TIDMSO4
RNS Number : 9200N
Salt Lake Potash Limited
27 September 2019
27 September 2019 AIM/ASX Code: SO4
SALT LAKE POTASH LIMITED
Annual Report 2019
-------------------------
AIM and ASX listed company Salt Lake Potash Limited ("SO4" or
the "Company"), announces its results for the year ended 30 June
2019.
The Company's full Annual Report including Accounts can be
viewed at www.so4.com.au.
The Company also advises that an Appendix 4G (Key to
Disclosures: Corporate Governance Council Principles and
Recommendations) and the 2019 Corporate Governance Statement have
been released today and are also available on the Company's
website: https://www.so4.com.au/corporate-governance/.
For further information please visit www.so4.com.au or
contact:
Tony Swiericzuk/Clint McGhie Salt Lake Potash Limited Tel: +61 8 6559 5800
Colin Aaronson/Richard Tonthat/Ben Roberts Grant Thornton UK LLP (Nominated Adviser) Tel: +44 (0) 20 7383 5100
Derrick Lee/Peter Lynch Cenkos Securities plc (Joint Broker) Tel: +44 (0) 131 220 6939
Rupert Fane / Ernest Bell Hannam & Partners (Joint Broker) Tel: +44 (0) 20 7907 8500
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
MESSAGE FROM THE CEO
Dear Shareholders
I am very pleased to provide my first update on the Company's
progress during a period where we have transitioned from explorer
to developer of the Lake Way Project, and face an exciting future
ahead.
Prior to joining Salt Lake Potash as CEO & Managing Director
in November 2018, I was very aware of the emerging sulphate of
potash (SOP) sector in Western Australia and had studied several of
the proponents and their respective projects. A further deep dive
in to SO4's work uncovered the high quality technical studies,
business model and industry relationships that were established
over the years that preceded me. I took little convincing that it
was the best company to lead the development of the new Potash
industry in Australia. SO4's scalable multi-lake holdings in
proximity to the Goldfields infrastructure was paramount in
offering significant potential to achieve a fast pathway to
production, costs savings and economies of scale.
We have achieved a huge number of significant milestones during
the year and have rapidly advanced the development of our first
Project:
Technical Studies for Commercial Operation
In June 2019, we completed our scoping study for a commercial
scale 200ktpa SOP development at Lake Way. The study shows the
Project generates exceptional economic returns with a low capital
intensity, bottom quartile operating costs and sustainable
operating life. The bankable feasibility study on a commercial
operation will be completed and released in early October.
Construction of first Commercial Scale Evaporation pond
Construction of the Train 1Williamson Ponds at Lake Way,
measuring 2.5km by 0.5km (125Ha) was completed in June 2019. This
is the first commercial scale on-lake SOP evaporation pond system
and has provided the team with invaluable data on construction and
operations methodology and costs. With the dewatering of the
high-grade brine from the Williamson Pit progressing well, the
Company has commenced the evaporation process for production of
first harvest salts.
Acquisition of Blackham Tenements
A sensational deal that involves the acquisition of Blackham
owned Lake Way tenements, process water sufficient to satisfy SO4's
project needs, and the extinguishment of the Blackham Royalty on
brine extracted from their tenements. This transaction provides
significant benefits to the Lake Way Project and further support
the rapid progress towards first production in late 2020. The
acquisition will provide material value through capital and
operating savings to SO4 and also significantly de-risks the
Project by providing ownership of key project tenements and access
to infrastructure including water.
Project Financing
A significant milestone for the Company is our recently
announced mandate with Taurus to provide up to US$150 million in
project financing for the Lake Way Project. Initial funds for early
construction works and completion of the BFS are available for
drawdown ahead of the main facility. We are delighted to have
entered a long-term partnership with Taurus, with their commitment
as this stage of our development being a strong endorsement of the
Project and delivery team.
SO4 Team
With the incredible positive attributes of the Lake Way Project,
and expansion opportunity across the many lakes in the portfolio,
SO4 has attracted a highly experienced construction and operations
team. This is supporting the Company with its plan to rapidly
develop Lake Way and future lakes in the SO4 portfolio. Having
previously worked closely with many of the current SO4 team on
project development and ramp up, and having achieved significant
successes, it is exciting to again share the opportunity to develop
another outstanding project in WA.
The next 12 months will be pivotal to SO4 with many key work
fronts rapidly progressing, including construction of the process
plant and associated support infrastructure, completion of Stage 2
and 3 on-lake civil works and finalising permitting for the Project
in line with our project schedule.
Having now been in my position for 11 months and with the
achievement of so many significant milestones that have rapidly
progressed the development at Lake Way, I remain convinced of SO4's
potential to lead the development of the SOP sector in Australia
and be a major global fertiliser company.
It is difficult for me to contain my enthusiasm about the
development and construction journey that lies ahead over the
coming 18 months. I would like to extend my appreciation to our
shareholders for your support and I look forward to sharing success
with you in the coming year.
Yours sincerely
Tony Swiericzuk
Chief Executive Officer
OPERATING AND FINANCIAL REVIEW
Operations
Salt Lake Potash is the owner of nine large salt lakes in the
Northern Goldfields Region of Western Australia. This outstanding
portfolio of assets has a number of important, favourable
characteristics:
-- Over 7,250km(2) of playa surface, with in-situ clays suitable
for low cost on-lake pond construction;
-- Very large paleochannel hosted brine aquifers, with chemistry
amenable to evaporation of salts for SOP production, extractable
from both low-cost trenches and deeper bores;
-- Excellent evaporation conditions;
-- Excellent access to transport, energy and other
infrastructure in the Goldfields mining district;
-- Clear opportunity to reduce transport costs by developing
lakes closer to infrastructure and by capturing economies of scale;
and
-- Potential for multi-lake production offers optionality and
significant scale potential, operational flexibility, cost
advantages and risk mitigation from localised weather events.
