Ann: Scoping Study for a Demonstration Plant at Lake Way, page-2

Voila!

CEO Matt Syme said “This Scoping Study confirms our expectations that a Demonstration Plant at Lake Way is the ideal model for starting development of the broader SOP project across our extensive salt lake portfolio. The advantages inherent in our location and the cost benefits associated with low cost trench extraction and on-lake ponds are apparent, and these advantages will increase significantly with scale. The low capex, excellent operating margins and ability to de-risk the Project through staged development also give us the opportunity to optimise the numerous financing alternatives before us. We are excited to be at the leading edge of a whole new industry in Australia and we are looking forward to developing the most sustainable and rewarding fertiliser project in the world.”

Following demonstration of the viability of SOP production in the GSLP the Company plans to expand production to the other lakes, which have broadly similar salt production potential and transport solutions in some cases superior to Lake Way. The company is investigating integrated production scenarios across a number of lakes, ranging from centralised processing of intermediate concentrates to centralised stockpiling, transport staging, packaging and logistics.

The Company has previously established that larger production volumes (400,000tpa) can result in operating costs in the lowest cost quartile for SOP production globally*. This is principally a result of the economies of scale inherent in the GSLP’s advantageous location in the Northern Goldfields mining district, mostly in the main cost centres of transport, labour and power.

What are the downrampers saying?