Wrap Text
Review of Operations for the Quarter ended 31 March 2025
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
CDI ISIN: AU000000KP25
("Kore Potash" or the "Company")
30 April 2025
Review of Operations for the Quarter ended 31 March 2025
Kore Potash (AIM: KP2, ASX: KP2, JSE: KP2, A2X: KP2), the potash development company with 97%
ownership of the Kola Potash Project ("Kola" or the "Kola Project") and Dougou Extension ("DX")
Potash Project in the Sintoukola Basin, located in the Republic of Congo ("RoC"), provides its quarterly
update for the period ended 31 March 2025 (the "Quarter").
Quarterly Highlights
Projects
• On 27 February 2025, the Company provided an update in relation to the optimised Kola
Definitive Feasibility Study ("Optimised DFS") for the Kola Project further to the
announcement regarding the signing of the Engineering, Procurement and Construction
contract ("EPC") for the Kola Project with PowerChina International Group Limited
("PowerChina") on 20 November 2024.
• On 27 February 2025, the Company also announced a restatement of the Mineral Resource
estimate for the Kola deposit.
Corporate
• On 31 March 2025, the Company released its Financial Results and Annual Report for the Year
Ended 31 December 2024.
• Successful completion of c.US$10.1 million fundraise with a further US$0.5m conditionally
raised subject to shareholder approval at the upcoming Annual General Meeting ("AGM") to
be held in June 2025.
• As of 31 March 2025, the Company held c.US$10.2 million in cash.
Operational Activities
Kola Project Optimised DFS
On 27 February 2025, the Company provided an update in relation to the optimised Kola Definitive
Feasibility Study for the Kola Project further to the announcement regarding the signing of the EPC for
the Kola Project with PowerChina on 20 November 2024.
Prior to signing the EPC, two studies have been completed by the Company: the Kola Definitive
Feasibility Study ("DFS") in January 2019 and the Kola Project Optimisation Study ("Optimisation
Study") in June 2022, details of both of which have been released to AIM, JSE and ASX on 29 January
2019 and 28 June 2022 respectively. Following signing of the EPC contract, the Company undertook
an exercise to optimise the DFS to account for the EPC contract, including updating the Kola
production schedule and the forecast financial information. The Company has now completed its
review of the Optimised DFS.
The results of the Optimised DFS incorporate the most current information available to the Company,
have been updated from the DFS and Optimisation Study to ensure compliance with the latest
applicable listing rule requirements and other regulatory policies of the Australian Stock Exchange
Limited, and therefore should be considered as superseding the results of both the DFS and the earlier
Optimisation Study.
Unlike the DFS and the Optimisation Study, the Optimised DFS is based on a production period which
utilises all Proved and Probable Ore Reserves and only 6% of Inferred Minerals Resources, giving a Life
of Mine ("LoM") of 23 years. Kore Potash considers there is strong potential for the mine plan on
which this Optimised DFS is based to be extended beyond 23 years by upgrading a portion of the 340
Mt of Inferred Mineral Resources to Measured or Indicated Resources through further exploration
during the 23 years of operations.
Highlights of the Optimised DFS
• Capital cost of US$2.07 billion (nominal basis) on a signed fixed price EPC basis, including
owner's costs.
• Assumed construction start date of 1 January 2026, with construction period of 43 months.
• Kola designed with a nameplate capacity of 2.2 million tonnes per annum ("Mtpa") of Muriate
of Potash ("MoP").
• Average MoP production per year of 2.2 Mtpa of MoP for total MoP production of 50Mt over
a 23-year life of mine.
• Average cost of MoP delivered to Brazil is US$128/t. Based on an independent MoP market
study commissioned by the Company, management considers Kore Potash is projected to
become one of the lowest cost producers in the global agricultural market to Brazil.
• Average annual EBITDA is approximately US$733 million. Kore Potash is projected to continue
to enjoy a very high average EBITDA margin of 74%.
