Financial Results for Half Year Ended 30 June 2026
H1 2026 results with formal sale process ongoing and two parties engaged in due diligence.
| Half year to 30 Jun 2026 | Now | Year before | Change |
|---|---|---|---|
| Cash from operations | (£0.6m) | (£0.6m) | |
| Cash | £5.7m | £2.6m | +123.2% |
Figures as reported, converted to £ where needed – see all financials.
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Kore Potash, the potash development company with 97.46%-ownership of the Kola and DX Potash Projects in the Sintoukola Basin, located within the Republic of Congo ("RoC"), today reports its unaudited financial results and operational highlights for the half year ended 30 June 2026 ("the Period").
The full financial report is available online at the Company's website at https://korepotash.com/wp-content/uploads/2026/09/Kore-Potash-Plc-Half-year-report-2026.pdf. The financial statements contained within this announcement should be read in conjunction with the notes contained within the full financial report.
SUMMARY OF KEY DEVELOPMENTS
HIGHLIGHTS
The Company's efforts during the Period were largely focused on advancing the Formal Sale Process. On 4 November 2025 the Company announced that it had commenced a Formal Sale Process, having received approaches from two parties, each evaluating the possible acquisition of the entire issued, and to be issued, share capital of the Company. On 27 February 2026 one of those parties notified the Company that it had decided to suspend its interest and was unable to proceed for internal reasons. The other party remained engaged and is continuing its due diligence. On 8 June 2026 the Company was approached by a new party wishing to participate, which has begun evaluating the possible acquisition of the entire issued, and to be issued, share capital of the Company. Two parties were engaged in the Formal Sale Process as at 30 June 2026, and both remain engaged at the date of approval of this half-year report.
On 2 March 2026 the Company announced the purchase of a 0.46% interest in the share capital of Sintoukola Potash S.A. and a conditional right to acquire the remaining outstanding minority shares. The Company is under no obligation to exercise the right. The purchase completed during the Period and increased the Company's holding in SPSA to 97.46%.
Marine drilling work and bathymetric studies covering approximately 129 hectares of sea area, together with topographic studies covering a further 15 hectares of coastline, both essential to the jetty design, were completed during the first quarter to the satisfaction of all parties.
The Beneficiation Test condition precedent under the Early Works Agreement with PowerChina was satisfied following completion of the validation tests at the China ENFI laboratories.
Shaft and underground mining Front-End Engineering Design work continued between PowerChina and UMS. Changes are being made to the shaft design because the vertical conveyor system is no longer manufactured by the approved supplier. An alternative has been identified and will require some minor redesign.
The update of the Environmental and Social Impact Assessment for the Kola Project resumed in April 2026 after a six-month hiatus. The work could not be completed for lack of visibility as to the final design changes to be requested by the new strategic investors, and at the end of May 2026 it was suspended to allow the Formal Sale Process to be progressed.
Presidential elections took place in the Republic of Congo on 15 March 2026 and President Sassou Nguesso was re-elected with over 94% of votes. In the subsequent Government reshuffle the Minister of Mines, Pierre Oba, was replaced by Mr Fiacre Opo, previously Director General of Mines. A new Mining Law was signed by the President on 18 April 2026 and promulgated in the Journal Officiel as Law No. 01-2026. The Mining Convention was ratified by Parliament and signed by the President and contains a stabilisation provision, under which rights under the Convention may not be adversely affected by laws introduced after its signature. The Company is engaging with the RoC Government on the practical application of the Convention within the new framework.
The Government confirmed that the 10% shareholding in Dougou Potash Mining S.A. and Kola Potash Mining S.A. will be held by the Ministry of Finance, and the legal process has been initiated in the country.
On 25 March 2026 the Company released its financial results and annual report for the year ended 31 December 2025.
Kore Potash Limited was deregistered as an Australian company with effect from 28 June 2026.
The Company held its AGM on 30 June 2026, at which all resolutions were duly passed.
Cash and cash equivalents held at 30 June 2026 were USD7,543,612 (31 Dec 2025: USD10,555,176).