Salt Lake Potash's immediate focus is on the rapid development
of the Lake Way Project, Wiluna. Lake Way's location and logistical
advantages make it the ideal location for the Company's first SOP
operation.
The Company's long term plan is to develop an integrated SOP
operation, producing from a number (or all) of the lakes. Salt Lake
Potash will progressively explore each of the lakes with a view to
estimating resources for each Lake, and determining the development
potential. Exploration of the lakes will be prioritised based on
likely transport costs, scale, permitting pathway and brine
chemistry.
LAKE WAY PROJECT
Lake Way is located in the Northern Goldfields Region of Western
Australia, less than 15km south of Wiluna. The surface area of the
Lake is over 270km(2) .
Salt Lake Potash holds five Exploration Licences (two granted
and three under application) and one application for a Mining
Lease, covering most of Lake Way and select areas off-lake,
including the paleochannel. The northern end of the Lake is largely
covered by a number of Mining Leases, held by Blackham Resources
Limited, the owner of the Wiluna Gold Mine. The Blackham tenements
are now subject to a Sales Agreement where Salt Lake Potash will
acquire a package of strategic tenements and other key assets for
the Lake Way Project.
Lake Way has a number of compelling advantages which make it an
ideal site for Salt Lake Potash's initial SOP operation,
including:
Ø Existing Mining Leases provide advanced permitting pathway for
early development activity, including the first phase of the Lake
Way evaporation ponds completed in June 2019.
Ø Completion of the first phase of the Lake Way evaporation
ponds is enabling the Company to dewater the existing Williamson
Pit. The pit contained an estimated 1.2 gigalitres (GL) of brine at
the exceptional grade of 25kg/m(3) of SOP. This brine is the ideal
starter feed for evaporation ponds, having already evaporated from
the normal Lake Way brine grade, which averages over 15kg/m(3)
.
Ø The high grade brines at Lake Way will result in lower capital
and operating costs due to lower extraction and evaporation
requirements.
Ø The presence of clays in the upper levels of the lake which
are amenable to low cost, on-lake evaporation pond
construction.
Ø The site has excellent freight solutions, being adjacent to
the Goldfields Highway, which is permitted for heavy haulage, quad
trailer road trains to the railhead at Leonora and then direct rail
access to both Esperance and Fremantle Ports, or via other heavy
haulage roads to Geraldton Port.
Ø The Goldfields Gas Pipeline is adjacent to Salt Lake Potash's
tenements, running past the eastern side of the Lake.
Acquisition of Strategic Tenement Package
In July 2019, Salt Lake Potash entered into a Sale Agreement
with Blackham to acquire a package of tenements and other key
assets for the Lake Way Project.
Blackham and Salt Lake Potash have been cooperating on their
respective projects in the Wiluna/Lake Way region for the past 18
months. The Company was able to identify specific Blackham assets
which provide synergies for the Lake Way Project and material value
to Salt Lake Potash.
Under the Sale Agreement which is expected to complete shortly,
Salt Lake Potash will acquire the tenements owned by Blackham that
sit on the Northern end of Lake Way and to the East of the
Goldfields highway.
Blackham agreed to provide immediate access to process water,
and consent to the grant of new tenure over its tenements to enable
Salt Lake Potash to advance early works including camps and water
infrastructure. Blackham has also granted Salt Lake Potash an
option to acquire a key borefield which will support the Lake Way
Project.
The Brine Royalty granted to Blackham as part of the Split
Commodity Agreement will be extinguished effective 30 June
2020.
Under the Sale Agreement, Salt Lake Potash paid total
consideration of A$10 million and Blackham retains the gold rights
across the transferred tenements. The Company has also assumed
rehabilitation obligation for all existing disturbance on Lake
Way.
Salt Lake Potash and Blackham also identified a mutual
opportunity for Salt Lake Potash to utilise part of the pre-strip
material from Blackham's proposed Williamson Pit development for
the construction of the Company's on-lake evaporation ponds. Under
the arrangement, Salt Lake Potash will contribute up to a A$10m
towards the performance of the pre-strip of the Williamson Pit,
with pre-strip material directly applied towards the construction
of the bund walls of the on-lake evaporation ponds. This
contribution forms part of the Project's existing construction
capex and will be funded as part of project financing.
The acquisition is an important step in providing the Company
with certainty over the timing and capital expenditure required to
bring the Lake Way Project into production.
Scoping Study for Commercial Scale Development
The Company completed a Scoping Study for the commercial scale
development of its SOP project at Lake Way in June 2019. The
Scoping Study demonstrated the potential for the Lake Way Project
to support a low capital and operating cost operation on a
commercial scale with the ability to support a long mine life:
Lake Way Project to produce an estimated 200,000 tonnes per year
of premium grade SOP (>52% K2O)
Ø High-grade SOP resource underpins long Mine Life of 20
years
Ø Low development capital requirements of approximately A$237m
(US$166m) including a growth allowance of 13% (A$32m) supported by
the close proximity to infrastructure
Ø Exceptional economics with estimated project post-tax NPV(8)
of A$381m (pre-tax NPV(8) of A$580m) and post-tax IRR of 27%
(pre-tax IRR 33%)
Ø Steady state EBITDA of A$90m annually and average annual after
tax cashflow of A$64m
Ø Strong cashflow and low capital cost result in early payback
period of 3.2 years
Ø Construction complete on the first phase of Evaporation Ponds
(the Williamson Ponds) which will support the dewatering of the
Williamson Pit's super saturated brine with an SOP grade of
25kg/m(3)
Ø Plant commissioning expected Q4 2020 utilising salts from the
Williamson Pit brine
Ø BFS currently underway with completion expected in early
October 2019 to support project financing
Salt Lake Potash has already significantly de-risked the
commercial scale project through the early construction works on
the first phase of the Evaporation Ponds (the Williamson Ponds).