• Key financial metrics, at MoP CFR Brazil pricing averaging US$449/tonne and on a 90%
attributable basis (reflecting Kore's future holding of 90% and the RoC government 10%):
• Kola NPV10% (real) post-tax US$1.7 billion
• IRR 18% (real) on ungeared post-tax basis
• Kola is designed as a conventional mechanised underground potash mine with shallow shaft
access. Ore from underground is transported to the processing plant via an approximately
25.5 km long overland conveyor. After processing, the finished product is conveyed 8.5 km to
the marine export facility. MoP is transferred from the storage area onto barges via a
dedicated barge loading jetty before being transhipped into ocean-going vessels for export
Confirmation of Mineral Resource for Kola Deposit
On 27 February 2025, the Company also announced a restatement of the Mineral Resource estimate
for the Kola deposit.
This announcement is a restatement of the Mineral Resource estimate for the Kola deposit. The
Mineral Resource estimate was originally released by the Company's wholly-owned subsidiary, Kore
Potash Limited, which was formerly listed on the ASX under the ticker "K2P".
The original announcement was entitled "Updated Mineral Resource for the High Grade Kola Deposit"
dated 6 July 2017. This announcement contains additional information summarising the material
information relating to the Kola Mineral Resource in accordance with ASX Listing Rule 5.8.1. No other
material changes have been made to the original announcement.
Congo Government Relations
In August 2023, the RoC State Minister of Mines and Geology (the "Minister"), H.E. Mr Pierre Oba,
pledged written support for Kore Potash's projects despite some unmet deadlines, reaffirming the
validity of the Company's mining titles and agreements; reiterating RoC Government support. One
month later, the Minister visited the Kola Project, where the Company held a ceremony to mark
development progress and the start of work by SEPCO Electric Power Construction Corporation
("SEPCO"). PowerChina is SEPCO's parent company.
Thereafter, RoC government engagement was continual and positive. On 24 February 2024, David
Hathorn and Warren Thompson visited RoC and updated the Minister on EPC progress. Two months
later, the newly appointed CEO, André Baya, met with the Minister in Brazzaville to keep him informed
about further progress.
At all times and without exception, the Minister expressed support and enjoined Kore Potash to
continue diligently. He was regularly informed of negotiation meetings with PowerChina in Beijing and
Dubai. Finally, on 19 November 2024, the EPC construction contract was signed between Kore Potash
and PowerChina in Brazzaville in the presence of a large and supportive delegation from the RoC
Ministry of Mines & Geology.
DX Potash Project
At present, the Company remains focused on completing the financing of Kola and moving forward to
construction of Kola as soon as possible. The Company is also exploring what strategic options are
available for the DX project.
Corporate
On 27 March 2025, the Company successfully completed a c.US$10.1 million fundraise via the issue of
455,734,110 new ordinary shares of US$0.001 each in the Company with existing and new
shareholders at a price of 1.7 pence per share.
On 31 March 2025, the Company released its Financial Results and Annual Report for the Year Ended
31 December 2024.
As at 31 March 2025, the Company held c.US$10.2 million in cash.
There were no mining production or construction activities during the Quarter.
Quarterly cashflow report
In accordance with the ASX Listing Rules, the Company will also lodge its cashflow report for the
Quarter today.
The Company invested US$685,000 in exploration in the Quarter, which comprised US$682,000
related to the Kola Study and US$3,000 for the DX DFS Study. The Company ended the Quarter with
c.US$10.2 million in cash.
This announcement has been approved for release by the Board of Kore Potash.
Market Abuse Regulation
This announcement contains inside information for the purposes of Article 7 of the Market Abuse
Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the Company's obligations under
Article 17 of MAR.
ENDS
For further information, please visit www.korepotash.com or contact:
Kore Potash Tel: +44 (0) 20 3963 1776
André Baya, CEO
Andry Maruta, CFO
Tavistock Communications Tel: +44 (0) 20 7920 3150
Emily Moss
Nick Elwes
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 (63) 482 3802
Doné Hattingh
Tenement Details and Ownership
The Company is incorporated and registered in England and Wales and wholly owns Kore Potash
Limited of Australia. Kore Potash Limited has a 97% shareholding in Sintoukola Potash SA ("SPSA") in
the RoC. SPSA has 100% ownership of Kola Potash Mining SA ("KPM"). KPM has 100% ownership of
the Kola Mining Lease on which the Kola Deposit is situated. The Kola Deposit is located within the
Kola Mining Lease. SPSA is also the 100% owner of the Dougou Mining Lease. The Dougou Mining lease
hosts the Dougou Deposit and the DX Deposit.
