Kalium Lakes (ASX:KLL) pushes to meet September production target over June quarter

• Kalium Lakes (KLL) hunkered down over the June quarter to push its Beyondie Sulphate of Potash Project in Western Australia to near completion
• First production is targeted for the end of September and an expansion study is underway in the hopes of upping production capacity
• Truck shortages have forced the company to consider alternative arrangements to ensure transportation is ready ahead of production
• Changes to mineral royalties could mean the company has to address operational costs down the track, although no changes have been advised as yet
• Kalium Lakes shares are up 1.11 per cent to trade at 22.8 cents at 12:47 pm AEST

Kalium Lakes (KLL) hunkered down over the June quarter to push its Beyondie Sulphate of Potash Project in Western Australia to near completion.

The company is targeting first production at the project in September 2021 after commissioning full testing of the power plant and finalising recycle ponds over the period.

Approximately 108,000 tonnes of contained salt of potash were pumped by the end of June and 60,000 tonnes of potassium salts have been stockpiled in anticipation of potential commissioning.

Kalium reported difficulties however in securing backloading services from Toll due to truck shortages over the quarter but said it would consider sourcing alternative arrangements to ensure minimal disruption to its supply chain when production commences.

Potential changes to mineral royalties from the Western Australian Government could mean Kalium may have to address its operating costs down the track, although no updates have been made as yet.

In the interim, Kalium affirmed its focus remains on getting production underway at the project, finalising offtake arrangements and its 20ktpa salt of potash expansion study.

The study is hoped to accelerate an increase in salt of potash production capacity.

Kalium reported a cash and equivalents balance for the period of $34.8 million with $7.9 million in unused debt facilities.

Kalium Lakes shares are up 1.11 per cent to trade at 22.8 cents at 12:47 pm AEST.