Firering Strategic Minerals: From explorer to producer. Watch the video here.
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Started: DonJules, 10 Oct 2022 13:03
Last post: Yuri.F, 21 Dec 2022 20:48
There was administrators (KPMG) update heads-up issued on 29th Nov with meeting later on 2nd-Dec, it's all there in link by Ecclescake. In short: still no hopes for shareholders (as DOCA sections point out) as unsecured creditors are way to far from recovering much from all this mess and sadly for everyone - it's at low end of single-digit percentages.
I have emailed the administrators regarding any news for us poor UK shareholders.
Take a look at https://home.kpmg/au/en/home/creditors/salt-lake-potash.html
Let me know what you make of the 3rd October letter, Deed of Company Arrangement. I'm not clear what arrangements have been entered into, doesn't look like a sale.
I have just heard that the company has been sold.
Does any one know anything about this and whether our UK shares might have some value?
Started: ripley94, 24 Aug 2022 01:30
Last post: Yuri.F, 24 Aug 2022 19:47
Archeologists? or necromancer? What's the point of upping old news?
Lombard Odier Asset Management (Europe) Ltd owned 8.77%
Ellerston Capital Limited 5.58%
Fidelity International 4.05%
Wed, 20th Oct 2021 10:55
(Alliance News) - Sequoia Economic Infrastructure Income Fund Ltd on Wednesday noted investee Salt Lake Potash Ltd has announced a voluntary administration after an unsuccessful equity raise.
AIM listing Salt Lake was looking to raise cash to further its Lake Way potash project in Australia.
"The proposed equity raise has been unsuccessful and Salt Lake Potash have announced a voluntary administration of the company as at 20 October 2021," FTSE 250-listed Sequoia Economic said.
Sequoia's investment in Salt Lake represented 1.9% of its net asset value on September 30.
Sequoia added: "The investment adviser had been developing a contingency plan should the funding gap not be addressed. This contingency plan has now been activated in full alignment with the lender group. The lender group has appointed KordaMentha, a leading Australian restructuring and advisory firm, as receivers for the lender group."
Martin Jones, Tom Birch and Hayden White of KPMG have been named as voluntary administrators.
Under Australian laws, the receivers KordaMentha act for the benefit of a company's lenders. They may undertake trade sales, debt recovery or other restructuring work.
Salt Lake's receivers said they will "commence a process to market the company and its assets for sale and recapitalisation opportunities in the coming weeks".
Sequoia noted that the total amounted invested in the Lake Way project "materially exceeds" the debt. However, the investor noted a similar potash project with similar ramp-up issues to Lake Way recently achieved full production.
The voluntary administrators, meanwhile, on Wednesday said Salt Lake's director resolved that the company was insolvent or likely to become insolvent "at some future time".
Sequoia added: "Whilst it is too early and speculative to comment on the eventual recovery percentage of our investment, our senior secured position should position us strongly in the restructuring process."
Sequoia shares were 0.2% lower at 108.97 pence each in London on Wednesday morning. Salt Lake shares were suspended on Tuesday, they were last quoted at 2.25 pence.
Salt Lake on Tuesday said it was working towards finalising a fundraising plan "that would be necessary to continue operations".
Started: WelshFalcon, 20 Oct 2021 15:09
Last post: OzzieBTC, 22 Aug 2022 13:51
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).
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 ...
Commencement of sales process - Korda Mentha
10 October 2022
Https://hotcopper.com.au/threads/ann-sale-process-commencement-and-resource-upgrade.6634955/
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.
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
Started: Ecclescake, 20 Nov 2021 09:29
Last post: Ecclescake, 20 Nov 2021 09:29
Following the appointment of administrators and subsequent cancellation of trading on AIM
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dates below:
Index Effective From
Start of Trading
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Started: Eddie187, 10 Nov 2021 10:31
Last post: QuantumStar, 13 Nov 2021 12:00
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?
Started: Latino, 9 Nov 2021 11:49
Last post: Yuri.F, 9 Nov 2021 13:50
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!
