Why the Kalium Lakes (ASX:KLL) share price is leaping 7% today

The Kalium Lakes (ASX:KLL) share price is charging higher today. We take a look at the ASX resource company’s latest capacity upgrade.
The post Why the Kalium Lakes (ASX:KLL) share price is leaping 7% today appeared first on The Motley Fool Australia. –

bhp share price

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%.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why the Kalium Lakes (ASX:KLL) share price is leaping 7% today appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!