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Kore Potash sees currency gains offset listing fees in 2017 results

Published: 20:47 03 Apr 2018 AEST

Pile of potash
Kore posted a pretax loss of US$4.3mln in 2017, almost unchanged from a US$4.26mln loss the previous year

Kore Potash PLC (LON:KP2) reported an almost unchanged full-year loss as fees for its secondary listings in London and Johannesburg were negated by a massive foreign exchange gain.

The exploration company - with its primary listing in Australia - posted a pretax loss of US$4.3mln in 2017, almost unchanged from a US$4.26mln loss the previous year, with no revenue being generated in either year.

READ: Kore Potash gets approval for JSE listing

Profits were lifted by a foreign exchange gain of US$2.9mln, compared to a US$213,582 gain previously, which offset US$1.6mln in listing costs and a rise in administrative expenses to US$1.8mln from US$1.2mln the year before.

Kore, which is listed in Australia, began trading in London and Johannesburg on 29 March 2018 after raising 154mln rand (or US$12.1mln) through a secondary share placing and convertible debt issue.

During the year, the AIM-listed company said it made progress on its key Kola and Dougou potassium chloride - or potash - deposits in the Congo.

At Kola, it completed a mineral resource estimate which indicated 508mln tonnes sylvinite at a grading of 35.4% potassium chloride, making it "one of the highest grading potash deposits globally." A definitive feasibility study at Kola is due to complete at the end of the second quarter of 2018 or early in the third quarter.

At Dougou, its 97%-owned subsidiary Sintoukola Potash SA was awarded a mining license covering Dougou and the Dougou Extension Prospect. Kore highlighted its exploration drilling at Kola and Dougou had been "highly successful."

Sean Bennett, chief executive of Kore Potash, said: "The Kola, Dougou, and Dougou Extension assets have extremely high potential with exceptional grades, shallow depth, and convenient proximity to the coast - we look forward to reporting on the DFS, which is on track for completion later in the summer.”

Kore Potash shares were unchanged at 10.5p in late-morning trading Tuesday.

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