Morgans updates its target price on Kalium Lakes to reflect equity dilution driven by the company's $60m equity raising at $0.18 per share, which significantly exceeded the broker's expected $30m at $0.20 per share. 

The raising will be used to fund a $50m capacity expansion at the company's Beyondie SOP project, which reported first production last month. 

The Speculative Buy rating is retained and the target price decreases to $0.27 from $0.32.

Sector: Materials.

Target price is $0.27.Current Price is $0.18. Difference: $0.09 - (brackets indicate current price is over target). If KLL meets the Morgans target it will return approximately 33% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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