Kropz secures R200m loan
Emerging African phosphate producer and developer Kropz's subsidiary Kropz Elandsfontein has secured a R200-million loan from Ubunto-Botho Investments (UBI), the indirect controlling shareholder of African Rainbow Capital (ARC). ARC, in turns, owns 90.07% of Kropz.
The loan will be used by Kropz Elandsfontein to fund its cash flow and operational expenditure needs.
Kropz reports, meanwhile, that its Elandsfontein phosphate mine, in South Africa's Western Cape province, continues to progress through its production ramp-up phase.
"As previously announced, record monthly production was achieved in March with over 40 000 t of production. However, mining operations continue to be materially affected by variability in the orebody, including the nature and volume of slimes material, hard bank and pink ore encountered within the deposit.
"These conditions have resulted in slower mining rates and lower concentrate output in the quarter ended June 30. Production was also disrupted in the quarter due to availability of the mining contractor, which interrupted ore flow to the processing plant and constrained the operational flexibility required to sustain more stable production levels," the Aim-listed company says.
It adds that geopolitical tensions have created additional commercial headwinds with higher energy and consumable costs, and an increase in freight rates.
Elandsfontein produced 95 956 t of phosphate concentrate in the quarter ended June 30 – a 17% decrease on the 115 686 t produced in the quarter ended March 31.
Sales for the June quarter totalled 183 714 t and stock at quarter-end was higher than anticipated, at about 94 000 t.
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