Keras Resources plc has announced its half-year results for the six months ending 30 June 2023. The company reported a reduced loss of £255,000 and increased revenue of £397,000 compared to the same period in 2022. Sales also increased to 2,196 tons compared to 1,896 tons in the previous year. The 2023 mining season has commenced, with processing ongoing at the Spanish Fork plant. Keras has received significant interest from fertiliser blenders who have successfully completed testwork on the high-grade Diamond Creek rock phosphate. The company expects to provide guidance on production and sales figures for 2024 towards the end of the fourth quarter.
Keras CEO Graham Stacey commented on the challenging start to the year due to adverse weather conditions, but expressed confidence in the company's strong position and the positive test results from third-party fertiliser blenders. Stacey also highlighted the importance of creating markets for their product and the potential for long-term offtakes or joint ventures with organic fertiliser companies.
The Chairman's review provided an update on Keras' progress and outlook. The company has focused on becoming the leading high-grade organic phosphate producer in North America, with the Diamond Creek phosphate mine as its primary operation. Keras targets the sustainable, organic agriculture sector and advocates for enhancing soil health and reducing the impact of synthetic fertilisers on water resources. Sales for the first half of 2023 were lower than expected due to an extended winter and flooding, as well as high producer price inflation in the US. However, the company expects sales to pick up in the fourth quarter. Keras has also seen significant interest from organic fertiliser blenders, and positive test results on its high-grade phosphate rock are expected to lead to commercial agreements.
In May 2023, Keras announced an agreement with the Republic of Togo regarding the Nayéga Manganese project in Northern Togo. The company and the state agreed on a way forward for the project.