Keras Resources release interim results

Overview

• Substantial progress has been made towards building the business into a cash-generative producer of high-grade premium organic fertilizer in the North American market.
• Increased ownership of the Diamond Creek phosphate mine, Utah, US, to 100% - now in full control of mine to market activities.
• All permits and authorisation approvals renewed in line with the project's licence obligations at Diamond Creek - in the process of expanding permitted mining footprint.
• Record sales in August 2022 of 700 t (40% in excess of budget), and repeat forward orders has resulted in extending the mining campaign to produce additional tonnage.
• Sales guidance of between 7500 t and 8000 t of phosphate product forecast from September 2022 to June 2023 at an all-in sustaining cost (AISC) margin of between US$80 and US$100/t.
• Targeting 25 000 tpy of phosphate product as the company’s medium-term annual sales objective, into a market which is expected to grow at 8%/yr in tonnage terms as well as 14% in value terms.
• As a result of the extended mining season, the drilling programme will further define the ore reserve at Diamond Creek, and will now commence in spring 2023.
• Successful placing of £1.95 million (before expenses) raised at a premium supported by cornerstone investor First Uranium Resources Ltd.
• Board changes implemented:
  • Graham Stacey was appointed as CEO in June, Russell Lamming moved to Non-Executive Chairman, and Brian Moritz moved to Non-Executive Director.
  • Claire Parry joined as Independent Non-Executive Director with Dave Reeves stepping down.
• Continued focus for 2022, and beyond, is increasing the company’s market share in the North American organic fertilizer market, and building Diamond Creek into the premier organic phosphate producer in the US.

Graham Stacey, Keras Resources Chief Executive Officer, commented:

“Our vision remains to build Diamond Creek into the premier organic phosphate producer in the US, and we have made real progress over the past few months having acquired 100% in the business and focussing our efforts on resetting the business. As well, we are starting to ramp up sales and timing production from our mine and milling facilities to meet our sales targets. We produce a high-grade, premium phosphate product that supports soil health, regenerative agriculture and provides investors with direct exposure to the buoyant global fertilizer industry. We believe we are ideally positioned to capitalise on the robust fundamentals of the sector and look forward to further building on the foundations we have laid to date, producing both a valuable and essential commodity, whilst generating returns for our stakeholders.”

Read the article online at: https://www.globalminingreview.com/mining/29092022/keras-resources-release-interim-results/