SO4 - Salt Lake Potash
- Thread starter YOUNG_TRADER
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Hmm... noticed that also. Today's price spike might indicate the end of the 3 wave corrective pattern (onwards and upwards). However today's volume was only average and I would have preferred to see more.
Sean K
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Quite a bit of resistance across 50c level by the looks.
What's the upside with this puppy? Looks like it's going to go ahead on fundamentals. Is it just the price of SOP that will drive it? Additional production? Takeover? Looks like everything might be factored into the price.
Macquarie have recently upgraded SO4 to "outperform" with a valuation of $0.77c and 12 month price target of $0.80c!
Cheers tela
Disappointing of late with share price drop of -20% (unsure as to reason for recent sell off!?)
Bad weather on the way won't help either as possible project delays/damage etc.
https://www.perthnow.com.au/news/se...warns-of-huge-rain-falls-after-ng-b881841900z
Bad weather on the way won't help either as possible project delays/damage etc.
Bureau of Meteorology warns of huge rain falls while Cyclones Odette and Seroja rage
https://www.perthnow.com.au/news/se...warns-of-huge-rain-falls-after-ng-b881841900z
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Strong close SO4 @ 0.45c +5.88% with a nice uptick in volume/momentum today.Great news for SO4 announcing grant of full environmental permit given so full steam ahead to scale up/ramp up potash operations going forward.
Should be an exciting couple of months ahead to look forward too!
Cheers tela
Indicators turned bullish
Cheers tela
Strong close SO4 @ 0.45c +5.88% with a nice uptick in volume/momentum today.
Indicators turned bullish
Cheers tela
Full environmental permit enables SO4 to finalise construction of pond trains 4-6 as well as associated trench and bore construction that will support full-scale operations at Lake Way.
Construction on the final components of the on-lake infrastructure will begin this quarter.
Over the coming weeks the utilities, conversion circuit, flotation circuits, crystallisers and dryer will all be commissioned ahead of full load commissioning and SOP production in the current quarter.
SO4 chief executive officer Tony Swiericzuk said at the time that the company was on track for first production and SOP sales in the June quarter.
“First SOP sales and revenue are now well within sight.”
*excerpt from proactive investors update
Nice bullish hammer price action made on SO4 chart
asx.swingtradebot.com
SO4 Share Technical Analysis | Salt Lake Potash Ltd
Current Technical Analysis and interactive chart for $SO4 stock / shares. See the current trading strategy, trend(s), rating and buy and sell signals.
Dona Ferentes
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The Lake Way Project is close to production, with the Processing Plant close to completion.
The Aug 2020 equity raise ($43M placement plus 1 for 3.2 entitlement issue) and Debt Funding has locked in enough capital to get the job done .... and the Facility provides flexibility to deliver non-dilutive financing of future lakes:
• No refinancing restrictions after 18 months
• Peak gearing in 2021 with rapid deleveraging.
Primary salt production from Trains 1-3 begins in June 2021, with a Dec 2021 start for primary salt production from Trains 4-6 and recovery pond.
The positioning of salt lake SOP in general makes it attractive in a growing market, with its high and insulated margin
• Majority of SOP production comes from higher-cost secondary processing
• Primary (salt lake) SOP producers occupy the bottom third of the industry cost curve
Tightening agricultural markets is cited as a tailwind; whether this is an irreversible trend remains to be seen:
• Food and fertiliser prices moved higher in the second half of 2020
• The UN’s FAO food index has risen for 9 consecutive months and has registered its highest monthly average since 2014
• Urea, DAP and MOP prices all followed food prices higher
• SOP prices have remained stable to date
• Potential for cost-push SOP price inflation from Mannheim producers as well as demand-led inflation
The Aug 2020 equity raise ($43M placement plus 1 for 3.2 entitlement issue) and Debt Funding has locked in enough capital to get the job done .... and the Facility provides flexibility to deliver non-dilutive financing of future lakes:
• No refinancing restrictions after 18 months
• Peak gearing in 2021 with rapid deleveraging.
