31st Mar 2016 15:21
LONDON (Alliance News) - The Chairman of African Potash Ltd withdrew a proposal to change the company's name only moments before shareholders voted at an annual general meeting on Thursday.
African Potash had plans to change its name to AFPO Ltd, but Chairman Chris Cleverly pulled the special resolution at the start of the AGM, the company said.
"Following further consideration the board believes that the company's name still suitably reflects its operations at this stage of its evolution. In addition "African Potash" is increasingly recognised as a brand in Africa, which has added value to the listed entity that the board believes would be discounted by a name change," said Cleverly in a statement.
"Furthermore, the board believes that the market is increasingly seeing a bottoming out of mining valuations and hence the company's resource assets and opportunities may receive greater strategic emphasis in the future. It is therefore not deemed necessary to change the company's name at this time," he added.
The company saw its shares fall earlier this week after revealing it is still chasing USD10.2 million in revenue owed by a customer in Zambia that it supplied fertiliser to. That sum would be the company's first meaningful chunk of revenue.
At the same time, the company reported a USD716,000 pretax loss in the six months to the end of 2015, slightly wider than the USD660,000 loss booked the year before as its operating expenses increased.
African Potash shares were down 4.9% at 1.36 pence per share on Thursday afternoon.
By Joshua Warner; [email protected]; @JoshAlliance
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