The Kalium Lakes Ltd (ASX: KLL) share price has been in sensational form on Tuesday.
In morning trade, the sulphate of potash (SOP) developer's shares are up 25% to 11 cents.
Why is the Kalium Lakes share price racing higher?
Investors have been bidding the Kalium Lakes share price higher this morning after the company released an update on its Beyondie SOP Project.
According to the release, the company has validated the process design with production of approximately 400 tonnes of commercially saleable SOP.
In light of this, management appears confident that the Beyondie SOP Project will be operating at an approximate 80,000 tonnes per annum SOP production run rate by the first quarter of calendar year 2023.
After which, the company expects to reach its targeted 120,000 tonnes per annum run rate around 18 months later.
In addition, Kalium Lakes revealed that its SOP purification plant commissioning is proceeding as planned, with equipment testing well advanced and continuing in June and July.
Finally, management advised that discussions with debt providers and key offtake partner, K+S, are advancing in relation to funding initiatives and SOP deliveries, respectively.
Kalium Lakes' Chief Executive Officer, Len Jubber, commented:
We are very pleased that through recent equipment testing and the production of SOP we have been able to validate the overall process chemistry and plant design. We are now focussed on systematically addressing the remaining bottlenecks in the plant and progressively increasing production.
Plant operations during 2022 will be variable taking into account our need to conduct further mechanical debottlenecking activities and build KTMS inventory. Kalium Lakes is the first SOP producer in Australia, and we look forward to selling our first commercial production into the current extremely strong SOP price environment. We believe the Company has an exciting future and we would like to thank all stakeholders, including shareholders, for their patience.