The exploration and evaluation assets at 30 June 2026 were USD194,186,831, a decrease of USD4,605,582 from USD198,792,413 at 31 December 2025. During the Period the Company capitalised USD1,215,828 in exploration and evaluation expenditure and the carrying amount decreased by USD5,821,410 on translation, because the USD strengthened against the currency of the RoC.
There were no mining production or construction activities during the Period.
Kola Potash Project
The Company signed a non-binding MoU with the Summit, on behalf of a consortium of investors and engineering firms on 6 April 2021, to arrange the total financing required for the construction of Kola, in the presence of the Minister of Mines of the RoC and his key staff in Brazzaville.
On 27 June 2022, the Company announced the Optimisation Study was completed with an optimised construction cost of USD1.83 billion and a shortened construction schedule of 40 months.
On 28 June 2022, Kore Potash signed a HoA for the construction in the presence of the Minister of State and Minister of Mining Industry and Geology of the RoC, Mr Pierre Oba.
On 8 August 2023, Kore Potash entered into a revised agreement with SEPCO to provide the Company with an EPC contract for the construction of the Kola Project. Following the completion of SEPCO’s parent company, PowerChina’s, review of the Kola design and construction schedule, one of the agreed outcomes was that further engineering design works must be completed before PowerChina and SEPCO jointly presenting an EPC proposal and EPC contract to the Group.
PowerChina subcontracted five technical groups who commenced additional design and engineering works. Specific design areas included the underground mine, mineral processing jetty and transhipment operations, energy transportation and storage, conveyor systems and material handling. PowerChina advised the Company that the Works would cost in excess of USD10 million to complete. Illustrating PowerChina’s commitment to Kola, it capped Kore Potash’s contribution at a maximum of USD5 million, with the balance of the costs to be paid by PowerChina.
Two payments of USD1.0 million each were made in August and November 2023 as required under the Agreement. USD800,000 was paid in April 2025 and the remaining USD2,200,000 was paid in December 2025, completing the Company’s USD5 million contribution to these works. No amount remains outstanding.
PowerChina delivered the EPC proposal and draft EPC contract on 6 February 2024.
The EPC contract for the Kola Project with PowerChina was signed in Brazzaville in the presence of the RoC Minister of Mines and Geology on 19 November 2024.
The EPC is a fixed price contract worth USD1.929 billion. This fixed price is of significant benefit to the Company as it minimises the risk of cost overruns for the Company. The EPC also includes provisions for penalties in the event of delayed completion and non-compliance to performance metrics. The EPC remains subject to Financial Close.
To accelerate progress during the financing process, Kore Potash and PowerChina have committed to an Early Works Agreement, which forms part of the EPC and is targeted to be completed within 6 months of signing. Kore Potash paid a further USD5 million to PowerChina in April 2025, separate from its contribution to the design and engineering works described above, as part of the total EPC Contract Price to undertake supplementary geological work, consisting of drilling at the shaft works and marine works locations and additional FEED relating to the mining section shaft works. This will enable construction to commence after Financial Close. In addition, PowerChina will undertake Beneficiation Tests to identify opportunities to improve the plant design or adapt the product specifications. The Beneficiation Tests will be done on existing core samples to confirm the ore grade information provided by Kore Potash and is a condition precedent to the EPC. This is not considered to be a high-risk condition, given that Kore Potash has drilled 50 resource related drill-holes and has completed seismic surveys, the data of which has been assessed by two renowned independent experts as previously announced by the Company on 29 January 2019.
Entry into the EPC reaffirms the Board of Directors’ strategy for Kore Potash to become one of the lowest cost producers globally for the Brazilian agricultural market and high growth African markets.
Following signing of the EPC contract, the Company undertook an exercise to optimise the DFS to account for the EPC contract, including updating the Kola production schedule and the forecast financial information
The results of the Optimised DFS incorporate the most current information available to the Company and have been updated from the DFS and Optimisation Study to ensure compliance with the latest applicable listing rule requirements and other regulatory policies of the ASX and therefore should be considered as superseding the results of both the DFS and the earlier Optimisation Study.
Unlike the DFS and the Optimisation Study, the Optimised DFS is based on a production period which utilises all Proved and Probable Ore Reserves and only 6% of Inferred Minerals Resources, giving a LoM of 23 years. Optimised DFS was announced on 27 February 2025 with the successful outcomes:
Capital cost of USD2.07 billion (nominal basis) on a signed fixed price EPC basis, including owner’s costs.
