Salt Lake Potash Share Discussion Threads

[useless23] 29/7/2021 23:48

They don't know what they're doing. Trust the trend

[tigerbythetail] 29/7/2021 20:16

It's a large amount of money required here (AUD $100m?), which will be very hard to obtain. I can't see it being debt, IMO it will have to be equity. But I wonder if they haven't breached their existing loan covenants with Taurus.
I've followed SO4 for years - never invested, just tracked. I've looked at it today and decided not to buy the dip - in fact, never to invest in this company unless there is a complete boardroom clear out. (IMO, no way have the directors reported in a timely manner to market. At a minimum they have behaved irresponsibly and recklessly).
I don't think today's communication is fully honest, either. Given the ramp-up problems revealed today, why are they so confident that the plant can operate to nameplate in 2023? It makes no sense. There is clearly a flaw in the operation's fundamental chemistry.
I don't see a recovery here. Maybe administration. Maybe a massive equity dilution or a rescue takeover, in the way of SXX (as Tnt has already mentioned).
In short, this is a big mess, and the carnage is horrible, but not unjustified.

[apfindley] 29/7/2021 17:23

Disappointing update really.I suppose the suspension alone points to imminent equity funding, where we were previously not expecting this.Only have a small position here as my potash exposure is predominantly with Emmerson where I see their project as more deliverable, although they also still need debt+equity funding..Potash, a commodity more essential than gold, but never draws market interest as much.

[tnt99] 29/7/2021 14:33

Looks like a large hole in the ground is going to eat up any investment in this company only hope is someone comes along with deeper pocketsJust like situation in the Uk where Anglo American bought out the British mine for a song

[lefrene] 29/7/2021 13:19

If they did do that again it would certainly boost confidence, and send out the message that volume production and solvency are genuinely close at hand. But it has to be a loan, not more cheapo shares to dilute the existing holders.

[zen12] 29/7/2021 13:00

That maybe not too far fetched as you might think, the BoD have put there hands in their pockets in the past...

[lefrene] 29/7/2021 12:54

The unhappy situation now is that they are perhaps vulnerable to a predatory bid? If they knew this situation was building up they should have gone looking for more funds much earlier. Now they have destroyed capital value, making it harder to borrow or raise by dilution.

So some big hitter might snap it up for a song after all the hard work and invested capital, just at the point where it's about to come good. The other thing is, if that happens you're left wondering if that was always the game plan? Who needs gun slingers when you've got the AiM market!

My sympathies for those who have got burnt, I very nearly bought into this almost three years ago, I was seduced by the 'story' and the prospect of the operation being in a 'safe' country, but on a flip of the coin I bought AAZ instead on the basis that with them the pain and capital destruction had already been gone through, it was just at the point of production and a director had put over £3 million of his own cash in the kitty (a loan not a share dilution) to get it over the hump. Now if a director of SO4 puts in a few bob as a loan by mortgaging his house or whatever, to get it over the hump, I'd start to pay attention, but somehow I doubt the SO4 board are of the same calibre as AAZ?

[zen12] 29/7/2021 12:43

It may well be a very small sum of money which they can easily get a loan for...it's just we don't know why the carnage today!

[dartboard1] 29/7/2021 12:28

Depends, yes it's worth more if they can start cash flow, but they're going to breach all kind of debt covenants... so it's entirely up to debt holders now what any terms of the fund raise will be... or if they want to zero out shareholders and take over the assets (or hand them to a caretaker manager)...

[zen12] 29/7/2021 12:24

Some valid questions, but drop overdone here extra funding not needed until Dec 2021. Delay is also a contributing factor. Anticipate a further RNS soon here to expand on today's RNS.

[dearg doom] 29/7/2021 10:36

Shareholders have been taken in by management and dumped upon once again. I know, I have.

The share price falling today by 50% to 8p comes with justified negative sentiment. A real sickener!

Market cap has been reduced by £50 million-plus in anticipation of funding to come and the reduced production. Didn't see it coming but the signs of share price weakness were there. The missed production gap needs to be funded. Now know why loans were expensive.

Is the £50 million market cap lost today just due to the original quarterly planned production being delayed until 2022? So is the drop fair? Not clear.

Also of concern is the cost of the new CAPEX required. The model has changed and by how much or has it collapsed altogether?

Other future lakes will have the same issues, I suspect.
The multi-bagger may be more about getting my investment back.


After the share price precipitous fall, do I take the lower price as the lake bottom? Probably, expect to see some recovery and share price falls many times over in days to come.

Increased my holding by 25%. Not entirely rational.

[kop202] 29/7/2021 10:20

No point selling at the bottom..best sit tight and what happens

[zen12] 29/7/2021 10:18

Calm! They have until end of year to raise so they have time..

[ukgeorge] 29/7/2021 10:13

It is so stupid that Aim is open and ASX shut.

I expepect I have sold below the price that the raise is going to take place.

[kop202] 29/7/2021 09:56

I invested here following Warren B's adviceInvest in companies that can be run by an idiot because one day they probably will.........how true

[lefrene] 29/7/2021 09:27

Goodwill has been used up, how much more equity will they give away to keep the lights on as they try to get to solvency?

[useless23] 29/7/2021 09:14

Shocking state of affairs. Management have zero credibility. I've sold.

[ntv] 29/7/2021 09:06

so glad i sold position at last fund raise

[kennyp52] 29/7/2021 09:00

Forecasting 2022 back on plan .. but who will believe them ? Huge potential and massive capital already spent .. supposedly ready to go . It has value .. certainly more than the current MCAP .

[dartboard1] 29/7/2021 08:36

By the debt holders... for a pound

[ukgeorge] 29/7/2021 08:26

I always find it strange when a company suspend a share, give you a bit of news that there are some big problems and they need cash. Which causes huge amounts of fear. Then as today we get an update and resume trading, just with a bit more news on the problem and no talk of how the funding problem will be resolved.Which then causes a 50% crash.I've sold 8.85p.Well a lesson learnt.

[buywell3] 29/7/2021 08:24

By who and for how much ?

NAV 3.54p

[kennyp52] 29/7/2021 07:59

Let’s hope we get bought out by someone who knows what they are doing .

[hamidahamida] 29/7/2021 07:43

There you go again yet again This now management can not be trusted with what they say.......Absolutely disgraceful