Started: shenners, 23 Oct 2021 07:46
Last post: QuantumStar, 23 Oct 2021 23:23
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
Started: TuftedDuck, 20 Oct 2021 17:11
Last post: Ecosselibre, 20 Oct 2021 17:50
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.
Started: jcookec, 20 Oct 2021 11:39
Last post: WelshFalcon, 20 Oct 2021 11:41
160m
How much debt did the company have?
Last post: Delano47, 20 Oct 2021 08:24
And that’s what share trading is..... a gamble ...... a game. I wasn’t invested here but I feel for those that were. How much money is lost waiting for a gain? A one bagger is the same as even money... double your money. Far easier to bet on a horse or a football match. Liverpool last two games have been 1/2.... 50% increase on your money.... a certainty!! There are so many games being played with shares.... why bother? Empty your pockets and shorten your life..... that trading/investing for you!!
Last post: Edward75, 20 Oct 2021 08:15
Yes Thompi, I hoped for a positive outcome and the management have thrown the towel in. A very sad outcome for all those involved in the project including the management team and all those invested.
Bad luck Edward and to all those like myself who hung on. A sad outcome.
RNS just posted.
I regret to say that seems to be the end and this is a sad day for all those invested.
When one does not have what one wants,
one must want what one has.
So we all just have to move on and pick up the pieces.
Interesting how the ASX has RNS but AIM awaits this information.
And the Bears have it the Bears have it.
Get ready for a good dose of I told you so's... :(
Started: Edward75, 19 Oct 2021 21:49
Last post: Edward75, 19 Oct 2021 23:12
1eyedman. Totally agree with your observation about the multi bagging comments which may have strongly misled some investors and probably distorted the trading in recent days. The funding race does indeed look a difficult task to resolve but we must hope that the management do everything possible to make it happen. Until we know otherwise, I will not give up hope.
Good Luck and take care whatever the outcome.
THANKS for your honesty. Not too happy about the visual image of the creek though I hope it doesn't have any Australian crocodiles in the creek.
Soon, maybe tomorrow we will have a crystal clear RNS that states where SO4 has or has not reached in its journey to obtaining funding.
Edward75. I hope we get the positive outcome you describe and you make valid points about how close the company has got to production. I fear the race against funding is looking lost but obviously there are a range of possible outcomes. GL also.
I’m much more comfortable with reasoned positivity than the ludicrous multi bagger tosh that was around prior to suspension.
Sorry, to be really honest, as much as I want a good resolution, I still think we are up s**t creek without a paddle.
Thanks Edward for focusing on the positives. My interests are aligned with yours and hopefully, eventually a good outcome.
Started: 1eyedman, 19 Oct 2021 18:32
Last post: Thompi, 19 Oct 2021 21:10
Sadly Leyedman & Lootgaloot I agree. I really hope I am wrong and something is salvageable, even if it’s in the long term.
I cant see the latest RNS as anything else other than an indication that the company is a further step closer to administration. Even the wording seems pretty pessimistic. At least the suspension on AIM will save anyone getting sucked into the fantasy world that this is a short term multi-bagger.
I'm actually wondering if the lenders that appear to 'own' the infrastructure should the worst happen, might still get a little singed. This kit would only be useful to anyone who wants to attempt to produce SOP from the lakes. It would be interesting to see where this ended up if SO4 falls over. One possibility is another operator over paying the current lender for the plant etc. on the basis that they (Tauris) will helpfully lend the new owner some cash. Purely on the basis of course that any new operator is in a position to soak their shareholders for a placing to help the funding. Bit cynical maybe?.
Started: Latino, 19 Oct 2021 11:51
Last post: lootgaloot, 19 Oct 2021 20:36
AIM suspension should have happened at the same time as ASX. Management have severely weakened their leverage to negotiate funding by allowing share price to drop to basement level. Like playing poker with your hand laid out on the table for all to see.
Totally agree with you Latino. Keep those positive waves coming. The share price of SO4 frozen on the AIM is good news and should have happened many moons ago not after numerous suspensions of SO4 on ASX. If the sun breaks through the clouds and shines on SO4 then maybe both markets for SO4 can open simultaneously in a positive wave of optimism!