The de-watering of the Williamson Pit and commencement of
evaporation will provide additional insight into the critical
evaporation processes which in turn will further de-risk the
Project.
Scoping Study Results
The Scoping Study was based on the Mineral Resource Estimate for
the Lake Way Project reported in March 2019, comprising 8.2Mt of
SOP calculated using Drainable Porosity (73 million tonnes of SOP
using Total Porosity).
The Scoping Study assumes a mine life of 20 years with plant
commissioning in Q4 2020. The study mine plan, comprising a network
of trenches and paleochannel bores, provides for a 200,000tpa
production run rate. Table 1 provides a summary of production and
cost figures for the Project.
Table 1: Lake Way Project Overview
Lake Way Project Unit Estimated
Value
--------
OPERATING AND CAPITAL COSTS
----------------------------------------------------------------------
LOM Cash Operating Costs FOB ex-Geraldton
port A$/t $264
------------------------------------------------ -------- ----------
Mine Gate Operating Costs A$/t $184
------------------------------------------------ -------- ----------
Transport and handling A$/t $80
------------------------------------------------ -------- ----------
Capital Costs A$m $237
------------------------------------------------ -------- ----------
Direct Costs A$m $177
------------------------------------------------ -------- ----------
Indirect Costs & Growth A$m $60
------------------------------------------------ -------- ----------
FINANCIAL PERFORMANCE - LIFE OF PROJECT
----------------------------------------------------------------------
Price (FOB) US$/t $550
------------------------------------------------ -------- ----------
Exchange Rate US$/A$ 0.70
------------------------------------------------ -------- ----------
Discount Rate % 8
------------------------------------------------ -------- ----------
EBITDA A$m $90
------------------------------------------------ -------- ----------
Average Annual after-tax cash flow A$m $64
------------------------------------------------ -------- ----------
Post tax Internal Rate of Return (IRR) % 27
------------------------------------------------ -------- ----------
Post tax Net Present Value (NPV) @ 8% discount
rate A$m $381
------------------------------------------------ -------- ----------
Pre-tax Internal Rate of Return (IRR) % 33
------------------------------------------------ -------- ----------
Pre-tax Net Present Value (NPV) @ 8% discount
rate A$m $580
------------------------------------------------ -------- ----------
Short Payback period
The low development capital requirements and significant margins
received for the Lake Way Project provides a short payback period
of just 3.2 years from first production. This will result in full
repayment of development capital by 2024.
KCl Addition Opportunity
The resource at Lake Way contains a significant excess of
sulphate (SO4) which provides the opportunity for the Company to
explore value adding measures including a potassium chloride (KCl)
reaction phase to the processing stage. Preliminary work has shown
significant benefits to the Lake Way Project through the inclusion
of the KCl reaction phase in the process, including a potential
increase in annual production of SOP and subsequent improvements in
financial returns to shareholders. The Company is exploring this
opportunity as part of the BFS for the Lake Way Project including
process testwork at Saskatchewan Research Council, which has
confirmed that high quality soluble SOP can be generated via the
process flowsheet with the inclusion of KCl.
Robust Economics
The Study demonstrates that the Lake Way Project provides
exceptional economics even under the most extreme downside pricing
scenarios. The breakeven pricing scenario is a significant 40+%
decrease in price at US$323/t.
Table 2: Pricing Scenarios
SOP Price Breakeven US$400/t US$450/t US$500/t Base US$600/t US$650/t
US$323/t US$550/t
NPV(8) - A$130m A$214m A$298m A$381m A$465m A$548m
(post
tax)
---------- --------- --------- --------- ---------- --------- ---------
Bankable Feasibility Study (BFS)
Having completed the successful Scoping Study, Salt Lake Potash
subsequently commenced a BFS targeted for completion in early
October 2019. The Company appointed GR Engineering Services Limited
(GRES, ASX:GNG) as lead engineer for the BFS. GRES are working with
a number of industry experts including Wood Saskatoon.
In parallel with work being undertaken on the BFS and utilising
experience gained from the construction of the first phase
Evaporation Ponds, the Company is moving into a Front End
Engineering Design (FEED).
Mineral Resource Estimate
In March 2019, the Company completed an extensive exploration
program covering the remaining areas of Lake Way and reported a
'whole of lake' Mineral Resource Estimate including the playa
surface and the Paleochannel aquifers of Lake Way.
The Mineral Resource Estimate of 73Mt is hosted within
approximately 15 billion cubic metres of sediment ranging in
thickness from a few metres to over 100m, beneath 189km(2) of Playa
Lake surface including the paleochannel basal sand unit of 20m
thickness and 30km length.
The Mineral Resource Estimate for Lake Way is divided into
resource classifications that are controlled by the host geological
units:
-- Lake Bed Sediment
-- Paleovalley Sediment
-- Paleochannel Basal Sands
The mineral resource estimate is summarised in Tables 3-5.
