Australian (ASX) Stock Market Forum

APC - APC Minerals

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Australian Potash has tapped Shaw and Partners and Canaccord Genuity for an $8 million placement.

The offer was 8¢ per share, a hefty 30.4 per cent discount to the last close of 11.5¢ per share.

The raise was split into two tranches, with the second tranche (3 per cent of the total offer) needing approval at Australian Potash’s annual general meeting in December. The company also plans to raise up to $2 million via a share purchase plan.

It plans to use the combined $11 million to $13 million to advance its Lake Wells suphate of potash project through to final investment decision target for the first quarter’s end next year. It will put the money towards borefield drilling and test pumping, earthworks and site-based expenditure at Lake Wells, and for working capital.

Australian Potash had $3 million in cash at September end.

Australian Potash has previously advised the market of a pre-tax NPV of $415 million for Lake Wells.
 
another deeply discounted slaking of thirst

Australian Potash Limited is pleased to announce that it has received firm commitments to raise approximately A$12.0 million via a two tranche placement at an issue price of A$0.08 per share
  • A$12.0 million firm commitment received in a two-tranche placement at A$0.08 per share
  • Proceeds used to advance the Lake Wells Sulphate of Potash Project focusing on continued bore development and de-risking Final Investment Decision, earthworks and working capital
  • The first tranche of the placement to be completed utilising existing placement capacity under ASX Listing Rule 7.1, raising A$7.8 million, with the second tranche raising A$4.2 million subject to shareholder approval at the AGM to be held on Wednesday, 15 December 2021
  • A Share Purchase Plan will be offered to existing eligible shareholders to raise up to A$2.0 million, subject to shareholder approval
 
Short term chart ticks my boxes...
Market depth looking a little spongy or porous on the down side though. ?

Screenshot_20220405-225214.png
 
I'm trying to figure out why potash stocks are so low.

When Russia invaded the Ukraine, and the world slapped export bans on Russian goods all the talk from industry experts and SMSF groups was that fertilizers would be in short supply, and this would cause inflated prices of fertilizers, and then food supplies.

That made sense, but it hasn't happened. The SP's have dropped, farmers aren't screaming about fertilizer shortages, food supplies haven't drastically diminished.

What has happened?

I'm guessing that there has been enough reserve capacity from smaller companies around the globe, and they all ramped up production at the same time.

APC potash.png


I don't hold, just doing some research.
 
Dona Ferentes said:
another deeply discounted slaking of thirst
... commitments to raise approximately A$12.0 million via a two tranche placement at an issue price of A$0.08 per share
Click to expand...
and in a trading halt for more capital.

These sorts of potash projects just seem like money pits. Long long lead times and hugely dilutive for bunny shareholders.
Screenshot_20230315-113332_CommSec.jpg
 
Dona Ferentes said:
and in a trading halt for more capital.

These sorts of potash projects just seem like money pits. Long long lead times and hugely dilutive for bunny shareholders.
View attachment 154405
Click to expand...
This was a company that I invested in many years ago on premise that it would be setting the world alight with the potash it was going to produce. Cheaper for the farming fraternity and a good export earner to boot.
After some time being disillusioned I took the advice of that extremely wise sage, the bloke in the mirror, and quit to see most of that investment evaporate just like the brine in the evaporative ponds.
 
The plot thickens.
Someone got on the blower to someone and lit a fire underneath 'em.
Trading halt at 1:45pm...

"1. The trading halt is requested pending the release by the federal Department of Climate Change, Energy, the Environment and Water of a correcting statement.

2. The Company requests that the trading halt remains in place until the earlier of the time it makes an announcement to the market about the correcting statement and the commencement of trading on Monday, 15 May 2023."

Screenshot_20230511-162621-022.png
 
sptrawler said:
.... talk to me about potash.
Click to expand...
read and wail...

Lake Wells Sulphate of Potash Project Update

Further to its last announcement on 13 June 2023, Australian Potash Limited provides the following update on the Lake Wells Sulphate of Potash Project.

Strategic review process
APC has been conducting an exhaustive funding process for the LSOP over the past 12 months. This was conducted against a backdrop of recent very high sulphate of potash prices, global fertiliser shortages and a project valuation of between A$774 million and A$1.025 billion. By the time the strategic process started, APC had completed detailed design and engineering and secured debt funding with NAIF, subject to raising the appropriate equity. The project was therefore effectively ready to go into construction once the equity was secured.

Having made data and information on the LSOP available to various parties, the strategic review process has not resulted in a transaction that was considered suitable for the Company or its shareholders. As such, considering that this process has been adequately exhausted, the directors have made the difficult decision to cease this process.

There is no doubt that recent company failures in the developing WA potash industry have created a negative perception of solar SOP projects in WA. The directors and management of APC are confident the work done on the LSOP to date demonstrates it to be a high value, well-engineered project, supported by a thorough test work program and on-site evaporation piloting, as disclosed through the Company’s consistent ASX releases over the past 9 years.

However, and without a funding proposition to consider, the directors have made the difficult decision to surrender the LSOP mining leases, which have a high holding cost. The relevant documents have been lodged with the Department of Mining, Industry Regulation and Safety. The Company retains its interest in the exploration license tenure it holds at Lake Wells.

The directors have received consideration of A$950,000 for components of the Lake Wells camp assets and are holding discussions around the sale of bore-field inventory and other site assets.

