KLL - Kalium Lakes

[System]

Kalium Lakes Limited is an exploration and development company focused on developing the Beyondie Potash Project in Western Australia. The Beyondie Potash Project is comprised of 15 granted exploration licences and a miscellaneous licence which cover an area of approximately 2,400km ².

It is anticipated that KLL will list on the ASX during December 2016.

http://www.kaliumlakes.com.au

 

[Parse]

Wow! Lots of chatter in here about Kalium Lakes..... not!

Beyondie Sulphate of Potash Project - Construction activity is tracking on time and within budget, with the Project already 23 per cent complete and commissioning scheduled to commence at the end of the 2020 year.

Their pretty investor presentation here.

They are going places and I believe the share price will go along with them. I see this as a possible good opportunity.

 

[greggles]

They are going places and I believe the share price will go along with them. I see this as a possible good opportunity.

I agree. Even though Australia consumes about 40,000 tonnes of SOP a year, KLL will be the only company in Australia producing it once it completes its Beyondie Potash Project in Western Australia early next year.

They have completed a Bankable Feasibility Study which confirms the project is technically and financially robust.

KLL will be the dark horse to watch in 2020.

 

[barney]

They are going places and I believe the share price will go along with them. I see this as a possible good opportunity.

They have completed a Bankable Feasibility Study which confirms the project is technically and financially robust. KLL will be the dark horse to watch in 2020.

Never looked at KLL till you chaps mentioned them above

Quick read through one of their presentations and I see what you both mean. The Project looks huge and management look like "doers".

They have calculated NPV of $606 million with an average EBITDA of A$126 Mpa …… and a 30-50 year mine life. There is a lot of room for profits to add up in those numbers

Greenstone Resources in recently for a 20% stake at 44 cps …. Chart looks ready to rise as well

 

[The Triangle]

An announced raising at 15 cents to secure $60 million in funding to complete the project. That is a massive dilution to the current suspended price of 49 cents. These projects always blow out in costs. I can nearly always invest against a small company financing a new mine project. KLL should now be in a good position (although I would hate to be a shareholder right now). Doubt it will fall to 15 cents on relisting as the other potash to be miners are all seeing a SP bump and none appear further along the KLL.

 

[Miner]

Kalium Lakes Limited is an exploration and development company focused on developing the Beyondie Potash Project in Western Australia. The Beyondie Potash Project is comprised of 15 granted exploration licences and a miscellaneous licence which cover an area of approximately 2,400km ².

It is anticipated that KLL will list on the ASX during December 2016.

http://www.kaliumlakes.com.au

in 2016 KLL talked about Beyondie Project. This is 2020 - they are still no where to be a viable option for this project.

 

[Miner]

An announced raising at 15 cents to secure $60 million in funding to complete the project. That is a massive dilution to the current suspended price of 49 cents. These projects always blow out in costs. I can nearly always invest against a small company financing a new mine project. KLL should now be in a good position (although I would hate to be a shareholder right now). Doubt it will fall to 15 cents on relisting as the other potash to be miners are all seeing an SP bump and none appear further along the KLL.

After an SP at 15 cents now the share price has gone to 13.5 cents. Probably just a beginning of a south move. They could not recover from the big fall as soon the CR was announced. DNH

 

[Miner]

Never looked at KLL till you chaps mentioned them above

Quick read through one of their presentations and I see what you both mean. The Project looks huge and management look like "doers".

They have calculated NPV of $606 million with an average EBITDA of A$126 Mpa …… and a 30-50 year mine life. There is a lot of room for profits to add up in those numbers

Greenstone Resources in recently for a 20% stake at 44 cps …. Chart looks ready to rise as well

View attachment 99364

I feel sorry for those who trusted and invested at 48 cents just before the trading alt to land at a price of 13.5 cents. Should not there be harsh sentencing for such a financial loss to share holders ?

 

[Miner]

I agree. Even though Australia consumes about 40,000 tonnes of SOP a year, KLL will be the only company in Australia producing it once it completes its Beyondie Potash Project in Western Australia early next year.

They have completed a Bankable Feasibility Study which confirms the project is technically and financially robust.

KLL will be the dark horse to watch in 2020.

