Summary:
- All areas of the plant commissioned except the centrifuge which is expected to be finished in over the next few weeks. Once the centrifgue is commisioned they can achieve steady state production. However, they managed to get a decent pile of SOP rolling off the plant and into the storage sheds already. Reaching nameplate capacity will requiring increasing the concentrations of the mother liquor and optimising other aspects of the plant by March.
- First sales of SOP expected in 2-3 weeks and CFs followed shortly after.
- Company is still in talks with the WA Government about royalty rates and doing everything it can to ahieve a lower royalty rate. However, Dennis said the WA Government is refusing to buldge at the moment. The WA Government wants a 5% for the potash and as such the company has used 5% as the most conservative case in its models. Dennis said at the moment "Kalium is the industry" and with no other players nearing production, it is continuing to be difficult to lower the royalty. They also mentioned something about a written statement from WA saying roalties on potash would be 0.73 c back in 2019.
- SOP Prices are significantly above forecasts released in the company reports. Argus reports November show the Freemantle Price at $US890-900t right now up from $617 a tonne in July.
- The product produced has exceed the "standard-grade SOP" specifications (except for moisture content with Rudoplh said can be fixed easily be optimising the dryer). As such Rudolph said it is possible they could see a premium on the product as it exceeds standard specifications.
- $57m in the company's accounts will be used to fund expansionary works as soon at the existing plant reaches 90kpta nameplate in March. Currently, the only expansionary works being undertaken are that of drillining new bore holes.
- Company still in talks with Toll regarding backloading arrangements. However it now has secured mutliple trucking contractors and has more than enough capacity to send it to port.
- They have to ship to Freemantle rather than Geraldton as 20,000-30,000 tonnes of the product is going to farmers in Perth. Along with that, international buyers want SOP in containers rather than in bulk. Geraldton doesn't have container transfer facilities. However, it may be possible to ship some to Geraldon in the case a buyer wants to purchase in bulk.
- Studies in progress to define more resources for future expansion opportunities beyond 120kpta.
Overall, are much more detailed explanation of the information in the annual reports and an update on commissioning progress.
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