Chairperson, Natalia Streltsova, commented: “The directors of APC are extremely disappointed that the demise of local high profile potash projects has largely contributed to the lack of investment support for our sector and project. Matt Shackleton and his team have shown professionalism and commitment to the project which makes it even more disappointing that we have been unable to secure equity funding.
Click to expand...
“We stress to shareholders that all possible options have been vigorously pursued in our efforts to preserve optimal value in the LSOP. We are fully committed to and already engaged in considering the Company’s alternate project opportunities to generate value for our shareholders.
Click to expand...

Destruction of capital. Almost complete.
Screenshot_20230815-123123_CommSec.jpg
 
Dona Ferentes said:
read and wail...

Lake Wells Sulphate of Potash Project Update

Further to its last announcement on 13 June 2023, Australian Potash Limited provides the following update on the Lake Wells Sulphate of Potash Project.

Strategic review process
APC has been conducting an exhaustive funding process for the LSOP over the past 12 months. This was conducted against a backdrop of recent very high sulphate of potash prices, global fertiliser shortages and a project valuation of between A$774 million and A$1.025 billion. By the time the strategic process started, APC had completed detailed design and engineering and secured debt funding with NAIF, subject to raising the appropriate equity. The project was therefore effectively ready to go into construction once the equity was secured.

Having made data and information on the LSOP available to various parties, the strategic review process has not resulted in a transaction that was considered suitable for the Company or its shareholders. As such, considering that this process has been adequately exhausted, the directors have made the difficult decision to cease this process.

There is no doubt that recent company failures in the developing WA potash industry have created a negative perception of solar SOP projects in WA. The directors and management of APC are confident the work done on the LSOP to date demonstrates it to be a high value, well-engineered project, supported by a thorough test work program and on-site evaporation piloting, as disclosed through the Company’s consistent ASX releases over the past 9 years.

However, and without a funding proposition to consider, the directors have made the difficult decision to surrender the LSOP mining leases, which have a high holding cost. The relevant documents have been lodged with the Department of Mining, Industry Regulation and Safety. The Company retains its interest in the exploration license tenure it holds at Lake Wells.

The directors have received consideration of A$950,000 for components of the Lake Wells camp assets and are holding discussions around the sale of bore-field inventory and other site assets.




Destruction of capital. Almost complete.
View attachment 160972
Click to expand...
Well many moons ago I got very excited about the local potash industry here nd held a mega volume of shares in a couple of companies. Fortunately I off-loaded at a nice profit some time ago and have since been miserably watching the demise of this industry that would have been a huge boost to this country and WA in particular.
 
basilio said:
Lazarus has risen from the grave ..

APC is now out of administration and looking to raise new funds for a new start. Whatever that may be :rolleyes:..


Click to expand...
(can't see the attachments)

FTI Consulting’s Mr Hayden White informed the Australian Securities and Investments Commission that he and fellow Voluntary Administrator Mr Daniel Woodhouse had ceased their roles with the Company and the Company has been returned to the control of its Board of Directors. The Company is no longer under external administration.

Highlights:
• Creditors voted at the second meeting of creditors on Friday 19 January to accept the Deed of Company Arrangement proposed by Matt Shackleton
• All previous trade and other creditors of the Company (c.$4.2m) have been transferred to the recently established Creditors’ Trust and off the Company’s balance sheet
• All assets of the Company have been preserved
• The Company is finalising the audit of its 2023 financial accounts which when lodged will partly address the suspension of APC from the ASX: the Company is working towards resumption of trading on ASX in March 2024
• Prospectus to raise a maximum of $6m through a Priority and General Placement of shares with $2.75m underwritten by Canaccord Genuity as Lead Manager and Cumulus Wealth as Co-lead Manager

Screenshot_20240204-161610_Drive~2.jpg

Screenshot_20240204-161610_Drive.jpg

.
state of play from last year...
Screenshot_20240204-160327_CommSec.jpg

.
going to be a lot of new shares. current holders can double down and hope, for consolation ?

.... and a major consolidation down the track
 
Last edited:
Dona Ferentes said:
(can't see the attachments)

FTI Consulting’s Mr Hayden White informed the Australian Securities and Investments Commission that he and fellow Voluntary Administrator Mr Daniel Woodhouse had ceased their roles with the Company and the Company has been returned to the control of its Board of Directors. The Company is no longer under external administration.

Highlights:
• Creditors voted at the second meeting of creditors on Friday 19 January to accept the Deed of Company Arrangement proposed by Matt Shackleton
• All previous trade and other creditors of the Company (c.$4.2m) have been transferred to the recently established Creditors’ Trust and off the Company’s balance sheet
• All assets of the Company have been preserved
• The Company is finalising the audit of its 2023 financial accounts which when lodged will partly address the suspension of APC from the ASX: the Company is working towards resumption of trading on ASX in March 2024
• Prospectus to raise a maximum of $6m through a Priority and General Placement of shares with $2.75m underwritten by Canaccord Genuity as Lead Manager and Cumulus Wealth as Co-lead Manager

View attachment 170187
View attachment 170189
.
state of play from last year...
View attachment 170188
.
going to be a lot of new shares. current holders can double down and hope, for consolation ?

.... and a major consolidation down the track
Click to expand...
I am sure I am not alone queuing for that bright opportunity...not...
They should rename as lemon potash.
Who would put money in????
 

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