Keras Resources plc has announced the commencement of commercial production of PhoSul® granules at its Integrated Delta Processing facility in Utah. The company has achieved consistent production with the operational team from contractor Burningham Enterprises Group operating on a single shift basis, aiming to maintain and improve upon nameplate saleable product output of 5 tons per hour. The JV partners PhoSul LLC will be working on ironing out early production improvements and progressing to double shift operations during the fourth quarter of 2024 and continuously during the first quarter of 2025.
PhoSul®'s formulation has been specifically developed to improve Phosphorous ("P2O5") availability to crops, with field tests demonstrating significant yield and quality improvements over competitor rock phosphate sources. The company is preparing for the 2024 summer mining season, during which it plans to produce between 8,000 and 10,000 tons dictated by demand. Additionally, 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, expressed excitement about building a PhoSul® stockpile at the Delta Facility and highlighted the specific challenges of organic granulation. He also emphasized the company's intention to produce 240SGN product in bulk in the short-to medium-term, with the option to produce 1 ton bags should demand dictate. Stacey also mentioned the significant shift in the company's operating model with the move to Delta and the anticipation of settling into the new facility, optimizing operations, and growing sales without the distractions experienced to date.
The company looks forward to announcing its output and profitability forecasts in the coming weeks. The information contained in the announcement is considered inside information and is now in the public domain upon its publication via the Regulatory Information Service.
Keras Resources wholly owns the Diamond Creek organic phosphate mine in Utah, US, and its 100% held subsidiary Falcon Isle Resources Corp. recently entered into a 50/50 Joint Venture with Idaho-based PhoSul LLC to produce PhoSul® granules 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 P2O5 products, as well as PhoSul® granules tailored to customer organic fertilizer requirements.