Table 3: Measured Resource
Total Brine Concentration Mineral Tonnage Mineral Tonnage
Volume Calculated from Calculated from
Total Porosity Drainable Porosity
K Mg SO(4) Total Brine SOP Drainable Brine SOP
Porosity Volume Tonnage Porosity Volume Tonnage
------- --------- --------- --------- --------- ------- --------- ---------- -------- ---------
(Mm(3) (kg/m(3) (kg/m(3) (Kg/m(3) (Mm(3) (Mt) (Mm(3) (Mt)
) ) ) ) ) )
------- --------- --------- --------- --------- ------- --------- ---------- -------- ---------
North
Lakebed
(0.4-8.0
m) 1,060 6.8 8.0 27.6 0.42 445 6.8 0.11 117 1.8
------- --------- --------- --------- --------- ------- --------- ---------- -------- ---------
Williamson
Pit 1.26 11.4 14.7 48.0 1.26 0.03
------- --------- --------- --------- ----------------------------------------- -------- ---------
Total 6.8 1.83
------- --------- --------- --------- --------- ------- --------- ---------- -------- ---------
Table 4: Indicated Resource
Total Brine Concentration Mineral Tonnage Mineral Tonnage
Volume Calculated from Calculated from
Total Porosity Drainable Porosity
K Mg SO(4) Total Brine SOP Drainable Brine SOP
Porosity Volume Tonnage Porosity Volume Tonnage
------- --------- --------- --------- --------- ------- --------- ---------- ------- ---------
(Mm(3) (kg/m(3) (kg/m(3) (Kg/m(3) (Mm(3) (Mt) (Mm(3) (Mt)
) ) ) ) ) )
------- --------- --------- --------- --------- ------- --------- ---------- ------- ---------
Basal Sands
(Paleochannel) 686 6.1 8.2 25.0 0.40 274 3.7 15 103 1.4
------- --------- --------- --------- --------- ------- --------- ---------- ------- ---------
Table 5: Inferred Resource
Total Brine Concentration Mineral Tonnage Mineral Tonnage
Volume Calculated from Calculated from
Total Porosity Drainable Porosity
K Mg SO(4) Total Brine SOP Drainable Brine SOP
Porosity Volume Tonnage Porosity Volume Tonnage
------- --------- --------- --------- --------- ------- -------- ------------- -------- ---------
(Mm(3) (kg/m(3) (kg/m(3) (Kg/m(3) (Mm(3) (Mt) (Mm(3) (Mt)
) ) ) ) ) )
------- --------- --------- --------- --------- ------- -------- ------------- -------- ---------
South
Lakebed
(0.4-8.0
m) 316 6.8 8.0 27.6 0.42 133 2.0 0.11 35 0.5
------- --------- --------- --------- --------- ------- -------- ------------- -------- ---------
Lakebed
(8m to
Base) 9,900 6.8 8.0 27.6 0.40 3,960 60.0 0.03 297 4.5
------- --------- --------- --------- --------- ------- -------- ------------- -------- ---------
Total 62.0 5.0
------- --------- --------- --------- --------- ------- -------- ------------- -------- ---------
The northern section of Mineral Resource Estimate has been
classified into a Measured category for the upper 8m of lakebed
sediments. The resources contained within the lakebed sediments
below 8m, and the southern section of the lake at all depths, are
all classified in the Inferred category. The Paleochannel running
along the eastern boundary of the lake has been classified in the
Indicated category.
Following completion of the first phase of the Lake Way
evaporation ponds, the Company has commenced dewatering the
Williamson Pit brine, thus reducing this section of the resource.
The Company expects to update the Mineral Resource Estimate and
report an Ore Reserve as part of the BFS.
Civil Construction - On-Lake Infrastructure
Salt Lake Potash commenced construction of the first phase of
the commercial scale SOP brine evaporation ponds in March 2019
following receipt of the Part V works approval from the Department
of Water and Environmental Regulation (DWER). The first phase of
ponds consisted of:
-- Two evaporation ponds;
o Kainite Harvest Pond 500m x 500m (25Ha); and
o Halite Pond 2,000m x 500m (100Ha);
-- A 3.4km long and 6-8m deep trench running parallel to the
ponds, which will provide additional brine feed into the pond
network;
-- A 1.4km causeway from the Williamson Pit to the Kainite
Harvest Pond; and
-- Associated piping and pumping infrastructure.
Construction of the evaporation ponds was completed in June
2019, and the trench was completed in July 2019. The Company
undertook a self-perform model for the delivery of the first phase
of the Lake Way evaporation ponds. This delivery model allowed a
fast track mobilisation and cost effective execution of the works,
whilst providing the Company with critical hands on experience
allowing testing and validating of various design criteria to
de-risk the future on-lake construction.
The first phase of evaporation ponds were designed to receive
the 1.2GL of high-grade SOP brine from the Williamson Pit mine,
with de-watering of the pit now underway and is scheduled to
complete in second half of 2019. Given the super-saturated nature
of the Williamson Pit brines, precipitation of salts started
immediately upon pumping into the evaporation pond. The Company
will be able to harvest first salts from the Williamson Ponds which
are expected to be utilised as initial feed stock for the process
plant commissioning.
Process Testwork
During the year, process testwork continued at Saskatchewan
Research Council (SRC), the world leading potash laboratory,
processing salts harvested from the Lake Way evaporation
trials.
SRC has recently completed a Pilot Plant operation that is
representative of the proposed Lake Way Project process flowsheet.
The Pilot Plant operation included the addition of Potassium
Chloride (KCl) to take advantage of the excess sulphate that
naturally occurs within the Lake Way brine.
Two separate Pilot Plant runs utilising 5 tonnes of salt
harvested from Lake Way site evaporation trials were completed,
producing premium grade, highly water soluble SOP. The Total
Solubility and Dissolution Rate indicate that the product would be
suitable for application in drip irrigation (otherwise known as
fertigation) systems.
Table 4: Lake Way Pilot Plant 2 Composite Specifications
Specification
Potassium K(2) O >53%
----------------- --------------
Sulphate SO(4) >55%
----------------- --------------
Chloride Cl <0.1%
----------------- --------------
Insolubles <0.1%
----------------- --------------
Total Solubility (g/100g H(2) O) 11.8
----------------- --------------
Dissolution Rate % in 1 minute 95%
----------------- --------------
The Pilot Plant runs successfully confirmed that high quality
soluble SOP can be generated via the process flowsheet with the
inclusion of KCl. Importantly the positive results of the inclusion
of the KCl within the process flowsheet will provide significant
benefits to the Lake Way Project by increasing the SOP output from
an equivalent volume of Lake Way brine. This can be achieved
without significant changes to the processing equipment and no
material additional capital expenditure.
