Salt Lake Potash has drawn down the final US$33m tranche of its US$138m Senior Debt Facility, with US$11m escrowed for early repayment in June 2022. The A$18m Guarantee Facility with Sequoia has also been executed. The last year has been volatile for Salt Lake Potash as it built and financed the first brine SOP project in Australia. Commissioning activities continue at site with first SOP still on track for this month. Construction of on-lake infrastructure has commenced with ramp-up over the ye
Companies: Salt Lake Potash Limited
Salt Lake Potash has suffered from a lower-than-expected evaporation profile since start up, to counter this Salt Lake Potash have brought forward the A$5m construction of pre-concentration ponds and infrastructure. Salt Lake Potash are also forecasting increased cash costs of A$390/t from A$337/t (inc Fremantle logistics) driven primarily by onsite logistics and increased laboratory testing. As a result, Salt Lake Potash has had to raise A$28m at A$0.35 to enable final A$33m debt drawdown and a
Salt Lake Potash has received its Part IV Environmental Approval for the Lake Way project near Wiluna, Western Australia covering full scale operations of 245ktpa of SOP. The permit enables Salt Lake Potash to complete construction of pond trains 4-6 as well as associated trench and bore construction. Following commissioning of the Lake Way process plant a few weeks ago, the next milestone will be first SOP production and sales in the June quarter. Construction work on the final components of on
Salt Lake Potash has commenced commissioning of the Process Plant at its Lake Way Project near Wiluna, Western Australia. This is the first-time potassium rich harvest salts, precipitated from lake aquifer brine, have been fed into an SOP Plant in Australia and a major milestone for Salt Lake Potash.
The Project has had a few minor delays due to a combination of rain and shipping delays, but given the last year, getting to first SOP production and sales in the June quarter will be an impressive
Salt Lake Potash Lake Way Project is nearing completion with the Process Plant and NPI well advanced. The overall project, including all on-lake infrastructure, was 81% complete on 31 December 2020.
The Project remains on track for first SOP production in March 2021 and first SOP sales in April, with the project capital budget unchanged at A$264m. Funds from the first US$105m tranche of the Project Development Facility have been received enabling repayment of the US$45m Bridge Facility and comp
Salt Lake Potash is raising up to A$57 million in equity at A$0.40 in order to satisfy the remaining conditions precedent and achieve financial close on the US$138m Taurus/CEFC debt facility for Lake Way. The Project remains on track for first SOP production in March 2021 and first SOP sales in April, with the project capital budget unchanged at A$264m.
Salt Lake Potash's AGM update reported that the Lake Way project is now 74% complete. Construction of the process plant is on-schedule with practical completion and first SOP production planned for Q1/21. Drawdown of the Senior Facility Agreement funds and repayment of the Taurus bridge loan is expected soon.
Salt Lake's September 2020 Quarterly update reported that the Lake Way project is now 63% complete. Construction of the process plant is on-schedule with practical completion and first SOP production planned for the March quarter 2021.
Drawdown of the Senior Facility Agreement funds and repayment of the Taurus bridge loan is expected in November.
Salt Lake released an update on the Lake Way project which is now 60% complete on an earned value basis. Construction of the process plant is on-schedule with practical completion and first SOP production planned for the March quarter 2021. Major vendor procurement packages are over 90% committed with fixed costs. At the process plant site concrete foundations are more than 80% complete, installation of structural steel supplied has commenced and first carbon steel tanks have been installed. Lon
Lake Way is one of the most advanced SOP development projects globally and the A$300m financing is a major milestone to pass. The SFA incorporates no refinancing restrictions after 18 months, giving Salt Lake the potential to refinance this relatively expensive debt and flexibility to utilise non-dilutive financing options for early works at its next lake development. A trade-off study is currently underway with a decision on the next lake development expected in the first half of 2021 and the m
Salt Lake Potash has received commitments to raise A$15m through the placement of unsecured zero-coupon Convertible Notes to Equatorial Resources (ASX:EQX) and institutional investors. The Convertible Notes have been structured as deferred equity with zero coupon and mandatory conversion into equity at the lower of 45c/share or a 5% discount to any future equity raising of at least A$10m. These funds will enable Salt Lake Potash to continue to develop Lake Way to the project schedule through Jul
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i3 Energy announced that it is increasing its next-twelve-month net operating income guidance to $US44M (pro forma acquisitions and associated recompletions/drilling). Net of our estimated G&A expenditure of $US8.0M (£5.7M) that equates to an adjusted cash flow from operations estimate of $US36.0M (adjusted to nullify the effects of debt). That compares to our prior estimated adjusted cash flow from operations estimate of $US29.6M. The increase reflects operational activity, namely, the drilling
Companies: i3 Energy Plc
As midsummer’s day looms (where has this year gone?), there is greater optimism, in general, than may have been anticipated a few months ago. A post-pandemic, ‘vaccine-driven’ recovery demonstrated by increased consumer spending as lockdown measures are lifted has been one of the catalysts. The FTSE 100 has been range-bound in the last month 6,900-7,100. We have seen a combination of broadly positive company results across a range of sectors, further examples of M&A activity and a sequence of ne
Companies: AMYT ARBB ARW BAG BEG BONH BWNG CWK DNK EML EPWN FBD FA/ GPH GSF GNC HUW IGC INSE KAPE KP2 MMAG NRR NESF OTMP ROL RUA SEN SUR TON TOU TXP TGL VLS WINK
Lancaster production approval
Companies: Hurricane Energy Plc
• Initial petrophysical analysis of logs from the secondary reservoir targets of the Upper and Middle Cruse sections of the Saffron-2 well indicate approximately 165 ft of net-oil bearing reservoir sands. This includes 145 ft in the hole section from the Upper Cruse down to the Upper Middle Cruse and 20 ft in the hole section from the remaining section of the Upper Middle Cruse into the Lower Middle Cruse.
