REG - Kropz PLC - Trading Update and Notification of Legal Claim

KropzAnnouncement

26/02/2025 07:00

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RNS Number : 4260Y  Kropz PLC  26 February 2025

26 February 2025

 

Kropz Plc

 

("Kropz" or the "Company")

 

Trading Update and Notification of Legal Claim

 

Kropz Plc (AIM: KRPZ), an emerging African phosphate producer, announces its
trading update for the period to 31 January 2025 and that it has received
notification of a claim to which Kropz and its subsidiary company, Cominco
Resources Limited ("Cominco"), are defendants (the "Claim").

 

Trading Update

 

Elandsfontein

 

Elandsfontein started 2025 off positively with a record production month of
33,000 tonnes for January, achieving production of 107,772 tonnes of phosphate
concentrate and sales of 131,282 tonnes of phosphate concentrate over the four
months ending 31 January 2025. This brings production to 265,623 and sales to
260,843 tonnes for the ten months to 31 January 2025.

 

In January 2025, the first shipment was made to the European market, further
diversifying the customer base. Management expects there to be a further
increase in demand for Elandsfontein's Rock Phosphate produced towards the end
of 2025.

 

The Elandsfontein mine is still in its trial production phase and further
challenges can be expected as it progresses towards full production.

 

The centrifuge unit that suffered an early setback due to machinery failure in
2024, has been successfully recommissioned under warranty in 2025. The project
continues to yield positive results post recommissioning as it enables better
management of the high levels of slimes material in the ore deposit while
maintaining the specified design moisture content.

 

This has resulted in significant relief at the tailings section improving the
dry stackable material, which in turn provides the plant with the opportunity
to increase throughput.

 

Kropz Elandsfontein continues to apply stockpiling and blending techniques of
the various ore types encountered at Elandsfontein. The Company has embarked
on an extensive geo metallurgical program of analysing and testing the various
ore types being stockpiled to identify and refine the appropriate method of
mining and processing to improve efficiencies.

 

The "Pink Ore" found within the ore deposit, is a major ongoing focus. The
"Pink Ore" Wash plant project was launched and was successfully commissioned
addressing the challenges that "Pink Ore" present to the processing of the
ore. The commissioning of the wash plant has had positive results and improved
production yield.

 

The Company is excited about a prospect found in the ore body, being
"Nanophos", a sub 38-micron product that has emerged as a potent yet
underutilised resource. Nanophos is considered a valuable Phosphate nutrient
for which there is a potential market interest. Various projects are being
instigated to explore the full potential of this opportunity.

 

The Company is glad to report and celebrate more than two years without a loss
of time injury. The Company adheres to strict health and safety standards and
international best practices.

 

Elandsfontein is in the process of updating the JORC (2012) compliant Mineral
Resource Estimate ("MRE) which is expected to be finalised in Q4 2025. The
early indication is that there will be a continued improved conversion of
Mineral Resources to Reserves.

 

Hinda Project

 

The reduced sized project continues to be assessed to propose a
fit-for-purpose low capex project to prove the concept of producing phosphate
concentrate in the Congo and exporting it. The update of the project
feasibility is ongoing. Cominco has engaged with two engineering firms and
local contractors.  Engagement is ongoing with local government regarding
project development and progress.

 

ESG

 

The Company continues to invest in and prioritise ongoing community projects,
with great success and positive upliftment in the local community, these
include, through various partnering initiatives, providing free educational
courses through the Hopefield Thusong community centres E-learning centre.

 

Notification of Claim

 

Teh Hong Eng Investments Holding Limited ("THE") and Meridian Investment Group
PTE. Limited ("Meridian") have served Particulars of Claim in litigation in
the English High Court to which Kropz and its subsidiary company, Cominco, are
defendants. The litigation relates to an alleged breach of THE's right of
first refusal to acquire Cominco shares at the time of Kropz's offer to
Cominco's shareholders in November 2018 which resulted in the acquisition by
Kropz of the entire issued and to be issued share capital of Cominco,
including the acceptance of the offer by THE and Meridian as shareholders of
Cominco.

 

Kropz and Cominco have notified the court that they intend to fully defend the
litigation, which was commenced by THE and Meridian only shortly before the
expiry of the statutory limitation period for the claims.

 

Further announcements will be made if necessary in due course.

 

 

For further information visit www.kropz.com (about:blank)  or contact:

                                     Via Tavistock

 Kropz Plc
 Louis Loubser (CEO)                 +44 (0) 207 920 3150

 Grant Thornton UK LLP               Nominated Adviser
 Samantha Harrison                   +44 (0) 20 7383 5100

 Harrison Clarke

 Ciara Donnelly

 Hannam & Partners                   Broker
 Andrew Chubb                        +44 (0) 20 7907 8500

 Ernest Bell

 Tavistock                           Financial PR & IR (UK)
 Nick Elwes                          +44 (0) 207 920 3150

 Jos Simson                          kropz@tavistock.co.uk

 R&A Strategic Communications        PR (South Africa)
 Charmane Russell                    +27 (0) 11 880 3924

 Marion Brower                       charmane@rasc.co.za 

                                     marion@rasc.co.za

 

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