REG - Kore Potash PLC - Financial Results for Year Ended 31 December 2023
28/03/2024 07:15
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RNS Number : 6698I Kore Potash PLC 28 March 2024
28 March 2024
Kore Potash Plc
("Kore Potash" or the "Company")
("Group" refers to Kore Potash Plc and its subsidiaries)
Financial Results for Year Ended 31 December 2023
Kore Potash, the potash development company with 97%-ownership of the Kola and
DX Potash Projects in the Sintoukola Basin, located within the Republic of
Congo ("RoC"), today reports its audited financial results and operational
highlights for the year ended 31 December 2023 (the "Period").
The full financial report including its Corporate Governance Statement is
available below and on the Company's website at
https://korepotash.com/investors/results-and-reports/
(https://korepotash.com/investors/results-and-reports/) . The financial
statements contained within this announcement should be read in conjunction
with the notes contained within the full financial report.
http://www.rns-pdf.londonstockexchange.com/rns/6698I_1-2024-3-28.pdf (http://www.rns-pdf.londonstockexchange.com/rns/6698I_1-2024-3-28.pdf)
Highlights
· On 24 January 2023, the Company announced an update of the JORC
(2012) compliant Mineral Resource, Ore Reserve, PFS information and Production
Target at the DX Project. The updated Mineral Resource incorporates the most
recent drilling results and interpretation of the geophysical data.
· On 21 August 2023 the Minister of Mines wrote a letter to Kore Potash
that pledges the Ministry and the Republic of Congo's support for Kore's
development of its projects at Kola and Dougou. The Minister acknowledged that
some of the development objectives for the Projects, as outlined in the Mining
Convention, have not yet been met. He also assures the Ministry's steadfast
support, in the form of a moral guarantee, to assist in addressing remaining
challenges to completing the financing of Kola. The Minister reaffirmed the
validity of the Company's mining tenement titles and the Mining Convention
which is the operating agreement between the Company and the Government.
· This dialogue has included meetings between the Ministry and members
of the Summit Consortium who intend to provide royalty and debt financing to
cover the full construction cost of Kola and SEPCO who intend to construct
Kola on an Engineering, Procurement and Construction contract basis.
· Throughout 2023 representatives of Kore Potash have maintained
increased levels of dialogue with the Ministry of Mines, including with the
Minister of State and Minister of Geology and Mining Industry, Mr Pierre Oba.
This dialogue has been aimed at improving the Ministry's understanding of the
Company's projects at Kola and Dougou, the capability of the intended
financiers for Kola, the intended construction partner and the processes the
Company must work through towards securing financing for the construction of
the Kola Potash Project.
· SEPCO has had personnel living in the RoC for the past 24 months who
continue dialogue with potential in-country service providers and who have
conducted several Kola site visits collecting information for both the Study
and the Works. Additionally, SEPCO mobilised a larger team to Kola for four
months in the second half of 2023 to source additional information to enable
the Works finalisation, including the planned service corridors, conveyor
route, and geomechanical information on foundation materials in the proposed
processing plant and infrastructure areas. These findings were presented to
PowerChina in early December 2023.
· PowerChina, SEPCO and the subcontractors, in pursuit of the timeline
objectives, commenced the Works before reaching an agreement with the Company
on costs.
· PowerChina subcontracted five technical groups who commenced
additional design and engineering works. Specific design areas included the
underground mine, mineral processing jetty and transhipment operations, energy
transportation and storage, conveyor systems and material handling. PowerChina
advised the Company that the Works would cost in excess of USD10 million to
complete. Illustrating PowerChina's commitment to Kola, it capped Kore
Potash's contribution at a maximum of USD5 million, with the balance of the
costs to be paid by PowerChina.
· Two payments of USD1.0 million each were made in August and November
2023 as required under the Agreement. The remaining USD 3 million of which USD
800,000 payable up to 6 weeks from the date PowerChina and SEPCO having
presented to Kore a "complete contractual document capable of finalising the
financing arrangement of the Kola Project and capable of acceptance by Kore to
form a binding construction contract" and USD 2.2 million to be paid subject
to Kore concluding its fund raise with a target date of no later than 12
months of the signing of the Engineering, Procurement and Construction ("EPC")
contract.
