Shares in potash developer Kalium Lakes will remain suspended as it drafts in Argonaut to helm a strategic process exploring any and all options for the business.
Shares in potash developer Kalium Lakes will remain suspended as it drafts in Argonaut to helm a strategic process exploring any and all options for the business.
Kalium Lakes, considered Australia’s first producing sulphate of potash company, has not traded since the start of June pending an operations update.
Its flagship Beyondie has struggled to meet nameplate capacity after running into myriad technical and supply-related issues in the past 18 months, which has in turn increased pressure on the company’s finances.
Sulphate of potash production from Beyondie was just over 2,000 tonnes for April and May under a plant performance improvement plan.
Kalium had been targeting a rate of approximately 60,000 tonnes per annum by this month, which has now been scaled back to 55,000 tonnes per annum for the December quarter.
An update from Kalium today outlined plans for a new $10 million liquidity facility from lenders Northern Australia Infrastructure Facility (NAIF) and KfW IPEX-Bank GmbH (KfW) as an interim measure.
An initial $5 million will be provided in tandem with the start of a ‘strategic process’ spearheaded by adviser Argonaut.
“Securing the Liquidity Facility funding from our Lenders enables Kalium Lakes to continue to progress our production ramp up whilst providing the platform to commencing a strategic process to maximise the value of Beyondie,” Kalium Lakes acting chief executive Jason Morin said.
Kalium said the process would explore strategic and corporate opportunities to reposition the company and its capital structure.
“As we continue to progress our plant performance improvement plan, Kalium Lakes has undertaken a comprehensive review of our production targets during the quarter that reflects the operating learnings gained over the last 12 months.”
Shares are to remain suspended until the company has a ‘clear pathway forward’ for shareholders and other stakeholders, Kalium told the market.
