Kore Potash has reported its unaudited financial results and operational highlights for the half year ended 30 June 2022.
The full financial report is available online at the company's website. The financial statements contained within this announcement should be read in conjunction with the notes contained within the full financial report.
Highlights
The process to potentially finance the construction of Kola progressed in line with the Memorandum of Understanding signed with the Summit Consortium in April 2021.
Receipt of the Optimisation Study on the Kola Project was announced to shareholders on 01 April 2022.
Kore Potash completed its detailed review of the optimisation study and announced the outcomes of the study to shareholders on 27 June 2022.
On 28 June 2022 the company announced it had signed a Heads of Agreement for the construction of Kola.
Cash and cash equivalents, at 30 June 2022 was US$7 628 417.
The exploration and evaluation asset at 30 June 2022 was US$157 518 638, a decrease of US$9 095 267 from US$166 613 902 at 31 December 2021. During the period the company capitalised US$2 921 600 in exploration and evaluation expenditure and the expenditure decreased by US$12 016 864 as a result of the strengthening of the US dollar against the currency of the RoC.
Despite the on-going Russian/Ukraine conflict, the Covid-19 pandemic and increasing fuel prices, the Group's operations have not been materially impacted by these during the period.
Brad Sampson, Chief Executive of Kore Potash, commented:
"We have made good progress during the first half of 2022, having taken receipt of the Kola Optimisation Study and shared the outcomes with the market, including the US$520 million reduction in the capital cost of Kola and a reduction in the expected construction timeline to 40 months. We are also proud to have signed a Heads of Agreement for Kola’s construction, advancing the Kola project at pace despite the difficult circumstances facing the global economy.”
“Recent geopolitical and extreme weather events, which have led to food security concerns and a dramatic increase in the potash price, only reinforce the need for the development of new low-cost potash production from high quality potash deposits located close to customers, such as our projects in the Sintoukola basin. The progress towards financing our Kola Project is exciting and we look forward to receiving the financing proposal.”