Primary salt production from Trains 1-3 begins in June 2021, with a Dec 2021 start for primary salt production from Trains 4-6 and recovery pond.
The positioning of salt lake SOP in general makes it attractive in a growing market, with its high and insulated margin
• Majority of SOP production comes from higher-cost secondary processing
• Primary (salt lake) SOP producers occupy the bottom third of the industry cost curve
Tightening agricultural markets is cited as a tailwind; whether this is an irreversible trend remains to be seen:
• Food and fertiliser prices moved higher in the second half of 2020
• The UN’s FAO food index has risen for 9 consecutive months and has registered its highest monthly average since 2014
• Urea, DAP and MOP prices all followed food prices higher
• SOP prices have remained stable to date
• Potential for cost-push SOP price inflation from Mannheim producers as well as demand-led inflation
Sean K
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SO4 price action looking bullish this morning +4.76%
That must have been short lived. Nothing bullish on this chart that I can see. Good support between 40-42c, but longer term it's going sideways. Ranged between 40-60c for a year. I suppose you could be medium term trading this expecting it to go back to 50-60c.... Good luck.
Dona Ferentes
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Now with a trading halt for a cap raise, lucky to get it away with say 35c, these aspirational targets might take a while.
Dona Ferentes
A little bit OC⚡DC
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A new dawn for Australia's potash pioneers
Australia's first sulphate of potash mine will start production this week and five local mines could be producing the specialty fertiliser inside four years.
A new export industry will be born on Monday when Tony Swiericzuk's company Salt Lake Potash declares first production and claims pioneer status ahead of the flock of rivals building sulphate of potash (SOP) mines on Australia's ephemeral lakes.
If all of them deliver to schedule, Australia will go from zero to five SOP mines in the next four years.
Though SOP is the small end of the potash industry, it is also the premium end with farmers typically paying 50 per cent to 100 per cent more for SOP, which is ideal for fertilising crops such as berries, nuts and citrus.
Salt Lake Potash enters production after a six-month period of rising prices for many agricultural commodities and Swiericzuk is convinced that from a small industry today, big things will grow.
SOP is produced at WA's remote Lake Way when briny water is extracted from 85 metres below the salt pan and is allowed to interact with the potassium-rich surface of the lake.
Stored in giant evaporation ponds for weeks at a time, the sun does much of the work and a final processing stage spits out a product that Swiericzuk says is ready to "throw on your tomatoes".
Close to 90 per cent of the SOP that Swiericzuk's team produces will be shipped to foreign customers via Fremantle or Geraldton ports, but the company will hold back about 21,000 tonnes a year in a bid to forge direct relationships with local farmers.
Being first to market is always a good thing in the commodities game, but Swiericzuk hopes other ASX listed aspirants such as Kalium Lakes, Agrimin, Australian Potash and BCI Minerals can also enter the SOP market and build a strong local industry in the decade ahead.
If the wave of new, local SOP mines do make it into production, Swiericzuk is confident they won't trigger the sort of supply surge that crushed lithium prices after six new WA mines started exporting the battery mineral in 2017 and 2018.
He says new SOP supply from WA will arrive more gradually than was the case in lithium and that the demand for food, which is the ultimate driver of fertiliser demand, is far less discretionary than the digital devices and electric cars that consume lithium.
Janus Henderson investors said earlier this year that they expected global demand for SOP will grow faster than the global economy, creating room for new entrants.
Advisory firm BDO reported in March that only the ASX-listed gold sector attracted more financial support in 2020 than ASX-listed SOP aspirants, with local investors pumping more than $528 million into the unproven industry.
Swiericzuk admits that Salt Lake Potash tapped shareholders for funds more frequently than he had hoped as the company set about building the Lake Way project.
Having been a key member of the Fortescue Metals team that borrowed heavily a decade ago to build the world's fourth biggest iron ore business, he had been keen to adopt a similar, debt-fuelled model that would avoid diluting shareholders.