· On 8 August 2023, Kore Potash entered into a revised agreement with
SEPCO to provide the Company with an EPC contract for the construction of the
Kola Project. Following the completion of SEPCO's parent company,
PowerChina's, review of the Kola design and construction schedule, one of the
agreed outcomes was that further engineering design works must be completed
before PowerChina and SEPCO jointly presenting an EPC proposal and EPC
contract to the Company.
· Summit Consortium has confirmed that the financing proposal for the
full capital cost of Kola will be provided within six weeks of finalisation of
EPC contract terms.
· PowerChina has delivered EPC proposal and draft EPC contract on 6
February 2024.
· Kore Potash and SEPCO/PowerChina will now further negotiate the EPC
proposal and draft the EPC contract, targeting signing full EPC documentation
Q2 2024.
· On 22 March 2024 the Company raised USD 530,000 via issue of five
separate Convertible Loan Notes ("CLNs"). The net proceeds from the CLNs will
be used to further advance work that is expected to lead to signing of an EPC
contract for the Kola Potash Project and provide working capital for Kore
Potash. Each Convertible Loan has a zero interest coupon and is convertible
into new ordinary shares of US$0.001 each in the Company at a price of 0.38
pence per new Ordinary Share and will be converted immediately after
publication of the 2023 Annual Report on 28 March 2024. Subject to the
conversion of the CLNs the Company will issue 109,865,053 new Ordinary Shares
in the Company.
· On 22 March 2024 the Company also announced that it is the intention
of David Hathorn, Chairman and Interim CEO, to subscribe for new ordinary
shares of the Company for a consideration of USD 150,000 as soon as
practicable following publication of the 2023 Annual Report and on the same
terms as the CLNs.
David Hathorn, Chairman & Interim CEO of Kore Potash, commented: "During
2023, the Company continued to make tangible progress towards the financing of
the Kola Project.
PowerChina delivered its Engineering, Procurement and Construction proposal
and draft EPC contract on the 6(th) of February 2024. The Company and
PowerChina are now working towards signing EPC contract in Q2 2024.
Global events continue to reinforce the importance of potash in the production
of food and the need for the development of new potash projects outside the
traditional northern hemisphere potash production regions.
Our potash projects stand out globally. With very high in situ quality,
significant resources and a beneficial location, we believe the Sintoukola
Basin is one of the most promising undeveloped potash regions in the world. It
has the potential to produce Muriate of Potash needed by farmers around the
world for generations."
Summary of financials
· During the Period, the Group's Total Comprehensive income was USD
3,955,201 (2022: Loss USD 10,174,361), and the Group experienced net cash
outflows from operating and investing activities of USD 6,983,319 (2022: USD
5,744,285). Cash and cash equivalents totalled USD 1,583,657 as at 31 December
2023 (2022: USD 5,046,629).
· Group net assets increased in the year to USD 175,089,299 (2022: USD
167,650,279). This was primarily driven by a USD 13,642,063 increase in
exploration capitalised.
· The Directors prepared a cash flow forecast for the period ending 30
June 2025, which indicates that the Group will not have sufficient liquidity
to meet its working capital requirements to the end of the going concern
period (March 2025). Please refer to Note 1 (b) to the financial statements
for more detail on the going concern statement.
· The Company will be required to raise funds in Q2 2024 for the
working capital requirements for Kore Potash for the period up to signing full
EPC documentation and the financing proposal for the complete construction of
Kola from the Summit Consortium to ensure the realisation of assets on an
orderly basis and the extinguishment of liabilities as and when they fall due.
· Upon signing the EPC documentation and financing for the construction
of Kola additional capital will be required until the commencement of
production.
· The Directors have considered various mitigating actions, which
include raising additional capital to enable the Group to continue to fund
its working capital requirements.
Kola Potash Project
· The Company signed a non-binding MoU with Summit, on behalf of a
consortium of investors and engineering firms on 6 April 2021, to arrange the
total financing required for the construction of Kola, in the presence of the
Minister of Mines of the RoC and his key staff in Brazzaville.
