Keras Resources PLC has released an operations and sales update for the first quarter of 2024. The company's subsidiary, Falcon Isle Resources Corp, has commenced construction of the Integrated Plant in Delta, Utah, in partnership with Phosul LLC. The plant is on schedule for commissioning in May 2024, with production ramp-up expected through Q3 2024. The Integrated Plant will have a nameplate Phosul® production capacity of 520 tons per month, with potential for 920 tons per month when operating on single and double shifts, respectively.
The Integrated Plant will produce Phosul® granules, primarily marketed by Phosul LLC in the western states of the US. The formula comprises 80% of FIR's rock phosphate produced at its Diamond Creek mine, equating to up to 760 tons per month at full production. The company has seen a 109% increase in total sales for Q1 2024 compared to the same period in 2023, demonstrating increased traction for its high-grade certified products in the organic market.
The Phosul JV is expected to significantly increase FIR's quarterly sales of 50 mesh by approximately 2,280 tons per quarter, with 100% of the revenue from the sales to the JV attributable to FIR. Phosul® is currently being produced at Phosul LLC's processing facility in Idaho, and the JV's product will be delivered into an established market with significant growth potential in the southwestern states.
Graham Stacey, CEO of Keras, emphasized the transformative nature of the Delta facility and the Phosul JV, highlighting the associated reduction in moisture content, cost of processing, and improved product quality. The company is actively exploring new projects in Utah and surrounding states to augment its capacity from the Diamond Creek mine.
Stacey expressed optimism about the Q1 2024 sales and the upcoming commissioning of the Delta plant, anticipating a positive impact on cash flow and profitability. He also urged stakeholders to review the company's social media channels to witness the team's achievements. The announcement is deemed to constitute inside information and is now considered to be in the public domain.
In conclusion, Keras Resources PLC's Q1 2024 update reflects significant progress in its operations and sales, driven by the construction of the Integrated Plant and the Phosul JV. The company's focus on high-grade certified products and expansion plans indicate a positive trajectory for its organic phosphate production in North America.