Kropz plc

Kropz plc mines phosphate, a fertiliser ingredient, at its Elandsfontein mine in South Africa, which is still working up to full production. Revenue was $37.2m, down 7.2% from $40.1m in a previous period that covered 15 months rather than 12. It made a loss after tax of $9.6m, compared with a profit of $8.9m the year before.

The report says the mine still costs more per tonne to run than its phosphate sells for. Two reasons are that Kropz sells at a discount as a newcomer to the market, and that difficult ore slowed output. Last year's profit was lifted by a one-off write-back of the mine's value, which did not happen again this year.

Kropz raised $23.2m from shareholders. Its main shareholder's loans were also turned into shares, so it ended the year with $3.0m of cash and no borrowings. No dividend was paid. After the year end it took new short-term loans from that shareholder. Management says efficiency is improving and demand for phosphate is strong. But the auditor warned of significant doubt about whether the company can carry on, because it needs to raise more money in the next year.