· The Summit Consortium includes:
o OWI Global, headquartered in Abu Dhabi, who will provide royalty financing
in conjunction with product offtake.
o SEPCO, an international engineering and construction group headquartered
in Jinan, China and with offices in Dubai which is a wholly owned subsidiary
of Power Construction Corporation of China (POWER CHINA). SEPCO will be the
EPC contractor for Kola within the Summit Consortium. SEPCO has significant
construction experience globally across a range of industries, including
power, oil and gas chemical, energy-reduction and environmental protection and
infrastructure projects. SEPCO has completed major construction projects in 25
countries, including 44 EPC contracts in 11 countries with seven of these in
Africa, in addition to its construction capability, SEPCO will also assist in
arranging the debt financing: and
o China ENFI Engineering Corporation, subcontracted by SEPCO and
headquartered in Beijing, is a significant engineering group with specific
mining, processing, and potash experience. ENFI is a mining technology leader
in China and has provided technical services for the design and construction
of more than 400 mining operations around the world. ENFI's potash specific
experience includes design and construction of an underground potash mine in
southeast Asia.
· In June 2022 the Summit Consortium completed the Optimisation Study
with the successful outcomes:
o Capital cost reduced by USD 520 million to USD 1.83 billion on an EPC
basis compared to the Definitive Feasibility Study ("DFS") capital cost of USD
2.35 billion on an equivalent EPC basis.
o Construction period reduced to 40 months from the DFS construction period
of 46 months.
o Key financial metrics improved on DFS outcomes (at potash pricing
averaging USD 360/tonne unchanged from the DFS):
§ Kola net present value NPV(10) post tax improved to USD 1.623 billion
§ IRR improved to 20% on ungeared post tax basis
o At a potash price of USD 500/t Muriate of Potash ("MoP") CFR Brazil the
Kola financial metrics improve to:
§ NPV(10) post tax USD 3.314 billion
§ IRR of 28% on ungeared post tax basis
o Designed with a nameplate production capacity of 2.2 Mtpa of MoP.
o MoP production scheduled over an initial 31-year project life.
o Designed as a conventional mechanised underground potash mine with shallow
shaft access. Ore from underground is transported to the process plant via an
overland conveyor approximately 25 km long. After processing, the MoP product
is conveyor transported 11 km to the marine export facility. MoP is conveyed
from the storage area onto barges via the dedicated barge loading jetty and
then trans-shipped into ocean going vessels for export.
· On 28 June 2022, Kore Potash signed a Heads of Agreement ("HoA") for
the construction in the presence of the Minister of State and Minister of
Mining Industry and Geology of the RoC, Mr Pierre Oba.
The HoA confirms the timeline for SEPCO to complete their discussions with
Kore Potash ahead of presenting the Company an EPC contract proposal for Kola.
It also provides additional clarity on matters that SEPCO are required to
finalise in advance of presenting Kore with the construction contract
proposal.
The HoA provided for:
o Kola to be designed and constructed as a conventional underground potash
mine and processing plant producing up to 2.2 Mtpa of granular MoP over an
initial 31-year life.
o The granular MoP produced will be at a minimum quality of 95.3% KCI in
line with international standards.
o The capital cost to construct will be USD 1.83 billion and the
construction period will be 40 months.
o During the preconstruction engineering design phase, the HoA provides
SEPCO with an opportunity to adjust the costs related to the underground mine
portion of the works. SEPCO's current capital cost is based in part upon
information collected during the DFS Study phase, some of which SEPCO
continues to review. Should the final agreed quantities of materials and
labour or the underground construction period differ materially from the
baseline, SEPCO will be able to adjust proportionately. The underground
portion of the works (excluding equipment and infrastructure) is currently
estimated as USD 164 million, which represents 9% of the total capital cost.
o SEPCO will also be able to adjust the capital cost if the Chinese RMB or
Congolese FCFA currency exchange rates to the US dollar vary materially prior
to commencement of the works. In such circumstance only the cost of affected
works or components may be adjusted.
· On 10 October 2022, Kore Potash announced that SEPCO had delivered
the EPC proposal for Kola. The EPC proposal was approved for presentation to
Kore Potash by the Boards of SEPCO, and its parent company, Power Construction
Corporation of China.
The EPC proposal reflects the capital cost and construction timeline reported
in the Optimisation Study and the terms agreed to in the HoA. The EPC proposal
includes an EPC Agreement which details the contractual terms in a format
congruent with the FIDIC Silver book (2nd Edition, 2017) conditions of
contract.
