Kropz delays commissioning of Elandsfontein mine to Q4 2020

Plant nutrient producer Kropz told investors on Wednesday that additional test work and capital was still required for the recommissioning of its Elandsfontein mine, which it expects to continue into the third quarter of 2019.

While Kropz said "significant work" had been done by the mine's operating team to advance front end engineering and design, commissioning of the Elandsfontein plant was pushed back to the fourth quarter of 2020 at an additional expected cost of approximately $20m.

The AIM-listed group said the figure was made up of working capital, debt repayment and capital expenditure requirements.

Chief executive Ian Harebottle said: "While the additional cash requirements and the delay to first production at Elandsfontein is disappointing, due to the additional test work still required to optimise the process flow sheet, the company is constantly improving its understanding of the orebody and the processing methodology required to support the successful and robust operation once in production.

"Various options are being investigated to support the company's additional cash requirements for Elandsfontein, and to further advance its Hinda and Aflao projects."

As of 0925 BST, Kropz shares had dipped 3.85% to 25p.