Under the existing Mining Convention, the RoC Government is entitled to 10% ownership in the Kola
and DX Projects. The transfer of this 10% awaits instructions from the Government and the Mineral
Resources and Ore Reserves are shown below in gross and 90% attributable bases.
Table 1: Schedule of mining tenements (Republic of Congo)
Project & Type Tenement Issued Company Interest Title Registered to
Kola Decree 2013-412 100% Kola Potash Mining S.A.
Mining of 9 August 2013 potassium rights only
Dougou Decree 2017-139 100% Sintoukola Potash S.A.
Mining of 9 May 2017 potassium rights only
Revised Decree No
2021-389 of 2 August
2021
Kore Potash Mineral Resources and Ore Reserves - Gross and according to future 90% interest (10% by the RoC government)
KOLA SYLVINITE DEPOSIT
Gross Net Attributable (90% interest)
Contained KCl Contained KCl
Mineral Resource Sylvinite Million Average Grade Sylvinite Million Average Grade
million million
Category Tonnes KCl % Tonnes KCl %
tonnes tonnes
Measured 216 34.9 75.4 194 34.9 67.8
Indicated 292 35.7 104.3 263 35.7 93.9
Sub-Total Measured
+ 508 35.4 179.7 457 35.4 161.7
Indicated
Inferred 340 34.0 115.7 306 34.0 104.1
TOTAL 848 34.8 295.4 763 34.8 265.8
Gross Net Attributable (90% interest)
Contained KCl Contained KCl
Sylvinite Million Average Grade Sylvinite Million Average Grade
Ore Reserve Category million million
Tonnes KCl % Tonnes KCl %
tonnes tonnes
Proved 62 32.1 19.8 56 32.1 17.9
Probable 91 32.8 29.7 82 32.8 26.7
TOTAL 152 32.5 49.5 137 32.5 44.6
Ore Reserves are not in addition to Mineral Resources but are derived from them by the application of modifying factors
DOUGOU EXTENSION SYLVINITE DEPOSIT (HWSS and TSS)
Gross Net Attributable (90% interest)
Contained KCl Contained KCl
Mineral Resource Sylvinite Million Average Grade Sylvinite Million Average Grade
million million
Category Tonnes KCl % Tonnes KCl %
tonnes tonnes
Measured 20 32.4 6.5 18 32.4 5.9
Indicated 8 23.1 1.8 7 23.1 1.6
Sub-Total Measured
+ 28 29.9 8.3 25 29.9 7.5
Indicated
Inferred 101 23.5 23.8 91 23.5 21.4
TOTAL 129 24.8 32.1 116 24.8 28.9
Gross Net Attributable (90% interest)
Contained KCl Contained KCl
Sylvinite Million Average Grade Sylvinite Million Average Grade
Ore Reserve Category million million
Tonnes KCl % Tonnes KCl %
tonnes tonnes
Proved 6.1 32.5 2.0 5.5 32.5 1.8
Probable 3.2 41.8 1.3 2.9 41.8 1.2
TOTAL 9.3 35.7 3.3 8.4 35.7 3.0
Ore Reserves are not in addition to Mineral Resources but are derived from them by the application of modifying factors
DOUGOU CARNALLITE DEPOSIT
Gross Net Attributable (90% interest)
Contained KCl Contained KCl
Mineral Resource Million Tonnes Average Grade Million Tonnes Average Grade KCl
million million
Category carnallite KCl % carnallite %
tonnes tonnes
Measured 148 20.1 29.7 133 20.1 26.8
Indicated 920 20.7 190.4 828 20.7 171.4
Sub-Total Measured
+ 1,068 20.6 220.2 961 20.6 198.2
Indicated
Inferred 1,988 20.8 413.5 1,789 20.8 372.2
TOTAL 3,056 20.7 633.7 2,750 20.7 570.3
KOLA CARNALLITE DEPOSIT
Gross Net Attributable (90% interest)
Contained KCl Contained KCl
Mineral Resource Million Tonnes Average Grade Million Tonnes Average Grade KCl
million million
Category carnallite KCl % carnallite %
tonnes tonnes
Measured 341 17.4 59.4 307 17.4 53.5
Indicated 441 18.7 82.6 397 18.7 74.4
Sub-Total Measured
+ 783 18.1 142.0 705 18.1 127.8
Indicated
Inferred 1,266 18.7 236.4 1,140 18.7 212.8
TOTAL 2,049 18.5 378.5 1,844 18.5 340.6
Competent Persons Statements
All Mineral Resource and Ore Reserves are reported in accordance with the JORC Code (2012 edition).
