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FINANCIAL REPORT FOR THE HALF YEAR ENDED 30 JUNE 2020
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”)
Extracts from Financial Report for the half year ended 30 June 2020
Kore Potash, the potash exploration and development company whose flagship asset is the 97%-owned
Sintoukola Potash Project ("Kola" or the "Kola Project"), located within the Republic of Congo ("RoC"), is
pleased to provide its financial statements for the half year ended 30 June 2020 (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
• The Dougou Extension (“DX”) Pre-feasibility Study (“PFS”) results were published on 13 May
2020 with the following highlights:
• A Maiden Sylvinite Ore Reserves of 17.7 Mt at a grade of 41.7% KCl was declared.
• Nameplate production target of 400,000 tpa MoP over an initial 18-year life based on
Probable Ore Reserves.
• Real ungeared post tax IRR of approximately 22.9% and NPV10 (real) of approximately
USD319 million on an attributable basis at life-of-mine average MoP price for granular
product of USD422/t MoP (Argus Media’s price forecast for DX Project’s target markets).
• Initial pre-production capital cost of approximately USD286 million (real 2019), including
contingency.
• Free on Board (“FOB Pointe Noire”) costs of USD86.61/t MoP.
• Annual average EBITDA of USD118 million.
• The Minister of Environment of the ROC approved, on 31 March 2020, extensions of
environmental approval period to 25 years for Kola and Dougou Mining licences.
• Cash and cash equivalents, at 30 June 2020 was USD1,839,826.
• Exploration and evaluation asset at 30 June 2020 was USD159,552,021 an increase of
USD3,532,661 from USD156,019,360 at 31 December 2019.
• On 27 June 2019, the Company announced a cost reduction strategy which saw some or all of
the non-executive directors’ fees be paid through the issue of fully paid ordinary shares in the
Company in lieu of cash payments. On 21 January 2020, the Company issued 3,811,398 ordinary
shares to certain non-executive directors in lieu of USD58,416 cash fees for the quarter ended 31
December 2019. For the quarter ended 31 March 2020, the Company issued 7,770,939 ordinary
shares on 7 April 2020 in lieu of USD58,416 cash fees to certain non-executive directors.
• In line with the cost reduction strategy, directors’ remuneration, salaries, employee benefits,
consultancy expense, listing and other administration expenses have decreased from a total of
USD1,641,390 for the period ended 30 June 2019 to USD1,334,614 for the period ended 30 June
2020.
• The impact of the Coronavirus (“COVID-19”) on the Company’s operations has been limited and it
is currently envisaged that it will not have a material impact on the operations.
Post Period Highlights
• On 26 August 2020, the Company announced a conditional Proposed Fundraise. Subject to
approval by shareholders at the forthcoming General Meeting of the Company to be held on 18
September 2020, a total of 946,106,375 new Ordinary Shares will be issued at the placing price
of 0.65p for a total value of approximately USD8 million. As part of the Proposed Fundraise, the
Company is also intending to enter into a Technical Services Agreement with its major
shareholder, Sociedad Quimica y Minera, S.A. (“SQM”) , for SQM to provide certain services to
the Company in connection with the first phase of the Definitive Feasibility Study (“DFS”) for DX
for a total value of USD540,000 to be satisfied by the issue and allotment of 63,417,499 new
ordinary shares at a price of 0.65p on completion of the relevant services. A circular containing
the formal notice of meeting has been dispatched to the Company’s shareholders.
Salient financials required to be disclosed under the JSE Listings Requirements
Six months Six months
ended ended
30 June 30 June
2020 2019 Change
Interest income (USD) 27 469 18 992 8 477
Loss for the period (USD) 1 320 961 1 176 783 (144 178)
Headline loss per share (USD cents) (0.09) (0.14) 0.05
Basic loss per share (USD cents) (0.09) (0.14) 0.05
Diluted loss per share (USD cents) (0.09) (0.14) 0.05
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 2020.
Any investment decision should be made after taking into consideration the full announcement and the financial
report for the half-year ended 30 June 2020. The full announcement and the financial report for the half-year ended
30 June 2020 is available on the JSE’s website at :
https://senspdf.jse.co.za/documents/2020/jse/isse/kp2e/KP2HY20.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 2020 is also available for inspection , at
no charge, by appointment and subject to observing COVID-19 restrictions, at the registered office of the
Company’s JSE sponsor, Rencap Securities (Pty) Limited, 6th Floor, Tower Block 2, 102 Rivonia Road, Sandton,
during normal business hours. Alternatively, copies of the full announcement and financial report can also be
requested via direct message under the contact section on the company website at
http://www.korepotash.com/contacts/.
08 September 2020
JSE Sponsor: Rencap Securities (Pty) Limited
Date: 08-09-2020 08:00:00
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