Looks like the dark horse now has become a white elephant (An only metaphor for fun and no racial slur - so please no one should react on the wording but should understand the meaning ).
BTW, has someone from us, read the BFS and who did that and what science was behind it ??

 

[The Triangle]

Looks like the dark horse now has become a white elephant (An only metaphor for fun and no racial slur - so please no one should react on the wording but should understand the meaning ).
BTW, has someone from us, read the BFS and who did that and what science was behind it ??

I briefly looked though their BFS and a few other WA fertilizer upstarts. The science seems pretty straight forward - collect water, evaporate water, collect salts, concentrate salts in to high quality fertilizer, ship and sell fertilizer. Anyone who lives in WA knows collecting and evaporating water is pretty easy. Collecting the evaporated salts is pretty easy. Concentrating and separating the different salts requires processing equipment that I think is relatively standard or common overseas from a chemical process. No one seems to have built it yet in Australia which is where some issues have crept in (KLL said something like 'complexity of bringing German design to outback' or similar). If they have had building difficulties - then presumably there will be commissioning difficulties.

Without other Australian examples is nearly impossible to estimate the accuracy of their capital costs and operating costs. One would think the transport costs would be massive as trucking that stuff to port wont be cheap. There are so many others doing this, agrimin, SO4, APC, RWD, DNK, but KLL I think is the furthest advanced.

I pulled an order at 13 cents earlier in the week. I was wrong earlier thinking this would not fall below 15 cents, but it did. Obviously some nervous holders, and rightfully so - potash supply has been taken off market lately as prices have not been great, and most of these aspiring producers did all their fancy presentations and feasibility numbers when the outlook was better. Probably some good opportunities in this sector, but need to see more positive results and updates #'s, rather than marketing and self promotion.

 

[Miner]

I briefly looked though their BFS and a few other WA fertilizer upstarts. The science seems pretty straight forward - collect water, evaporate water, collect salts, concentrate salts in to high quality fertilizer, ship and sell fertilizer. Anyone who lives in WA knows collecting and evaporating water is pretty easy. Collecting the evaporated salts is pretty easy. Concentrating and separating the different salts requires processing equipment that I think is relatively standard or common overseas from a chemical process. No one seems to have built it yet in Australia which is where some issues have crept in (KLL said something like 'complexity of bringing German design to outback' or similar). If they have had building difficulties - then presumably there will be commissioning difficulties.

Without other Australian examples is nearly impossible to estimate the accuracy of their capital costs and operating costs. One would think the transport costs would be massive as trucking that stuff to port wont be cheap. There are so many others doing this, agrimin, SO4, APC, RWD, DNK, but KLL I think is the furthest advanced.

I pulled an order at 13 cents earlier in the week. I was wrong earlier thinking this would not fall below 15 cents, but it did. Obviously some nervous holders, and rightfully so - potash supply has been taken off market lately as prices have not been great, and most of these aspiring producers did all their fancy presentations and feasibility numbers when the outlook was better. Probably some good opportunities in this sector, but need to see more positive results and updates #'s, rather than marketing and self promotion.

Thanks for sharing.
Yes, I do agree with your share.
My concern is from the enormous time they took to transfer from BFS to DFS and CR. It was a loss opportunity.
Secondly I unfortunately saw some of the tech people very closely in the past. Unless the team has changed since then the DFS and execution phase could be everlasting.
I am now following KLL and DNK
I felt DNK potash project has better value. But as you said potash is not a darling any more.

 

[Miner]

some interesting news /articles on potash and its future in 2020 from Net.
https://investingnews.com/daily/res...re-investing/potash-investing/potash-outlook/

“The true demand for potash is in the soil,” he said. “If corn and soy prices stay reasonable, then we expect a good year in 2020, following a tough 2019 (and late 2018). What are the numbers? No one knows, but we expect a return to the typical 2 to 3 percent per annum long-term growth rate.”
Is Potash a good investment?
Potash is a high margin product and there is no commercial substitute. Unlike other resource plays there is no cycle, demand is always going to be there and its rising year over year making potash an excellent play in what will be a long term agricultural commodities bull market.
some wishful publication showing most of potash stocks dived south excepting couple:
https://stockhead.com.au/resources/two-reasons-why-potash-stocks-will-bounce-back-in-2020/ (This was published in late 2019 when there was normalcy and NO CORONA

 

[Xendragon]

Just watched the webinar on this https://www.noosaminingvirtual.com.au/
Its an interesting project, tho the presentation was fairly average from the chairman.
What did they spend the extra $60 mil on as the plant still hasn't been built yet?
It must be EPC ? So risk is now off with an agreed price to commissioning?

