Business
Trading Update & Notice of Annual General Meeting
Trading Update & Notice of Annual General Meeting.
About this update from Kropz Plc
[{"type":"text","content":"\n \nRNS Number : 1570B Kropz PLC 05 June 2019 \n\n5 June 2019\nKropz Plc\n(\"Kropz\" or the \"Company\")\nTrading Update\nand\nNotice of Annual General Meeting\n \nKropz plc (AIM: KRPZ), an emerging African phosphate producer, provides the following update:\n· 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.\n· 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:\no commissioning of the Elandsfontein plant is expected to be delayed until Q4 2020, and\no 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.\n \nChief Executive Officer, Ian Harebottle, commented:\n\"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.\"\n \nThe Company also...