Australian Potash Limited
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Australian Potash Limited is an ASX-listed (ASX: APC) Sulphate of Potash (SOP) developer which holds tenure across four (4) project areas in Western Australia's north-eastern Goldfields. APC flagship project is the Lake Wells SOP project and we are finalising plans for commencement of construction.
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Metals & Mining
What does Australian Potash Limited (APC) do and how does it make money?
They do potash, of course. But there's more.
Founded in 2011, Australian Potash (APC) is an explorer of potash, gold and nickel sulphide minerals and a developer of Sulphate of Potash (SOP). The company is currently running four exploration projects across Western Australia.
Lake Wells Sulphate of Potash Project — located 500km northeast of Kalgoorlie in Western Australia’s Eastern Goldfields, this project covers approximately 1,200 square kilometres. It is APC’s flagship project with the company owning a 100% stake. It is also APC’s largest source of potash at this time.
Lake Wells Gold Project — a joint venture with St Barbara Limited (SBM) for the exploration, development and mining of non-potash minerals such as gold. SBM holds a 70% stake in the project.
Laverton Downs Project — 100% owned by APC and located approximately 20km north of Laverton. In early stages, the project is prospective for gold and nickel sulphide deposits.
Lake Darlot Potash Project — 70km east of Leinster and strategically located near existing infrastructure, the project is exploring for potash and carrying out preliminary investigations for gold.
Australian Potash produces 170,000 tonnes of SOP each year. The company earns revenue by selling SOP to customers from the European Union, the United States and across Australia for use in farming and fertilisation. The company reports its SOP sales revenue in a single segment.
What is Potash?
Potash is a mixture of potassium carbonate and potassium salts. 95% of the world’s potash is used to fertilise farms, grow plants and boost crop yields.
Potash is a vital resource as it protects plants from extreme temperatures, stops wilting, strengthens roots and deters insects and weeds.
Is Australian Potash a profitable company?
No, Australian Potash is not a profitable company. Its net income has been negative each financial year since 2011 except in FY2019 when the company earned A$142.5k. In FY2021, the company’s net income was negative A$3.73m with a negative free cash flow of A$3.15m.
In the company’s most recent interim report, the company cited the securing of funds as a “going concern.” It also admitted to being “reliant on securing funds by raising capital from equity financing, debt financing or other means and managing cash flow in line with available funds.”
Is APC stock a buy?
Many investors view APC stock as a speculative investment. The company’s balance sheet shows close to zero revenue, negative income and negative cash flow.
In November 2021, Australian Potash announced a A$12m capital raising to advance and “de-risk” their Lake Wells Sulphate of Potash project. In doing so, they floated more shares onto the market, further diluting the value of APC stock.
Does APC stock pay dividends?
No. The company has no history of paying dividends and has made no announcements to do so in the future.
Who owns APC stock?
As of April 2022, APC stock’s largest owners are a mix of private companies, institutions and individuals.
The institutions and companies include Yandal Investments (6.29%), Perth Select Seafoods (2.98%), Acuity Capital Investment Management (2.3%) and Cen Pty Ltd (2.13%).
Individuals include Cyprium Australia’s Founder, Gary Comb (2.3%) and Geoffrey Coultas (1.86%).
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This does not constitute financial advice. You should do your own research before making an investment decision. Past performance is not a reliable indication of future performance. No representation is made as to the timeliness, reliability, accuracy or completeness of the market data provided.