Construction period of 43 months.
Kola designed with a nameplate capacity of 2.2 million tonnes per annum of MoP.
Average MoP production per year of 2.2Mtpa of MoP for total MoP production of 50Mt over a 23-year life of mine.
Average cost of MoP delivered to Brazil is USD128/t. Based on an independent MoP market study commissioned by the Company, management considers Kore Potash is projected to become one of the lowest cost producers in the global agricultural market to Brazil.
Average annual EBITDA is approximately USD733 million. Kore Potash is projected to continue to enjoy a very high average EBITDA margin of 74%.
Key financial metrics, at MoP CFR Brazil pricing averaging USD449/t and on a 90% attributable basis (reflecting Kore’s future holding of 90% and the RoC government 10%):
Kola NPV10% (real) post-tax USD1.7 billion
IRR 18% (real) on ungeared post-tax basis
Kola is designed as a conventional mechanised underground potash mine with shallow shaft access. Ore from underground is transported to the processing plant via an approximately 25.5 km long overland conveyor. After processing, the finished product is conveyed 8.5 km to the marine export facility. MoP is transferred from the storage area onto barges via a dedicated barge loading jetty before being transhipped into ocean-going vessels for export.
The prior DFS and Optimisation Study disclosures included an additional 20% of Inferred Mineral Resources after the Ore Reserves were depleted.
Kore Potash considers there is strong potential for the mine plan on which this Optimised DFS is based to be extended beyond 23 years by upgrading a portion of the 340Mt of Inferred Mineral Resources to Measured or Indicated Resources through further exploration during the 23 years of operations.
On 27 February 2025, the Company also announced a restatement of the Mineral Resource estimate for the Kola deposit.
This announcement is a restatement of the Mineral Resource estimate for the Kola deposit. The Mineral Resource estimate was originally released by the Company’s wholly-owned subsidiary, Kore Potash Limited, which was formerly listed on the ASX under the ticker “K2P”. The original announcement was entitled “Updated Mineral Resource for the High Grade Kola Deposit” dated 6 July 2017. This announcement contains additional information summarising the material information relating to the Kola Mineral Resource in accordance with ASX Listing Rule 5.8.1. No other material changes have been made to the original announcement.
Kola Financing
On 10 June 2025 the Company announced that it had signed term sheets for availing the total funding requirement for the Kola Project with OWI-RAMS GmbH. As previously announced, the main focus of the overall financing package has been on enhancing Kore Potash's managerial capacity to deliver on the Kola Project.
In parallel, OWI-RAMS has continued selected workstreams, including engagement with two development finance institutions (the "Potential Financiers") in relation to key components typically required for a project financing package, such as political risk insurance and debt funding. Both of the Potential Financiers have indicated a continued interest in supporting the Kola Project financing and have emphasised the importance of Kore appointing a suitable contract operator and securing an appropriately experienced strategic partner.
The contract with UMS Projects, a subsidiary of UMS and the winner of the Owner's Project Team Request for Proposal, has not yet been concluded. The management team is awaiting approval from the Potential Financiers before any contract execution.
Early Works
During the 2018 Definitive Feasibility Study a French Consortium composed of Technip, Vinci Construction Grands Projets, Egis and Louis Dreyfus Armateurs carried out a metallurgical testing programme at the Saskatchewan Research Council in Saskatoon.
The Engineering, Procurement and Construction contract between Kore Potash and PowerChina International Group Limited stipulated a series of Early Works that include validation tests intended to replicate the test results obtained during the DFS stage. This testing programme was intended to validate a potash recovery process composed of four flotation steps with an intermediate re-crushing step.
The validation tests were conducted using similar equipment, a Denver MD12 bench scale flotation machine, and the same reagents used in 2018.
These tests, carried out at the China ENFI laboratories, produced a combined concentrate grade of 96.91% KCl (61.2% K2O), which is 3.12 percentage points higher than that obtained in 2018. The combined KCl recovery was 83.46%, which is essentially the same figure as that obtained through the metallurgical testwork carried out in 2018 and published on 29 January 2019 within the DFS summary.