• The reservoir characteristics are consistent with the Saffron-1 well, but importantly, n
Companies: Challenger Energy Group PLC
Bluejay Mining* (JAY LN) – Chinese ilmenite prices continue to rise
Bushveld Minerals* (BMN LN) – Vanadium prices continue to rise in China to ~$37.7/kgV
Keliber – Environmental challenges rejected by Finnish Court
Zinnwald Lithium (ZNWD LN) – Acquisition of additional exploration licences in Saxony
Companies: JAY BMN ZNWD
Calima Energy (CE1 AU)C; Target of A$0.035 per share: Increasing investment and production outlook - Production at the end of May was 3,100 boe/d with a further eight wells expected on stream by YE21. This level of production is above forecast and reflects the strong performance of the drilling at Brooks. Calima is increasing its capex programme from C$17 mm to C$20 mm with two new wells being added to the FY21 drilling programme (exc
Companies: XOM XOM SQZ PTR MAHAA JSE FEC EQNR EQNR CNE CNE CE1 88E PEN PEN GPRK GPRK
In a significant update, Sound has announced that it has entered into an SPA with Schlumberger to acquire its full 27.5% working interest in Eastern Morocco. On completion, the transaction significantly increases Sound's discovered and undiscovered resource position in the region, ahead of ramping up its transformational phased development strategy at Tendrara. Upon securing the funds following the signing of a previously announced deal with Afriquia Gaz, the Company will remain fully funded for
Companies: Sound Energy plc
The UK market showed a continued recovery in the first quarter albeit the indices are still well short of their all-time peaks, unlike many of their international peers. The FTSE 100 has risen by 1,186 points (21.4%) since the end of October and the FTSE 250 by 4,304 points (25.0%). The comparable performance since the start of the year is less spectacular- the FTSE 100 has risen by 253 points (3.9%) and the FTSE 250 has risen by 1,070 points (5.0%). The factors behind the sustained rally are fa
Companies: AMYT ARBB CEG BAG BVC BEG BONH BLVN BRSD CML CWK CRPR EYE ECHO FDM FAR FA/ GPH GSF HUW INSE JDG KAPE KP2 MACF MPAC MNZS NESF NBI OTMP OBD PREM QFI RUA SCS SEN SOS SUR TON TOU TXP TGL TCN UEM VLS WYN
Bastion Minerals+ (BMO AU) – Rock chip assays
Bushveld Minerals* (BMN LN) – Vanadium prices rise in China to ~$37/kgV
Caerus Mineral Resources (CMRS LN) – Completion of acquisition in Cyprus
Cornish Metals*+ (CUSN LN) – Tin prices continue to rise following MSC suspension
Nordgold - IPO is being priced at $5.1-6.6bn equity value
Companies: CUSN BMN CMRS BMO
Oil posted its third straight weekly rise on improving demand, with the International Energy Agency warning the market will need extra supply next year.
Futures in New York rose 1.9% this week, extending its rally to the highest settle since October 2018. The IEA said that OPEC and its allies will need to lift output to keep the market adequately supplied, though the agency predicted demand will not reach pre-virus levels until late 2022.
Meanwhile, road traffic in the US and much of Euro
Companies: FO 88E DEC EME GTC TRIN UOG
Scirocco Energy (AIM: SCIR), the AIM investing company targeting production and development opportunities within the European energy market, announced a proposed investment into Energy Acquisitions Group Ltd ("EAG"), a specialist acquisition and operating vehicle in the sustainable energy sector. The company indicated its investment of £1.2 million will be funded from current cash resources. The investment represents the first investment as part of the Company's revised strategy that targets opp
Companies: Scirocco Energy PLC
• Gas demand in Tanzania continues to be very high with YTD production averaging 80.3 mmcf/d, well above last year (58.1 mmcf/d). While gas demand is normally low during 2Q (because of hydro), we estimate 2Q21 production at ~75 mmcf/d.
• As a result, Wentworth is increasing its production guidance for 2021 from 65-75 mmcf/d to 75-80 mmcf/d.
• At the end of May, Wentworth held US$21.5 mm in cash and no debt. This is close to our expectations of US$21.4 mm at the end of June. This also implies th
Companies: Wentworth Resources PLC
Forecast and valuation update
The Calabar power station, which accounts for the majority of Savannah’s Nigerian gas sales, has entered a new power supply agreement with the Republic of Togo, with more in discussion, raising the prospect of meaningful increases in Savannah’s gas supplies to the plant. These additional volumes will come at negligible additional cost, leveraging the bottom-line impact. The recently signed Mulak Energy gas sales agreement demonstrates this, boosting our 2022 earnings by 8% and our risked-NAV and
Companies: Savannah Energy Plc