13th Sep 2024 08:30
(Alliance News) - Kore Potash PLC reported on Friday its interim loss widened as it remained upbeat about the possible signing of a contract that will pave the way for the construction of its Kola project.
The London-based owner of the Kola and DX potash projects in Republic of Congo said its pretax loss worsened to USD528,636 for the first six months that ended June 30, from USD464,983 the year before.
Interest income plummeted to USD2,894 from USD51,348.
Kore said both loss per share and headline loss per share were unchanged at USD0.01.
Salaries, employee benefits and consultancy expenses soared 41% to USD134,553, compared to USD95,704, while administration costs rose 2.8% to USD280,780 from USD273,020.
Kore said it raised USD1.2 million in July 2024, with a further USD60,000 conditionally raised and approved by shareholders at a general meeting held last month.
Cash and cash equivalents held at June 30 totalled USD959,956, down from USD1.6 million as at December 31. The exploration and evaluation assets were USD172.7 million as at June 30, compared to USD176.4 million six months prior.
Kore said tentative agreements between its and PowerChina International Group Ltd's respective legal teams have been reached over the engineering, procurement and construction contract for Kola.
Kore and PowerChina have started detailed negotiations on the proposal and draft contract. The company met senior PowerChina officials in Beijing in May and again in Dubai in July, where both parties satisfactorily resolved all outstanding commercial points, its said.
When the agreement is finalised, Kore Potash and PowerChina will determine a date for a signing ceremony with the minister of mines and his colleagues in Brazzaville, the group said.
The summit consortium has said the financing proposal for the total construction cost of Kola will be provided to the company within six weeks of the contract's finalisation. The consortium is an investment group that represents investors and engineering firms, and who intend to provide royalty and debt financing for Kola.
Shares in Kore Potash were flat at 49 rand cents on Friday morning in Johannesburg. They were also untraded at 2.15 pence that day in London.
By Artwell Dlamini, Alliance News reporter
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