Australian sulfate of potash (SOP) junior Kalium Lakes Ltd. reported this week that it had achieved its best production to date at its Beyondie SOP project located 160 km southeast of Newman, in Western Australia.
In an operational and corporate update on June 14, the company said Beyondie produced a combined total of some 2,079 mt in April and May, exceeding the prior three months by 16%.
But Kalium Lakes continues to be beset by financial troubles, the company said, and its shares will remain in suspension until “it has a clear pathway forward for shareholders, lenders, and other stakeholders.”
Following discussions with lenders KfW IPEX Bank GmbH and the Northern Australia Infrastructure Facility (NAIF), Kalium Lakes has been granted access to the remaining A$10 million (approximately US$6.83 million at current exchange rates) of a A$20 million liquidity.
An initial A$5 million will be provided shortly, with the remaining A$5 million to be provided subject to the progress of a strategic process to reposition the SOP junior and its capital structure. NAIF and KfW will also continue to assess Beyondie’s ramp-up performance before providing the remaining funds.
In parallel, Kalium Lakes is carrying out a plant performance improvement plan (PPIP) at Beyondie, which focuses on temperature control, conditioning, froth mobility, and aeration in the schoenite and flotation circuits. The company is targeting an SOP production rate of 50,000-60,000 mt in FY2024.
Kalium Lakes expects a material increase in operational costs due to resourcing and inflationary pressures as the ramp-up of Beyondie continues. It said additional long-term funding for the project will be required over the next two years to achieve targeted annual production of 90,000-100,000 mt of SOP.
Beyondie produced its first batch of SOP on Oct. 4, 2021, during the product commissioning process, making Kalium Lakes Australia’s first SOP producer (GM Oct. 8, 2021). All of the SOP fertilizer currently used in Australia is imported.