The London South East, Investing Matters Podcast - Episode 5 featuring Annabel Brodie-Smith, the Communications Director at The AIC is now LIVE. Listen here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East and have access to Premium Chat. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Had a message from HL today, salt lake potash limited has been delisted and shares removed from account, the company will now be known as SO4 Limited
Following the appointment of administrators and subsequent cancellation of trading on AIM
for Salt Lake Potash (UK, constituent), please see details of affected indexes and effective
Index Effective From
Start of Trading
FTSE AIM All-Share Index 24 November 2021
For further information please contact FTSE Russell Client Services at email@example.com
or call: Australia +1800 653 680
Hong Kong +852 2164 3333
Japan +81 3 4563 6346
London +44 (0) 20 7866 1810
New York +1866 551 0617
Alternatively please visit our website at www.ftserussell.com
Hi Eddie & Co.
As I mentioned in posts I had always had a great love for this company due to the lack of envirmental impact to product thier end product, using natures energy source (the sun). Like most here I lost money! I am quite a busy guy to have to read through pile upon pile of paperwork to understand about the brine quality and to be honest the technical stuff would probably go well straight over my head.
So the big question in my mind is the brine completely FCUK'd? (apologies for my French)???
I am wondering if the company was just a complete miss-management by the last WNAKER of a CEO (again apologies if you're drinking buddies with the man)
I BELIEVE (in my humble opinion) there may be a rescue package on the table. I SAY THIS BECAUSE I DID JUST MAKE NOTE in the RNS detailed as follows:
Wed, 20th Oct 2021 07:00 - RNS Number : 6418P - Title: APPOINTMENT OF VOLUNTARY ADMINISTRATORS
A further update in respect of the Companies operations and the restructure / recapitalisation process will be released to the market in due course.
There is hope for the company, althought current holdings will seemingly be effcted in one way or another, I read this as a positive and not 100% doom and gloom!
Good luck, guyz (I still may jump back in if the company is brought back with a top notch management and my concerns about the brine quailty are satisfied)
I made the mistake of investing the day before this went into administration. I understand it's not over until the fat lady sings but what are the chances this will make a comeback?
Firstly - they're are not producing it in order to benefit from product market prices.
Secondly - for entities having troubles with solvency shareholders are not considered anymore, key priority shifts to creditors and they're updating this group about situation via different channel (on stock market it suspended anyways).
Therefore it would be very naive to expect full transparency and updates for shareholders.
Over the last 18 months, and this BoD completely shambolic!
I had a similar thought to that last week, Shenners.
My heart goes out to you all now trapped in this mess. It just goes to show, though. This company was one of my all time favorites due to the scale of the operation and the use of solar power to do the bulk of the work. Green, Green, Green....
I am really F'n gutted.
I sold up BUT still at a loss of about 70%. I wasn't untouchable.
Of retaining any kind of value from the sp would be the use of the AIM listing as a cash shell. With the hefty losses it might make this option appealing. An exceptionally slim chance but you never know
Tradehobbs, there was no production. That was the problem, they need A$100m to fix the ponds and the plant, and no one was willing to front up with that sort of cash when there are other potash projects to invest in.
In short, the best option now is the receivers sell the plant to one of the other potash hopefuls, but even they are struggling to raise cash due to this mess. Australian Potash (ASX:APC) is perhaps the most logical buyer geographically, but they've been struggling for 12 months to raise the funds for their own project, and would have to weight buying a plant that doesn't work vs building their own and hoping it does work.
At the end of the day, the plant will probably get sold for cents in the dollar, lenders will have to take a haircut and shareholders will get nothing (unless they are successful with a class action against the Directors).
You're being deliberately disingenuous, all posts that I saw, every single poster stated that this was a very high risk investment, the gamble was IF the funding could be secured then the sp would have moved much higher as a result, which to be fair it would have done, I've lost here along with everyone else, disappointed of course but pressed the buy button in the knowledge that I could lose my investment just as quickly as it could have been worth significantly more, that's the way it goes with these sort of plays, just have to hope that the next one goes the the other way, that's all you can hope for. GLA
Does anyone know the chances or if it is even possible if they find a buyer say willing to purchase 50% of SO4 to pay of the urgent repayment debt allowing SO4 to proceed and continue with production whilst still owning a big slice of the pie?
Just curious to hear people’s thoughts on the possible outcomes here.
Spoke with 212 trading team and its still processing orders might have a turn around and find funds by a miracle
Imo, this letter is just for formal compliance purposes, technicality for marking checkbox on their side (especially considering timing of making it public) . It would be hard to expect for anything tangible to come out of it.
It might add additional transparency basis for a possible action against BoD but having it without this letter won't affect the outcome.
