Kore Potash PLC on Tuesday reported a narrowed interim profit as it made progress in securing funding for its project in the Republic of Congo.

The London-based owner of the Kola and DX potash projects in Republic of Congo trimmed its pretax loss to $903,200 for six months to June 30 from $1.3 million in the prior year.

Headline loss per share narrowed to US0.03 from $0.05, while the loss per share also shrank to $0.03 vs $0.05.

As at June 30, cash and cash equivalents were at $7.6 million from $14.2 million as at June 30, 2021. Total liabilities dropped by 42% to $803,090 from $1.4 million.

Kore Potash said it had signed a non-binding memorandum of understanding with Summit Africa Ltd, on behalf of a consortium of investors and engineering firms, to arrange the total financing required for the construction of Kola.

In the first half, the Summit Consortium, an investment group that represents investors and engineering firms, completed the optimisation study that indicated a reduction in capital cost by $520 million to $1.83 billion.

‘We have made good progress during the first half of 2022, having taken receipt of the Kola optimisation study and shared the outcomes with the market, including the $520 million reduction in the capital cost of Kola and a reduction in the expected construction timeline to 40 months. We are also proud to have signed a heads of agreement for Kola’s construction, advancing the Kola project at pace despite the difficult circumstances facing the global economy,’ Kore Potash Chief Executive Brad Sampson said.

‘The progress towards financing our Kola project is exciting and we look forward to receiving the financing proposal.’

In London, shares in Kore Potash rose by 4.6% to 1.15 pence on Tuesday, while it dropped by 4.4% to R 0.22 in Johannesburg.

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