Kalium Lakes (KLL.AX) has provided a production update on its Beyondie Sulphate of Potash project. As of the end of July, it had pumped in excess of 110,000 tonnes of SOP which resulted in about 90,000 tonnes of potassium salts being stockpiled on the ROM pad. According to the company, this is the equivalent of about 9,000 tonnes of SOP production once the salts have been processed in the plant. The stockpile area has been expanded and Kalium Lakes will advance the project from commissioning to full production in the next few quarters.
Then it will be interesting to see if the real world results at the Beyondie SOP project will match the economical studies which indicated the initial phase of 90,000 tonnes of SOP per year would have an operating cost of less than US$200/t on a FOB and all-in sustaining basis. It would be great for the company to actually deliver on those expectations but we are not holding our breath given the potential operating cost escalation since the study was completed. In any case, it will be great for Australia to have its first domestic source of SOP.
Disclosure: The author has no position in Kalium Lakes. Please read our disclaimer.
