Salt Lake Potash Investors - SO4

Salt Lake Potash Investors - SO4

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Stock Name Stock Symbol Market Stock Type
Salt Lake Potash Limited SO4 London Ordinary Share
  Price Change Price Change % Stock Price Last Trade
0.00 0.0% 2.45 00:00:00
Open Price Low Price High Price Close Price Previous Close
2.45 2.45
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noirua: Investor Presentation 24 May 2021 Http:// 1 October 2021 AIM and ASX listed company Salt Lake Potash Limited ("SO4" or the "Company"), announces its results for the year ended 30 June 2021. Https:// or Https://
tigerbythetail: AFR article: Troubled commodities aspirant Salt Lake Potash now believes it will start generating revenue just weeks before it is due to start repaying debt, giving it a strong incentive to end its habit of over-promising and under-delivering.Salt Lake Potash was poised to be the first of a fleet of new Australian potash producers when construction of its processing plant at Western Australia’s Lake Way was completed in June, but sustainable production was never achieved after disappointing geological and processing results.The potassium grades extracted and evaporated from Lake Way were lower than hoped and a floatation circuit within the processing plant also delivered underwhelming results.The company needs more money to fix its problems, and big investors were approached about an equity raising in recent days, which the company hopes to complete within the next eight weeks.Assuming it can raise the required funds, Salt Lake Potash said it hoped to be producing potash before March 31.The equity raising shapes as a sliding doors’ moment for Salt Lake Potash’s battle weary investors, after the company conducted six separate equity capital raisings in the year to June. Equity markets have been extremely accommodating for junior resources stocks over the past year with pre-revenue exploration companies raising record amounts of cash in each of the past three consecutive quarters.In that market context, investors spoken to over the past week believed Salt Lake Potash would most likely be given another chance to get its project working.Lenders such as Taurus Funds Management have security over the assets at Lake Way and the $US138 million debt arranged by Taurus carries interest rates of 9 per cent.Interest is charged at 12 per cent on a second $18 million loan with Sequoia Economic Infrastructure Fund.Salt Lake Potash is due to start repaying the Taurus syndicated loan on March 31, while repayments on the Sequoia loan commence on April 11. If those repayment schedules are not revised under the equity raising, the company faces a relatively urgent delivery schedule; Salt Lake Potash said on Friday it expects first potash production in March.The fundraising exercise will be doubly important for Salt Lake Potash chairman Ian Middlemas, who chairs a second ASX listed company that surprised investors by purchasing more than 44 million shares in Salt Lake Potash over the past year at between 40¢ and 50¢ per share.That company, Equatorial Resources, was an African iron ore aspirant with no obvious connection to Western Australian potash.The reality is worseEquatorial appears to have burned money on the Salt Lake Potash investment; Salt Lake shares were 31¢ when they went into a trading halt in July.But the reality is much worse; Salt Lake Potash’s London listed shares have continued trading through the Australian halt, and have lost 80 per cent of their value since the Australian stock went into the trading halt. That suggests the Australian stock is now worth closer to 6¢, and any equity raising will likely need to offer a discount to that price.It has been a bad year for companies chaired by Mr Middlemas; Equatorial was stripped of its iron ore project in the Republic of Congo, while uranium play Berkeley Energia suffered a negative permitting decision in Spain which led to the halving of its share price.Salt Lake Potash and its peers have tried to make a premium product called Sulphate of Potash (SOP), which is different from the Muriate of Potash (MOP) that BHP intends to produce in Canada later this decade.ASX listed Kalium Lakes is now poised to be Australia’s SOP pioneer, assuming it keeps to its recent promises.Two years ago Kalium Lakes was vowing to be in production in the 2020 calendar year. At the start of 2021, it vowed to be in production before September 30. In a market disclosure on September 16, Kalium Lakes talked about two different types of SOP; standard and granular.The company said it would sell “standard̶1; SOP before December 31 and granular SOP before March 31.
kop202: Medium/Long term whats the risk?The stuff is in the ground or in the lakeIts a simple operation.... Dilution yes ...delay yes But investors will be rewarded....eventually
elviron: TBT more or less has the right of it, and he is a pretty experienced mining investor. Always worth considering his views even if you disagree with them on occasion... This share is uninvestable until the funding question is fully addressed. And don't forget how many times shareholders have been told that funding is complete already! It's 3 and counting now. Tony has negative 100 credibility. The thing that fooled me into investing a modest amount at 16p was that the Chairman himself put in $500k (US) at 20p in the last raise. Surely, he cannot have known what was to come. I sold what remained as fast as I could (got 10p) when the share came online again - a handsome 35% haircut for believing that they must have been over the line with plenty of change to spare after the last raise at 20p...
adorling: Another AIM CEO who should be fired for incompetence, lying to investors and misleading investors and the market. He will have to go as no serious AIM investor will back him anymore let alone any finance lenders. However, if there is a serious problem with the whole process to produce Sulphate of Potash then its probably lights out for a few years whilst they try and get it right if they can? Memories of Sirius Minerals CEO Chris Fraser comes to mind.
el-tel: I am starting to become concerned at the lack of updates regarding production . Surely the company could provide some kind of update to reassure investors ?
1234gold: Its impossible to rule out another cap raise - how many times have they now used the phrase 'fully funded' yet still had to go out and raise more equity ? I'm amazed the regulator hasn't investigated this one over its announcements. This has really been stuffed up and ruined any upside for equity investors.
1234gold: This is not as bad as SXX, that was just a terrible story from day one and promoted to unsuspecting retail investors. The SO4 project is solid...the reason I say its unbackable is because of the naivity around the funding. To tell the World you won't need to raise more equity when the share count was 225m and to then allow it to blow out to over 700m through issuance after issuance tells me they have no idea.
1234gold: Go onto feels like that's where the CEO thinks he has to meet his continuous disclosure obligations. A very questionable strategy. It should be about informing investors, not bragging to your mates.
lenses: " It has been agreed with the providers of the US$138m debt facility as described in the Company's announcement of 4 March 2021, that the capital raising will enable the Company to draw down the US$33m balance remaining under the debt facility and provide sufficient working capital to fund the ramp-up in production of the Lake Way Project." Trust of course is shot. However...... "..US$33m balance remaining.." and "It has been agreed with the providers.." Says it is the lender forcing this and SLP being weak with their nuts in a vice, but also that this is the end of it...('it' being the 'orphen period', where unwary investors are at high risk of falling for glossy hype, whereas in reality it's so as to periodicly refill the begging bowl)...... and also that cashflow production is soon here now. At sub 20 I have quaded up just. GLA.
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