Who were the 'Independent Technical Experts' and where is their report?
What did Bryn Jones know before his resignation? He left right before production was expected to commence...strange isn't it
Some fantastic material from official company announcements28.01.21- SO4 Successfully Completes Share Purchase Plan
‘…the Board has exercised its discretion under the termsof the SPP to increase the size of the offer to A$8.0 million in recognition ofthe ongoing support of its retail investors.’
“On behalf of the Company, I would like to thank all ofour Shareholders for their ongoing support as evidenced by the strong demandfor the SPP. The funds raised through the placement and SPP have enabled theCompany to achieve financial close on the US$138m Taurus/CEFC debt facility anddraw the initial tranche of US$105m and to finalise development of the Lake WayProject.”
04.03.21- Senior debt syndication to Sequoia and CBA
“I am extremely pleased to welcome SEQI, an experienced globaldebt investor, and leading Australian bank CBA, into our Senior Debt Facility.The breadth and quality of investors that have been attracted to this facilityis testament to the robust financial characteristics and positive environmentalcredentials of the project and its proficient execution by the SO4 team. Welook forward to continuing our relationship with Sequoia and CBA as we pursueour vision of a multi-lake SOP province in WA.”
22.03.21- Lake Way Process Plant commissioning commences
‘First time potassium rich harvest salts, precipitatedfrom lake aquifer brine, have been fed into an SOP Plant in Australia’
‘First harvest salts have been successfully fed into thefeed hopper’
‘Over the coming weeks the utilities, conversion circuit,flotation circuits, crystallisers and dryer will all be commissioned ahead offull load commissioning and SOP production in the June quarter’
‘First production and SOP sales on track for the Junequarter.’
“Commencing commissioning of Australia’s first Sulphateof Potash processing plant is a major milestone for SO4 and testament to thehard work of our owners’ team and GR Engineering Services. It is exciting tosee the vision that was first conceived in late 2018 come to fruition less thantwo and a half years later. First SOP sales and revenue are now well withinsight.”
March2021 - Euroz Rottnest Conference Presentation
Slide 3:
Lake Way on the cusp of first SOP - On track for FY Q4’21SOP sales
June Qtr 2021: First SOP production and sales
Project capital budget remains unchanged at A$264m
30.04.21- March 2021 Quarterly Report
Halite ponds harvested
During the quarter the company successfully proved haliteharvesting methodology, harvesting 93k cubic meters of halite salts from cellsin Train 1. Pond cells were maintained online throughout the harvesting.
“Significant progress was made on Process Plant constructionas well as financing and product positioning during the March quarter, settingthe Company up for first SOP sales in the June quarter. Our focus is now onsuccessful commissioning and ramp-up of the process plant as we look to move intopositive cash flow from our first operating SOP asset.”
24.05.21- Institutional Placement to enable final Debt Drawdown
‘Following the Placement and final debt drawdown the LakeWay Project is significantly de-risked with Part IV EPA approvals now receivedand first SOP production expected in the coming weeks.’
‘The project capital budget for the initial scope ofworks has increased A$5m to at A$269m as a result of advancing sustainingcapital work involving the construction of 271Ha of pre-concentration pond (A$2.5m)and associated trench and bore capacity (A$2.5m) to feed the additional pondacreage. The additional pre-concentration ponds will help to de-risk saltproduction, with the lending syndicate’s Independent Technical Review Reportnoting “It is clear [that] together with conservative process design criteria,the revised pond system on average will be able to produce in excess ofnameplate production, with worst case conditions meeting nameplate”’
‘As part of the project final cost to complete reviewoperating cost assumptions have also been updated, with steady state costsincreasing from A$337/t (adj. for higher AUD FX and shipping from Fremantle) toA$390/t. The primary drivers for the increases in expected operating costs arehigher onsite logistics (+A$30/t), laboratory (+A$8/t) and increased diesel andlabour costs (+A$14/t).’
May2021 - Equity Raise accompanying final debt draw
Following equity placement and final debt draw the LakeWay project is significantly de-risked:
Part IV EPA approval received: Construction of pondtrains 4-6 commencing imminently enabling ramp-up to 245ktpa by Jun’22 quarter
Project fully financed: Cost to complete report issued byIndependent Technical Experts, with estimates including ‘multiple conservative parameterassumptions’ relating to pond operation and ‘conservative process designcriteria’ in the plant
First SOP production: Expected within weeks of Placement
Risks to any future salt shortages mitigated by revisedpond plan which incorporates 271 Ha of pre-concentration with sustainingcapital of A$2.5m brought forward from 2022 to June 2021.
“It is clear [that] together with conservative processdesign criteria, the revised pond system on average will be able to produce in excessof nameplate production, with worst case conditions meeting nameplate…….”Independent review report
Multi-Lake expansion opportunity Financing options fornext lake expansion
Offtaker, royalty, asset level strategic investor optionsto finance early works (ponds, trenching, brine transfer)
Trade-off study currently underway to determine preferrednext lake with decision expected during 2021
Development of an SOP province through multiple lakeexpansions
Significant market potential based on globalchloride-sensitive acreage
SO4 investment case:
1. In-demand product
· Ongoing structural shift to lower chloride potassiumsources
· High grade and water solubility ensures premiumprice above benchmark
· Prices have remained firm through COVID-19
2. Low capital intensity, quick toproduction
· Lake Way capital efficiency supported by establishedregional infrastructure
· First SOP production in Jun’21 quarter
3. High and insulated margin
· Majority of SOP production comes from higher-costsecondary processing
· Brine production has a sustainable, low-cost advantage
4. Scalable portfolio
· Lake Way ramping up to a run rate of 245ktpaby Jun’22 quarter
· Medium term goal of producing SOP acrossmultiple lakes
· Strategic review currently underway to determinesecond lake project
5. Execution capability
· Management track record of financing and deliveringprojects
· Tony Swiericzuk (ex Fortescue), Lloyd Edmunds(ex-Fortescue), Stephen Cathcart (ex-Fortescue)
6. Latent sources of value
· Multiple opportunities to improve Lake Way numbersbeyond those outlined in the BFS
· Numerous continuous improvement opportunitiescurrently being implemented
In December 2020 SO4 received the Community ContributionAward at the 2020 Association of Mining and Exploration Company (AMEC) annualawards. The award recognised the Company’s efforts to deliver sustainable andlong-lasting social and economic benefits to the Wiluna region throughstrategic partnerships, community investment and opportunities in employmentand training
01.07.21- Project & commissioning update
Salt Lake Potash Limited (SO4 or the Company) is pleasedto announce that process plant Practical Completion from GR EngineeringServices has been achieved at its Lake Way asset in Wiluna, Western Australia.Plant commissioning continues with first SOP product expected in the weeksahead.
The process plant Practical Completion certificate hasbeen issued, with plant handover to the SO4 operations team now complete.
Commissioning activities continued throughout June withall sub-systems that comprise the plant individually commissioned.
Fine tuning of the flotation circuit is ongoing withinitial product expected in the weeks ahead.
“The SO4 operations team continues to work towardscontinuous operation of the process plant to deliver first SOP, expected overthe coming weeks.”
