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.

| More on:
A mining worker wearing a hard hat, orange high vis vest and blue long-sleeved shirt raises his fists in celebration with an excited expression on his face

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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%.

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.

More on Share Market News

Woman holding gold bar and cheering.
Gold

Why Macquarie expects this surging ASX 200 gold stock could leap another 40%

Macquarie forecasts another year of strong outperformance from this fast-rising ASX 200 gold miner.

Read more »

A young woman looks at here phone as she strides out in an airport dragging her wheelie bag behind her and smiling widely.
Broker Notes

Macquarie tips 15% upside for this ASX 200 industrials stock

Is this transportation business preparing for take-off?

Read more »

Red buy button on an apple keyboard with a finger on it representing asx tech shares to buy today
Broker Notes

Brokers name 3 ASX shares to buy today

Here's why brokers are feeling bullish about these three shares this week.

Read more »

Ten happy friends leaping in the air outdoors.
Share Gainers

Here are the top 10 ASX 200 shares today

It was another momentous session for ASX shares this Friday.

Read more »

Overjoyed man celebrating success with yes gesture after getting some good news on mobile.
Share Gainers

Why BHP, Catalyst Metals, Mesoblast, and Pilbara Minerals shares are shooting higher

These shares are ending the week with a bang. But why?

Read more »

Disappointed man with his head on his hand looking at a falling share price his a laptop.
Share Fallers

Why 29Metals, Atlas Arteria, DroneShield, and Yancoal shares are falling today

Let's see why these shares are ending the week in the red.

Read more »

Doctor doing a telemedicine using laptop at a medical clinic
Healthcare Shares

The Mesoblast share price just rocketed 38%! Here's why

ASX investors just sent the Mesoblast share price up 38%. But why?

Read more »

Stock market chart in green with a rising arrow symbolising a rising share price.
Record Highs

Big ASX 200 news! Market hits 8,700-point record high

It's a historic day for the ASX.

Read more »