The outstanding results achieved from the Pilot Plant indicate
that the product is comparable with other premium grade soluble
products on the market and supports Salt Lake Potash's marketing
strategy to supply into the premium SOP market. The premium
achievable for soluble grade SOP can be up to 20% above standard
pricing.
The process flowsheet that has been developed and confirmed as
part of the Pilot Plant test work, has been incorporated in the
Lake Way BFS which is scheduled for completion in early October
2019.
Native Title
In December 2018, the Company signed a Native Title Land Access
and Brine Minerals Exploration Agreement (the Agreement) with
Tarlka Matuwa Piarku (Aboriginal Corporation) RNTBC (TMPAC)
covering the Lake Way Project area.
TMPAC entered into the Agreement with Salt Lake Potash on behalf
of the Wiluna People who are the recognised Native Title Holders of
the land covering the Lake Way Project area. TMPAC also provided
consent for the total area required for the construction and
operation of the initial Lake Way Ponds.
The Company is finalising negotiations with TMPAC to achieve a
Native Title Mining Agreement to provide consent to the grant of
its mining lease and for the ongoing mining operation. The Native
Title Mining Agreement is expected to be finalised and signed in
the coming months.
Approvals Advancing
During the year, the Company continued its engagement with all
relevant regulatory authorities. Several key approvals were
granted, including:
-- The Department of Mines, Industry Regulation and Safety
(DMIRS) approval of the Company's Mining Proposal and Project
Management Plan for the first phase of the Lake Way evaporation
ponds;
-- Final approval from the Department of Water and Environmental
Regulation (DWER) for the Part V works approval in March 2019, for
construction and operation of the initial evaporation ponds for
Lake Way and de-watering of the Williamson Pit;
-- Decision by the Environmental Protection Authority (EPA) that
the following development works for the Project on the existing
Mining Leases do not warrant formal assessment:
o Up to 757 hectares of on lake pond disturbance to allow the
following activities;
o Up to 47 hectares of off lake disturbance to allow for a
process plant for sulphate of potash production and miscellaneous
infrastructure including power and water.
Following the EPA decision, Salt Lake Potash has submitted the
remaining approvals required for the next phase of the Project,
with a focus on the on-lake ponds and trenches to allow brine
extraction and evaporation.
The Company has submitted a mining proposal and closure plan to
the Department of Mines, Industry Regulation and Safety (DMIRS) and
the Works Approval to the Department of Water and Environmental
Regulation (DWER) for the next phase of the Project. The Company
has also submitted Section 18 Notices to the Aboriginal Cultural
Materials Committee (ACMC) for Ministerial consent to use the
land.
Obtaining these approvals will enable the Company to commence
construction of this next phase of the project, including
significant areas of evaporation ponds and trenches. However,
further approvals, including EPA approval will be required for the
full commercial scope of the Project.
Project Funding Advanced
The Company has mandated Taurus Funds Management (Taurus) to
provide US$150m staged project debt financing for the Lake Way
Project.
The arrangement with Taurus is an important step in progressing
the development and financing of the Lake Way Project. With recent
equity raisings totalling A$27.65m, the staged project financing
enables the Company to complete the Bankable Feasibility Study
(BFS), conclude the acquisition of strategic tenements from
Blackham and continue early construction works to advance the Lake
Way Project prior to the drawdown of the main Project Development
Facility (PDF).
Stage 1 Facility of US$30m (c.A$42m)
The arrangement with Taurus is an important step in progressing
the development and financing of the Lake Way Project. The Stage 1
Facility has been partly drawn by the Company.
Project Development Facility (PDF) of US$150m (c.A$214m)
The PDF will be used for refinancing the Stage 1 Facility and
for project development and working capital associated with the
development of the Lake Way Project. The PDF will become available
upon completion of the BFS, satisfaction of conditions precedent to
the Lender's satisfaction and final documentation. Conditions
precedent are customary for a project financing of this nature and
include execution of financing agreements, satisfying the equity
requirement based upon a cost to complete analysis and offtake
agreements being agreed.
Capital Raising
In November 2018, the Company completed a placement to existing
and new institutional and sophisticated investors in Australia and
overseas for 31.0m new ordinary shares of the Company, to raise
gross proceeds of A$13.0m.
In June 2019, the Company completed a placement to strategic
investors of 37.5m shares to raise gross proceeds of A$20.25m. This
placement was led by a consortium of cornerstone investors,
including the founders of LionOre Mining International as well as
the key investors in Mantra Resources at its inception, who will
collectively subscribe for 26.4m shares to raise A$14.25m. LionOre
was bought by Norilsk Nickel for US$6.3b in 2007, whilst Mantra
Resources was sold to Rosatom in 2010 for A$1.02b.
The Company's largest shareholder, Lombard Odier, also
subscribed for 11.1m shares to raise A$6.0m, further confirming its
continued support for Salt Lake Potash and the Lake Way
Project.
These Placements are funding the ongoing construction of the
Lake Way Project, including the development of on-lake
infrastructure, the payment of deposits on certain process plant
long-lead items, completion of feasibility studies, and general
working capital.
In July 2019, the Company agreed to place a further 10.58m
shares to Fidelity International to raise A$7.4m before costs. The
Placement completed in August 2019 and will fund the majority of
the consideration to be paid for the acquisition of the strategic
tenement package from Blackham.
Key Appointments
Mr Tony Swiericzuk was appointed Managing Director and Chief
Executive Officer (CEO), effective 5 November 2018.