More importantly, the tests at ENFI produced improved first-pass rougher grades and recoveries, at 96.17% KCl (60.75% K2O) and 85.85% respectively, which compare favourably to the 93.85% KCl and recovery of 78.55% obtained in 2018.
A consequence of the improved rougher flotation performance was that the locked-cycle tests stabilised after only two cycles, compared with the eight cycles required in 2018.
The results of the validation tests at China ENFI can be summarised as follows: the 2018 results were validated and further improved upon; and the newly acquired data provide input that will be used in further optimising the circuit design to improve efficiency and costs.
As the validation tests were the most crucial part of the overall beneficiation tests referred to in the Early Works Agreement with PowerChina, the parties have agreed that the Beneficiation Test condition precedent is now fully satisfied.
Shaft and underground mining Front-End Engineering Design work is still ongoing between PowerChina and UMS, and changes are being made to the shaft design because the vertical conveyor system is no longer manufactured by the Contitech Conveyor Belt group, a division of Continental AG. One alternative has been identified but will require some minor redesign.
DX Potash Project
At present, the Company remains focused on completing the financing of Kola and moving forward to the construction of Kola as soon as possible. The Company is also considering strategic options available for the Dougou Extension project. The DX project and the Dougou deposit have been closely reviewed as part of the Formal Sale Process.
CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE 6 MONTHS ENDED 30 JUNE 2026
| 6 months ended | 6 months ended | Year ended | |
|---|---|---|---|
| 30 June 2026 | 30 June 2025 | 31 Dec 2025 | |
| USD | USD | USD | |
| Unaudited | Unaudited | Audited | |
| Operating expenses Directors’ remuneration | (93,200) | (133,545) | (236,871) |
| Depreciation | (451) | - | (473) |
| Salaries, employee benefits and consultancy expense | (175,119) | (145,374) | (257,574) |
| Administration expenses | (494,195) | (388,794) | (894,048) |
| Operating loss | (762,965) | (667,713) | (1,388,966) |
| Finance income and expenses | |||
| Interest income | 52,448 | 68,527 | 123,971 |
| Interest and finance expenses | (1,912) | (2,311) | (3,989) |
| Net realised and unrealised foreign exchange gain/(loss) | (40,957) | 166,069 | 283,708 |
| Total finance income and expenses | 9,579 | 232,285 | 403,690 |
| Loss before income tax expense | (753,386) | (435,428) | (985,276) |
| Income tax income/(expense) | - | - | - |
| Loss for the period | (753,386) | (435,428) | (985,276) |
| Other comprehensive income/(loss) | |||
| Items that may be reclassified subsequently to profit or loss Exchange differences on translating foreign operations | (5,771,656) | 20,252,180 | 20,911,340 |
| Other comprehensive profit/(loss) for the period | (5,771,656) | 20,252,180 | 20,911,340 |
| Total comprehensive profit/(loss) for the period | (6,525,042) | 19,816,752 | 19,926,064 |
| Loss attributable to: | |||
| Owners of the Company | (753,355) | (434,804) | (984,554) |
| Non-controlling interest | (31) | (624) | (722) |
| (753,386) | (435,428) | (985,276) | |
| Total comprehensive profit/(loss) attributable to: | |||
| Owners of the Company | (6,525,011) | 19,817,376 | 19,926,786 |
| Non-controlling interest | (31) | (624) | (722) |
| (6,525,042) | 19,816,752 | 19,926,064 | |
| Loss per share | |||
| Basic and diluted loss per share (cents per share) | (0.01) | (0.01) | (0.02) |
