December 2022
Kore Potash plc
(Incorporated in England and Wales)
Registration number 10933682
ASX share code: KP2
AIM share code: KP2
JSE share code:KP2
ISIN: GB00BYP2QJ94
(“Kore Potash” or the “Company” or the “Group”)
Extracts from financial results for the year ended 31 December 2022
Kore Potash, the potash development company with 97%-ownership of the Kola and DX Potash
Projects in the Sintoukola Basin, located within the Republic of Congo (“RoC”), today reports its
audited financial results and operational highlights for the year ended 31 December 2022 (the
“Period”).
The full financial report including its Corporate Governance Statement is available online at the
Company's website at:
https://korepotash.com/wpcontent/uploads/2023/03/Kore_Potash_plc_Annual_Report_2022.pdf
The financial statements contained within this announcement should be read in conjunction with the
notes contained within the full financial report.
Highlights
• On 1 April 2022, the Company announced it had received the Optimisation Study on the Kola
Project.
• The detailed review of the Study was completed, and the outcomes of the Study announced
to shareholders on 27 June 2022.
• On 28 June 2022, the Company announced it had signed a Head of Agreement (“HoA”) for the
construction of Kola.
• On 19 October 2022, the Company announced receipt of correspondence from the Minister
of Mines of the RoC on 12 October 2022 expressing discontent with the progress towards
construction of the Kola Project and providing the Company 30 days within which to respond.
The letter was received following the arrest and subsequent release, without charge, of two
senior employees of the Company by the RoC police. Neither the employees nor the Company
have been informed of the reason for the arrests.
• The Company provided a response to the Minister on 11 November 2022. On 17 December
2022, the Company met in person with the Minister, and the discussion included a further
update on the progress towards financing Kola. At the end of the meeting the Minister
expressed his thanks for how the Company responded to his most recent letter and assured
the Company of his and the RoC Government’s ongoing support for Kore Potash and to
develop the Kola Project.
• Since this time the Company has held multiple meetings with the Minister of Mines and is
assured that the Company has and will continue to have his full support and that the
Company’s tenements in the RoC remain in good standing.
• Subsequent to the end of the period on the 24 January 2023, the Company announced the
updated Dougou Extension PFS and Production Target.
Brad Sampson, Chief Executive of Kore Potash, commented: “During 2022, the Company continued
to make tangible progress towards the financing of the Kola Project.
Engagement with the Summit Consortium following the successful completion of the Optimisation
Study is progressing towards finalisation of construction contract terms and the provision of financing
for the full construction cost of the Kola Project.
Global events continue to reinforce the importance of potash in the production of food and the need
for the development of new potash projects outside the traditional northern hemisphere potash
production regions.
Our potash projects stand out globally. With very high in situ quality, significant resources and a
beneficial location, we believe the Sintoukola Basin is one of the most promising undeveloped potash
regions in the world. It has the potential to produce Muriate of Potash needed by farmers around the
world for generations.”
Summary of financials
• During the Period, the Group’s Total Comprehensive Loss was USD 10,174,361 (2021: Loss
USD 13,470,876), and the Group experienced net cash outflows from operating and investing
activities of USD 5,744,285 (2021: USD 7,499,811 million). Cash and cash equivalents totalled
USD 5,046,629 as at 31 December 2022 (2021: USD 11,092,509).
• Group net assets decreased in the year to USD 167,650,279 (2021: USD 177,419,886). This
was primarily driven by a USD 5,064,934 increase in exploration expenditure capitalised offset
by a USD 8,949,642 reduction in the capitalised exploration costs due to the strengthening of
the USD against the currency of the RoC.
• The Directors prepared a cash flow forecast for the period ending 31 December 2024, which
indicates that the Group will not have sufficient liquidity to meet its working capital
requirements to the end of the going concern period (March 2024). Note 1 of the financial
statements provides more detail on the going concern statement.
• The company will be required to raise funds before Q4 2023 in order to meet its current
planned activities over the next 12 months. The Directors have considered various mitigating
actions, which include raising additional capital to enable the Group to continue to fund its
working capital requirements. The Directors have identified a number of potential funding
options available to the Group.
Salient consolidated financials required to be disclosed under the JSE Listings Requirements
31 December 2022 31 December 2021 Change
USD USD USD
Interest Income 66,956 14,709 52,247
Loss for the year (1,513,953) (1,941,196) 427,243
Headline loss per share (0.04) (0.06) 0.02
Basic loss per share (0.04) (0.06) 0.02
Diluted loss per share (0.04) (0.06) 0.02
Short-form announcement
This short-form announcement is the responsibility of the board of directors of Kore Potash and is a
summarised version of the group’s full announcement and financial results and as such, it does not
contain full or complete details pertaining to the group’s results for the financial year ended
31 December 2022. Any investment decision should be made after taking into consideration the full
annual results for the financial year ended 31 December 2022. The full announcement and the annual
results for the financial year ended 31 December 2022 is available on the JSE’s website at
https://senspdf.jse.co.za/documents/2023/jse/isse/kp2e/FY2022.pdf and on the group’s website at
https://korepotash.com/wpcontent/uploads/2023/03/Kore_Potash_plc_Annual_Report_2022.pdf
The full announcement and annual report for the financial year ended 31 December 2022 can be
requested via direct message under the contact section on the company website at
https://korepotash.com/contract/offices/
END
31 March 2023
For further information, please visit www.korepotash.com or contact:
Kore Potash Tel: +27 84 603 6238
Brad Sampson – CEO
Tavistock Communications Tel: +44 (0) 20 7920 3150
Emily Moss
Adam Baynes
SP Angel Corporate Finance – Nomad and Broker Tel: +44 (0) 20 7470 0470
Ewan Leggat
Charlie Bouverat
Shore Capital – Joint Broker Tel: +44 (0) 20 7408 4050
Toby Gibbs
James Thomas
Questco Corporate Advisory – JSE Sponsor Tel: +27 (11) 011 9205
Doné Hattingh
Date: 31-03-2023 08:00:00
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