Kropz PLC Elandsfontein Update (0472M)
12 September 2019 - 4:01PM
UK Regulatory
TIDMKRPZ
RNS Number : 0472M
Kropz PLC
12 September 2019
12 September 2019
Kropz Plc
("Kropz" or the "Company")
Elandsfontein Update
Kropz plc (AIM: KRPZ), an emerging African phosphate producer,
provides the following update:
-- At the time of the Company's AIM admission, the level of engineering design applicable to the Elandsfontein mine in South Africa ("Elandsfontein") (74% owned by Kropz SA (Pty) Ltd, a wholly owned subsidiary of Kropz plc) was at a scoping level, with significant work having since been carried out by the Elandsfontein operating team to advance the level of engineering and design.
-- On 5 June 2019 the Company notified the market that as part
of the preparation work for the commissioning of Elandsfontein it
had mandated Mintek, South Africa, and Eriez, USA, to undertake
confirmatory pilot scale and other processing test work ("Test
Work") to confirm the final processing design and that DRA Mineral
Projects ("DRA") was appointed to complete the engineering
design.
-- Indications at the time of this previous announcement were
that the commissioning of the Elandsfontein plant was expected to
be delayed at an anticipated additional cost of approximately
US$20m (inclusive of working capital costs, debt repayments and
capital expenditure).
-- The Test Work has since confirmed the Elandsfontein ore body
to be complex with regards to particle size distribution and grade
variability. The provisional conclusion from the Test Work is that
a reverse flotation modification to the current circuit will
produce saleable product, but at lower grade than originally
targeted by the Company. Therefore, and as a direct consequence of
the prevailing depressed phosphate rock prices, an alternate
process modification is being considered to deliver the required
process efficiencies at viable economic returns.
-- The Company has determined that it will take additional time,
to at least the end of the current calendar year, to conduct
further Test Work, engineering design and associated financial
modelling to define the alternative process. This will result in a
consequential delay to the time required in order to bring
Elandsfontein into production.
-- While it is still too early to determine the exact impact on
costs and commissioning dates, in order to account for the delays
and the fact that further test work is still required, and given
the lower phosphate rock prices currently being forecast, the
Company believes that it would be prudent to recognise an
impairment in the value of the assets in Elandsfontein. An
impairment of approximately US$49 million is expected to be
accounted for in the interim results for the period 01 January 2019
to 30 June 2019. These accounts will be issued before the end of
September 2019.
-- The appeal against Elandsfontein's existing and valid
integrated water use licence was set to be heard by the Water
Tribunal on 11 September 2019, however the appellant has
subsequently requested that this be postponed.
-- Meanwhile, work is continuing on preliminary plans for the
development of the Hinda phosphate deposit in the Republic of
Congo. Further updates will be provided in due course.
This announcement contains inside information for the purposes
of Article 7 of Regulation 596/2014.
For further information visit www.kropz.com or contact:
Kropz Plc
Grant Thornton UK LLP Nominated Adviser
Richard Tonthat
Samantha Harrison
Ben Roberts +44 (0) 20 7383 5100
Hannam & Partners Joint Broker
Andrew Chubb
Ernest Bell +44 (0)20 7907 8500
Mirabaud Securities Ltd Joint Broker
Rory Scott +44 (0)20 3167 7220
Edward Haig-Thomas +44 (0)20 3167 7222
Tavistock Financial PR & IR (UK)
Emily Fenton +44 (0) 207 920 3150
Jos Simson kropz@tavistock.co.uk
Oliver Lamb
Russell & Associates PR (South Africa)
Charmane Russell +27 (0)11 880 3924
James Duncan charmane@rair.co.za
About Kropz Plc
Kropz is an emerging plant nutrient producer with an advanced
stage phosphate mining project in South Africa, a phosphate project
in the Republic of Congo ("RoC") and an exploration asset in Ghana.
The vision of the Group is to become a leading independent
phosphate rock producer and to develop into an integrated,
mine-to-market plant nutrient company focusing on sub-Saharan
Africa.
Kropz's Elandsfontein Phosphate Project is a near-term producing
asset in South Africa's Western Cape Province, close to export
infrastructure and primed to take advantage of a recovery in
phosphate prices.
The Company's medium-term development asset is the Hinda
Phosphate Project in the RoC.
The Company has also secured a prospecting right in Ghana, to
undertake further exploration work on the Aflao Project, the
potential extension of the well-known, high grade and historically
exploited Hahotoe-Kpogame-Kpeme deposit in Togo.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
UPDEAFNFFADNEAF
(END) Dow Jones Newswires
September 12, 2019 02:01 ET (06:01 GMT)
Kropz (LSE:KRPZ)
Historical Stock Chart
From Apr 2024 to May 2024
Kropz (LSE:KRPZ)
Historical Stock Chart
From May 2023 to May 2024