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2026
| 30 June 2026 USD | 30 June 2025 USD | 31 Dec 2025 USD | |
|---|---|---|---|
| Unaudited | Unaudited | Audited | |
| ASSETS | |||
| Current Assets | |||
| Cash and cash equivalents | 7,543,612 | 3,499,143 | 10,555,176 |
| Trade and other receivables | 137,707 | 132,587 | 177,676 |
| Total Current Assets | 7,681,319 | 3,631,730 | 10,732,852 |
| Non-Current Assets | |||
| Trade and other receivables | 37,915 | 40,427 | 40,563 |
| Property, plant and equipment | 385,392 | 417,724 | 400,937 |
| Exploration and evaluation expenditure | 194,186,831 | 196,123,524 | 198,792,413 |
| Total Non-Current Assets | 194,610,138 | 196,581,675 | 199,233,913 |
| TOTAL ASSETS | 202,291,457 | 200,213,405 | 209,966,765 |
| LIABILITIES | |||
| Current Liabilities | |||
| Trade and other payables | 303,385 | 2,739,444 | 453,651 |
| Derivative financial liability | - | 26 | - |
| Total Current Liabilities | 303,385 | 2,739,470 | 453,651 |
| Non-Current Liabilities | |||
| Total Non-Current Liabilities | - | - | - |
| TOTAL LIABILITIES | 303,385 | 2,739,470 | 453,651 |
| NET ASSETS | 201,988,072 | 197,473,935 | 209,513,114 |
| EQUITY | |||
| Issued share capital – Ordinary Shares | 5,175,938 | 4,856,249 | 5,175,938 |
| Reserves | 257,181,445 | 251,924,083 | 264,193,421 |
| Accumulated losses | (59,858,607) | (58,741,409) | (59,291,159) |
| Equity attributable to the shareholders of Kore Potash plc | 202,498,776 | 198,038,923 | 210,078,200 |
| Non-controlling interests | (510,704) | (564,988) | (565,086) |
| TOTAL EQUITY | 201,988,072 | 197,473,935 | 209,513,114 |
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE 6 MONTHS ENDED 30 JUNE 2026
| Ordinary Shares USD | Share Premium Reserve USD | Merger Reserve USD | Accumulated Losses USD | Option Reserve USD | Foreign Currency Translation Reserve USD | Owners of the Parent USD | Non- controlling Interest USD | Total Equity USD | |
|---|---|---|---|---|---|---|---|---|---|
| Balance as at 1 Jan 2026 | 5,175,938 | 71,204,534 | 203,738,800 | (59,291,159) | 324,641 | (11,074,554) | 210,078,200 | (565,086) | 209,513,114 |
| Loss for the period | - | - | - | (753,355) | - | - | (753,355) | (31) | (753,386) |
| Other Comprehensive (loss)/gain | |||||||||
| - | - | - | - | - | (5,771,656) | (5,771,656) | - | (5,771,656) | |
| Total Comprehensive (loss)/gain | |||||||||
| - | - | - | (753,355) | - | (5,771,656) | (6,525,011) | (31) | (6,525,042) | |
| Transactions with owners: | |||||||||
| Kore Potash Ltd AUS | - | - | - | 1,240,320 | - | (1,240,320) | - | - | - |
| Acquisition of non-controlling interest | - | - | - | (1,054,413) | - | - | (1,054,413) | 54,413 | (1,000,000) |
| Issue of Shares | - | - | - | - | - | - | - | - | - |
| Share issue cost | - | - | - | - | - | - | - | - | - |
| Share Based payments | - | - | - | - | - | - | - | - | - |
| Balance at 30 June 2026 | 5,175,938 | 71,204,534 | 203,738,800 | (59,858,607) | 324,641 | (18,086,530) | 202,498,776 | (510,704) | 201,988,072 |
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE 6 MONTHS ENDED 30 JUNE 2025
| Ordinary Shares USD | Share Premium Reserve USD | Merger Reserve USD | Accumulated Losses USD | Option Reserve USD | Foreign Currency Translation Reserve USD | Owners of the Parent USD | Non- controlling Interest USD | Total Equity USD | |
|---|---|---|---|---|---|---|---|---|---|
| Balance as at 1 Jan 2025 | 4,377,870 | 49,854,531 | 203,738,800 | (58,306,604) | 189,705 | (31,985,896) | 167,868,406 | (564,364) | 167,304,043 |
| Loss for the period | - | - | - | (434,804) | - | - | (434,804) | (624) | (435,428) |