But with SOP a largely unknown commodity in Australian lending circles, debt tended to come with requests for matching equity contributions.
www.afr.com
Australia's first sulphate of potash mine will start production this week and five local mines could be producing the specialty fertiliser inside four years.
A new export industry will be born on Monday when Tony Swiericzuk's company Salt Lake Potash declares first production and claims pioneer status ahead of the flock of rivals building sulphate of potash (SOP) mines on Australia's ephemeral lakes.
If all of them deliver to schedule, Australia will go from zero to five SOP mines in the next four years.
Though SOP is the small end of the potash industry, it is also the premium end with farmers typically paying 50 per cent to 100 per cent more for SOP, which is ideal for fertilising crops such as berries, nuts and citrus.
Salt Lake Potash enters production after a six-month period of rising prices for many agricultural commodities and Swiericzuk is convinced that from a small industry today, big things will grow.
SOP is produced at WA's remote Lake Way when briny water is extracted from 85 metres below the salt pan and is allowed to interact with the potassium-rich surface of the lake.
Stored in giant evaporation ponds for weeks at a time, the sun does much of the work and a final processing stage spits out a product that Swiericzuk says is ready to "throw on your tomatoes".
Close to 90 per cent of the SOP that Swiericzuk's team produces will be shipped to foreign customers via Fremantle or Geraldton ports, but the company will hold back about 21,000 tonnes a year in a bid to forge direct relationships with local farmers.
Being first to market is always a good thing in the commodities game, but Swiericzuk hopes other ASX listed aspirants such as Kalium Lakes, Agrimin, Australian Potash and BCI Minerals can also enter the SOP market and build a strong local industry in the decade ahead.
If the wave of new, local SOP mines do make it into production, Swiericzuk is confident they won't trigger the sort of supply surge that crushed lithium prices after six new WA mines started exporting the battery mineral in 2017 and 2018.
He says new SOP supply from WA will arrive more gradually than was the case in lithium and that the demand for food, which is the ultimate driver of fertiliser demand, is far less discretionary than the digital devices and electric cars that consume lithium.
Janus Henderson investors said earlier this year that they expected global demand for SOP will grow faster than the global economy, creating room for new entrants.
Advisory firm BDO reported in March that only the ASX-listed gold sector attracted more financial support in 2020 than ASX-listed SOP aspirants, with local investors pumping more than $528 million into the unproven industry.
Swiericzuk admits that Salt Lake Potash tapped shareholders for funds more frequently than he had hoped as the company set about building the Lake Way project.
Having been a key member of the Fortescue Metals team that borrowed heavily a decade ago to build the world's fourth biggest iron ore business, he had been keen to adopt a similar, debt-fuelled model that would avoid diluting shareholders.
But with SOP a largely unknown commodity in Australian lending circles, debt tended to come with requests for matching equity contributions.
A new dawn for Australia’s potash pioneers
Australia’s first sulphate of potash mine will start production this week and five local mines could be producing the specialty fertiliser inside four years.
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SO4 receive funds from share placement and gain access to senior debt facility. Hopefully the plant will be up and running in the near future.
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Potash is still overheated in WA. Lots of players, lots of projects, lots of shenanigans, lots of opportunity to make mistakes.
5 year chart is essentially a flat line. Same with KLL. APC, AMN. Only those who have traded in and out over 5 years have made money. Oh and the directors and employees. Just because a project gets up and going (eventually) doesn't mean it will make appropriate levels of returns for mom and dad shareholders.
I am still skeptical of the presentations, forecasts, feasibility from all of these players.
5 year chart is essentially a flat line. Same with KLL. APC, AMN. Only those who have traded in and out over 5 years have made money. Oh and the directors and employees. Just because a project gets up and going (eventually) doesn't mean it will make appropriate levels of returns for mom and dad shareholders.
I am still skeptical of the presentations, forecasts, feasibility from all of these players.
