Kore Potash

Website: www.korepotash.com
Primary ticker: ASX:K2P
Stage of development: Exploration
Commodity : Potash
Project to promote: /
Project location: Republic of Congo
Company presentation: Click here

Live financials

Cash: GBP£7.6M
Debt: Nil

Major shareholders:
Princess Aurora (SGRF) – 20.15%
SQM –19.7%
Dingyi Group Investments – 13.2%
Harlequin Investments – 6.9%
Mr David Stevens – 6.9%
Management Ownership – 3%

Kore Potash is a potash exploration and development company whose assets include the flagship 97%-owned Sintoukola (Kola) and the Dougou Extension (DX) potash project, located within the Republic of Congo. The company is progressing the DX pre-feasibility study which was successfully funded on the back of the scoping study results which indicated a low opex and strong cash generative operation with estimated up-front capital costs of US$327 million.

Management Profile

Brad Sampson, CEO

Brad Sampson (CEO) – more than 25 years resources industry experience building and operating large scale mining projects internationally including in West and Southern Africa. Qualified Mining Engineer.
Brad recently was the CEO during the turnaround of Tiger Resources, a copper producer in the DRC, and held senior positions in Newcrest Limited including the role of General Manager West Africa.
He has previously been the CEO of Discovery Metals and held General Manager roles at Gold Fields operations in South Africa and Australia.


Andrey Maruta, CFO

Andrey Maruta (CFO) – Qualified as ACCA (Chartered Certified Accountant) in 2001
Audit Senior, Moore Stephens Chartered Accountants, 1997-2003
CFO, Peter Hambro Mining PLC, 2003 – 2012
CFO, Petropavlovsk PLC, 2012 – 2018
CFO, Salut FO, 2019 – August 2019
CFO, Kore Potash Plc, September 2019 – current


What is your rationale for attending 121 Mining Investment?

Meet new investors with interest in investing in the development of Kore’s potash deposits and seeking partners for the development of the DX project.

What are your key goals for the next 3, 6 and 12 months?

3 Months:
Publish DX PFS results

6 Months:
Fund DX DFS and identify lending group to work with Kore towards the debt financing of DX

12 Months:
Progress DX DFS and finalise offtake arrangements for DX

What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?

Completing the financing and construction of the DX project as rapidly as possible.

What do you think makes your company such a compelling investment?

Kore will be the lowest cost supplier of Potash to its target markets and has high grade, shallow long life assets and capability to grow production volumes.

Analyst Insight – provided by Independent Investment Research

Kore Potash is an ASX and AIM-listed potash exploration and development company, with assets that include its flagship 97%-owned Sintoukola (Kola) and the Dougou Extension potash projects, located within the Republic of Congo.

The company’s primary asset is its Sintoukola Potash SA (SPSA) in the Republic of Congo. SPSA has 100% ownership of the Kola Mining Lease within which the company’s lead project, the Kola Sylvinite Deposit (Measured and Indicated Potash Mineral Resource of 508 million tonnes grading 35.4% KCl), is located.

SPSA also has 100% ownership of the DX Mining Lease within which the Dougou Carnallitite Deposit (Measured and Indicated Potash Mineral Resource of 1.1 billion tonnes grading 20.6% KCl) and the Dougou Extension Sylvinite Prospect, are situated.

The company is busy with the Dougou pre-feasibility study (PFS), which was successfully funded on the back of the scoping study results that indicated a low opex and strong cash generative operation, with estimated up-front capital costs of US$327 million. The Kola EPC optimisation process is ongoing with both the French Consortium, who are looking to optimise their EPC offer, and with alternative contractors who have submitted priced bills for consideration.

The PFS work program includes a 2D seismic survey, a 4-hole, diamond drill program and a series of technical studies that collectively should satisfy the requirements for a pre-feasibility study.

The company has continued discussions with the French consortium of engineering companies to explore options to reduce the capital cost and shorten the construction schedule for Kola. During July 2019, the company received a proposal from the FC that identifies opportunity to reduce the capital cost of the Kola project by $415M below that indicated in the Kola Definitive Feasibility Study. The DFS to build and commission a new potash mine is in the design phase, nearing completion during 2020. The focus of the study is on construction cost and the execution schedule. Rothschild & Co (London) have been appointed as the Advisors for financing the debt to build and commission the plant and associated infrastructure of the Sintoukola Permit.