Atome losses widen as it progresses fertiliser projects

Green fertiliser developer Atome reported a first-half loss of $2.8m in its unaudited interim results on Monday, slightly wider than the $2.6m loss it recorded in the first half of 2023.

The AIM-traded firm noted that $6.2m was capitalised towards the development of its flagship 145MW Villeta Project in Paraguay, reflecting substantial progress compared to $2.1m in the same period last year.

In early 2024, Atome raised $2.9m through share placements, with support from directors, related parties, and institutional shareholders.

Additionally, it secured a $5m facility from its chairman and leading shareholder, ensuring sufficient working capital through the third quarter of 2025.

Operationally, Atome said it achieved a number of milestones, including completing the front-end engineering and design (FEED) study for the Villeta Project and pre-power purchase agreement studies for the 300MW Yguazu project, which is twice the size of Villeta.

The company also entered into a framework collaboration agreement with Costa Rica’s state-owned power company ICE to explore the feasibility of an industrial-scale green fertiliser facility.

Since the end of the half-year, Atome signed heads of terms with Yara International for the long-term offtake of Villeta's entire production, and secured a 30-year free trade zone agreement with the Paraguayan government, providing legal and fiscal certainty for the project.

Atome said its current pipeline now extended to 600MW, adding that it remained focussed on finalising project finance and starting construction of the Villeta project by the end of the year.

With advanced discussions ongoing with international investors and significant interest in its projects, Atome was optimistic about its future growth and expanding its portfolio.

"Atome has made considerable progress in this six month period which has within a short period of time seen it develop into a world leader in green fertiliser with the FEED study now completed for our flagship Villeta project,” said chairman Peter Levine and chief executive officer Olivier Mussat in a joint statement.

“This progress has continued at pace into the second half of the year with the formal completion of the free trade zone agreement and signing the Yara Heads of Terms.

“Yara's stated mission to responsibly feed the world and protect the planet is fully aligned with Atome’s strategy and their long term commitment to offtake 100% of green fertiliser production from Villeta validates our commercial proposition.”

Levine and Mussat said the Villeta project was expected to be the largest green fertiliser production facility in the world when it comes on stream, which was currently projected for late 2027, adding that it would have the capability of serving and decarbonising food value chains across South America, Europe and Asia.

“The 300MW Yguazu Project in Paraguay, with power already reserved, is nearly triple the size and capacity of Villeta and could come some 18 months later.

“The Costa Rica project will be of a similar size to Villeta, and Atome is well placed to capitalise on the country's strategic position and world-renowned premium food industry.”

The company now had a pipeline of projects of around 600MW and growing, the chairman and CEO added.

“Atome is well positioned to expand its platform exploiting the benefit of its position, know-how, developed engineering and design, management expertise and commercial offtake experience by mobilising these attributes to take advantage of further opportunities as they arise.

“With an exciting rest of the year in prospect we accordingly view the outlook for Atome with growing confidence.”

At 1117 BST, shares in Atome were down 0.82% at 84.8p.

Reporting by Josh White for Sharecast.com.