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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 Kazakhstan Potash (ASX:KPC) share price over the past year.
The Kazakhstan Potash (ASX:KPC) share price over the past year.

 

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.