Kore Potash Plc, a leading potash development company with a significant presence in the Republic of Congo (“RoC”), has recently released its unaudited financial results and operational highlights for the half-year ended June 30, 2023. Despite a backdrop of global economic challenges and geopolitical tensions, the company has reported several promising developments.
Kore Potash has been actively engaged in discussions aimed at finalizing the terms for the Engineering, Procurement, and Construction (EPC) contract at the Kola Project. This key milestone signifies a significant step forward in advancing the project.
PowerChina International Group Limited (“PowerChina”) and SEPCO Electric Power Construction Corporation (“SEPCO”) have commenced work to support the provision of guarantees regarding the EPC contract for Kola. Their involvement underscores the growing confidence in the project’s viability and the commitment to its success.
Summit Consortium, a key player in the financing of the Kola Project, has reaffirmed its commitment to provide funding for the full capital cost of the project. Notably, they have committed to delivering the financing within six weeks of finalizing the EPC contract terms. This financial backing serves as a significant vote of confidence in the project’s potential.
Earlier this year, on January 24, 2023, Kore Potash announced a comprehensive update regarding the DX Project. The update included vital information on the JORC (2012) compliant Mineral Resource, Ore Reserve, Pre-Feasibility Study (“PFS”) data, and Production Target. This update incorporated the most recent drilling results and an improved interpretation of geophysical data.
Kore Potash’s financial stability remains robust, with cash and cash equivalents totaling USD 2,555,254 as of June 30, 2023. This financial strength positions the company favorably to pursue its strategic objectives.
The company’s exploration and evaluation assets have seen substantial growth, amounting to USD 167,201,357 as of June 30, 2023. This reflects an increase of USD 4,472,163 compared to December 31, 2022. During the reporting period, the company capitalized USD 1,882,884 in exploration and evaluation expenditure, with an additional increase of USD 2,589,279 attributed to the weakening of the USD against the currency of the RoC.
Remarkably, Kore Potash’s operations have demonstrated resilience in the face of ongoing global challenges. Despite the geopolitical tensions and rising fuel prices that have affected many industries worldwide, the company’s operations have not been materially impacted during the reporting period.
Here’s a summary of the financial performance for the six months ended June 30, 2023:
| Metric | Amount (USD) | Change |
|---|---|---|
| Interest Income | 51,348 | +34,319 |
| Loss for the Period | (464,983) | +438,227 |
| Headline Loss/Share | (USD cents) (0.01) | +0.02 |
| Basic Loss/Share | (USD cents) (0.01) | +0.02 |
| Diluted Loss/Share | (USD cents) (0.01) | +0.02 |
While the company reported a loss for the period, the positive developments in project financing and progress are expected to have a positive impact on future financial results.
Kore Potash continues to work diligently to unlock the vast potential of its potash projects in the Sintoukola Basin, bringing economic growth and opportunity to the Republic of Congo while navigating the challenges of a dynamic global landscape. Investors and stakeholders are encouraged to review the full financial report for a comprehensive understanding of the company’s performance.
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