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Extracts from financial results for the year ended 31 December 2024
Kore Potash plc
(Incorporated in England and Wales)
Registration number 10933682
ASX share code: KP2
AIM share code: KP2
JSE share code: KP2
ISIN: GB00BYP2QJ94
CDI ISIN: AU000000KP25
("Kore Potash" or the "Company")
("Group" refers to Kore Potash Plc and its subsidiaries)
Extracts from financial results for the year ended 31 December 2024
Kore Potash, the potash exploration and development company whose flagship asset is the 97%-
owned Sintoukola Potash Project ("Kola" or the "Kola Project"), located within the Republic of Congo
("RoC"), is pleased to announce its audited financial results and operational highlights for the year
ended 31 December 2024 (the "Period").
The full financial report including its Corporate Governance Statement is available online at the
Company's website at 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.
Summary of key developments
• PowerChina delivered the EPC proposal and draft EPC contract to the Company on 6 February
2024.
• The EPC contract for the Kola Project with PowerChina was signed in Brazzaville in the presence
of the RoC Minister of Mines and Geology on 19 November 2024.
• The EPC is a fixed price contract worth USD1.929 billion. This fixed price is of significant benefit to
the Company as it minimises the risk of cost overruns for the Company. The EPC also includes
provisions for penalties in the event of delayed completion and non-compliance to performance
metrics. The EPC remains subject to Financial Close.
• Optimised DFS was announced on 27 February 2025. Unlike the DFS and the Optimisation Study,
the Optimised DFS is based on a production period which utilizes all Proved and Probable Ore
Reserves and only 6% of Inferred Minerals Resources, giving a LoM of 23 years. The prior DFS and
Optimisation Study disclosures included an additional 20% of Inferred Mineral Resources after the
Ore Reserves were depleted. Kore Potash considers there is strong potential for the mine plan on
which this Optimised DFS is based to be extended beyond 23 years by upgrading a portion of the
340Mt of Inferred Mineral Resources to Measured or Indicated Resources through further
exploration during the 23 years of operations.
David Hathorn, Chairman of Kore Potash, commented:
"This past year has been one of marked progress for the Company, with the achievement of several
important milestones being reached in our flagship Kola Project.
At the beginning of the year the Company received the Engineering, Procurement and Construction
(EPC) proposal and draft contract from PowerChina, a highly respected international engineering
group with extensive experience in large-scale projects, culminating in the finalisation of the EPC
contract in November 2024. This is a very significant inflection point for us. The contract, signed in
the presence of representatives of the Republic of Congo's Ministry of Mines and Geology, is a fixed-
price construction agreement which will significantly mitigate the Project's risk. Large projects like
Kola often face challenges in terms of cost and time overruns, however the structure of our EPC
contract allows us to accelerate financing and positions us well for a practical and efficient
construction process.
During the year we were also delighted to welcome André Baya as Chief Executive Officer. André
brings a wealth of experience from both the mining and global agricultural sectors, alongside a deep
understanding of francophone Africa. His leadership has already made a tangible impact in his short
time with us, and we are confident that under his guidance, the Company will continue to progress
towards delivering the Kola Project as well as our goal of becoming a leading global potash
producer.
The Kola Project is of global significance, as shown by our recent optimised DFS, and we believe that
the year ahead will be an exciting and transformative one for the Company as we deliver financial
close and start construction on the project.
I would also like to take this opportunity to thank all of our shareholders for their continued
support, as well as the Government of the Republic of Congo and local communities where we
operate, for their continued trust and support as we progress Kola into the next stages of its
development."
Summary of financials
• During the Period, the Group's Total Comprehensive loss was USD10,754,786 (2023: income was
USD3,955,201), and the Group experienced net cash outflows from operating and investing
activities of USD3,000,825 (2023: USD6,983,319). Cash and cash equivalents totalled
USD1,339,321 as at 31 December 2024 (2023: USD1,583,657).
• Group net assets decreased in the year to USD167,304,043 (2023: USD175,089,299). This was
primarily driven by a USD7,023,387 decrease in exploration capitalised which is denominated in
the local functional currency, XAF, and XAF exchange rate have weakened against the USD. During
the year 2024 the Group incurred foreign exchange loss of USD9,543,967 (2023: foreign exchange
gain of USD4,799,685).
• As at 31 December 2024 the Directors' fees accrued were USD365,400 (2023: USD121,800).
• The Directors prepared a cash flow forecast for the period ending 31 March 2026, 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 2026). Please refer to Note 1 to the financial statements
for more detail on the going concern statement.
• The Company will be required to raise funds in Q4 2025 for the working capital requirements for
Kore Potash for the period up to Financial Close to ensure the realisation of assets on an orderly
basis and the extinguishment of liabilities as and when they fall due.
• Upon receiving the financing proposal for the complete construction of Kola from the Summit
Consortium 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.
Salient consolidated financials required to be disclosed under the JSE Listings Requirements
31 December 2024 31 December 2023 Change
USD USD USD
Interest Income 32,468 54,107 (21,639)
Loss for the year (1,146,535) (1,091,055) (55,480)
Headline loss per share (0.03) (0.03) 0
Basic loss per share (0.03) (0.03) 0
Diluted loss per share (0.03) (0.03) 0
Short-form announcement
This short-form announcement is the responsibility of the board of directors of Kore Potash and is a
summarised version of the Group's full announcement and financial results and as such, it does not
contain full or complete details pertaining to the Group's results for the financial year ended
31 December 2024. Any investment decision should be made after taking into consideration the full
annual results for the financial year ended 31 December 2024. The full announcement and the annual
results for the financial year ended 31 December 2024 is available on the JSE's website at
https://senspdf.jse.co.za/documents/2025/jse/isse/kp2e/FY2024.pdf and on the Group's website at
https://korepotash.com/investors/results-and-reports/
The full announcement and annual report for the financial year ended 31 December 2024 can be
requested via direct message under the contact section on the company website at
https://korepotash.com/contact/offices/
END
31 March 2025
For further information, please visit www.korepotash.com or contact:
Kore Potash Tel: +44 (0) 20 3963 1776
Andre Baya – CEO
Andrey Maruta - CFO
SP Angel – Nomad, Joint Broker and Joint Bookrunner Tel: +44 (0) 20 7470 0470
Ewan Leggat
Charlie Bouverat
Shore Capital – Joint Broker and Joint Bookrunner Tel: +44 (0) 20 7408 4050
Toby Gibbs
James Thomas
Tavistock Communications Tel: +44 (0) 20 7920 3150
Emily Moss
Nick Elwes
Questco Corporate Advisory – JSE Sponsor Tel: +27 (63) 482 3802
Done Hattingh
Date: 31-03-2025 08:00:00
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