| Other Comprehensive (loss)/gain | |||||||||
| - | - | - | - | - | 20,252,180 | 20,252,180 | - | 20,252,180 | |
| Total Comprehensive (loss)/gain | |||||||||
| - | - | - | (434,804) | - | 20,252,180 | 19,817,376 | (624) | 19,816,752 | |
| Transactions with owners: | |||||||||
| Issue of Shares | 478,379 | 10,006,202 | - | - | - | - | 10,484,581 | - | 10,484,581 |
| Share issue cost | - | (266,377) | - | - | - | (266,377) | (266,377) | ||
| Share Based payments | - | - | - | - | 134,936 | - | 134,936 | - | 134,936 |
| Balance at 30 June 2025 | 4,856,249 | 59,594,356 | 203,738,800 | (58,741,408) | 324,641 | (11,733,716) | 198,038,923 | (564,988) | 197,473,935 |
| CONDENSED CONSOLIDATED STATEMENT | |||||||||
| OF CHANGES IN EQUITY (CONTINUED) | |||||||||
| Consolidated Entity | Ordinary Shares | Share-Based Payments Reserve | Share Premium Reserve | Foreign Currency Translation Reserve | Merger Reserve | Accumulated Losses | Equity Attributable to the Shareholders of Kore Potash plc | Non-Controlling Interest | Total Equity |
| USD | USD | USD | USD | USD | USD | USD | USD | USD | |
| Balance at 01 January 2025 | 4,377,870 | 189,706 | 49,854,531 | (31,985,896) | 203,738,800 | (58,306,605) | 167,868,407 | (564,364) | 167,304,043 |
| Loss for the period | - | - | - | - | - | (984,554) | (984,554) | (722) | (985,276) |
| Other comprehensive income for the year | - | - | - | 20,911,340 | - | - | 20,911,340 | - | 20,911,340 |
| Total comprehensive (loss)/income for the year | - | - | - | 20,911,340 | - | (984,554) | 19,926,786 | (722) | 19,926,064 |
| Transactions with shareholders | |||||||||
| Options expired | - | - | - | - | - | - | - | - | - |
| Share issues | 798,068 | - | 21,852,653 | - | - | - | 22,650,721 | - | 22,650,721 |
| Share issue expenses | - | - | (502,650) | - | - | - | (502,650) | - | (502,650) |
| Share based payments | - | 134,936 | - | - | - | - | 134,936 | - | 134,936 |
| Balance at 31 December 2025 | 5,175,938 | 324,641 | 71,204,534 | (11,074,554) | 203,738,800 | (59,291,159) | 210,078,200 | (565,086) | 209,513,114 |
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE 6 MONTHS ENDED 30 JUNE 2026
| 6 months ended 30 June 2026 | 6 months ended 30 June 2025 | Year ended 31 Dec 2025 | |
|---|---|---|---|
| USD | USD | USD | |
| Unaudited | Unaudited | Audited | |
| Cash Flows from Operating Activities | |||
| Payments to suppliers and employees | (857,896) | (835,158) | (1,838,111) |
| Net cash flows (used in) operating activities | (857,896) | (835,158) | (1,838,111) |
| Cash Flows from Investing Activities | |||
| Payments for plant and equipment | (14,100) | (67,202) | (73,060) |
| Payments for exploration and evaluation | (1,158,309) | (7,407,571) | (11,450,343) |
| Interest received | 52,448 | 68,527 | 123,971 |
| Net cash flows (used in) investing activities | (1,119,961) | (7,406,246) | (11,399,432) |
| Cash Flows from Financing Activities | |||
| Proceeds from issue of shares | - | 10,484,581 | 22,650,721 |
| Acquisition of non-controlling interest in SPSA | (1,000,000) | - | - |
| Payment for share issue costs | - | (266,377) | (502,650) |
| Net cash flows (used in) / generated from financing activities | (1,000,000) | 10,218,204 | 22,148,071 |
| Net increase / (decrease) in cash and cash | |||
| Equivalents | (2,977,857) | 1,976,800 | 8,910,528 |
| Cash and cash equivalents at beginning of Period | 10,555,176 | 1,339,321 | 1,339,321 |
| Foreign currency differences | (33,707) | 183,022 | 305,327 |
| Cash and Cash Equivalents at Period End | 7,543,612 | 3,499,143 | 10,555,176 |
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.