I agree.. this is all ifs and buts for now but an extremely fair price for anyone that as been able to buy in under 4p warrants this.
Think they’ve done the right thing suspending this for now, as day traders all over this causing some big swings. If they secure funding like BCI Minerals last week, this could see one of the biggest AIM rises seen, but it’s all ifs and buts for now though!
Started: Edward75, 19 Oct 2021 10:40
Last post: Edward75, 19 Oct 2021 10:40
Yuri I think the trading advantage has been skewed in the favour of ASX since their SO4 share price has been frozen unlike SO4 on AIM which has lost most of its value. I don't think recent trades had any bearing on timing of last RNS. I think it more about going forward after the next RNS, with both markets closed.
Started: Edward75, 19 Oct 2021 10:08
Last post: Yuri.F, 19 Oct 2021 10:15
yep, as expected: self-reassuring (or targeting others of suggestable nature) mantras filled with positivity, it's good to see someone steps in to support sanity (or whatever agenda is behind it) but being realistic about the situation without introducing tinted-glasses asymmetry in bias might've been a bit more fair approach.
I really do get it that SO4 has a range of problems to solve but I remain hopeful that the leaders of SO4 will sort it out, get the funding required and get production of potash going. My position remains thinking positive, since this is the heart of the RNS that they remain in mode of seeking funds. How long it will take we don't know. I expect we will discover more this week. If they have not secured funding yet, then I hope they just add another suspension to SO4 on ASX and continue with AIM suspension. I think the Australians are going to do everything possible to get this great project moving again.
Just wondering was it because of last Friday abnormal trades?
Were they waiting for those transaction to complete allowing someone out (or in) before shutting it off?
Or was it a final trigger to prevent unfair disadvantage AIM investors had vs Australian market?
@WelshFalcon - thanks for your valuable contribution, at least someone keeps the fair balance.
@Tradehobbs, if only it would be that easy.
To get a placement (with consequent dilution) off the ground, you need one or more institution to step up to the plate with a guarantee. If not you are in all sorts of trouble if the placement fails and falls short.
They should be looking at all options, so this means that there isn't anyone ready to step up, nor is there a ready appetite for further loans (precious little collateral left to offer, if any).
The only route is persuading the existing lenders to put in more and reschedule the existing deals in exchange for..... what exactly?
@Yuri, the plant and Lake Way infrastructure were all put up as collateral to the 9% and 12% funding deals. Capital repayments due to start in March 22.
So not only do they need funds now, they need to get the plant working well enough to produce enough positive cashflow by the end of March, or renegotiate those loans as well.
They need to pull a multicoloured rabbit out of the hat! If they don't, there will be no plant nor Lake Way assets for shareholders. We get to divi up the sale of the Chairman's company car!
Yes Tradehobbs keep hitting this space with them positive waves so early in the morning.
They could’ve quite easily issued more shares and diluted share holders before now.. they haven’t. In my opinion they have been seeking alternative funding. I remain positive.
Started: Latino, 18 Oct 2021 18:02
Last post: Edward75, 18 Oct 2021 18:11
Latino Closing Price is obtained from the closing auction price which was 2.45 and not the last asking price.
Closing price, when last buy price 2.25??
Started: WelshFalcon, 18 Oct 2021 14:25
Last post: Cavendish3, 18 Oct 2021 16:15
But with subjectivities. Until these are sorted, he hasn't.
My apologies, but my prudent point is a new CEO has accepted the role..!
Oh dear, go back and actually read the appointment RNS.
He is not there yet.
"The company anticipate that the Executive will be appointed as CEO of the Company by no later than 15 November 2021. The Executive's employment pursuant to his Executive Services Agreement is subject to requotation of the Company's securities on the ASX."
The 15th deadline has not been reached yet, ASX shares still suspended. No confirmation of appointment has been issued. Currently the old team and CEO (with no incentive to perform) are still in charge.
