- Sulphate of potash company Salt Lake Potash (SO4) is trading steady today after releasing its latest quarterly financial report
- The company spent the September quarter working to rapidly develop its Lake Way sulphate of potash (SOP) project in WA
- According to Salt Lake, progress is tracking along nicely for the first delivery of SOP in the March quarter of 2021
- Over the September quarter, Salt Lake locked in $300 million in funding for the project
- Salt Lake says it now has enough cash to fund Lake Way all the way through to the first production
- The company also progressed environmental approvals with Western Australia’s Environmental Protection Authority (EPA)
- Shares in Salt Lake are trading almost two per cent higher this afternoon and currently worth 58 cents each
Sulphate of potash company Salt Lake Potash (SO4) is trading steady today after releasing its latest quarterly financial report.
The company had a busy September quarter as it works to rapidly develop its Lake Way sulphate of potash (SOP) project in Western Australia.
And, according to Salt Lake, everything is tracking along on schedule.
Hefty funding
One of the most significant achievements during the quarter was the company’s $300 million financing package announced in August.
The funds were raised through a US$138 million (around A$203 million) syndicated facility agreement (SFA) with Taurus Mining Financing Fund and Clean Energy Finance Corporation, as well as a $98.5 million placement and entitlement offer.
The major funding meant a quarter of major cash flows. While Salt Lake spent around $40 million on mine development it still boosted its cash position at the end of September by a neat $60 million compared to the end of June.
At the end of September, Salt Lake had $67.3 million worth of cash and cash equivalents to keep developing Lake Way.
The company said the funds gathered during the quarter are enough to keep its flagship project on schedule for the first sulphate of potash (SOP) delivery in the first quarter of 2021.
Environmental approvals
On top of the funding, Salt Lake progressed the necessary permits for full-scale operation by submitting an environmental review document (ERD) to the WA Environmental Protection Authority (EPA).
The company said its review included floor study modelling, a salt dissipation study, a mine closure plan, and more. The EPA gave some advice after visiting the site in the September quarter, and Salt Lake made relevant changes and submitted a revised ERD.
Salt Lake said it is not aware of any major hurdles it may face to gain EPA approval.
Why SOP?
Sulphate of potash is an environmentally-friendly mineral plant fertiliser.
The product contains little to no salt, meaning it’s especially important for helping support crops that are particularly sensitive to chloride, including fruits and veggies, field crops like potatoes, and even coffee.
As such, SOP is the preferred fertiliser of Australia’s agriculture industry.
However, as it stands, there is no local production of sulphate of potash; all of Australia’s supply is imported.
As such, Salt Lake is building up the Lake Way project to take advantage of this gap in the Australian materials market.
Shares in Salt Lake Potash are trading 1.74 per cent higher at 1:19 pm AEDT, currently worth 58 cents each in a $341.68 million market cap.