Mr Swiericzuk is a Mining Engineer with outstanding credentials
as a builder and operator of mining projects, having recently been
General Manager of the Fortescue Christmas Creek Mine from 2012 to
2017. He oversaw the construction, commissioning and ramp-up of
this project from 15Mtpa to 60Mtpa in his initial 2 year period,
then proceeded to optimise the operation and help drive FMG to
become the world's lowest cost iron ore producer.
Mr Swiericzuk has the ideal operating and commercial experience
to rapidly deliver on the exceptional potential of the Lake Way
Project and the Company's broader portfolio of assets.
The Company has also made a number of key project appointments
during the year including Mr Peter Cardillo, Project Director -
Processing and NPI, Mr Lloyd Edmunds, Project Director - Civil, and
Mr Stephen Cathcart, Project Director - Technical. These
appointments bring diversified technical, construction, operations,
process infrastructure experience to the Company as it rapidly
moves through the project development phase.
Subsequent to year end, the Company appointed Mr Shaun Day in
the role of Chief Financial Officer. Mr Day will be responsible for
the delivery of the financial, commercial and strategic outcomes
for Salt Lake Potash. In addition, Mr Mark Wilde joined the Company
as Director - Sales and Marketing, overseeing the Sales and
Marketing functions.
Results of Operations
The net loss of the Consolidated Entity for the year ended 30
June 2019 was $26,896,121 (2018: net loss of $11,327,108). This
loss is mainly attributable to:
(i) Exploration and evaluation expenses of $12,745,503 (2018:
$8,545,647) which are attributable to the Group's accounting policy
of expensing exploration and development expenditure incurred by
the Group subsequent to the acquisition of the rights to explore
and up to the successful completion of bankable feasibility studies
for each separate area of interest. During the year, the Company
undertook significant activity in rapidly advancing the Lake Way
Project including, definition of whole of lake resource, site
evaporation testwork and process testwork, scoping study on the
commercial scale operation and commencement of a bankable
feasibility study;
(ii) Pre-Development expenses of $8,513,313 (2018: Nil) relating
the construction of the first phase of the commercial scale SOP
brine evaporation ponds at Lake Way. These development costs have
been expensed in accordance with the Group's accounting policy of
expensing exploration and development expenditure incurred by the
Group up to the successful completion of bankable feasibility
studies;
(iii) Corporate and administrative expenses of $3,257,046 (2018:
$1,081,738) attributable to the administration of the Company and
its operations, as well as corporate expenses including the
Company's dual listing on ASX and AIM and investor relations
activities. The Group's administrative expenses have increased in
2019 to support the rapidly progressing development activities at
Lake Way;
(iv) Non-cash share-based payment expenses of $2,302,081 (2018:
$1,284,062) which are attributable to the Group's accounting policy
of expensing the value (estimated using an option pricing model,
and performance rights valued using the underlying share price) of
Incentive Securities issued to key employees and consultants. The
value is measured at grant date and recognised over the period
during which the option/rights holders become unconditionally
entitled to the options and/or rights; and
(v) Business development expenses of $865,860 (2018: $1,110,578)
which are attributable to additional business development
activities required to support the growth and development of the
Lake Way Project.
Financial Position
At 30 June 2019, the Group had cash reserves of $19,304,075
(2018: $5,709,446). The Consolidated Entity is in a strong
financial position to conduct its current and planned development
activities.
At 30 June 2019, the Group had net assets of $14,708,374 (2018:
$7,019,989), an increase of 217% compared with the previous year.
The increase is a result of raising over $33.25m throughout the 12
month period, with each raising being achieved at a higher share
price than the previous.
Business Strategies and Prospects for Future Financial Years
The objective of the Group is to create long-term shareholder
value through the discovery, exploration and development of its
projects. To date, the Group has not commenced production of any
minerals. To achieve its objective, the Group currently has the
following business strategies and prospects:
(i) Complete a BFS for a commercial scale operation at Lake Way;
(ii) Commence construction of the next phase of on-lake
infrastructure and Plant for the Lake Way Project;
(iii) Enter into offtake/product sales agreement for the sale of Lake Way SOP;
(iv) Finalise project development funding for the Lake Way Project;
(v) Develop an organic premium SOP product in conjunction with
offtake partners and potential customers; and
(vi) Continue assessment and exploration across the Company's multi lake portfolio.
All of these activities have inherent risk and the Board is
unable to provide certainty of the expected results of these
activities, or that any or all of these likely activities will be
achieved. The material business risks faced by the Group that could
have an effect on the Group's future prospects, and how the Group
manages these risks, include:
Development Risks - As a result of the substantial expenditures
involved in mine development projects, mine developments are prone
to material cost overruns versus budget. The capital expenditures
and time required to develop new mines are considerable and changes
in cost or construction schedules can significantly increase both
the time and capital required to build the mine;
Operational risks - The planned schedule for production of
harvest salts for the commissioning and ramp up of the process
plant are subject to operating risks that could impact the amount
of harvest salts produced at its SOP operations, delay availability
of harvest salts or increase the cost of production for varying
lengths of time. Such difficulties include: changes or variations
in hydrogeological conditions, weather conditions effecting
evaporation and/or recharge, or other conditions; mining,
processing and loading equipment failures and unexpected
maintenance problems; limited availability or increased costs of
mining, processing and loading equipment and parts and other
materials from suppliers; mine safety accidents; adverse weather
and natural disasters; and a shortage of skilled labour. If any of
these or other conditions or events occur in the future, they may
increase the cost of mining or delay or halt planned commissioning,
ramp up and production, which could adversely affect our results of
operations or decrease the value of our assets. The Group has in
place a framework for the management of operational risks and an
insurance program which provides coverage for a number of these
operating risks.
The Company's activities will require further capital - The
development of the Company's projects will require additional
funding. The Company has recently mandated Taurus Funds Management
to provide up to US$150m staged project financing for the Lake Way
Project. The Stage 1 Facility of US$30m is available to drawdown.
