Wrap Text
Financial Report for the Half Year Ended 30 June 2021
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”)
24 August 2021
Extracts from Financial Report for the Half Year Ended 30 June 2021
Kore Potash plc (KP2:AIM, KP2:ASX, KP2:JSE), 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”), is pleased to provide its financial statements for the half year ended 30 June 2021 (the
"Period"). The full report, with accompanying notes, is available for download on the Company's
website: https://korepotash.com/investors/results-and-reports.
HIGHLIGHTS
• On the 6 April 2021 the company signed a non-binding Memorandum of Understanding
(“MoU”) with Summit Africa Limited (“Summit”), on behalf of a consortium of investors and
engineering firms, to arrange the total financing required for the construction of the Kola Potash
Project (“Kola”)
• The MoU outlines a roadmap to optimise the capital design, fully finance and construct
Kola via a mix of debt and royalty financing.
• The MoU was signed in the Minister of Mines offices in Brazzaville with the Minister
and his key staff present. Under the proposed financing arrangements, the RoC
Government retain their 10% shareholding in the Kola project.
• During the Period, Summit and their technical partner SEPCO Electric Power
Construction Corporation (“SEPCO”), signed the Optimisation Agreement to
undertake a study “Optimisation Study” to reduce Kola’s capital cost with a target of
less than US$1.65 billion (“Target Capex”). A team of representatives from Kore, ENFI
(a key subcontractor to SEPCO) and the RoC Minister of Mines completed a Kola site
visit and data handover. The optimisation study work has commenced with regular
updates provided to the Kore team.
• Under the Consortium’s proposed financing structure, the Company will not be
required to contribute to the capital needed to build the Kola project and will retain a
90% equity interest in Kola.
• During the Period the Company successfully raised US$14,024,596 through equity funding.
• On 8 April 2021, the Company successfully completed an oversubscribed fundraising.
A total of 823,475,618 New Ordinary Shares were issued at the Placing Price of 1.1
pence (2.0 Australian cents) for a total value of US$12.6 million (the “Fundraise”),
exceeding the initial US$11.0 million target.
• Subsequent to the fundraise, the Oman Investment Authority (“OIA”), Kore’s largest
shareholder, in line with its rights under their investment agreement with the
Company, subscribed for 92,226,613 New Ordinary Shares in the Company at the
Placing Price for a total cash consideration of $1.4 million.
• The DX DFS Phase 1 results were published on 27 May 2021 with the following highlights:
• The Phase 1 work program for the DFS was completed on budget including the drilling
of seven diamond drill holes and geochemical testing.
• Key technical studies and laboratory test work for Phase 1 of the DX DFS that were
completed.
• Work has commenced to develop an improved geological model for the DX deposit
incorporating all recent drilling information and is expected to be completed before
the end of 2021. The completion of this work may result in a re-estimation of the DX
Mineral Resources.
• Cash and cash equivalents, at 30 June 2021 was US$14,163,074.
• The exploration and evaluation asset at 30 June 2021 was US$170,592,485 a decrease of
US$1,433,265 from US$172,025,750 at 31 December 2020 due to the strengthening of the
RoC currency. During the Period the Company capitalised US$3,957,328 in exploration and
evaluation expenditure.
• The Coronavirus (“COVID-19”) pandemic is ongoing and it did not have a material impact
on the Company’s operations during the Period.
• During the Period the Company did not renew the Sintoukola 2 exploration permit. The
Company had not done any exploration work on the Sintoukola 2 permit area and continues
its focus on the development of the Kola and DX projects.
Salient financials required to be disclosed under the JSE Listings Requirements
Six months Six months
ended ended Change
30 June 2021 30 June 2020
Interest income
(USD) 9,803 27,468 (17,665)
Loss for the period
(USD) 1,290,440 1,320,961 (30,521)
Headline loss per
share (USD cents) (0.05) (0.09) 0.04
Basic loss per share
(USD cents) (0.05) (0.09) 0.04
Diluted loss per
share (USD cents) (0.05) (0.09) 0.04
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 report and as
such, it does not contain full or complete details pertaining to the group’s half-year results for
the period ended 30 June 2021.
Any investment decision should be made after taking into consideration the full
announcement and the financial report for the half-year ended 30 June 2021. The full
announcement and the financial report for the half-year ended 30 June 2021 is available on
the JSE’s website at:
https://senspdf.jse.co.za/documents/2021/jse/isse/kp2e/KP2HY21.pdf and on the group’s
website at https://korepotash.com/investors/results-and-reports/.
The full announcement and financial report for the half-year ended 30 June 2021 can be
requested via direct message under the contact section on the company website at
http://www.korepotash.com/contacts/.
END
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
Jos Simson
Oliver Lamb
Canaccord Genuity - Nomad and Broker Tel: +44 (0) 20 7523 4600
James Asensio
Henry Fitzgerald-O'Connor
Shore Capital - Joint Broker Tel: +44 (0) 20 7408 4050
Jerry Keen
Toby Gibbs
James Thomas
Questco Corporate Advisory – JSE Sponsor Tel: +27 (11) 011 9208
Mandy Ramsden
Date: 24-08-2021 08:25:00
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