Reward Minerals Announces Strategic Focus on Carnarvon Potash Project and Technology
RWD (RWD) Share Update July 2024 Wednesday 24th
Reward Minerals Shifts Focus to ESG-Friendly Potash and Technology
Reward Minerals Limited (ASX: RWD) has announced a strategic shift to focus on its Carnarvon Potash Project (CPP) and innovative potash processing technology, aiming to achieve the lowest SOP production costs globally.
Instant Summary:
- Shift in focus to Carnarvon Potash Project and processing technology.
- Surrender of KP Potash Project tenements except for Miscellaneous Licence L45/302.
- Potential for lowest SOP production costs using solar seawater salt operation reject brines.
- Next steps include advancing processing technology, designing initial work programs, and engaging with potential partners.
Strategic Shift to Carnarvon Potash Project
Reward Minerals Limited (ASX: RWD) has announced a strategic decision to focus its resources and efforts on the Carnarvon Potash Project (CPP) and its proprietary processing technology. This move is aimed at achieving the lowest Sulphate of Potash (SOP) production costs globally by utilizing solar seawater salt operation reject brines (bitterns).
The company has decided to surrender its KP Potash Project tenements, retaining only the Miscellaneous Licence L45/302, which includes the KP Project camp and infrastructure. This infrastructure will be used for minor environmental remediation of work areas, including feasibility study test ponds, trenches, and site access tracks.
Breakthrough Potash Processing Technology
Reward Minerals' CEO, Lorry Hughes, highlighted the company's breakthrough potash processing technology, which was developed following an engineering scoping study for the CPP completed in September 2023. The technology promises to significantly reduce SOP production costs by using bitterns, which are routinely discarded from long-life solar salt operations.
Hughes emphasized the potential for this technology to be adopted by solar seawater salt operators in Western Australia, potentially transforming the global landscape for SOP production. The use of seawater bitterns is considered the most environmentally sustainable method for recovering SOP, aligning with the company's commitment to ESG (Environmental, Social, and Governance) principles.
Next Steps and Future Plans
Over the next two quarters, Reward Minerals will focus on several key activities: advancing its processing technology towards commercialization, designing and obtaining statutory approval for initial work programs at the Carnarvon Potash Project, and engaging with solar salt, fertilizer, and seawater desalination companies worldwide. These engagements aim to discuss the application of Reward’s technology and explore potential joint ventures and investment opportunities.
The strategic shift to focus on the Carnarvon Potash Project and innovative processing technology is likely to have a positive impact on Reward Minerals' stock. The potential for achieving the lowest SOP production costs globally and the environmentally sustainable approach may attract investor interest and boost market confidence. The company's proactive steps towards commercialization and engagement with potential partners further enhance its growth prospects.
Investor Reaction:
Analysts and investors have responded positively to Reward Minerals' strategic shift. The focus on ESG-friendly methods and the potential for cost reduction in SOP production are seen as significant advantages. Some investors have expressed optimism about the company's future growth and the potential for successful commercialization of its processing technology.
Conclusion:
Reward Minerals' strategic focus on the Carnarvon Potash Project and innovative processing technology positions the company for potential growth and success in the potash industry. Investors should monitor the company's progress in advancing its technology and securing partnerships. The environmentally sustainable approach and cost reduction potential make Reward Minerals an attractive prospect for long-term investment.