· On 24 January 2023, Kore Potash announced an update of the JORC
(2012) compliant Mineral Resource, Ore Reserve, PFS information and Production
Target at the DX Project. The updated Mineral Resource incorporates the most
recent drilling results and interpretation of the geophysical data.
· On 8 August 2023, Kore Potash entered into a revised agreement with
SEPCO to provide the Company with an EPC contract for the construction of the
Kola Project. Following the completion of SEPCO's parent company,
PowerChina's, review of the Kola design and construction schedule, one of the
agreed outcomes was that further engineering design works must be completed
before PowerChina and SEPCO jointly presenting an EPC proposal and EPC
contract to the Group.
· PowerChina subcontracted five technical groups who commenced
additional design and engineering works. Specific design areas included the
underground mine, mineral processing jetty and transhipment operations, energy
transportation and storage, conveyor systems and material handling. PowerChina
advised the Company that the Works would cost in excess of USD10 million to
complete. Illustrating PowerChina's commitment to Kola, it capped Kore
Potash's contribution at a maximum of USD5 million, with the balance of the
costs to be paid by PowerChina.
· Two payments of USD1.0 million each were made in August and November
2023 as required under the Agreement. The remaining USD 3 million of which USD
800,000 payable up to 6 weeks from the date PowerChina and SEPCO having
presented to Kore a "complete contractual document capable of finalising the
financing arrangement of the Kola Project and capable of acceptance by Kore to
form a binding construction contract" and USD 2.2 million to be paid subject
to Kore concluding its fund raise with a target date of no later than 12
months of the signing of the EPC.
· PowerChina, SEPCO and the subcontractors, in pursuit of the timeline
objectives, commenced the Works before reaching an agreement with the Company
on costs.
· SEPCO has had personnel living in the Republic of Congo for the past
24 months who continue dialogue with potential in-country service providers
and who have conducted several Kola site visits collecting information for
both the Study and the Works. Additionally, SEPCO mobilised a larger team to
Kola for four months in the second half of 2023 to source additional
information to enable the Works finalisation, including the planned service
corridors, conveyor route, and geomechanical information on foundation
materials in the proposed processing plant and infrastructure areas. These
findings were presented to PowerChina in early December 2023.
· Throughout 2023 representatives of Kore Potash have maintained
increased levels of dialogue with the Ministry of Mines, including with the
Minister of State and Minister of Geology and Mining Industry, Mr Pierre Oba.
This dialogue has been aimed at improving the Ministry's understanding of the
Company's projects at Kola and Dougou, the capability of the intended
financiers for Kola, the intended construction partner and the processes the
Company must work through towards securing financing for the construction of
the Kola Potash Project.
· This dialogue has included meetings between the Ministry and members
of the Summit Consortium who intend to provide royalty and debt financing to
cover the full construction cost of Kola and SEPCO including SEPCO Electric
Power Construction Corporation who intend to construct Kola on an Engineering,
Procurement and Construction contract basis.
· On August 21 2023 the Minister of Mines wrote a letter to Kore Potash
that pledges the Ministry and the Republic of Congo's support for Kore's
development of its projects at Kola and Dougou. The Minister acknowledged that
some of the development objectives for the Projects, as outlined in the Mining
Convention, have not yet been met. He also assures the Ministry's steadfast
support, in the form of a moral guarantee, to assist in addressing remaining
challenges to completing the financing of Kola. The Minister reaffirmed the
validity of the Company's mining tenement titles and the Mining Convention
which is the operating agreement between the Company and the Government.
· PowerChina has delivered EPC proposal and draft EPC contract on 6
February 2024.
DX DFS
· The DX Project update of the JORC (2012) compliant Mineral Resource,
Ore Reserve, PFS information and Production Target was announced on the 24
January 2023. The updated Mineral Resource incorporates the most recent
drilling results and interpretation of the geophysical data. A summary of the
results is presented below:
o Production Target of 15.5Mt sylvinite at a grade of 30.63 % KCl
demonstrates initial project life of 12 years at a production rate of 400,000
tpa MoP.
o Production Target based on Proven and Probable Ore Reserves and 13% of the
Inferred Mineral Resources that represents 30% of the life of project MoP
production.
o NPV(10) (real) of USD 275 million and 27% IRR on a real post tax basis at
life of project average granular MoP price of USD 450/t.
o Approximately 2.9 years post-tax payback period from first production.
o Proven and Probable Ore Reserve of 9.31 Mt sylvinite at an average grade
of 35.7% KCl.
o Mineral Resource of 129 Mt at an average grade of 24.9% KCl.
o Higher confidence in the distribution of Sylvinite within the Top Seams
and improved understanding of the Sylvinite/Carnallite boundary within the
Hanging Wall Seam.
