South Africa’s Kropz plc (AIM:KRPZ) says its subsidiary Kropz Elandsfontein has agreed a ZAR250mn ($14.67mn) loan facility with the ARC Fund, providing additional working capital as the Elandsfontein phosphate operation continues its production ramp-up.
The company said output at the Elandsfontein mine, located on South Africa’s west coast, improved between the second and third quarters, but it noted that the operation has not yet reached break-even and still requires cash support. Elandsfontein remains in a commissioning and optimisation phase, with work focused on stabilising recoveries and throughput.
Kropz stated that the ARC Fund, its major shareholder, will provide the financing to cover operational expenditure and working-capital requirements during the ramp-up period. The facility continues a series of funding measures previously extended to support plant modifications and performance improvements.
The company describes Elandsfontein as an important domestic phosphate source, supplying material used in fertiliser and industrial applications. Kropz said it will continue focusing on technical optimisation and process improvements as the mine progresses toward more stable commercial output.
South Africa’s phosphate market is relatively small in global terms and relies heavily on imports of finished fertiliser products, with domestic producers supplying only part of national demand. International phosphate rock prices have moderated from the peaks seen in 2022 but remain above pre-pandemic averages, influenced by energy costs, Moroccan exports, and shifting fertiliser demand.
Within this landscape, Elandsfontein positions Kropz as one of South Africa’s few active phosphate-rock producers. The company also holds the Hinda phosphate project in the Republic of Congo through its subsidiary Kropz Hinda.
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