Salt Lake Potash Share Discussion Threads

[letmepass] 15/10/2021 10:40

Can see back over 10p in no time

[noirua] 15/10/2021 10:20

Investor Presentation 24 May 2021


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.


or

[tigerbythetail] 15/10/2021 10:03

IMO, no life in the dog.
The company may survive, rather than go into admin, but only thanks to a huge bailout placing (?90m AUD) at a very low price (c. 1p?), which will all but wipe out existing shareholders. The Taurus debt will also need to be renegotiated, particularly the timeline of repayment which is now totally unrealistic.
Taurus and the new money have ALL the power here. Existing shareholders have none.
Today is just a suckers' rally. IMO, don't get caught up in the rush; and if you do gamble, get out before the close today.

[q8don] 15/10/2021 10:03

Well said... spot on. Money can be made though... if you can buy when out of favour and sell into the hype, but very difficult to do in practice.

[1234gold] 15/10/2021 10:00

All of the Middlemas stable companies are loose as fu*k. They are probably all out there telling their mates the recap is done...

[kennyp52] 15/10/2021 09:38

Life in the dog ? Finance sorted ; production quality sorted .. then it 10 bags ? Just a gamble really now.

[noirua] 14/10/2021 16:01

2p is the present buying price despite the 2p - 2.05p spread.

[noirua] 14/10/2021 15:38

The market cap is now £16.53m at 2.025p against £153m at the time of the May cash raising at A$0.35 18.8p.

[lookingforhelp] 13/10/2021 16:31

It sounds like the vultures are circling on the SO4 carcass. The only way out here is a massive recap, which means existing shareholders diluted to almost nothing. There is no way the debt holders want to own this.

[lefrene] 13/10/2021 15:59

I too feel for those who got taken in by the carefully constructed story, AiM is full of chancers charming other peoples money into their ambitious schemes, and then paying themselves fat salaries whilst taking none of the risks, and loading up on options just in case the wheeze works out. AiM, the graveyard of many an honest man's pension pot.

[pauliewonder] 13/10/2021 15:41

Feel sorry for those that have been misled here. Can't see how the company can survive from here without major dilution and even then there are still questions. That's AIM, some companies will fail.

[markstevenkirby80] 13/10/2021 11:25

Not looking to good here

[kennyp52] 13/10/2021 09:10

Wow .. how did you come to that conclusion LFH ? Incredible .

[lookingforhelp] 12/10/2021 13:44

I would advise everyone write their holding down to zero.

[kop202] 12/10/2021 12:59

Is this the end.....

[tigerbythetail] 06/10/2021 08:46

hotcopper.com.au/threads/ann-notification-of-cessation-of-securities-so4.6333803/?direction=previous

Obviously people have been moved on, so the number of options and performance rights is coming down. All the current options on this share basically worthless now - they'll never be back in the money after the inevitable massive dilution takes place (if SO4 doesn't simply go bust).

And so this rolls on. This venture has been a simply huge waste of capital. I hope Justin Waites is feeling proud of himself.

[lookingforhelp] 01/10/2021 11:12

Their done.

To be honest, I'm surprised its taken the media so long to pick up on the fact that Middlemas used cash from one of his other companies to bail out SO4. That always had the nastiest of stenches...

[tigerbythetail] 01/10/2021 09:31

Sorry for double post.

Anyway, not sure how thinks could be worse without actually calling in the receivers.

[tigerbythetail] 01/10/2021 09:30

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.

[tigerbythetail] 01/10/2021 09:30

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.

[noirua] 28/9/2021 12:57

Short Term Liabilities: SO4's short term assets (A$137.4M) exceed its short term liabilities (A$29.9M).

Long Term Liabilities: SO4's short term assets (A$137.4M) do not cover its long term liabilities (A$153.9M).

Present Market cap at 3.65p = A$56 million.

[lookingforhelp] 24/9/2021 23:46

That's exactly why there will be a class action.

[tigerbythetail] 24/9/2021 20:20

The lack of resignations (so far) makes me think that we may be looking at a very lowball takeover offer, rather than a bailout placing. But I'm just guessing, really.
I'll keep following this, in the hope that at some point an opportunity presents itself to make some money. But I'm not very optimistic it ever will.
I'm sorry for those who bought shares before all this blew up, basically under false premises.