Keras Resources plots Namibia copper reset after US phosphate disposal

Keras Resources' interim results are less about the six months to 30 June 2026 and more about what the company intends to become next.

The AIM-listed miner is proposing to sell its US phosphate business, acquire an initial 51% interest in Namibia-focused Cornerstone Mining and raise up to £1.8 million. Subject to completion, Keras expects to emerge with no debt, around £1.83 million in cash and a controlling interest in a 6,214-hectare copper portfolio.

It is a major strategic reset rather than a routine set of half-year figures. Shareholders are effectively being asked to exchange the operating exposure of the Diamond Creek phosphate mine for an early-stage Namibian copper strategy, supported by retained royalties and new funding.

The full original company announcement sets out the interim accounts and conditional transactions.

Keras Resources' key interim figures

Six months to 30 June 2026	Result
Continuing revenue	£244,000
Continuing profit before tax	£31,000
Discontinued phosphate revenue	£582,000
Loss from discontinued operations	£282,000
Total loss	£251,000
Cash, including the disposal group	£304,000
Total equity	£187,000

Continuing revenue came from advisory activities in Togo. These operations generated a £31,000 profit before tax, compared with a £288,000 loss in the first half of 2025.

However, the US phosphate business lost £282,000 during the period. Revenue increased from £415,000 to £582,000, but production costs rose to £593,000 and resulted in an £11,000 gross loss before administrative and finance costs.

That meant the group reported an overall loss of £251,000, modestly better than the £299,000 loss recorded a year earlier.

Why the phosphate disposal matters

Keras has classified its US phosphate operations as discontinued and their assets and liabilities as held for sale. In plain English, the business remains part of the accounts for now, but management expects it to leave the group.

The proposed buyer will pay US$1 million in cash. The deal will also cancel £820,000 of convertible loan principal plus accrued interest, with the total indebtedness being removed estimated at approximately £923,000.

Keras will retain an uncapped royalty of US$10 per long ton on qualifying future production from Diamond Creek. Alongside its existing Nayéga royalty, management currently estimates the two royalty streams could generate approximately £50,000 per month.

That offers some continuing exposure without Keras having to fund and operate the phosphate business directly. However, actual royalty receipts will depend on production from the underlying assets, so the £50,000 monthly figure should be treated as an estimate rather than guaranteed income.

The disposal also addresses a heavily indebted part of the group. At 30 June, the US disposal group had assets of £3.76 million and liabilities of £2.49 million, giving a net carrying amount of £1.27 million.

The new focus is Namibian copper

Keras has agreed to acquire 51% of Cornerstone Mining for US$1 million in cash and 18 million new Keras shares. A further 46 million shares may be issued if production and resource milestones are achieved.

Cornerstone controls a contiguous 6,214-hectare position in Namibia's Kaoko Copper Belt and has partnerships with local Mining Claim holders. Historical work includes drilling, geological mapping, geophysics, soil sampling and an approximately 15,000-tonne bulk sample on EPL 4305.

The initial strategy is to investigate small-scale, near-surface copper oxide production while continuing exploration across the wider licence package. Copper oxide is mineralisation found closer to the surface, which can sometimes support a simpler staged development route than deeper deposits.

Keras has committed a development loan facility of up to US$2 million to Cornerstone. The money is intended to be deployed in stages for exploration, resource-definition work and development activities, with spending guided by technical results.

Keras also has an option to purchase another 19% of Cornerstone for US$1 million, potentially taking its ownership to 70%. The seller, Swatech Mineral Processors, will retain a 5% gross revenue royalty capped at US$5 million.

For further context on the proposed transaction, see the earlier breakdown of Keras Resources' Namibian copper pivot, phosphate sale and fundraising.

Fundraising could transform the balance sheet

Subscription agreements provide for £1.7 million through the issue of 85 million shares at 2p each. Of these, 45 million shares form the initial tranche and 40 million require shareholder authorities.

Certain directors and persons discharging managerial responsibilities also intend to invest £100,000 after the close period, taking the potential total fundraising to £1.8 million.

If the acquisition, disposal and fundraising complete, Keras expects to have approximately £1.83 million in cash and no debt. That would be a material improvement from the position reported at 30 June, when group equity was only £187,000 and total loans and borrowings stood at £2.40 million, including liabilities allocated to the disposal group.

The trade-off is dilution. The 85 million subscription shares compare with 156.87 million shares in issue throughout the interim period, before considering the acquisition shares or potential milestone payments.

Board changes support the reset

Russell Lamming has moved from Executive Chairman to Chief Executive Officer. Nick Taylor has joined as Non-Executive Chairman, while Andrew Malashewsky has been appointed Chief Financial Officer and Executive Director.

Brian Moritz is due to retire at the annual general meeting on 12 October 2026. Claire Parry remains Senior Independent Non-Executive Director.

Keras also plans to change its name to Okopa plc, subject to shareholder approval. The proposed name is intended to reflect the move away from US phosphate and towards copper exploration and development in Namibia.

Investors can follow future announcements through the Keras Resources company page.

What investors should watch next

There are clear potential positives. The disposal could remove debt and operating losses, while retained royalties may provide useful cash flow. Fresh funding would also give Keras the capacity to begin advancing a sizeable Namibian land position.

But this remains a conditional and early-stage proposition. Shareholder approval and other conditions are still required for the disposal, acquisition, second fundraising tranche and name change. Until completion, the expected debt-free balance sheet and £1.83 million cash position have not been secured.

Cornerstone's copper assets are also at an early stage. Resource size, development economics, production timing and future capital requirements have not been disclosed. The staged approach limits upfront risk, but it also means the investment case will depend heavily on forthcoming technical results.

The interim accounts therefore mark a business between two identities. Successful completion would give Keras a cleaner balance sheet and a new copper growth story. The next test is whether management can convert Cornerstone's historical work and local partnerships into defined resources, a credible development plan and eventually sustainable production.