Australian (ASX) Stock Market Forum

SO4 - Salt Lake Potash

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sptrawler said:
The problems they encountered at the final live commissioning phase certainly didn't sound insurmountable, it just sounded as though it would be an intitial throughput issue, which would affect cash flow.
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Trading at 4p - 4.1p ----- 7.5c - 7.7c. Problem with AIM market trading is that everyone knows about the closely similar position concerning Sirius Minerals LSE: SXX taken over for a fraction of the price over the year before. Anglo are piling cash in to try and get this giant resource partly under the North Sea out to market.

Anglo American's acquisition offer valued Sirius at 5.5 pence (US$0.07) per share – representing a premium of 34.1% to the share price at the close of play on 7 January, when the two parties made the initial agreement. [highest price reached for SXX was 46p][highest price of SO4 reached 48p] Therefore an offer for SO4 on the same basis should be 5.75p or 10.75c - IF an offer is made.
 
noirua said:
Trading at 4p - 4.1p ----- 7.5c - 7.7c. Problem with AIM market trading is that everyone knows about the closely similar position concerning Sirius Minerals LSE: SXX taken over for a fraction of the price over the year before. Anglo are piling cash in to try and get this giant resource partly under the North Sea out to market.

Anglo American's acquisition offer valued Sirius at 5.5 pence (US$0.07) per share – representing a premium of 34.1% to the share price at the close of play on 7 January, when the two parties made the initial agreement. [highest price reached for SXX was 46p][highest price of SO4 reached 48p] Therefore an offer for SO4 on the same basis should be 5.75p or 10.75c - IF an offer is made.
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That would hurt, thankfully I don't have a huge holding.
It sounds as though the Lake View operation is a viable close to production site, so why they wouldn't get funding seems a bit suss.
 
sptrawler said:
That would hurt, thankfully I don't have a huge holding.
It sounds as though the Lake View operation is a viable close to production site, so why they wouldn't get funding seems a bit suss.
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That seems right but at what interest rate as the one offered to SXX was thought to be 13% with strings attached. It wasn't viable so they jumped into the arms of Anglo. Did the directors of SO4 expect this to happen? More a case of they should have known.
 
SO4 out with Full Year Statutory Accounts and Corporate Governance Statement

from AFR:
"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 31 March next year.

"Lenders like 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 on31 March, while repayments on the Sequoia loan commence on 11 April.

SO4 shares on the ASX were 31¢ when they went into a trading halt in July. But the reality is much worse; the Salt Lake Potash 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.
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.......
A close run thing coming up? ... DNH
 
noirua said:
DISASTER! has struck at SO4 with a Trading Halt on the ASX and Suspension on London's AIM market due to a downgrade and future cash raising. Fortunately, I've already made a good deal since the price at GB£0.025 in 2015 so have held a watching brief for a few years now. Still, a share to ponder over but the Sirius Minerals debacle has sent vast black clouds over the horizon.
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and another 'fast and loose' play with S/holders' money. Referring to the prior capital raisings, ....

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.
Equatorial appears to have burned money on the Salt Lake Potash investment ....
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Matters have worsened and SO4 have tanked to 2p - 2.05p 3.7c: 3.8c at the close on London's AIM. I bought shares near the close at 2p 3.6c.

A view. Is it worth a light? Well I wrote it and still don't know for sure but a number of investors piled in with me near to the closing bell as MMs accepted 2p - 2,750,000 shares were picked up:

The market cap is now £16.53m A$30.7m at 2.025p 3.75c against £153m A$285m at the time of the May cash raising at A$0.35 18.8p.
https://company-announcements.afr.com/asx/so4/8bde00d8-f10d-11eb-a4a8-aa3aec6feb6b.pdf
The lenders are in a catch 22 position here as the company is bust if they walk away. If there are no buyers they lose everything. So it is likely that all loans will be restructured.​
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A lot of shares traded on London's AIM market Friday - a total of nearly 27 million. Buyers arrived late Thursday to mop up shares sold-off during the day. On Friday was a mixed picture with a rise of 40% which drifted back to 16% at the close.

