Kazakhstan Potash heads into troubled waters with bigger $45m loss
Mining & Resources
Junior explorer Kazakhstan Potash says unless it can raise cash there is significant doubt on its ability “to continue as a going concern”.
The loss after tax for the half-year was $44.9m, up from a $9.5m loss in the first half of 2017.
A large chunk of that was due to the $35.5 million write-down of its projects and other assets.
The fertiliser-focused Kazakhstan Potash (ASX:KPC) had cash and cash equivalents of just $227,558 at the end of June — but the company has reassured investors that it can be ‘business as usual’ provided it can raise additional funds though debt and equity.
The company also received an on-going financial support letter dated 23 August 2018 from China-Asia Resources Fund (CAR Fund) — an entity related to the managing director and the chairperson of KPC – which commits financial support for “at least 12 months from the date of the letter”.
The KPC stock has been sliding since May when it was worth 4.5c. It is currently trading at an all-time low of 0.9c.