The Project Development Facility is subject to completion of the
BFS and satisfaction of conditions precedent. Failure to satisfy
the conditions precedent to draw down on the Project Development
Facility, may result in delaying the development of the Company's
properties or even a loss of property interest. There can be no
assurance that additional capital or other types of financing will
be available if needed or that, if available, the terms of such
financing will be favourable to the Company;
Native title and Aboriginal Heritage - There are areas of the
Company's projects, including Lake Way, over which legitimate
common law and/or statutory Native Title rights of Aboriginal
Australians exist. Where Native Title rights do exist, the Company
must obtain consent of the relevant landowner to progress the
exploration, development and mining phases of its operations. Where
there is an Aboriginal Site for the purposes of the Aboriginal
Heritage Act 1972, the Company must obtain consents in accordance
with the Act. The Company has established a framework for obtaining
required consents for the continuity of works, but in the event
that it is unable to obtain these consents, its activities may be
adversely affected;
Sulphate of Potash prices and foreign exchange - The price of
potash and other commodities fluctuate and are affected by numerous
factors beyond the control of the Company. Future production, if
any, from the Company's mineral properties will be dependent upon
the price of potash and other commodities being adequate to make
these properties economic. The Company is engaging with potential
customers with a view to entering binding offtake or distribution
or tolling agreements. Project financing facilities with Taurus
Funds Management are denominated in US dollars whilst many of the
planned development and operational activities are denominated in
Australian dollars. The Company's ability to fund these activities
maybe adversely affected if the Australian dollar rises against the
US dollar;
The Company's activities are subject to Government regulations
and approvals - The development of the Lake Way Project is subject
to obtaining further key approvals from relevant government
authorities. The Company has an approvals schedule and a management
team with significant experience in approvals required for mining
projects in Western Australia. A delay or failure to obtain
required permits may affect the Company's schedule or ability to
develop the project.
Any material adverse changes in government policies or
legislation in Western Australia and Australia that affect mining,
processing, development and mineral exploration activities, income
tax laws, royalty regulations, government subsidies and
environmental issues may affect the viability and profitability of
any planned development the Lake Way Project and other lakes in the
Company's portfolio. No assurance can be given that new rules and
regulations will not be enacted or that existing rules and
regulations will not be applied in a manner which could adversely
impact the Group's mineral properties; and
Global financial conditions may adversely affect the Company's
growth and profitability - Many industries, including the mineral
resource industry, are impacted by these market conditions. Some of
the key impacts of the current financial market turmoil include
contraction in credit markets resulting in a widening of credit
risk, devaluations and high volatility in global equity, commodity,
foreign exchange and precious metal markets, and a lack of market
liquidity. Due to the current nature of the Company's activities, a
slowdown in the financial markets or other economic conditions may
adversely affect the Company's growth and ability to finance its
activities. If these increased levels of volatility and market
turmoil continue, the Company's activities could be adversely
impacted and the trading price of the Company's shares could be
adversely affected.
EARNINGS PER SHARE
2019 2018
Cents Cents
---------------------------------- -------- -------
Basic and diluted loss per share (13.74) (6.47)
---------------------------------- -------- -------
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
Significant changes in the state of affairs of the Consolidated
Entity during the financial year were as follows:
(i) On 2 October 2018, the Company announced it had executed a
Memorandum of Understanding (MOU) with Sinofert for a long term
offtake agreement for distribution into China.
(ii) On 5 November 2018, Mr Tony Swiericzuk commenced as
Managing Director and Chief Executive Officer (CEO) of Salt Lake
Potash. Mr Swiericzuk replaced Mr Matthew Syme who moved to become
a Non-Executive Director.
(iii) On 9 November 2018, Salt Lake Potash announced it had
completed a placement for A$13.0m at A$0.42 per share from a suite
of new institutional and sophisticated.
(iv) On 6 March 2019, the Company was advised that it had
received the final approval from the Department of Water and
Environmental Regulation (DWER) to construct the first phase of the
Lake Way evaporation ponds, which will enable Williamson Pit brine
to be extracted and stored for evaporation.
(v) On 6 June 2019, Salt Lake Potash announced it had completed
a placement for A$20.25m at A$0.54 per share to fund the Lake Way
Construction including the development of on-lake
infrastructure.
(vi) On 13 June 2019, Salt Lake Potash announced the results of
a Scoping Study for a 200,000tpa commercial scale Lake Way Project
with a 20 year mine life.
(vii) On 24 June 2019, the Company announced the commencement of
commercial scale SOP Evaporation as the construction of the first
phase of the Lake Way evaporation ponds was complete, enabling
dewatering of the Williamson Pit.
SIGNIFICANT EVENTS AFTER BALANCE DATE
(i) On 23 July 2019, Salt Lake Potash announced the acquisition
of a strategic package of tenements and other key assets for the
Lake Way Project from Blackham Resources Limited. A placement to
raise A$7.4m at A$0.70 per share to fund the majority of the
acquisition consideration was also announced.
(ii) On 23 July 2019, Mr Matthew Syme resigned as Non-Executive Director.
(iii) On 5 August 2019, the Company announced that it had
mandated Taurus Funds Management to provide up to US$150m staged
project financing for the Lake Way Project, and the Stage 1
Facility has been partly drawn down.
Other than as noted above, as at the date of this report there
are no matters or circumstances which have arisen since 30 June
2019 that have significantly affected or may significantly
affect:
-- the operations, in financial years subsequent to 30 June 2019, of the Consolidated Entity;
-- the results of those operations, in financial years
subsequent to 30 June 2019, of the Consolidated Entity; or
-- the state of affairs, in financial years subsequent to 30
June 2019, of the Consolidated Entity.
