REG - Keras Resources PLC - Commencement of commercial production at Delta

Keras ResourcesAnnouncement

01/08/2024 07:00

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RNS Number : 6774Y  Keras Resources PLC  01 August 2024

Keras Resources plc / Index: AIM / Epic: KRS / Sector: Mining

 

1 August 2024

 

Keras Resources plc ('Keras' or the 'Company')

 

Commencement of commercial production at the Integrated Delta Processing Plant

Keras Resources plc (AIM: KRS) ("Keras") is pleased to announce the
commencement of commercial production of PhoSul® granules at its Integrated
Delta Processing facility, Utah. Several upgrades and optimisations were
implemented progressing from hot commissioning to commercial production, with
consistent production now having been achieved by the operational team from
contractor Burningham Enterprises Group operating on a single shift basis to
maintain and improve upon nameplate saleable product output of 5 tons per
hour. The timely achievement of this milestone was made materially smoother
with on-site input from the Company's joint venture ("JV") partners PhoSul
LLC, which has saved Keras both time and cost.

 

The JV will spend the coming months operating on a single shift basis ironing
out early production improvements, progressing to double shift operations
during the fourth quarter of 2024 and progressively to continuous operations
during the first quarter of 2025.

 

Per previous announcements, PhoSul®'s formulation has been specifically
developed to improve Phosphorous ("P(2)O(5)") availability to crops, where
results from field tests have demonstrated significant yield and quality
improvements over competitor rock phosphate sources. With current traditional
phosphate fertilizer production and use under increased environmental
pressure, PhoSul® further helps to solve Phosphorous run-off and water
resource contamination, a key component of the Company's organic identity.

 

Preparations for the 2024 summer mining season have commenced, during which
the Company plans to produce between 8,000 and 10,000 tons dictated by demand
during the back end of summer and early fall. 100% owned Falcon Isle Resources
("FIR") will sell rock phosphate to the JV, building up to steady-state sales
of approximately 10,500 tons per annum, in addition to internal sales of
approximately 6,500 tons per annum.

 

Graham Stacey, CEO of Keras, commented, "It is naturally an exciting time for
us to be building a PhoSul® stockpile at our Delta Facility. Organic
granulation requires a very specific formula and the blending of the PhoSul®
ingredients in the design ratio, supplemented with moisture, an organic binder
and a dust control agent in the overall product blend has been a challenging
process which we will continue to optimise with strong support from our PhoSul
LLC JV colleagues. An important part of our transition to sales will include
moisture and hardness testing as well as 240 size guide number ("SGN")
analysis on an ongoing basis. Our intention is to produce 240SGN product in
bulk in the short-to medium-term, with the option to produce 1 ton bags should
demand dictate.

 

"The move to Delta has been a significant shift in our operating model,  we
look forward to settling into our new facility, optimising operations and
growing our sales without the distractions we've experienced to date, and
delivering profitability to our shareholders. We look forward to announcing
our output and profitability forecasts during the coming weeks."

 

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under Article 7 of the Market
Abuse Regulation (EU) No. 596/2014 (as amended) as it forms part of the
domestic law of the United Kingdom by virtue of the European
Union (Withdrawal) Act 2018 (as amended). Upon the publication of this
announcement via the Regulatory Information Service, this inside information
is now considered to be in the public domain.

 

**ENDS**

 

For further information please visit www.kerasplc.com
(http://www.kerasplc.com/) , follow us on Twitter @kerasplc or contact the
following:

 

 Graham Stacey                         Keras Resources plc             info@kerasplc.com

 Nominated Adviser & Joint Broker      SP Angel Corporate Finance LLP  +44 (0) 20 3470 0470

 Ewan Leggat / Caroline Rowe

 Joint Broker                          Shard Capital Partners LLP      +44 (0) 207 186 9900

 Damon Heath / Erik Woolgar

Notes:

Keras Resources (AIM: KRS) wholly owns the Diamond Creek organic phosphate
mine in Utah, US. Diamond Creek is one of the highest-grade organic phosphate
deposits in the US and is a fully integrated mine to market operation with
in-house mining and processing facilities. Keras's 100% held subsidiary Falcon
Isle Resources Corp. ("FIR") recently entered into a 50/50 Joint Venture with
Idaho-based PhoSul LLC to produce PhoSul®, a certified organic 240 SGN
granule tailored specifically to increase P(2)O(5) available to crops, from
FIR's Integrated Processing facility in Delta, Utah. The Integrated Processing
Facility produces a variety of organic phosphate products including milled 10
mesh and 50 mesh P(2)O(5) products as well as PhoSul® granules which can be
tailored to customer organic fertiliser requirements.

 

The Company is focused on continuing to build market share in the fast-growing
US organic fertiliser market and build Diamond Creek into the premier organic
phosphate producer in the US .

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