Trading Update & Notice of Annual General Meeting

RNS Number : 1570B

Kropz PLC

05 June 2019

 

5 June 2019

Kropz Plc
("Kropz" or the "Company")

Trading Update
and
Notice of Annual General Meeting

Kropz plc (AIM: KRPZ), an emerging African phosphate producer, provides the following update:

·    As part of the Company's preparation work for recommissioning its Elandsfontein mine in South Africa (74% owned by Kropz Elandsfontein (Pty) Ltd, a wholly owned subsidiary of Kropz plc), and in-line with SRK Consulting's recommendations in the Company's AIM admission competent persons report prepared as part of the Company's admission to trading on AIM, the Company mandated Mintek, South Africa, and Eriez, USA, to undertake confirmatory pilot scale and other processing test work ("Pilot Test Work") to confirm the final processing design and as identified at the time of the Company's admission to trading on AIM. DRA Mineral Projects ("DRA") was appointed to complete the front end engineering design.

·    At the time of the Company's AIM admission, the level of engineering design was at a scoping study level. While additional test work is still required, which is expected continue into Q3 2019, significant work has been done by the Elandsfontein operating team to advance the front end engineering and design with current indications being that:

o  commissioning of the Elandsfontein plant is expected to be delayed until Q4 2020, and

o  an additional expected cost of approximately US$20m which includes working capital, debt repayments and capital expenditure will be required to bring Elandsfontein into production.  The Company is working to refine these costs and will update the market in due course.

Chief Executive Officer, Ian Harebottle, commented:

"While the additional cash requirements and the delay to first production at Elandsfontein is disappointing, due to the additional test work still required to optimise the process flow sheet, the Company is constantly improving its understanding of the orebody and the processing methodology required to support the successful and robust operation once in production. Various options are being investigated to support the Company's additional cash requirements for Elandsfontein, and to further advance its Hinda and Aflao projects."

The Company also announces that its Annual General Meeting ("AGM") will be held at the offices of Memery Crystal LLP at 165 Fleet Street, London EC4A 2DY on 28 June 2019 at 11:00 a.m.  The Notice of AGM, which is being posted to shareholders today, can also be found on the Company's website.

The Company's Annual Report for the year ended 31 December 2018 will be published and posted to shareholders ahead of the AGM.

The AGM will deal with the business set out in the Notice of AGM and Kropz will send out a notice of a further general meeting of shareholders to consider the Annual Report when published.

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
Ian Harebottle (CEO)	[phone]
Nominated Adviser
Grant Thornton UK LLP
Richard Tonthat Samantha Harrison Ben Roberts	[phone]
Joint Broker
Hannam & Partners
Andrew Chubb Ernest Bell	[phone]
Joint Broker
Mirabaud Securities Ltd
Rory Scott Edward Haig-Thomas	[phone]
Financial Public Relations & Investor Relations (UK)
Tavistock
Emily Fenton Jos Simson Oliver Lamb	[phone] [e-mail]
Public Relations (South Africa)
Russell & Associates
Charmane Russell James Duncan	[phone] [e-mail]

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.

 

END

 

 

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