A suspension lifted, an impairment booked and a strategic pivot to copper sent Keras shares sharply higher.
Keras Resources (AIM: KRS) shares jumped 28.6% to 1.8p after trading resumed following the publication of its long-awaited 2025 annual report, which confirmed a $2.8m impairment charge alongside a wholesale strategic overhaul of the business.
The rebound came as investors digested a restructuring that will see Keras exit phosphate and move into copper exploration, buying an initial 51% stake in Cornerstone Mining, which holds ground in Namibia's Kaoko copper belt, for up to $1.18m in cash and shares, with an option to lift that to 70% for a further $1m.
The accounts showed just £153,000 of cash on the balance sheet at the end of 2025 against net debt of £1.87m, underlining why management has moved to reshape the group's finances alongside its asset base. Keras is disposing of the company holding its Diamond Creek phosphate mine for £1.66m, a deal that includes the cancellation of convertible debt, while a conditional fundraise of £1.8m at 2p a share is also planned.
Once the disposal, fundraise and Cornerstone acquisition complete, Keras expects to hold around £1.83m in cash with minimal debt remaining, giving it a cleaner platform from which to build out its copper interests. Royalty agreements struck as part of the asset disposals are also expected to generate around £50,000 a month for the group going forward.
Attention now turns to shareholder approval of the fundraise and disposal, and to early-stage exploration progress at the Kaoko copper assets, with the additional 19% option over Cornerstone giving Keras a route to a majority-plus stake should the ground prove up.
This report is based on Keras Resources’s announcement and coverage by UK Investor Magazine. Company announcements can be tracked via London Stock Exchange RNS and Investegate, and the full results calendar is worth watching for the next update.
This article is for general information only and does not constitute investment advice or a recommendation to buy or sell any security. Photo: Dion Beetson on Unsplash.
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