|Salt Lake Pot
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Salt Lake Pot Share Discussion Threads
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|Salt Lake Potash (SO4.L, 29.50p) - Speculative Buy
Salt Lake Potash visited our London office yesterday. Management discussed its plan to build a small-scale process plant in 4Q17 which should mean production in 2H18. It's being called a pilot plant but it could produce up to 40ktpa of high quality Sulphate of Potash (SOP) and be profitable. Based on a capex estimate of $35m and an our estimate production cost of US$300/t, a 40kt operation could produce US$10m of operating cashflow. Management also described the bigger picture and touched on the interest in SO4's projects being shown by global SOP players. This was also mentioned in yesterday's RNS.
Our view: This pilot plant development should provide catalysts for the stock over the next 12 - 18 months. However the investment case is overwhelmingly dominated by the potential for a large scale and very long life SOP operation. SO4 has a very large footprint in Western Australia with 9 potash containing salt lakes and 4750km2 of licences. It has the potential to be a major low cost SOP producer in an excellent jurisdiction with rail and power infrastructure. Also, unlike standard potash commodities, SOP's price has been strong with a very positive outlook due to its low salt content (SOP is 2.5x the price of benchmark KCL potash products such as Muriate of Potash, MOP). With a market cap of less than £40m we regard SO4 as the next Sirius, certainly in terms of upside potential. In fact unlike Sirius, SO4 has a far lower capex requirement, an established high value end product, and none of Sirius' massive underground engineering challenges. Maybe the trade should be buy SO4 and sell Sirius? We will update you in due course.|
|Hi. Anyone follow this?
Interesting scoping study out on this today showing potential for 400kt/y (stage 2) of SOP production at Opex to port of ~US$180/t. It would look like a 2-3 year build, with Capex to St2 ~US$210m.
With SOP around US$700/t and that vol, EBITDA could be around US$200m/y. Mcap of this today is ~US$50m.
Worth a look maybe. I hold.
|Trading will stop next Monday. Cash raising.|
|Can I make the second? You're right gerhart.|
|New thread started for SALT LAKE POTASH LIMITED formerly Wildhorse Energy Limited.
Website - http://www.saltlakepotash.com.au/|
|Salt Lake Potash Limited is a dual listed ASX and AIM mineral exploration company with a current focus on creating value from the Company's existing resource assets in Australia and the United States of America. As well as pursuing new opportunities in the resource sector to complement the Company's existing projects.
Potash - Lake Wells Project, Western Australia
Lake Wells is located approximately 80 km north of the Great Central Road and 180 km NE of Laverton in the West Australian Goldfields. ASLP holds three exploration licences and three applications over the Lake Wells playa, covering a total area of 1,126 km2. There are no known Native Title claims in relation to the permits.
Lake Wells basin is Australia’s tenth largest salt lake basin covering an area of about 19,000 km2. The ratio of the basin size to playa lake area is over 30 times, underpinning the high potential for elevated recharge.
Wildhorse also holds exploration licences or applications covering all or parts of Lake Irwin and Lake Minigwal and Lake Ballard in Western Australia, Lake Lewis in the Northern Territory and Lake Macfarlane and Island Lagoon in South Australia. The Company is compiling and assessing available data on these properties to allow an initial assessment of their prospectively for large scale Sulphate of Potash production from brines.
Golden Eagle Uranium
The Golden Eagle Uranium and Vanadium Project holds nine U.S. Department of Energy (DOE) Uranium/Vanadium Mining Leases, covering 22.7 km2 located in the Uravan Mineral Belt, Colorado USA. Wildhorse also possesses an option on Gold Eagle Mining Inc (GEMI) leases; GEMI has three DOE properties of which two have active operating permits. The Company has commenced a technical review of existing exploration information and is now focusing on establishing the project’s scale and potential for exploration upside.
last update 02/12/2015 14:11 GMT|
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