(SO4 ) results for the year ended 30 June 2020 focussed on the development the Lake Way project in the Goldfields district of Western Australia.
On-Lake Operational highlights included:
Pond Operational highlights included:
Off-Lake Operational highlight included:
Early works at the process plant site commenced in earnest in the first calendar quarter of 2020. By the end of the financial year the Company had completed bulk civil earthworks and commenced pouring concrete foundations.
Construction of Non-Process Infrastructure commenced in the first calendar quarter with bulk civil earthworks. By financial year-end the Lake Way village had been constructed with 100 permanent and 160 temporary rooms.
Bulk civil earthworks were finalised including pad preparation for construction of the power plant, warehouse, workshop, administration and site village, as well as construction of the raw water pond, runoff settlement ponds and site access roads.
At the West Creek process water borefield the Company drilled a total of seven production bores and two monitoring bores that will supply the RO Plant (potable water) and water for the process plant. The production bores have been test-pumped and the steady state operation pumping philosophy finalised.
In June 2020 SO4 awarded the Engineering, Procurement and Construction (EPC) and Engineering, Procurement and Construction Management (EPCM) contracts for construction of the processing facility to GR Engineering Services (ASX:GNG). The EPC contract encompassed the provision of plant, labour, materials and construction services for the process plant and Non-Process Infrastructure (NPI) valued at A$85m. The EPCM contract encompassed the provision of services for the engineering, procurement and construction management for areas of the process plant and NPI, valued at A$22m.
By the end of the financial year the project was 90% procured for major packages with all key vendor contracts executed. The largest procurement package, the process plant crystalliser, arrived at site in July 2020, several weeks ahead of schedule. Other major plant components including centrifuges, attritioners, flotation cells, sizing screens, thickeners, rotary drier, impact crushers, lump breakers and conveyer belts were procured and expected to arrive at site towards the end of the 2020 calendar year.
The Company executed purchase agreements with six offtake partners during the year, accounting for 224kt per annum of Lake Way's 245kt per annum capacity. In combination these agreements geographically diversify SO4's marketing portfolio with six reputable partners supplying SOP to six continents.
Shares in SO4 have traded as high as 34p over the past three months with the shares opening flat at 25.5p following publication of FY20 Results.
At 30 June 2020, the Group had cash reserves of $7,030,418 (2019: $19,304,075) and net assets of $59,522,349 (2019: $14,708,374), an increase of 305% compared with the previous year.
The increase in net assets is largely a result of raising $49,108,876 (net of costs) throughout the 12 month period and directly applying those funds to the construction and ongoing development of the Lake Way Project.
Post Balance Sheet Date Highlights
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