The updated information confirms that the DX Project is a financially
attractive, low capital cost project with a shorter construction period than
Kola. At present, the Company remains focused on completing the financing of
Kola and moving forward to construction of Kola as soon as possible. The
Company is also exploring what strategic options are available for the DX
project, including a potential sale.
The financial statements below should be read in conjunction with the notes
contained within the full financial report which is available online at the
Company's website at https://korepotash.com/investors/results-and-reports/
(https://korepotash.com/investors/results-and-reports/)
STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
Parent Consolidated Entity
Dec 2023 Dec 2022 Dec 2023 Dec 2022
Continuing operations USD USD USD USD
Other Revenue 1,195,008 1,092,147 - -
Directors' remuneration (795,566) (814,597) (252,602) (418,962)
Equity compensation benefits - (9,412) - (9,412)
Salaries, employee benefits and consultancy expense
(783,023) (890,518) (239,615) (293,292)
Administration expenses (601,727) (542,146) (644,850) (546,507)
Interest income 54,107 66,956 54,107 66,956
Interest and finance expenses (2,991) (3,935) (2,991) (3,935)
Net realised and unrealised
foreign exchange losses
(5,104) (308,801) (5,104) (308,801)
Loss before income tax expense (939,296) (1,410,306) (1,091,055) (1,513,953)
Income tax - - - -
Loss for the year (939,296) (1,410,306) (1,091,055) (1,513,953)
Other comprehensive income/(loss)
Items that may be classified subsequent to profit or loss
Exchange differences on translating foreign operations
- - 5,046,256 (8,660,408)
Other comprehensive income/(loss) for the year
- - 5,046,256 (8,660,408)
TOTAL COMPREHENSIVE INCOME / (LOSS) FOR THE YEAR
(939,296) (1,410,306) 3,955,201 (10,174,361)
Loss attributable to:
Owners of the Company (939,296) (1,410,306) (1,089,761) (1,513,822)
Non-controlling interest - - (1,294) (131)
(939,296) (1,410,306) (1,091,055) (1,513,953)
Total comprehensive income / (loss) attributable to:
Owners of the Company (939,296) (1,410,306) 3,956,495 (10,174,230)
Non-controlling interest - - (1,294) (131)
(939,296) (1,410,306) 3,955,201 (10,174,361)
Basic and diluted loss per share (cents per share)
(0.03) (0.04) (0.03) (0.04)
STATEMENTS OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023
Parent Consolidated Entity
Dec 2023 Dec 2022 Dec 2023 Dec 2022
USD USD USD USD
CURRENT ASSETS
Cash and cash equivalents 1,561,869 4,999,889 1,583,657 5,046,629
Trade and other receivables 74,189 112,272 180,532 200,251
TOTAL CURRENT ASSETS 1,636,058 5,112,161 1,764,189 5,246,880
NON CURRENT ASSETS
Trade and other receivables 167,313,290 158,444,734 38,147 38,597
Property, plant and equipment - - 356,259 385,103
Exploration and evaluation expenditure - - 176,371,257 162,729,194
Investment in subsidiary 69 68 - -
TOTAL NON CURRENT ASSETS 167,313,359 158,444,802 176,765,663 163,152,894
TOTAL ASSETS 168,949,417 163,556,963 178,529,852 168,399,774
CURRENT LIABILITIES
Trade and other payables 1,044,913 396,982 1,240,527 749,469
Derivative financial liability 26 26 26 26
TOTAL CURRENT LIABILITIES 1,044,939 397,008 1,240,553 749,495
NON CURRENT LIABILITIES
Design optimisation works 2,200,000 - 2,200,000 -
TOTAL LIABILITIES 3,244,939 397,008 3,444,553 749,495
NET ASSETS 165,704,478 163,159,955 175,089,299 167,650,279
EQUITY
Contributed equity - Ordinary Shares 4,119,667 3,420,177 4,119,667 3,420,177
Reserves 175,594,933 172,999,244 229,228,412 221,586,467
Accumulated losses (14,010,122) (13,259,466) (57,694,772) (56,793,651)
EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY
165,704,478 163,159,955 175,653,307 168,212,993
Non-controlling interests - - (564,008) (562,714)
TOTAL EQUITY 165,704,478 163,159,955 175,089,299 167,650,279
STATEMENTS OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
