Kalium Lakes has produced the first batch of sulphate of potash at Beyondie and Macquarie notes prices in some regions have risen above US$700/t.
The broker considers the production a major de-risking step for the company as it is the first Australian sulphate of potash producer.
Commissioning remains on budget and the ramp up to nameplate is expected by the third quarter of FY22. This will be key to capitalising on the high prices, the broker adds. Outperform rating and target lifted to $0.40 from $0.35.
Sector: Materials.
Target price is $0.40.Current Price is $0.21. Difference: $0.19 – (brackets indicate current price is over target). If KLL meets the Macquarie target it will return approximately 48% (excluding dividends, fees and charges – negative figures indicate an expected loss).
