To view the PDF file, sign up for a MySharenet subscription.

KORE POTASH PLC - Extracts from Financial Report for the half year ended 30 June 2019

Release Date: 06/09/2019 08:00
Code(s): KP2     PDF:  
 
Wrap Text
Extracts from Financial Report for the half year ended 30 June 2019

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 2019

Kore Potash, the potash exploration and development company whose flagship asset is the Kola Project
("Kola" or the "Project"), located within the Company's 97%-owned Sintoukola Potash Project in the
Republic of Congo, is pleased to provide its financial statements for the half year ended 30 June 2019
(the "Period"). The full report is available on the Company's website at http://www.korepotash.com/wp-
content/uploads/2019/09/Half-Year-Report-June-2019.pdf

Highlights

•   A Scoping Study for a low capital cost, high cash margin potash project at Dougou Extension (“DX”)
    was completed and a summary of results released on 29 April 2019. These results indicated that
    following a 2-year construction period DX could potentially produce 400 ktpa MoP for 17 years at an
    operating cost of USD83/t FOB. In addition, the Company finalised planning for a Pre-feasibility Study
    on the DX Project.

•   The Company has now commenced a Pre-feasibility Study on the DX Project. More than 60km of
    seismic survey lines have been cleared in advance of the 2D Seismic survey commencing before
    mid-September and drill rigs are currently being assembled on site ahead of the commencement of
    the PFS drilling programme. Key technical studies have commenced, and dissolution test work being
    undertaken in Agapito Laboratory in Grand Junction, USA Saskatchewan, has been completed.

•   The Company completed its review of the Kola Definitive Feasibility Study (“DFS”) and released a
    summary of results to Shareholders on 29 January 2019. This included the reporting of:

    o   Proved and Probable Ore Reserves for the Kola Deposit totalling 152.4Mt with an average grade
        of 32.5%KCl.

    o   Post-tax, NPV10 (real) of USD 1,452 million and a real ungeared Internal Rate of Return of 17%
        on an attributable basis at life-of-mine average MoP prices for granular of USD 360 per tonne
        CFR Brazil and standard of USD 350 per tonne CFR Brazil.

•   The Company received an Engineering, Procurement and Construction (“EPC”) proposal for its Kola
    Project from the consortium of French engineering companies (“FC”) on 23 March 2019.

•   Post period end, in July 2019, the Company received a proposal from the FC that identifies
    opportunities to reduce the capital cost of the Kola project by USD415 million below that indicated in
    the Kola DFS and optimisation discussions are planned to continue.

•   The Minister of Environment of the RoC reviewing the amended Kola environmental and social
    impact assessment (the “ESIA”) requested the submission be reformatted into separate volumes and
    resubmitted. The re-submission, which doesn’t require significant variations, is planned to occur
    during Q3 of 2019.

•   Cash and cash equivalents, including restricted cash, at 30 June 2019 was USD1,725,129. Post
    period end, on 19 July 2019, an additional USD13,123,561 was raised through the placing and direct
    subscription of new ordinary shares in the Company.

•   Loss for the period ended 30 June 2019 reduced by USD3,394,007 from USD4,570,790 for the
    period ended 30 June 2018 to USD1,176,783 driven primarily by lower administration expenses,
    lower equity compensation benefits and listing and re-domicile expenses incurred in H1 2018.
         •   Exploration and evaluation asset at 30 June 2019 was USD153,374,657 an increase of
             USD3,511,334 from USD149,863,323 at 31 December 2018.


Salient financials required to be disclosed under the JSE Listings Requirements

                                                        Six months        Six months
                                                         ended 30        ended 30 June
                                                            June             2018                   Change
                                                            2019
 Interest income (USD)                                     18,992            20,454                 (1,462)
 Operating loss from continuing operations (USD)        (1,176,783)        (4,570,790)             3,394,007
 Headline loss per share (USD cents)                       (0.14)             (0.56)                  0.42
 Basic loss per share (USD cents)                          (0.14)             (0.56)                  0.42
 Diluted loss per share (USD cents)                        (0.14)             (0.56)                  0.42


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 2019.

Any investment decision should be made after taking into consideration the full financial report for the half-year
ended 30 June 2019. The full announcement and the financial report for the half-year ended 30 June 2019 is
available on the JSE’s website at https://senspdf.jse.co.za/documents/2019/jse/isse/kp2e/KP2HY2019.pdf and on
the group’s website at http://www.korepotash.com/wp-content/uploads/2019/09/Half-Year-Report-June-2019.pdf

The full announcement and financial report for the half-year ended 30 June 2019 is also available for inspection, at
no charge, at the Company’s office, 33 Ballyclare Drive, Ballywoods Office Park, Cedarwood House, Bryanston,
Johannesburg, 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/.


6 September 2019
JSE Sponsor: Rencap Securities (Pty) Limited

Date: 06/09/2019 08:00:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.

Email this JSE Sens Item to a Friend.

Share This Story