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LONDON - Kropz plc (AIM:KRPZ), an emerging African phosphate producer, reported its final audited results for the year ended March 31, 2025, showing ongoing challenges in production ramp-up at its Elandsfontein mine in South Africa.
The company reported revenue of $37.2 million from phosphate concentrate sales for the year, down from $40.1 million in the previous period. Kropz recorded a loss after tax of $7.9 million compared to a profit of $0.3 million in the prior period.
Elandsfontein, still in trial production phase, produced 309,959 tonnes and sold 316,861 tonnes of phosphate concentrate during the year. The operation achieved a record production month of 33,000 tonnes in January 2025, and made its first shipment to the European market, diversifying its customer base.
Production has been hampered by ore variability and lower than expected yields, while sales volumes were affected by limited available stock. As a new market entrant, Kropz had to offer discounted pricing to gain market share, which impacted financial performance.
The company has implemented several improvement projects, including a centrifuge unit that has unlocked an additional revenue stream through "Nanophos," a sub 38-micron phosphate product previously considered waste. The first sales of Nanophos were recognized after the year-end.
During the year, Kropz completed a restructuring of its debt obligations and raised £8.9 million through a fundraising exercise. The company also secured additional loan facilities from major shareholder African Rainbow Capital to support ongoing operations.
Interim Chair Linda Beal said: "The management team continues to achieve increased production efficiency at Elandsfontein, although production is not yet at nameplate. Further increases in production volumes and efficiency are essential to achieving our strategic objectives."
The article is based on a press release statement from the company.
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