19th Aug 2024 13:56
(Alliance News) - Atome PLC on Monday reported good progress in the first half which was followed by the signing of key agreements to advance the development of its fertiliser projects.
The Leeds, England-based developer of international green fertiliser projects in the Americas said pretax loss narrowed to USD2.5 million in the first half that ended June 30 from USD2.9 million the previous year.
Atome generated no revenue in the half and cut administrative expenses by 15% to USD2.4 million from USD2.9 million.
The company swung to a net debt position of USD733,000 from net cash of USD2.8 million last year.
In February and March, Atome raised USD2.9 million via the successful placing of shares to directors, and Chair Peter Levine granted a USD5 million facility starting in the third quarter of 2024 to the end of the third quarter 2025 to support working capital requirements.
Operational progress was made in Paraguay during the half with Atome completing the front-end engineering and design study for its flagship Villeta project alongside the completion of pre-power purchase agreement studies for the Yguazu project.
"The Villeta project is expected be the largest green fertiliser production facility in the world when it comes on stream, which is currently projected for late in 2027, and has the capability of serving and decarbonising food value chains across South American, Europe and Asia.
"The 300MW Yguazu project in Paraguay, with power already reserved, is nearly triple the size and capacity of Villeta and could come some 18 months later. The Costa Rica project will be of a similar size to Villeta," Atome said.
Post-period, Atome signed heads of terms with Yara International ASA, a chemicals company 43% owned by the Norwegian government, for long-term offtake of Villeta's entire production.
Furthermore, a formal contract was signed with the Paraguay government for a 30-year free trade zone at the Villeta facility.
"Atome's pipeline of projects now extends to 600MW and the company views the future with increasing confidence as it focuses on maintaining the momentum with the support of the leading shareholder and continues to evaluate opportunities to expand the current portfolio of interests," Atome added.
Atome shares were down 0.6% to 85.00 pence each in London on Monday afternoon.
By Elijah Dale, Alliance News reporter
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