As you said "Lots to learn, fella"
Don’t think it’s that simple, the new CEO only arrived last month so I would not be sure, otherwise why would he take on this role and put his reputation on the line? These are the negotiations he will be leading right now!
Which they would have done if an agreement was reachable. How many weeks has the ASX been in suspension, now? How many times has the suspension been extended?
If the existing lenders were keen to deal (and 'want return and not assets'), then a deal would have been done right at the start of this emergency fund raise. The deal hasn't been done throughout this time = serious problems.
An, yes - they will take the assets to other well managed operations (Australian Potash, say) and put together a package for then to take it forward with a management that can and will produce returns.
Started: jonesrichard, 18 Oct 2021 12:26
Last post: Latino, 18 Oct 2021 13:44
BCI funding does shows, the funding is out there for this resource..time will tell of course.
Big money entering. Think we could see big moves. At least 3p today IMO
Afzal doesn’t look for 10 or 20%. He invests for multi multi baggers. Great to see him invest here. Think we could see at least 3p today
"Imagine if #SO4 gets a strong funding
This one just happened on Friday...
ASX-listed BCI Minerals on Friday announced that it had secured A$740-million in debt funding for the development of its Mardie salt and potash project, in Western Australia https://miningweekly.com/print-version/bci-secures-debt-funding-for-mardie-2021-10-15
"SO4 is a Risk/Reward punt
A strong funding and this could fly back into double digits
35p to 2p drop
At times you have to take these type of punts. Can turn into 5 Bagger within days"
https://twitter.com/AfzalValli/status/1450035283735552003
Started: jonesrichard, 18 Oct 2021 13:14
Last post: jonesrichard, 18 Oct 2021 13:14
Started: Edward75, 22 Mar 2021 09:30
Last post: mannnan, 18 Oct 2021 09:00
only down because of the funding
Obviously time will tell if the current buy price turns out to be cheap or not, if the finance is sorted soon as expected and the sp moves back to where it was a few months ago to over 40p then this is cheap but of course if it goes the other way not so much!
How much do you know about business?
Have you guys at least read prospectus?
Wasn't it about 20 years of life-time (NPV cashflow multiples below 1.5 m-cap) and given current mess-ups with:
- failed production technology (not giving useful/expected quality output they can sell),
- wrong/dysfunctional equipment they've spent millions on (had to be replaced)
- previous additional equity raise (well above initial plan)
- requirement for onboarding additional debt (under very harsh covid-related conditions - it's almost impossible to get money on favorable terms without predatory conditions these days for start-up projects) even before starting production at full scale (just to get there)
- debt being secured at significant discount vs assets (if it goes south - there's nothing left of equity) and assets are sitting in a middle of desert (not tradable at market value)
- poor track history on proper promised delivery by BoD as per above.
- high probability on either failure or additional equity raise (=significant dilution).
- low NPV discount rate (8%) applied on cash-flow valuation (accounting-wise might be fine but it's not risk-free project) when it was sold to investors (a bit misleading marketing if people don't understand much about how these things are calculated)
Considering all of this (and failure statistics for startups and AIM market in general) - NPV (at right rate taking account risks) can be put somewhere close to 100m+ AUD if they do manage to pull this off, there are other very likely outcomes: no-options take-over for pennies (like with Sirius), further dilution, administration/insolvency/liquidation - average weighted outcome isn't that bright tbh.
I get it what many here have bought-in (presumably "cheap") and trying to ramp-up but be at least realistic in line with actual business plans. It can play-out well and multibag - but there are intrinsic limits based on business fundamentals (and yeah - it indeed can go well above it due to frenzy effect and other like with gamestop' short squeeze).
I was thinking about taking position here but without financing sorted (under current harsh lending market environment and fragility of business SO4 is involved in) - it's wipe-out, doesn't fit my risk profile, pure gamble unless you do know some insights on their financial agreements (and trading on this info would've been subject of MAR).
1.5bill MC within 5 years here sounds great but I agree that there would likely be a buy out well before then, let’s just hope it turns into a huge bidding war!
I think the big boy miners would be into buy them long before they get to 8 lakes.
