Salt Lake Potash report “outstanding economic results” after BFS at Lake Way
Based on the results of the BFS, the firm reported numerous areas which demonstrated that the project will generate outstanding returns.
The results indicated the project would require a low capital investment of approximately A$254 million to develop.
Strong economics further indicated a post-tax net present value of A$479-million and an internal rate of return of 28% with an EBITDA of A$111 million annually and average annual after tax free cash flow of A$78 million.
The BFS incorporated changes from the previous Scoping Study conducted in June, which included a revised processing methodology that delivering improved economic outcomes and increased annual production rate to 245,000t.
Tony Swiericzuk, Chief Executive Officer of Salt Lake Potash said, "We are extremely excited to release the Lake Way Project BFS with such outstanding economic results. Significant work has been undertaken by the Company since the Lake Way Scoping Study which has further strengthened the Project fundamentals.”
SO4 has significantly advanced development of the Project since the Scoping Study, including completion of 125ha of evaporation ponds which are now filled with high grade brine (25kg/m3 SOP) from the Williamson Pit.
Mr Swiericzuk further commented, “The BFS demonstrates the ability to significantly increase the production rate and optimise development capital while maintaining our position as a low cost producer.
SO4 has completed the first stage of on-lake construction and will continue with progressive development of remaining commercial scale evaporation ponds planned from Q4 2019."
Lake Way is located in the Northern Goldfields Region of Western Australia, less than 15km south of Wiluna.
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