Salt Lake Potash Share Discussion Threads

[homebrewruss] 16/4/2020 12:36

indeed, looks promising.

New interview with CEO from a couple of days ago, covering lots of the same ground to other recent ones here:

[adorling] 16/4/2020 12:10

Looks like the capital raise has gone better that expected looking at the the 16.8% rise today so far!

[homebrewruss] 03/4/2020 08:22

Adorling, do you know if they need any more finance to complete the project or is it just the project development faculty being released once they reach certain milestones?

[adorling] 03/4/2020 08:04

TONY SWIERICZUK, Chief Executive Officer

"The current volatile economic environment, and a relatively unchanged SOP price, highlights the resilience of the global agricultural sector. Our Lake Way Project continues to rapidly progress and remains on time and on budget with the achievement of another significant milestone."

There are very few Companies on AIM that actually deliver what the CEO says they will but SO4 has consistently hit all their milestones. Definitely a bagger in 2021 from these levels and expect to see over 40p again in Q1 2021 so over 100% gain from these lowly levels.

[ukgeorge] 25/2/2020 16:14

H&P research is free and MIFID-II compliant. For details please see here.
Salt Lake Potash
(LN: SO4)
Lake Way construction ahead of schedule & on budget; further offtake secured
GICS sector
Ticker
Market cap 25-Feb-20 (US$m)
Share price 25-Feb-20 (GBp)
Target price 31-Dec-20 (GBp)
88.0

[1234gold] 31/1/2020 16:51

Hardly a reason to sell.

Probably more to do with a fund manager in Sydney closing its doors...it was potentially a holder of some SO4.

[1234gold] 31/1/2020 16:49

The company had A$57.6 million in combined available funding as at 31 December 2019 vs. estimated cash outflows of $43.8m for the quarter.

In terms of delivering project financial close,

The company continues to work with Taurus to satisfy the conditions precedent to draw on the Project Development Facility. In addition to the company is also assessing a range of alternative and complementary funding options to ensure that the project is fully funded in the coming months.

[f15jcm] 07/12/2019 10:01

More often than not the share price falls below the placing price shortly after the event. Look at RBD. CEO and Chair have dug deep in their pockets, that's very encouraging. I'll be adding at an opportune time.

[activmojo] 07/12/2019 08:30

Not difficult for this management team to help themselves at a discount and very low risk, they had plenty of time to plan and had no intention to give PIs a look in.

[1234gold] 06/12/2019 23:54

It's a difficult predicament for management. Sometimes going out to all and sundry makes the process slower and less certain. If the share price dips close to the raising price, buy some then...

[adorling] 06/12/2019 07:06

"We are very pleased to complete the next stage of our funding, having attracted such strong interest from a number of new Instutional investors and ongoing support of our existing Institutional shareholders. Our close working relationship with Taurus has enabled SO4 to extend the Stage 1 Debt Facility whilst we complete documentation and satisfaction of conditions precedent for the main Project Development Facility. Along with the Placement funds, the extension to the debt facility enables us to continue the rapid construction at Lake Way in line with our project schedule."

Good to see CEO and Chairman taking significant stakes in the placing but a disappointing Retail Investors did not get the chance.

[homebrewruss] 22/11/2019 14:35

CEO on the vox podcast today:

[aspex] 18/11/2019 03:15

170000 t.p.a sales committed starting 2020 with another in negotiation should cover most of the 245kt annual output.Looks good. Note also the high quality achieved in tests.

[longtermgains] 14/10/2019 09:02

Agreed. The organic premium quality of the SO4 product is important: first because the premium price that can be achieved is not in the broker valuations. Second,it will be the catalyst for the vertical industry consolidation you refer to. US$1bn is about 300p per share. The Chairman has done it before!!

[1234gold] 13/10/2019 16:44

Agreed. Preaching to the converted here. If Lake Way can get to run rate of c.A$110m per annum EBITDA by end of 2021, Lake Way alone should trade on an multiple somewhere between 6 - 10.

The sooner the company can form up numbers for either Lake Wells or Lake Ballard the higher that multiple will be.

This could be a billion dollar stock under a successful Lake Way development scenario. Possibly more if one of the obvious major fertiliser companies takes a corporate interest...which in my is inevitable.

[longtermgains] 13/10/2019 15:45

New broker note just published with risked valuation of 93p. This is very, very conservative (but still offers c.100% share price upside).It is based on a 25% risk discount for Way despite the strongly positive BFS released on Friday and has only a marginal value for Wells and nothing for any of the other Lakes.
SO4 remains one of the cheapest stocks in the UK. I expect the shares will rise to 250p plus over the next three years as the full potential of Wells and the nine Lakes overall becomes clearer. SO4 is low risk and GDP independent. As its long term, highly cash generative characteristics become apparent, SO4 shares will be massively rerated.

[1234gold] 11/10/2019 11:58

A very strong set of numbers. If only the SXX analysts had focussed their clients minds on SO4...

[metis20] 11/10/2019 11:36

Vox Markets -

SALT LAKE POTASH (SO4) reported outstanding economic results after conducting a bankable feasibility study (BFS) at Lake Way - results included a low capital investment of approximately A$254 million to develop the project.

[metis20] 11/10/2019 07:32

Payback 3.5 years

Mine life 20 years

Steady state Project EBITDA of A$111 million annually and average annual after tax free cash flow of A$78 million (A$83 million during first 5 years)

Strong cash flows and low capital costs result in early payback period of 3.5 years

Project funding advanced
SO4 has previously announced that it reached an agreement with Taurus Funds Management (Taurus) for financing up to US$150m for the Project. The Company has commenced drawdown of the initial US$30m tranche of this facility. SO4 is working with Taurus to finalise documentation of the full facility and access the remaining portion of funding, with completion of the BFS being one of the key conditions precedent.

[adorling] 11/10/2019 07:21

What an outstanding BFS!

[aspex] 11/10/2019 01:03

hxxps://www.investi.com.au/api/announcements/so4/e3cc3146-ee6.pdf

We are on the way!

[aspex] 11/10/2019 00:38

Very attractive report on the feasibility and financial returns.

[1234gold] 09/10/2019 22:02

Looking forward to the BFS.