Kalium Lakes has announced the first sulphate of potash production at the Beyondie project. Beyondie will expand to a 120,000 tonnes per annum project, from it’s current 90,000 tonnes per annum, over the next year to keep margins sustainable.
Morgans notes sulphate of potash pricing has risen since previous updates, and upgrades its long-term pricing to US$600 per tonne. However, the broker also highlights rising shipping costs and increases forecast operating costs.
The Speculative Buy rating is retained and the target price increases to $0.32 from $0.24.
Sector: Materials.
Target price is $0.32.Current Price is $0.23. Difference: $0.09 – (brackets indicate current price is over target). If KLL meets the Morgans target it will return approximately 28% (excluding dividends, fees and charges – negative figures indicate an expected loss).
