The Kalium Lakes Ltd (ASX: KLL) share price is charging higher today, up 10% in morning trade and still almost 7% higher at the time of writing.
The ASX resource share is focused on sulphate of potash (SOP) production. SOP is a high yielding fertiliser used in Australia and internationally. According to the company, there is currently no SOP produced domestically.
Below we take a look at the company's latest announcement regarding its Western Australia Beyondie SOP project.
What did the company announce?
The Kalium Lakes share price is soaring after the company reported a major capacity upgrade at its Beyondie SOP Purification Plant.
According to the release, the final plant design indicates SOP production of at least 100 kilotonnes per annum (ktpa) is achievable. The company added that the additional short-term and "low capital intensity production" opportunities are under review to reach a potential of 120 ktpa of SOP.
Further down the track, Kalium Lakes reported it is assessing other options to get the most value from the project, which includes expanding SOP production to 400 ktpa along with extracting by-products like magnesium for commercial use.
Commenting on the upgrade, Rudolph van Niekerk, Kalium Lakes CEO said:
We are pleased to announce that a 'debottlenecking' style review of the plant design for the Beyondie SOP Project confirms that an annual steady-state production rate of at least 100ktpa is achievable. Additionally, the current evaporation ponds' performance indicates that this production rate can be achieved by mid-2022.
The company is also confident that a production increase to 120ktpa can be achieved without the need for substantial plant modifications and is currently examining pathways to deliver this outcome…. The current resource would support 400ktpa of SOP production for 20+ years…
Kalium Lakes share price snapshot
Over the past 12 months, Kalium Lakes shares have gained almost 44%, slightly trailing the 48% gains delivered by the All Ordinaries Index (ASX: XAO).
Year to date, the Kalium Lakes share price is up 15%.
