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Australian Potash (ASX:APC)

Project development and corporate update

1 Video - Oct 18

Interview with management for an update on the development of the Lake Wells project as well as a corporate update.

St Barbara JV on gold assets allows focus on Lake Wells potash project

1 Video - Oct 18

Australian Potash (ASX.APC) announced it has entered into an earn-in and joint venture agreement (Agreement) with St Barbara Limited (ASX: SBM) with respect to APC’s gold interests at its Lake Wells project. Highlights of the announcement include the following. 

  • SBM will pay APC a $1.25 million cash consideration for entering into the Agreement, plus a minimum exploration expenditure of $1.75 million in the first year.
  • After the first year, SBM can elect to earn a 70% interest in the tenements by spending a further $3.5 million on exploration and reimbursing APC up to $0.5 million in prior exploration costs (aggregate expenditure $7 million).
  • APC will be free-carried at 30% until completion of a bankable feasibility study (BFS).
  • APC will retain all rights to potash on the tenements.
  • APC remains focused on the development of its Lake Wells sulphate of potash (SOP) project, with a definitive feasibility study (DFS) still on track for early 2019.

Analyst comment:APC has long highlighted its intention to divest itself of its gold interests, and we believe this is an ideal outcome. 

SBM is one of Australia’s largest gold miners and, importantly, is well funded to explore the vast package, which will require significant funds, as well as time and expertise, to realise a meaningful discovery. APC is now free-carried until completion of a BFS (and, bearing in mind that there is no gold discovery yet, this may take some time) while maintaining a 30% interest. It allows APC to focus its funds and management entirely on its Lake Wells SOP project.

As well as SBM’s commitment to spend significant funds directly on the ground, APC will be paid an upfront $1.25 million in cash. This allows APC to be fully funded through to completion of its DFS for the Lake Wells SOP project, which remains on track for completion by 1Q19.    

The information in this email should not be the only trigger for your investment decision. We strongly recommend you seek professional financial advice whenever making financial investment decisions.

Valuation: we maintain our valuation for Australian Potash at $0.37/share (share price $0.07), and will further assess our valuation on completion of the DFS. 

Management update

1 Video - Aug 18

Managing Director Matt Shackleton  has provided an update on the company’s activities.  Topics discussed include the following.

  •  Jim Walker has been appointed Non-Executive Chairman of Australian Potash.  Can you discuss this appointment?
  •  You have announced the successful transfer of brine from the pre-concentration pond into the first harvest pond.  What is the importance of this?
  • You mentioned SOP will be sent to the MOU offtake partners.  Why is this important?
  • Can you provide an update regarding the progress of the DFS?


Drilling confirms continuity of gold mineralsation at Yamarna gold project

1 Video - Jun 18

APC has announced a significant bedrock gold anomaly over 2,500 metres long identified at their Yamarna gold project.

We discussed these results with the company and the strategy moving forward.

Capital raising & project update – Management interview

1 Video - May 18

Interview with Managing Director, Matt Shackleton, to discuss the following topics.

  • $3m capital raising.
  • Work program – Lake Wells SOP.
  •  Work program - Yamarna gold project.

Drilling to commence shortly at Yamarna Gold Project whilst Lake Wells continues to take shape

1 Video - Mar 18

Australian Potash (APC.ASX) will commence drilling at its Yamarna gold project shortly. The project lies 130 km northeast of Laverton, in Western Australia’s eastern goldfields region. APC’s tenements cover around 1,400 km² contiguous to the North Yamarna gold project of Gold Road Resources Ltd and 60 km northwest of the 6 million ounce (Moz) Gruyere mine development. Following this drill programme, APC will assess its options in order to crystallise value for shareholders. 

Analyst comment: APC has been quietly going about its business as it continues to advance the Lake Wells SOP project towards a definitive feasibility study by the middle of this year.  

In the most recent development, the EPA has advised it will assess Lake Wells as an ‘Environmental Review (No Public Comment)’, the second least stringent level of assessment. Hopefully, this will ensure a clear permitting pathway and allow the project to remain on track. 

APC also plans to produce a maiden SOP product in the coming months – a critical step in the project’s long-term development, as that product will be provided to potential offtake partners, including two existing Chinese off-take MoU groups. 

In addition to Lake Wells, APC will, as noted above, commence drilling at its Yamarna gold project shortly. Given that project’s proximity to the 6 Moz Gruyere project, the programme has attracted strong investor interest, despite our view that little has been ascribed to this asset in APC’s current share price. As highlighted in our interview, management clearly thinks the same way, as the company is currently considering options that will crystallise value for shareholders.

The information in this email should not be the only trigger for your investment decision. We strongly recommend you seek professional financial advice whenever making financial investment decisions. 

Valuation: we maintain our valuation for Australian Potash at $0.37/share (share price $0.10), and emphasise that it includes no consideration for the gold asset. Value for these gold assets should be realised in the near term.

Management Update

1 Video - Feb 18

Interview with Managing Director, Matt Shackleton for an update on the following:

  • The EPA ruling;
  • Work planned at the Lake Wells Project;
  • Work planned at the Yamarna gold project; and
  • Options to crystalise value at Yamarna.

Management update

1 Video - Nov 17

Interview with Managing Director, Matt Shackelton to discuss the test-pumping drainage results in further detail and why this is important for the Lake Well SOP project.

Test Evaporation Ponds – Management Update

1 Video - Oct 17

We interviewed Shaun Trainer, Process Engineer for Australian Potash, for an update on the Test Evaporation Ponds at the Lake Wells SOP Project.

Initiation Report

9 Videos - Aug 17

Australian Potash is developing the Lake Wells Sulphate of Potash (SOP) project in Western Australia. This analysis includes:

  •  Investment, risk & valuation assessment;
  • Virtual site trip;
  • Commodity analysis; and
  • Management interviews.

Valuation Analysis

1 Video - Aug 17

We determined a valuation for Australian Potash of $0.37/ share.  This analysis explains our key assumptions and highlights a number of sensitivities.



What is Potash

1 Video - Aug 17

Through this analysis we will review the fundamentals for potash, including the types, supply and demand factors as well as pricing.

Lake Wells Project – Virtual site trip

1 Video - Aug 17

Virtual site trip to the Lake Wells Sulphate of Potash (SOP) project in Western Australia.

Peer Analysis

1 Video - Aug 17

Little was known about potash in Australia until around 5 years ago.   Since then a number of potash projects have been identified and progressed through early stages development.  This analysis identify’s and compares key factors investors should be aware of in the industry.

The Pitch – Australian Potash

1 Video - Aug 17
  • The Pitch provides investors with key information about the company in a short management interview.
  • Australian Potash is an ASX listed company who is developing the Lake Wells Sulphate of potash project which has the potential to become Australia’s first producing potash project as the company has targeted first production to commence by 2020.