Consolidated Entity Ordinary Shares Share-Based Payments Reserve Share Premium Reserve Foreign Currency Translation Reserve Merger Reserve Accumulated Losses Equity Attributable to the Shareholders of Kore Potash plc Non-Controlling Interest Total
Equity
USD USD USD USD USD USD USD USD USD
Balance at 3,375,494 708,486 44,205,971 (18,623,503) 203,738,800 (55,422,779) 177,982,469 (562,583) 177,419,886
1 January 2022
Loss for the period - - - - - (1,513,822) (1,513,822) (131) (1,513,953)
Other comprehensive loss for the year - - - (8,660,408) - - (8,660,408) - (8,660,408)
Total comprehensive loss for the year - - - (8,660,408) - (1,513,822) (10,174,230) (131) (10,174,361)
Transactions with shareholders
Kore Potash Ltd SA Dis-investment - - - (139,989) - 138,501 (1,488) (1,488)
Cancellation of options - - - - - - - -
Conversion of performance rights - (4,449) - - - 4,449 - -
Cancellation of performance rights - - - - - - - - -
Share issues 44,683 - 331,338 - - - 376,021 - 376,021
Share issue costs - 11,895 - - - - 11,895 - 11,895
Share based payments - 18,327 - - - - 18,327 - 18,327
Balance at 31 December 2022 3,420,177 734,259 44,537,309 (27,423,901) 203,738,800 (56,793,651) 168,212,993 (562,714) 167,650,279
Loss for the period - - - - - (1,089,761) (1,089,761) (1,294) (1,091,055)
Other comprehensive income for the year - - - 5,046,256 - - 5,046,256 - 5,046,256
Total comprehensive (loss)/income for the year - - - 5,046,256 - (1,089,761) 3,956,495 (1,294) 3,955,201
Transactions with shareholders
Conversion of performance rights - (188,640) - - - 188,640 - - -
Share issues 699,490 - 2,764,260 - - - 3,463,750 - 3,463,750
Share based payments - 20,069 - - - - 20,069 - 20,069
Balance at 31 December 2023 4,119,667 565,688 47,301,569 (22,377,645) 203,738,800 (57,694,772) 175,653,307 (564,008) 175,089,299
STATEMENTS OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
Parent Ordinary Shares Share Based Payments Reserve Share Premium Reserve Merger Reserve Reorganisation Accumulated Losses Total
Reserve Equity
USD USD USD USD USD USD USD
Balance at 01 January 2022 3,375,494 708,486 44,205,971 203,738,800 (76,011,124) (11,853,609) 164,164,018
Loss for the year - - - - - (1,410,306) (1,410,306)
Total comprehensive loss for the year - - - - - (1,410,306) (1,410,306)
Transactions with shareholders
Conversion of performance rights - (4,449) - - - 4,449 -
Share issue 44,683 - 331,338 - - - 376,021
Share issue costs - 11,895 - - - - 11,895
Share based payments - 18,327 - - - - 18,327
Balance at 31 December 2022 3,420,177 734,259 44,537,309 203,738,800 (76,011,124) (13,259,466) 163,159,955
Loss for the year - - - - - (939,296) (939,296)
Total comprehensive (loss)/income for the year - - - - - (939,296) (939,296)
Transactions with shareholders
Conversion of performance rights - (188,640) - - - 188,640 -
Share issue 699,490 - 2,764,260 - - - 3,463,750
Share based payments - 20,069 - - - - 20,069
Balance at 31 December 2023 4,119,667 565,688 47,301,569 203,738,800 (76,011,124) (14,010,122) 165,704,478
STATEMENTS OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
Parent Consolidated Entity
Dec 2023 Dec 2022 Dec 2023 Dec 2022
USD USD USD USD
CASH FLOWS FROM OPERATING ACTIVITIES
Payments to suppliers (120,023) (593,005) (907,915) (1,151,137)
Payments to employees (984,931) (538,184) (348,798) (85,108)
Net cash (used in) operating activities (1,104,954) (1,131,189) (1,256,713) (1,236,245)
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for plant and equipment - - (1,527) (633)
Payments for exploration activities - - (5,779,186) (4,574,363)
Amounts advanced to related parties (5,889,106) (4,532,663) - -
Interest received 54,107 66,956 54,107 66,956
Net cash (used in) investing activities (5,834,999) (4,465,707) (5,726,606) (4,508,040)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of shares 3,504,618 550 3,504,618 550
Payment for share issue costs - - - -
Net cash provided by financing activities 3,504,618 550 3,504,618 550
Net (decrease)/increase in cash & cash equivalents held (3,435,335) (5,596,346) (3,478,701) (5,743,735)
Cash and cash equivalents at beginning of financial year