Of course Newboy I hope your right :-)
Started: JoeCreed, 26 May 2021 10:29
Last post: jonesrichard, 17 Oct 2021 00:22
Obviously depends when they confirm that the funding is secured, obviously have been a few little blips recently which is to be expected with this type of project, would like to think that 25p + could be seen before EOY but obviously that all depends on progress!
Yes Quantum, how long before divi starts being paid do you think? Like you say worth holding long term here for maximum gains sp/mc wise and the divi payments also!
Well its certainly looking like the June production date will be missed so revenues will be pushed back accordingly. Whilst I guess on some level its good that the CEO posts progress on Twitter I was wondering if leaving the impression that you could hit the start button and product would shortly follow might be either wildly optimistic or could even show a lack of experience of chemical plant commissioning. The first few batches might be a slow and painful process with a lot of real world snags that have to be ironed out. There will probably be in-process lab testing (and indeed final product QC testing) that eats up time and its possible the early material may fail to meet specification. The one saving grace to all this is that we know the start material is there and its a matter of getting the plant to work. Unlike waiting for an oil drilling /precious metal mining outcome where the product does not actually exist in any useful quantity.
From the RNS in May the 1st revenues should be any day now. I'm guessing part of the SP decline has been due to 2021 revenues being reduced and also steady state costs increasing (not for the first time!). Tony S is very quiet on twitter at the moment, hopefully that's a good sign!
Lake Way project update
The Lake Way Project is on schedule for first SOP production in June 2021 and first SOP sales very shortly thereafter. Commissioning is substantially progressed with 26 of the 34 Plant Process Units now commenced and 17 of those Process Units now finalised to Practical Completion. Overall plant commissioning is more than 50% complete. The target for full scale production of 245ktpa remains the June quarter of 2022.
Revenue expectation in 2021 has been reduced, driven by expected slower harvest salt ramp up due to a delay in receipt of EPA Part IV until late April following the recent state election, a lower evaporation rate incorporated into new dynamic pond model and a larger than expected impact from harvest salt production cells being taken offline during peak salt formation from December to February to prove harvesting methodology. Train 3 pond cells have been repurposed to reflect revised pond design. The reduced revenue expectation for 2021 was a key consideration in determining the additional funding required.
In addition, the project capital budget for the initial scope of works has increased by A$5m to at A$269m as a result of advancing sustaining capital work involving the construction of 271Ha of pre-concentration ponds (A$2.5m) and associated trench and bore capacity (A$2.5m) to feed the additional pond acreage. The additional pre-concentration ponds will help to de-risk salt production, with the lending syndicate's Independent Technical Review Report noting "It is clear [that] together with conservative process design criteria, the revised pond system on average will be able to produce in excess of nameplate production, with worst case conditions meeting nameplate".
As part of the project final cost to complete review operating cost assumptions have also been updated, with steady state costs increasing from A$337/t (adj. for higher AUD FX and shipping from Fremantle) to A$390/t. The primary drivers for the increases in expected operating costs are higher onsite logistics (+A$30/t), laboratory (+A$8/t) and increased diesel and labour costs (+A$14/t).
In the next month or so. First for local consumption and then globally. Looking good now ??!
Started: AndyBu, 2 Jul 2021 11:27
Last post: jonesrichard, 17 Oct 2021 00:11
Indeed, just a matter of patience at this point
Yes, once funding is sorted then the 15p + top ups should prove to be the right course of action hopefully!
Post from Glencore Technology on linkedin.
Salt Lake Potash have turned on their two B5400/18 Jameson Cells, with commissioning wrapping up. The cells are in Rougher and Scavenger duties, processing up to 325tph or 780m3/h of Potash feed.
#JamesonCell #SaltLakePotash #MiningNews #GlencoreTechnology #Glencore
https://www.linkedin.com/posts/glencoretechnology_jamesoncell-saltlakepotash-miningnews-activity-6815458822006697985-DRjr
Yes not far off now into production and this SP will look like a bargain. I have topped up on this drop. Great opportunity as it seems its off everyone's radar.