Numbers are rounded to the appropriate decimal place. Rounding 'errors' may be reflected in the
"totals".
The Kola Mineral Resources were reported 6 July 2017 in an announcement titled 'Updated Mineral
Resource for the High - Grade Kola Deposit'. It was prepared by Competent Person Mr. Garth Kirkham,
P.Geo., a member of the Association of Professional Engineers and Geoscientists of British Columbia.
The Ore Reserves for sylvinite at Kola was first stated on 29 January 2019 in an announcement titled
"Kola Definitive Feasibility Study" and was prepared by Met-Chem. The Competent Person for the
estimate was Mr Mo Molavi, member of good standing of Engineers and Geoscientists of British
Columbia. The Ore Reserves were reviewed when the changes to the underlying assumptions (as
detailed in the 27 June 2022 announcement "Kola Project optimisation study outcomes") were made
and Mr Molavi verified that the Ore Reserves remained unchanged.
The Dougou carnallite Mineral Resources were reported on 9 February 2015 in an announcement
titled 'Elemental Minerals Announces Large Mineral Resource Expansion and Upgrade for the Dougou
Potash Deposit'. It was prepared by Competent Persons Dr. Sebastiaan van der Klauw and Ms. Jana
Neubert, senior geologists and employees of ERCOSPLAN Ingenieurgesellschaft Geotechnik und
Bergbau mbH and members of good standing of the European Federation of Geologists.
The Dougou Extension sylvinite Mineral Resource Estimate and Ore Reserve Estimate were reported
in an announcement titled "Updated Dougou Extension (DX) PFS and Production Target" on 24 January
2023. Dr. Douglas F. Hambley, Ph.D., P.E., P.Eng., P.G of Agapito Associates Inc., for the Exploration
Results and Mineral Resources. Mr. Hambley is a licensed professional geologist in states of Illinois
(Member 196-000007) and Indiana (Member 2175), USA, and is an Honorary Registered Member
(HRM) of the Society of Mining, Metallurgy and Exploration, Inc. (SME, Member 1299100RM), a
Recognized RPO included in a list that is posted on the ASX website from time to time and Dr. Michael
Hardy was the Competent Person for the Ore Reserves, and he is a registered member in good
standing (Member #01328850) of Society for Mining, Metallurgy and Exploration (SME) which is an
RPO included in a list that is posted on the ASX website from time to time.
The Company confirms that, it is not aware of any new information or data that materially affects the
information included in the original market announcements and, in the case of estimates of Mineral
Resources or statements of Ore Reserves that all material assumptions and technical parameters
underpinning the estimates in the relevant market announcement continue to apply and have not
materially changed. The Company confirms that the form and context in which the Competent
Person's findings are presented have not been materially modified from the original market
announcement.
Forward-Looking Statements
This release contains certain statements that are "forward-looking" with respect to the financial
condition, results of operations, projects and business of the Company and certain plans and
objectives of the management of the Company. Forward-looking statements include those containing
words such as: "anticipate", "believe", "expect," "forecast", "potential", "intends," "estimate," "will",
"plan", "could", "may", "project", "target", "likely" and similar expressions identify forward-looking
statements. By their very nature forward-looking statements are subject to known and unknown risks
and uncertainties and other factors which are subject to change without notice and may involve
significant elements of subjective judgement and assumptions as to future events which may or may
not be correct, which may cause the Company's actual results, performance or achievements, to differ
materially from those expressed or implied in any of our forward-looking statements, which are not
guarantees of future performance. Neither the Company, nor any other person, gives any
representation, warranty, assurance or guarantee that the occurrence of the events expressed or
implied in any forward-looking statement will occur. Except as required by law, and only to the extent
so required, none of the Company, its subsidiaries or its or their directors, officers, employees,
advisors or agents or any other person shall in any way be liable to any person or body for any loss,
claim, demand, damages, costs, or expenses of whatever nature arising in any way out of, or in
connection with, the information contained in this document.
Date: 30-04-2025 08:00:00
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