 

[Miner]

Something going on with KLL - disclaimer - holder - bought at 13.7 cents but after the CR, it is going down again.
Some interesting things-
MD sacked just after he spent substantial stock, by a substantial stock holder - a threat or poor performance. Read the two threads.
https://www.asx.com.au/asxpdf/20200713/pdf/44kgyn4bx2pp19.pdf - 13th July significant investment @15 cents by BH

https://www.asx.com.au/asxpdf/20200713/pdf/44kgyv9jg3v5nl.pdf - Stephen Dennis - the name sounds familiar - was he in Nifty Copper ??

$2 M investment by Brent Smoothy - real BS ?https://www.asx.com.au/asxpdf/20200713/pdf/44kgyz7bypnj0x.pdf
Fantastic presentation - https://www.asx.com.au/asxpdf/20200715/pdf/44kjrfq7hcw5lh.pdf
https://www.asx.com.au/asxpdf/20200727/pdf/44kvhgj7xh5rsj.pdf - BH became history on 27th July . Did he stuff up or planned for take over acquiring slowly ?
MAY BE MY TIP FOR AUGUST WHEN TIPPING COMPETITION COMES

 

[Miner]

Something going on with KLL - disclaimer - holder - bought at 13.7 cents but after the CR, it is going down again.
Some interesting things-
MD sacked just after he spent substantial stock, by a substantial stock holder - a threat or poor performance. Read the two threads.
https://www.asx.com.au/asxpdf/20200713/pdf/44kgyn4bx2pp19.pdf - 13th July significant investment @15 cents by BH

https://www.asx.com.au/asxpdf/20200713/pdf/44kgyv9jg3v5nl.pdf - Stephen Dennis - the name sounds familiar - was he in Nifty Copper ??

$2 M investment by Brent Smoothy - real BS ?https://www.asx.com.au/asxpdf/20200713/pdf/44kgyz7bypnj0x.pdf
Fantastic presentation - https://www.asx.com.au/asxpdf/20200715/pdf/44kjrfq7hcw5lh.pdf

 

[Xendragon]

So this is where the 61 million went.

Kalium Lakes will advance the Beyondie sulphate of potash project (BSOPP) in Western Australia through to first production by raising fresh working capital.

All proceeds of the $61 million raising will be used to fund the construction of the project, with major shareholder Greenstone Resources already committed to purchasing approximately $12 million of Kalium Lakes shares.

Kalium Lakes identified an overrun of capital costs due to the complication of setting up operations for a brand-new industry in Australia.

This is mainly due to weather impacts, including two cyclones and design changes on the processing plant and the product storage and treatment infrastructure.

Kalium, therefore, underestimated the complexity of taking a German-based design and building it in harsh Western Australian desert conditions.

“Commencing a new Australian industry and being a first mover in sulphate of potash (SOP) has presented some development challenges,” Kalium Lakes managing director Brett Hazelden said.

“Despite the capital cost overrun, the project still remains a financially attractive, long life, low operating cost and high margin business once it commences steady state operations.

“Importantly, our revised capital budget has been verified by independent engineering specialists who have reviewed the project and we are confident that the offer will fund us through to completion of construction of the BSOPP and through to first production.”

The Beyondie project is now 40 per cent complete, with Kalium Lakes having completed approximately $100 million worth of works.

This includes the installation of all brine production bores and freshwater bores, 23,000 tonnes of SOP being pumped into evaporation ponds, placement of high-density polyethylene (HDPE) pipelines and completion of 10-mile trenches and two pump stations.

Works relating to non-process infrastructure is also nearing completion, with the gas pipeline awaiting installation.

Kalium Lakes expects to deliver first production at Beyondie in the third quarter of next year. Its ore reserve life is estimated at 30-plus years.

