London-listed Salt Lake Potash (AIM:SO4) said it remains focused on ‘rapidly progressing’ its Lake Way SOP Project in Wiluna, Western Australia.
In a quarterly report for the period ending 31 December 2019, the company said it anticipated full funding of the project to reach finalisation ‘in the coming months.’
The group outlined that the second stage of the on-lake civil construction was progressing, with its completion expected in a similar timeframe to that of full funding.
Construction of evaporation ponds and trench infrastructure commenced in November 2019, the statement said, with over 400 hectares of brine evaporation pond area nearing completion and 35km of brine abstraction trenches planned to complete.
Shares in Salt Lake Potash were trading 2.05% lower at 35.75p during Friday afternoon.
In addition, 225 further hectares of brine evaporation ponds were operating at 31 December 2019 and producing harvest salts for plant commissioning in the fourth quarter of 2020.
A bankable feasibility study has been completed for the commercial scale development of the 245,000 tonnes per year project which the company said demonstrates ‘outstanding economic returns’ through low operating costs and capital intensity.
This included an estimated a pre-tax net present value of $696m and a post-tax net present value of $479m alongside a ‘steady state’ project EBITDA of $111 million annually, the company noted.
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