Kropz plc
Kropz plc is an emerging plant-nutrient (phosphate) producer and developer, AIM-listed (KRPZ), whose principal operating asset is the Elandsfontein phosphate mine and plant in South Africa (69.68% owned), currently in trial/ramp-up production. It also holds the Hinda pre-development phosphate project in the Republic of Congo through its subsidiary Cominco Resources (effectively 90% Company interest). The Group's major shareholder is African Rainbow Capital (ARC), which also provides convertible debt funding.
7 annual reports read, FY2018 to FY2025
Open a year to see what its report said. Every line in it carries the page it was read from.
Sources: Companies House (7)
FY2026Next report expected 4 Oct 2026
- Open the reportJSONComing soonSixty seconds on the FY2025 report
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.
From the reportevery line sits on the page it namesWhat drove revenuePhosphate rock concentrate sales from Elandsfontein, sold FOB at Port of Saldanha
Revenue of US$37,211k (2024 15-month period: US$40,087k), all phosphate concentrate, all wholesale, recognised at point of loading at port
page 109AndDiscounted pricing as a new market entrant
Kropz is a new entrant to the phosphate market and has to date sold shipments at a discount to prevailing market prices, expected to unwind as reputation builds
page 77What moved the marginheadwindNew-entrant discounted selling prices and lower achieved grade during ramp-up
Gross loss of US$9.5 million recognised in the year; production cost per tonne higher than sales price per tonne as full production not yet reached
page 7AndheadwindOre variability (hard bank, 'Pink Ore', slimes) requiring re-engineering of flotation circuit
Production ramp-up delayed by need to re-engineer fine flotation circuit based on actual particle size distribution; slimes material limiting throughput
page 7What management saidThe 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 strategic objectives
page 5After the year end25 April 2025: ZAR130m (~US$6.7m) bridge loan facility agreed with ARC, fully drawn by 30 May 2025
page 126The dividendNo dividends paid or declared in respect of the year ended 31 March 2025 (2024: none); Directors do not recommend payment of a dividend
page 26Going concern and the auditAuditor PKF Littlejohn LLP issued an unqualified opinion but drew attention to a material uncertainty related to going concern (Group requires additional funding over next 12 months; production not yet cash generative). Key audit matters: carrying value of Elandsfontein PP&E/mine development, carrying value of Cominco exploration assets, carrying value of investments in subsidiaries/intercompany balances (parent), and valuation of shareholder loans and derivative liability. Group materiality US$1,461k (1% of gross assets)
page 60The risks it names first- Access to financing - ramp-up and development capex depend on Group's ability to raise further financing; material uncertainty over going concernp.16
- Ramp-up of Elandsfontein may be delayed or not achieve steady-state productionp.17
- New entrant risk - no track record of achieving target sales prices in a competitive global phosphate marketp.18
- Mining and mineral processing risks (geotechnical, ore variability, equipment failure, water ingress)p.18
Read from C000756-AR-2025-ch.
FY2023No annual report read for this year
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