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KLL - KALIUM LAKES LIMITED


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  • 7 months later...

Noticed this stock has signed a term sheet with German chemical giant K+S to supply 100 per cent of product from stage 1 of its flagship Beyondie sulphate of potash project - the agreement is subject to K+S doing their DD before entering into a binding OTA.

 

Don't know much about this stock. Appears to have $12.8 mil cash in kitty as are March 2018 Qtr, with $5.7 mil estimated expenditure this current Qtr. Only 76k shares traded today for $36k - doesn't appear to be much interest - probably potash is not "sexy" enough - everyone's chasing cobalt & lithium. SP currently 48c

 

K+S is a $US5.1 billion salt giant that is developing a $350 million, 3.5Mtpa salt project near Onslow, with first production expected by 2021 or 2022.

 

It is also one of the worldÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s leading potash suppliers.

https://thewest.com.au/business/mining/wa-p...s-ng-b88873529z

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Updated chart - SP currently 53c

 

Highlights from recent Palaeochannel Drilling and Evaporation Tests

ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚¢ Palaeochannel definition drilling completed at Carnegie Potash Project ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã‚¡ÃƒÆ’‚¬Ãƒâ€Â¦ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“ potassium concentrations up to 3,820 mg/L, equivalent to a SOP grade of 8,513 mg/L.

ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚¢ Drilling results will permit estimation of a Maiden Resource and Exploration Target, which is now underway.

ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚¢ Higher than anticipated initial drainable porosity (specific yield) estimates on the the top 2m of the lake sediments.

ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚¢ Evaporation test work has confirmed brine concentration curves suitable to produce potassium salts.

ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚¢ Scoping study is in its final stages and due for completion in the coming weeks.

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  • 8 months later...
Street Talk can reveal the company has secured a binding 10-year offtake agreement for the full 90,000 tonnes of annual production from its mooted low-cost, long-life potash Beyondie project.

 

The buyer is German fertiliser giant K+S - which has been in talks with the company and running due diligence for months - and the contract is expected to deliver about $650 million of revenue over the 10-year life of the deal.

https://www.afr.com/street-talk/potash-play...20190325-h1cr0h

 

.... Macquarie expected to be in on the equity raise

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Macquarie expected to be in on the equity raise

 

Macquarie also put out a research note recently - 19 March 2019 - target price 69c - https://www.macquarie.com.au/dafiles/Intern.../KLL190319e.pdf

 

Highlights

âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚¢ German fertiliser producer and distributor K+S commits to purchase up to 90,000tpa

of SOP production from Kalium Lakes

âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚¢ 10 Year binding agreement underscores initial revenue estimated to be ~A$650M

âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚¢ K+S, with a market capitalisation of more than ââ€Å¡Ãƒ‚¬3 billion and Potash revenues of

approximately ââ€Å¡Ãƒ‚¬1.9 billion per annum, is one of the worldâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s largest SOP producers

âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚¢ Australiaâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s first Sulphate of Potash production on schedule to begin in 2020

 

Kalium Lakes Limited (Kalium Lakes) (ASX:KLL) is delighted to announce the latest in a series of global

associations by entering into a Binding Offtake Agreement with K+S, with respect to Sulphate of Potash (SOP)

production from its Beyondie Sulphate of Potash Project (Beyondie Project) in the East Pilbara region of

Western Australia.

 

Kalium Lakes Managing Director, Brett Hazelden, commented: âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“We are extremely pleased to have reached

agreement with one of the worldâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s pre-eminent SOP producers and distributors. It further strengthens our

desire to be the first commercial SOP production facility in Australia, supplying Australian and overseas

farmers with a locally produced premium fertiliser.

 

âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“As a major and long-term partner, K+S offers unparalleled access to extensive expertise in design,

construction and operation of SOP facilities, which will assist Kalium Lakes during the critical Commissioning

and Production ramp up phase of the project.

 

âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“With our recent funding announcements and now this binding offtake deal, we can now confidently focus on

finalising our important Final Investment Decision targeting the second quarter of 2019,âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚ Mr Hazelden said.

 

Binding Offtake Agreement âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“ Key Elements

The Agreement includes the following key elements:

âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚¢ An initial 10-year term to provide K+S with 90,000tpa of SOP products, representing 100% of the

anticipated production from Phase 1 of the Beyondie Sulphate of Potash Project.

âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚¢ Pricing is linked to the sales price realised by K+S, which will also receive a marketing fee for selling and

distributing the SOP product.

âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚¢ K+S offers Kalium Lakes unparalleled expertise and technical support in relation to design, construction

and commissioning.

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  • 2 years later...

The Beyondie Project is well developed, 90 per cent complete and on track to start production in September 2021. Its power source is fully commissioned, as are the recycle ponds. With the SOP purification plant and evaporation ponds nearly completed, the company is on track to achieve its target production rate of 90,000 tonnes per annum. Further studies as to whether this could be expanded to 120K are expected to be completed next month.

 

However, the company has been thrown a late curveball with Toll Mining Services informing KLL that it is not able to provide backloading services due to unavailability of trucks. The company is in discussions with other parties and will seek to resolve this before SOP production starts.

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  • 1 month later...

Beyondie Sulphate of Potash Project enters the final phases of commissioning, including the following key milestones:

• Construction of Standard Grade SOP plant is substantially complete other than punch list items that are not critical to progressing commissioning

• Water commissioning near completion

• Product storage shed and product materials handling infrastructure near completion

• Commencement of production ramp-up remains on track for October 2021

• Construction activities and commissioning activities remain within the capital expenditure budget

 

 

The Project is coming together as planned

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  • 4 weeks later...

and further progress:

 

A$50 MILLION CAPITAL RAISING TO FUND EXPANSION AT BEYONDIE FOLLOWING SUCCESSFUL ACHIEVEMENT OF FIRST PRODUCTION

 

• Two tranche placement to raise A$50M at an offer price of A$0.18 per share

• First tranche of the Offer to be completed .. to raise approximately A$37.8 million, with the second tranche of the Offer to raise approximately A$12.2 million, subject to shareholder approval at the AGM to be held late November 2021

• Issue price of A$0.18 per share, representing a discount of 18.2% to the last closing price and 21.3% to the 5 day trading VWAP

• Share Purchase Plan offer to all eligible shareholders to raise up to A$10 million at the same offer price as the Offer

• Kalium Lakes largest shareholder, Greenstone Resources, has committed to subscribe for up to A$11.3 million to retain a holding of 19.8% post the Offer and SPP

• Proceeds from the Offer will be used to fund the expansion to 120ktpa and provide working capital during ramp-up

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