Kropz's Elandsfontein mine
Aim-listed phosphate miner Kropz’s shares have resumed trading on the London Stock Exchange following a temporary suspension since July 3.
The company’s shares were suspended owing to its results for the 2022 financial year ended December 31 not having been published on June 30, as required by Aim’s rules.
The full-year results, published on July 31, state that the Elandsfontein project, based in the Western Cape province of South Africa, continues to experience delays in commissioning ramp-up of operations at the mine, which may lead to more funding shortfalls.
In the reporting year, Kropz had to re-engineer parts of the fine flotation circuit, as proposed by the vendor, as well as implement design changes to the processing plant following the presence of banks of hard material in the orebody that were previously unknown.
Kropz also had to undertake additional operator training and bring new equipment on site to facilitate mechanical breaking, which it confirms has been effective, but alternative methods are nonetheless being considered.
The company has undertaken an infill drilling programme to determine and quantify the extent of the hard material on the future mine plan.
Meanwhile, Kropz is still mulling potential funding solutions for the development of the Hinda project, in Congo-Brazzaville, according to an updated feasibility study and financial model published in December 2021.
On the financial front, Kropz is busy refinancing a facility it has in place with multinational bank BNP Paribas, with the outstanding amount being $18.7-million, before its due date later in the third quarter.
Kropz has also been drawing down in its facilities with African Rainbow Capital (ARC), which has long been a major shareholder of Kropz.
The Elandsfontein project is currently 70% held by Kropz, 25% by ARC and 5% by an empowerment partnership.
The project was first scheduled to start producing phosphate in 2018, however, its first production of phosphate rock concentrate only occurred in March 2022. The mine has faced various development delays and challenges, including water use licence issues and technical issues requiring changes to the processing plans.
The first bulk sale of product produced at the mine, of 30 000 t, was sold in January this year, which was followed by the sale of a further 20 000 t of phosphate concentrate in March.