31st Mar 2020 15:23
(Alliance News) - Danakali Ltd on Tuesday said its loss for 2019 narrowed substantially, despite interest revenue more than halving in the period.
The potash firm's pretax loss narrowed to USD3.1 million from USD6.9 million the year before, driven by a net gain of USD4.4 million on financial assets classified at fair value, compared to a loss of USD4.8 million.
Interest revenue meanwhile, declined to USD81,338 from USD172,252. Interest revenue comes from interest earned from investing of surplus funds from capital raising.
During the year, development work on the Colluli potash project in Eritrea had started, including the engagement of DRA Global, Danakali's engineering, procurement, construction and management.
Looking ahead, phase one has been completed on time and budget, and phase two has started. However, due to the rapid spread of Covid-19, the second tranche of AFC's equity funding for the project will be deferred to allow for financial markets to stabilise.
Shares in Danakali were untraded on Tuesday, last quoted at 23.00 pence in London.
By Dayo Laniyan; [email protected]
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