Salt Lake Potash Share Discussion Threads

[lenses] 03/8/2017 13:53

Hi HE

Has the co not decided to build a pilot plant and take that to initial production of SOP as part of the feasibility process (and also provide some development income) before going into any - dependent on feasibility - contractual arrangements with fert distributors? FMU.

This from the 20/4/17 RNS:

"Salt Lake Potash Plans SOP Pilot Plant at Goldfields Salt Lakes Project.

Ongoing Discussions with Prospective Global Industry Partners.

The Directors of Salt Lake Potash Ltd (Salt Lake or the Company) are pleased to advise that Amec Foster Wheeler (AMEC) have been appointed to prepare an analysis of the alternatives for the Company to construct a Pilot Plant at the Goldfields Salt Lakes Project, intended to be the first salt-lake brine Sulphate of Potash (SOP) production operation in Australia.

A Pre-Feasibility Study (PFS) on the full-scale production model is continuing and the Pilot Plant will form a part of the feasibility study process.

Salt Lake has been in discussions since last year with a range of international industry SOP and specialist fertiliser producers and distributors, including several global market leaders, about the optimal way to realise Salt Lake's outstanding potential in the global SOP market.

Based on those discussions, the Company has formed the view that the appropriate path forward is to initially construct a Pilot Plant to demonstrate the technical and commercial viability of brine SOP production from the Goldfields Salt Lakes Project, before expanding the plant to long term optimal production levels on a staged, modular basis...."

Edit. Was the financing of this pilot plant also not the reasoning provided by the co, at least in part, for the recent cash raise? The one you partook in?

L.

[horndean eagle] 03/8/2017 10:40

I took part in the placing. Big yawn. They were supposed to be in off take talks but nothing materialised yet it seems.

[pre] 03/8/2017 09:35

Extract from there quarterly activities report just released a few days ago:

'The Company completed a placement of 41,000,000 ordinary shares at an issue price of A$0.43 (25 pence) to a range of strategic, institutional and sophisticated investors in Australia and overseas raising a total of A$17.6m (GBP10.25m) before costs...'


So having reviewed the impressive update, the market has yet to recognise this company imo, dyor etc..see there's buyers this morning already

[horndean eagle] 03/8/2017 09:06

Pre - Who is the strategic investor?

[lenses] 02/8/2017 19:20

Sulphate of Potash is currently selling at $688/t



The maths tell a story.

L.

[pre] 02/8/2017 15:23

This looks like a little gem folks...strategic investor on board:-)

[theblackbaron] 02/5/2017 09:59

Interesting article on share talk about Salt Lake Potash not in myself but looking to buy SXX potential production 2H 2018 with scop study results mid year so within next 6 weeks

[tyranosaurus] 01/5/2017 19:22

I tipped a toe here as well, on Friday at 27p.

[the fat controller] 28/4/2017 13:50

Have dipped a toe here.
Usual AIM story, if they deliver then the potential upside and future dividends could be huge. IF.
Another one to tuck away in a drawer and review in a while. I wont be checking up here every day.
GLA TFC

[tyranosaurus] 28/4/2017 13:40

capex estimate of £35m suggests that there will be more placings in the near future to which the private investor will not be allowed to participate.

[lenses] 28/4/2017 10:50

Placing yesterday that looks to have been well received with the share price recovering above the PP.

Compass Minerals(USA)is selling SOP at $725/t ($657 per ton, Q4 '16 earnings disclosure). The potential looks significant here. PDYOR.

L.

[cpap man] 21/4/2017 12:16

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.

[vitamal] 31/8/2016 08:39

Nice website

[lenses] 30/8/2016 09:37

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.

L.

[oiht] 19/3/2016 07:14

Already!!?

[geoff80] 18/3/2016 14:37

Trading will stop next Monday. Cash raising.

[oiht] 26/1/2016 11:29

Can I make the second? You're right gerhart.

[noirua] 02/12/2015 13:04

New thread started for SALT LAKE POTASH LIMITED formerly Wildhorse Energy Limited.
Website -