4,999,889 10,916,397 5,046,629 11,092,509
Foreign currency differences (2,683) (320,162) 15,729 (302,145)
Cash and cash equivalents at end of financial year
1,561,869 4,999,889 1,583,657 5,046,629
Market Abuse Regulation
This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the Company's obligations under Article 17 of
MAR.
This announcement has been approved for release by the Board of Kore Potash.
END
For further information, please visit www.korepotash.com
(http://www.korepotash.com) or contact:
Kore Potash Tel: +44 (0) 20 3963 1776
David Hathorn - Chairman & Interim CEO
Andrey Maruta - CFO
Tavistock Communications Tel: +44 (0) 20 7920 3150
Nick Elwes
Adam Baynes
SP Angel Corporate Finance - Nomad and Broker Tel: +44 (0) 20 7470 0470
Ewan Leggat
Charlie Bouverat
Shore Capital - Joint Broker Tel: +44 (0) 20 7408 4050
Toby Gibbs
James Thomas
Questco Corporate Advisory - JSE Sponsor Tel: +27 (11) 011 9205
Doné Hattingh
Forward-Looking Statements
This release contains certain statements that are "forward-looking" with
respect to the financial condition, results of operations, projects and
business of the Company and certain plans and objectives of the management of
the Company. Forward-looking statements include those containing words such
as: "anticipate", "believe", "expect," "forecast", "potential", "intends,"
"estimate," "will", "plan", "could", "may", "project", "target", "likely" and
similar expressions identify forward-looking statements. By their very nature
forward-looking statements are subject to known and unknown risks and
uncertainties and other factors which are subject to change without notice and
may involve significant elements of subjective judgement and assumptions as to
future events which may or may not be correct, which may cause the Company's
actual results, performance or achievements, to differ materially from those
expressed or implied in any of our forward-looking statements, which are not
guarantees of future performance.
Neither the Company, nor any other person, gives any representation, warranty,
assurance or guarantee that the occurrence of the events expressed or implied
in any forward-looking statement will occur. Except as required by law, and
only to the extent so required, none of the Company, its subsidiaries or its
or their directors, officers, employees, advisors or agents or any other
person shall in any way be liable to any person or body for any loss, claim,
demand, damages, costs or expenses of whatever nature arising in any way out
of, or in connection with, the information contained in this document.
In particular, statements in this release regarding the Company's business or
proposed business, which are not historical facts, are "forward-looking"
statements that involve risks and uncertainties, such as Mineral Resource
estimates market prices of potash, capital and operating costs, changes in
project parameters as plans continue to be evaluated, continued availability
of capital and financing and general economic, market or business conditions,
and statements that describe the Company's future plans, objectives or goals,
including words to the effect that the Company or management expects a stated
condition or result to occur. Since forward-looking statements address future
events and conditions, by their very nature, they involve inherent risks and
uncertainties. Actual results in each case could differ materially from those
currently anticipated in such statements. Shareholders are cautioned not to
place undue reliance on forward-looking statements, which speak only as of the
date they are made. The forward-looking statements are based on information
available to the Company as at the date of this release. Except as required by
law or regulation (including the ASX Listing Rules), the Company is under no
obligation to provide any additional or updated information whether as a
result of new information, future events, or results or otherwise.
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