(Alliance News) - Salt Lake Potash Ltd said Friday its interim loss widened substantially on new pre-development costs and higher exploration expenses on the rapid progression of the Lake Way project in Western Australia.
For the six months to the end of December, the potash firm's pretax loss was AUD32.1 million, around GBP16.1 million, widened from AUD5.8 million the same period the year before.
This was due to new pre-development expenses of AUD12.9 million, relating to the construction of the first phase of the commercial scale sulphate of potash brine evaporation ponds and the dewatering of the Williamson Pit.
There was also an increase in exploration and evaluation expenses to AUD12.2 million from AUD4.7 million, following progress at the Lake Way project, including exploration activity and the completion of the bankable feasibility study.
Looking ahead, the project is on-track for commissioning in December and first shipment in the first quarter of 2021.
Salt Lake Potash did not make any revenue during the period, but said it had cash reserves of AUD36.2 million as at December 31, more than doubled from AUD12.0 million the prior year.
Shares in Salt Lake Potash were down 1.5% at 20.20 pence on Friday in London.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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