 

[Xendragon]

Brett Hazelden From LinkedIn

Brett has over 20 years of experience serving the Australasian resources industry. His experience includes being a company director, CEO, project manager in the iron ore, gold, copper, zinc, lead, tungsten, potash and diamond sectors. He has also been responsible for environmental permitting and approvals, heritage, external relations, and tenure management. Brett has also been involved in numerous mergers, acquisitions and due diligence reviews.

Experience

• 
  
  Managing Director
  Kalium Lakes Limited
  
  
  Feb 2015 – Jul 2020 5 years 6 months
  
  Perth, Australia
  
  The Company is an exploration and development company focused on developing the Beyondie Potash Project in Western Australia in respect to which it is aiming to produce SOP for sale domestically and internationally.
  
  
• 
  
  Director / Consultant
  Inceptioneer
  Nov 2014 – Jun 20194 years 8 months
  
  Perth, Australia
  
  Boutique consultancy providing resource sector consulting services in the areas of feasibility study management, project implementation, government and stakeholder relations, approvals, process engineering, metallurgical support, capital and operating cost estimating, financial evaluation and due diligence reviews.
  
  
• 
  
  General Manager Project Development
  Iron Ore Holdings (Taken over by BC Iron)
  Jan 2012 – Oct 20142 years 10 months
  
  Buckland Independent Mine, Road & Port Project (Iron Ore), DFS & PFS.
  Maitland River (Magnetite) Concept Study.
  Iron Valley (Iron Ore) FS & Implementation Committee.
  Mardie Salt (Salt) Concept Study.
  
  
• 
  
  Project Director
  FerrAus (Taken over by Atlas Iron)
  Mar 2010 – Dec 20111 year 10 months
  
  FerrAus Pilbara Project (Iron Ore) DFS & PFS, Mine, Plant & Infrastructure, Rail Spur and Port Facility.
  
  
• 
  
  Project/Study Manager
  Newcrest Mining
  Nov 2007 – Mar 20102 years 5 months
  
  Project & Study Manager - Gosowong Expansion Project & Study (Au/Ag), EPCM/FS, Indonesia
  Study Manager - O’Callaghans Polymetallic (W/Cu/Pb/Zn), PFS, Western Australia
  
  
• 
  
  Study Manager & Project Engineer
  Fluor
  Aug 2004 – Oct 20073 years 3 months
  
  Study Manager - Gosowong Expansion Study (Au/Ag), PFS, Indonesia
  Business Services Manager - Oxiana Prominent Hill (Cu/Au), EPCM, South Australia
  Project Engineer – Boddington Gold Mine (Au,Cu), FS, Western Australia
  Project Engineer - Hope Downs – (Iron Ore) Refresh FS, Western Australia
  Fluor Global Sales Co-ordinator
  
  
• 
  
  Engineering Manager & Senior Process Engineer
  Simon Engineering
  Aug 2003 – Aug 20041 year 1 month
  
  South Middleback Ranges (Iron Ore), EPC – South Australia
  
  
• 
  
  Senior Metallugist
  Rio Tinto
  Jan 2000 – Jul 20033 years 7 months
  
  Argyle Diamonds
  
  Argyle Diamonds
  
  
• 
  Metallurgist
  Sons of Gwalia
  Jan 1997 – Jan 20003 years 1 month
  
  Gold
  

Education

• Australian Institute of Company Directors
  
  
  Australian Institute of Company Directors
  Company Directors Course
  2012 – Present
  
  
• Edith Cowan University
  
  
  Edith Cowan University
  Master of Business Administration (M.B.A.)
  
  
  
• Murdoch University
  
  
  Murdoch University
  Bachelor of Science (B.Sc.)Metallurgy and Chemistry
  
  
  
• Murdoch University
  
  
  Murdoch University
  Post Graduate CertificateEnergy Studies

 

[NoFOMO]

Technically looks like a 50% retracement. No market makers involved probably but very standard if you watch Fibs which are self predictive/fulfilling

 

[Xendragon]

https://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=02263116

 

[Xendragon]

This is finally going in the right direction. Quarterly out today and at 63% completion as of 30th Sep.
Looking for more green days to come.
Are you on this @Miner ?