There are plenty of rumours out their of this loan package being reviewed and extended:
1634395330832.png
 
sptrawler said:
@noirua we will have to wait and see what happens on Thursday, still hoping I haven't done my dough.:walkingdead:
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I bought some shares at 4.35p in early September and 4 times that amount at 2p last week - an average at 2.47p 4.6c. The price at 12:27 London time is 2.6p - 2.7p 4.83c - 5c. Over 11 million share traded - signs some Aussies are trading shares on comments made.
Holders in the UK do have a problem should there be a placing as often only those in Australia and NZ are included. There are a lot of holders of SO4 in Germany.
 
noirua said:
I bought some shares at 4.35p in early September and 4 times that amount at 2p last week - an average at 2.47p 4.6c. The price at 12:27 London time is 2.6p - 2.7p 4.83c - 5c.
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My average price is about 37c, so there is every chance they will become a bottom draw job, that's if there is any room left in there.:eek:
 
sptrawler said:
My average price is about 37c, so there is every chance they will become a bottom draw job, that's if there is any room left in there.:eek:
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I have UXA Resources in my bottom drawer - now a dormant company. Also LSE: LION about to be LSE: TALY Tally Limited and Leader Smart Holdings Limited that should have been quoted in Hong Kong in 2015 but hasn't - rumours it may be quoted in Shanghai or Shenzhen so I'm not sure what happens.

On SO4, it was in this position before in 2015 raising cash at 2.5p 4.8c after crashing in price as Wildhorse Energy. Many said it would never get back to 30p 55c ever again - how wrong they were. The IPO was 40c in 2006 in accordance to the first post on page 1 of this thread. Hit $3.92 in 2007, hit 4.8c in 2015, then 85c and 2p 3.8c - there you goes.
 
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The Company has continued to work towards the finalisation of a fundraising that would be necessary to continue operations. However, in light of the uncertainty that the fundraising will be concluded successfully, the Company has requested a suspension of trading in its securities on AIM with effect from 07.30 today, 19 October 2021 and further announcements will be made as appropriate.
uk.advfn.com

Salt Lake Potash Limited Statement re. Suspension (5058P)

Salt Lake Potash Limited 19 October 2021 19 October 2021 AIM/ASX Code: SO4 SALT LAKE POTASH LIMITED UPDATE ON FUNDING AND SUSPENSION...
uk.advfn.com
 
On 20 October 2021 the directors of Salt Lake Potash Limited ("SO4" or the "Company") resolved that it, together with other companies as set out below (the "Companies") were insolvent or likely to become insolvent at some future time and that administrators should be appointed to the Companies.
The Companies ACN
Salt Lake Potash Limited 117 085 748
Australia Salt Lake Potash Pty Ltd 164 369 420
Irve Holdings Pty Ltd 633 114 619
Two Lake Holdings Pty Ltd 633 114 637
SO4 Fertiliser Holdings Pty Ltd 633 114 628
Piper Preston Pty Ltd 142 962 409
Irve Developments Pty Ltd 634 354 215
Two Lake Developments Pty Ltd 634 354 233
SO4 Fertiliser Developments Pty Ltd 634 354 224

Notice is hereby given that Richard Tucker and Craig Shepard of KordaMentha were appointed as Receivers and Managers of each company in the Group on 20 October 2021 pursuant to security interests duly registered on the Personal Property Securities Register.

Voluntary administration: A guide for creditors - ASIC
Https://asic.gov.au/regulatory-resources/insolvency/insolvency-for-creditors/voluntary-administration-a-guide-for-creditors/
Salt Lake Potash Limited
Https://asic4.com/companies/786078/salt-lake-potash-limited/
Https://asic.gov.au/Reports/Daily/2021/10/RR20211013-001-SSDailyAggShortPos.pdf
 
Sale process underway for Salt Lake’s stalled project
10 March 2022
Https://newswires.com.au/companies/ASX:SO4
Receivers for failed Salt Lake Potash are set to test market appetite for the company’s stalled Lake Way sulphate of potash project near Wiluna after pressing the button on a formal sales process.

Salt Lake Potash receiver hunts for buyer; MacCap mandated [Macquarie Capital].
23 February 2022
Https://www.afr.com/street-talk/salt-lake-potash-receiver-hunts-for-buyer-maccap-mandated-20220223-p59yzb
Four months after KordaMentha took the keys at Salt Lake Potash, it has finally kicked off a buyer search with Macquarie Capital’s bankers in tow.​
​
 

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