13th Sep 2019 11:49
(Alliance News) - Danakali Ltd on Friday said its loss widened in the first half of 2019 as it progresses the development of its flagship project in east Africa.
The sulphate of potash project developer's pretax loss widened to USD1.5 million in the six months to the end of June compared to USD1.1 million loss a year earlier. Interest revenue fell by 41% to USD53,675.
Net profit on financial assets reduced to USD521,661 from USD1.2 million year-on-year.
Meanwhile, administrative costs rose as the company worked on the Colluli project in the Danakil Depression region of Eritrea. The project is a joint venture between the Eritrean National Mining Co and Danakali, with each having 50% ownership of the joint venture company, Colluli Mining Share Co.
Colluli boasts the shallowest mineralisation in the Danakil Depression, Danakali said. Mineralisation starts at just 16 meters below surface and potassium bearing salts are present in solid form.
The recent Colluli front-end engineering design results reaffirmed the "outstanding" project economics, Danakali highlighted.
"During 2019, we have continued to achieve important milestones as we progress towards bringing Colluli into production," said Chief Executive Niels Wage. "We look forward to unlocking operational catalysts in the coming months."
Danakali shares were trading flat on Friday in London at 38.50 pence each.
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