Thank you WelshFalcon for ASX letter details. Interesting reading the document. I need time to reflect on the contents because they do imply investors have been wilfully misled ...
For sure both SXX and S04 turned out to be duds. Nevertheless you there is a vast difference between Polyhalite and Sulphate of Potash - the latter being a high value quality product. There is however no shortage of the "standard" 60% Muriate of potash globally. :-(
I'm never investing in potash ever again. Didn't loose much here compared to SXX, but still hurts.
WTF this company was always one of my favorites ! ! !
Just goes to show what the wrong directors can do to a company. I sold out at just over 6p, with a hope of getting back in at some point. I paid 19p. Sorry guys todays news has blown my mind. Hope you guys are taking the news okay.
God Bless x
If you have a read through Hot Copper's board on SO4, you will find a long thread on a class action some are trying to put together in Aus. Interesting read.
Sign up and add you name if you wish. For me, these things rarely come to fruition, and can be just throwing good cash after bad. I haven't made a big enough loss to make it worthwhile. Some may find a bit of comfort there and like minded souls in another hemisphere!
Thanks WelshFalcoln, a very interesting read and I have appreciated your informed posts. I should have heeded the warnings like you did, there were enough alarm bells ringing and I didn’t act on them. My fault.
However, I do think that SO4 have been at best disingenuous and at worst borderline fraudulent. The ASX letter is pretty damning.
Just a few of the questions they asked-
“1. Does SO4 consider its commencement of First SOP Production in June 2021 to be information that a reasonable person would expect to have a material effect on the price or value of its securities?
2. If the answer to question 1 is “no”, please advise the basis for that view.
3. Did SO4 commence First SOP Production in June 2021 as flagged in the Institutional Placement Announcement?
4. If the answer to question 3 is “no”, please explain the factors which delayed SO4’s achievement of First SOP Production in June 2021.
5. When did SO4 first become aware that it would not commence First SOP Production in June 2021 as scheduled? Please provide details of the time and date.
6. If SO4 first became aware that it would not commence First SOP Production as originally scheduled and advised to the market before the time it requested the Pause in Trade, did SO4 make any announcement prior to the relevant date which disclosed that information?”
And so the letter goes on……
Sorry, forgot to say - this is published today (20th Oct)
@Yuri, I was a shareholder for quite some time and was looking forward to the first production that was 'fully funded' and promised in Q1 21. After two more unexpected capital raises after that deadline was missed, I became suspicious and managed to sell out the vast majority of my holding then (when it was at 26p).
I kept a very small position, basically as a marker in my portfolio as I believe the product and market have very good prospects. So, yes I was effectively out. But I have always maintained a strong interest as I believe this area of business will come good.
I maintain my interest, mainly to see who picks up the plant and Lake Way, there will be opportunities with whoever does this (Australian Potash would be my favourite as I like their management style/philosophy).
I was lucky - but acted after my red flags waved too strongly to ignore!
I feel for those caught, and have tried to counter the traders pushing this for their own ends.
The ASX have just published a letter sent to SO4 on 2 Aug. They had serious questions back then, and now see the need to publish them.
click on the 'download document ' link, a PDF of the letter comes in a popup.
Wow, sorry to hear about the outcome, not like totally unexpected but a bit too soon.
Still wondering who bought this toxic junk on Friday/Monday triggering huge volumes and throwing money into the quick-burn furnace (3 business days) - £1M turned over two days.
I hope everyone keeps these things diversified enough to absorb the damage and see sufficient recovery with other positions to compensate write-off.
@WelshFalcon - Re: "..but not enough value there to save us.."
Looking at your knowledge about the business and situation they were in - I'm a bit surprised TBH you were still invested/holding position (since you associate with business).
Thankfully my presence here was just for educational purposes on how these things go (specifics of peculiar situation they're in doesn't fit my risk profile as mentioned before)
Er... what 'other viable options'? Anything viable should have been looked at and done before this stage.
A larger company could have a profitable subsidiary that could be packaged up and sold (along with some of the debt) leaving a viable, slimmed down, business that can be rescued. SO4, unfortunately, is a one trick pony. There is Lake Way and its plant (yes licences on other lakes, but not enough value there to save us). If you sold the plant, you till need to process the salt. If you sell the lake, will the new owners use your plant? If you sell all (actually it collateral for the loans so you get nothing) how do you now finance the other lake(s) having failed on your first try?
I just don't see any value there for any ongoing operation. The incomplete plant and Lake Way are the only assets, but they back the loans.
@cavendish. This one was high risk / high reward. Sadly didn't pay off. I too lost money on the hype.
I posted that when it was 2.85 - Dry your eyes and on to the next one.