JOHANNESBURG (miningweekly.com) - Aim-listed African investment company African Potash has incurred a pre-tax profit attributable to equity holders of $1.2-million for the six months ended December 31, compared with a loss of about R1-million in the equivalent 2011 period.
This followed the completion of the company’s acquisition of Patagonia Capital for $15-million in January this year, which resulted in African Potash reversing the provision for impairment on loans made to Patagonia.
Patagonia held a 70% stake in La Societe des Potasses et des Mines, which owned the exploration rights for potash salts over the Lake Dinga project in the Republic of Congo.
African Potash also reported an improvement in earnings a share for the period under review to 0.6c apiece, up from a loss of 0.2c a share in the previous corresponding period.
“The board's primary objective of acquiring either potash assets or acquiring or investing in businesses with potash assets or projects in sub-Saharan Africa was achieved post period end, following the acquisition of an indirect 70% interest in the Lake Dinga project in the Republic of Congo, which is highly prospective for potash,” CEO Ed Marlow said in a statement.
His outlook for commercial potash exploration in the Republic of Congo remained highly optimistic, with a rising population and growing affluence in developing countries leading to ever-increasing demand for agricultural produce.
Marlow put forward that, with potash a key constituent in fertiliser, the pressing need to develop quality potash assets was expected to continue for several years, which created a significant opportunity for investment companies to identify and develop projects.
“We aim to capitalise on this strong potash outlook by proving up the resource potential of our newly acquired project. With an experienced board and management team, I am confident we will be able to rapidly advance the project up the value development curve. Further, we will continue to look for additional potash assets that satisfy our stringent investment criteria,” he assured.