Salt Lake Potash (SO4) – Clearing things up

Salt Lake Potash (SO4) – Clearing things up

As I awoke yesterday morning, I was surprised to see that Salt Lake Potash (SO4) had released an RNS about my previous Salt Lake Potash article.

The article had been republished by Brand Communications, the company retained by Salt Lake to provide online public and investor relations support. A regulatory body might have viewed the republication of the article as an endorsement of it by Salt Lake, which would be problematic because at this stage Salt Lake are prohibited from releasing NPV/IRR/EBITDA figures.

Indeed, the article I wrote was speculative in nature as I was trying to give an indication of what Salt Lake’s projects could be worth in future, using public information.

Amendment – I confused Lake Way and Wells.

In the original article I confused Lake Way and Wells. Stage 2 and Stage 2.5 should have said Lake Wells rather than Lake Way.

I also took a 25 year life of mine as that is mentioned five minutes into this video. To be more conservative, I have now adjusted the figures to a 10 year life of mine for the demonstration plant and twenty years for Lake Wells. I have provided the full Excel spreadsheet below to give an indication of how I did the calculations. I’ve used the built-in Excel NPV/IRR functions. Click to expand:

The figures used in the calculations for the demo plant came from this scoping study:

(Source: Salt Lake Potash)

For what I described as Stage 2/2.5, I used the following scoping study figures:

(Source: Salt Lake Potash – see)

As Salt Lake has stated, I was not paid by the company and they were not involved in writing the article. Companies cannot pay for coverage on Cube Investments! And nothing we write here should be viewed as a recommendation or advice. You should always do your own research. I do hold Salt Lake Potash shares, as previously stated.

 

At the time of publication, the author holds a long position in SO4.

1
CATEGORIES

2
Leave a Reply

Please Login to comment
1 Comment threads
1 Thread replies
0 Followers
 
Most reacted comment
Hottest comment thread
2 Comment authors
Joel DeakinDearg Doom Recent comment authors
  Subscribe  
newest oldest most voted
Notify of
Dearg Doom
Member
Dearg Doom

Great original article and the two minor corrections to the original mentioned much appreciated. I had not seen the IG video, so thank you once again for the link.

Investment case remains intact! The capex required for the initial plant (given the SO4’s market cap) seems so much easier a task based on projected gross margins to raise compared to other micro-caps in a similar situation.

Your Cart