Kore Potash H1 2026: sale process stays live as Kola funding work continues

The numbers are not the main story in Kore Potash PLC's latest half-year results.

This remains a pre-revenue potash developer, with no mining production or construction activity during the six months ended 30 June 2026. Investor attention is instead firmly fixed on two strategic questions: whether the formal sale process produces an acceptable offer, and whether the USD2.07 billion Kola project can reach financial close.

There was progress during the period, including the completion of important marine studies and satisfaction of the beneficiation test condition under the Early Works Agreement. However, project financing is not yet secured and some environmental and engineering work remains incomplete.

Kore Potash's key H1 2026 figures

Metric	H1 2026	H1 2025 or 31 December 2025 comparison
Operating loss	USD762,965	USD667,713 in H1 2025
Loss before tax	USD753,386	USD435,428 in H1 2025
Cash and cash equivalents	USD7,543,612	USD10,555,176 at 31 December 2025
Exploration and evaluation assets	USD194,186,831	USD198,792,413 at 31 December 2025
Net assets	USD201,988,072	USD209,513,114 at 31 December 2025
Basic and diluted loss per share	0.01 cents	0.01 cents in H1 2025

The operating loss increased as administration expenses rose to USD494,195 from USD388,794. The group also recorded a USD40,957 foreign exchange loss, compared with a USD166,069 gain in the previous-year period.

Cash declined during the half year as Kore Potash spent USD857,896 on operating activities, USD1,158,309 on exploration and evaluation, and USD1,000,000 acquiring an additional minority interest in Sintoukola Potash S.A.

No new shares were issued during the period. The company's cash runway was not disclosed.

Two parties remain in the formal sale process

Kore Potash launched its formal sale process in November 2025 after approaches from two parties considering the acquisition of the company's entire issued and to-be-issued share capital.

One original participant withdrew in February 2026 for internal reasons. However, a new party approached Kore Potash in June and began its own evaluation. Two potential bidders were therefore involved at 30 June, and both remained engaged when the half-year report was approved.

That continued interest is encouraging, but investors should keep expectations measured. Due diligence does not guarantee that either party will submit an offer, agree terms or complete a transaction. Potential pricing and timing were not disclosed.

The process has also affected project work. Kore Potash suspended the update to Kola's Environmental and Social Impact Assessment at the end of May, allowing management to focus on the sale process and avoid finalising work before understanding any design changes requested by new strategic investors.

Kola financing remains the decisive hurdle

Kore Potash continues to engage with OWI-RAMS regarding the funding package set out in term sheets signed in June 2025.

Two potential development finance institutions remain interested in supporting components such as debt funding and political risk insurance. However, both have emphasised that Kore Potash must appoint a suitable contract operator and secure an experienced strategic partner in potash mining and processing.

Those requirements have not yet been satisfied.

The proposed contract with UMS Projects for the owner's project team has also not been concluded. Management is waiting for approval from the potential financiers before executing it. Discussions have meanwhile taken place with two new Chinese contractors regarding a post-construction operating proposal.

This is the central investment issue. Kore Potash has a signed fixed-price engineering, procurement and construction contract with PowerChina worth USD1.929 billion, but that contract remains subject to financial close. Until the financing, operating and strategic partner pieces are assembled, major construction cannot begin.

For context, the February 2025 optimised definitive feasibility study estimated a nominal capital cost of USD2.07 billion, including owner's costs. It outlined a 43-month construction period and production capacity of 2.2 million tonnes per year of muriate of potash, a commonly used potassium fertiliser.

Early works delivered useful technical progress

The clearest operational positive came from the beneficiation validation tests completed at China ENFI's laboratories. Beneficiation is the process used to improve the concentration and quality of mined material.

The tests achieved a combined concentrate grade of 96.91% potassium chloride and recovery of 83.46%. Kore Potash said the 2018 test results had been validated and improved upon, providing further information for optimising the processing circuit.

As a result, the parties agreed that the Beneficiation Test condition precedent under the Early Works Agreement was fully satisfied.

Marine drilling and bathymetric studies over approximately 129 hectares of sea area were also completed, alongside topographic studies covering another 15 hectares of coastline. These studies are needed for the proposed export jetty's design.

Shaft and underground mine Front-End Engineering Design work continued. This involves developing sufficient engineering detail before construction. A minor redesign is required because the previously selected vertical conveyor system is no longer manufactured, although an alternative has been identified.

Ownership and government developments

Kore Potash completed the purchase of a further 0.46% interest in Sintoukola Potash S.A. for USD1,000,000, raising its holding to 97.46%. It also obtained a conditional right to acquire the remaining minority shares but is not obliged to exercise it.

The Republic of Congo introduced a new Mining Law during the period. Kore Potash said its existing Mining Convention contains a stabilisation provision intended to prevent its rights from being adversely affected by subsequent laws. The company is discussing the convention's practical application under the new framework with the government.

The government also confirmed that its 10% holdings in the Kola and Dougou project companies will be held by the Ministry of Finance, with the domestic legal process under way.

What investors should watch next

There are genuine signs of progress. Two parties remain engaged in the sale process, a key early works condition has been cleared, marine studies are complete and Kore Potash finished June with USD7,543,612 in cash.

The risks are equally clear. The company has no production, construction has not started, project financing is incomplete and the funding process depends on third-party institutions, an operating contractor and an experienced strategic partner. The sale process introduces another layer of uncertainty, while environmental work has been paused.

The next meaningful developments should therefore be evidence of a firm takeover proposal, appointment of the required project and operating partners, or tangible movement towards financial close. Without one of those catalysts, Kore Potash remains a development-stage company with a large project and substantial execution risk.

Readers can compare the position with the company's previous H1 funding update and review the original company announcement.