DIRECTORS' INTERESTS
As at the date of this report, the Directors' interests in the
securities of the Company are as follows:
Interest in securities at the date of this report
Ordinary Shares(1) Incentive Options (2) Performance Rights (3)
-------------------- ------------------- ---------------------- -----------------------
Mr Ian Middlemas 11,750,000 - -
Mr Tony Swiericzuk 952,381 5,000,000 7,000,000
Mr Mark Pearce 4,000,000 - 150,000
Mr Bryn Jones - - 150,000
-------------------- ------------------- ---------------------- -----------------------
Notes:
(1) Ordinary Shares means fully paid Ordinary Shares in the capital of the Company.
(2) Incentive Options means an unlisted share option to
subscribe for one Ordinary Share in the capital of the Company.
(3) Performance Rights means Performance Rights issued by the
Company that convert to one Ordinary Share in the capital of the
Company upon satisfaction of various performance conditions.
ENVIRONMENTAL REGULATION AND PERFORMANCE
The Group's operations are subject to various environmental laws
and regulations under the relevant government's legislation. Full
compliance with these laws and regulations is regarded as a minimum
standard for all operations to achieve.
Instances of environmental non-compliance by an operation are
identified either by external compliance audits or inspections by
relevant government authorities.
There have been no significant known breaches by the Group
during the financial year.
DIVIDS
No dividends were paid or declared since the start of the
financial year. No recommendation for payment of dividends has been
made.
SHARE OPTIONS, PERFORMANCE SHARES AND PERFORMANCE RIGHTS
At the date of this report the following options and performance
shares have been issued over unissued Ordinary Shares of the
Company:
-- 750,000 Unlisted Options exercisable at $0.50 each on or before 29 April 2020;
-- 1,000,000 Unlisted Options exercisable at $0.60 each on or before 29 April 2021;
-- 250,000 Unlisted Options exercisable at $0.40 each on or before 30 June 2021;
-- 500,000 Unlisted Options exercisable at $0.50 each on or before 30 June 2021;
-- 750,000 Unlisted Options exercisable at $0.60 each on or before 30 June 2021;
-- 400,000 Unlisted Options exercisable at $0.70 each on or before 30 June 2021;
-- 9,375,000 Unlisted Options exercisable at $0.85 each on or before 30 June 2023;
-- 1,700,000 Unlisted Options exercisable at $0.60 each on or before 1 November 2023;
-- 2,750,000 Unlisted Options exercisable at $1.00 each on or before 1 November 2023;
-- 3,000,000 Unlisted Options exercisable at $1.20 each on or before 1 November 2023;
-- 9,000,000 Unlisted Options exercisable at $0.702 each on or before 4 August 2024;
-- 7,500,000 'Class B' Performance Shares on or before 31 December 2019;
-- 10,000,000 'Class C' Performance Shares on or before 12 June 2020; and
-- 20,412,500 Performance Rights which are subject to various
performance conditions to be satisfied prior to the relevant expiry
dates between 31 December 2019 and 1 November 2023.
During the year ended 30 June 2019, 750,000 Ordinary Shares were
issued at $0.40 as a result of the exercise of Unlisted Options. No
Ordinary Shares have been issued as a result of the conversion of
Performance Shares or Rights during the year ended 30 June 2019.
Subsequent to year end and until the date of this report, no
Ordinary Shares have been issued as a result of the exercise of
Unlisted Options or conversion of Performance Shares or Rights. On
6 August 2019, the Company issued 266,258 Ordinary Shares (subject
to shareholder approval) to key employees following the expiry of
vested Performance Rights that were unable to be converted into
Ordinary Shares whilst the employees were in possession of inside
information.
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE
INCOME
FOR THE YEARED 30 JUNE 2019
30 June 30 June
2019 2018
Notes $ $
------------------------------------------ ------ ------------- -------------
Interest income 135,952 238,208
Research and Development Tax Incentive
rebate 1,652,110 456,709
Exploration and evaluation expenses (13,745,503) (8,545,647)
Pre-Development expenses (8,513,393) -
Corporate and administrative expenses (3,257,046) (1,081,738)
Business development expenses (865,860) (1,110,578)
Share based payment expense 3 (2,302,381) (1,284,062)
------------------------------------------ ------ ------------- -------------
Loss before tax (26,896,121) (11,327,108)
Income tax expense 4 - -
------------------------------------------ ------ ------------- -------------
Loss for the year (26,896,121) (11,327,108)
------------------------------------------ ------ ------------- -------------
Other comprehensive income
Items that may be reclassified
subsequently to profit or loss:
Foreign currency translation differences
reclassified to profit or loss
on disposal of controlled entity - -
Other comprehensive loss for the
year, net of tax - -
------------------------------------------ ------ ------------- -------------
Total comprehensive loss for the
year (26,896,121) (11,327,108)
========================================== ====== ============= =============
Basic and diluted loss per share
attributable to the ordinary equity
holders of the company (cents per
share) 14 (13.74) (6.47)
------------------------------------------ ------ ------------- -------------
The above Consolidated Statement of Profit or Loss and other
Comprehensive Income should be read in conjunction with the
accompanying notes.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2019
30 June 30 June
2019 2018
$ $
---------------------------------------- --- -------------- --------------
ASSETS
Current Assets
Cash and cash equivalents 5 19,304,075 5,709,446
Trade and other receivables 6 923,036 227,273
Total Current Assets 20,227,111 5,936,719
---------------------------------------- --- -------------- --------------
Non-Current Assets
Property, plant and equipment 7 763,566 535,344
Exploration and evaluation expenditure 8 2,276,736 2,276,736
Total Non-Current Assets 3,040,302 2,812,080
---------------------------------------- --- -------------- --------------
TOTAL ASSETS 23,267,413 8,748,799
---------------------------------------- --- -------------- --------------
LIABILITIES
Current Liabilities
Trade and other payables 9 7,709,590 1,620,527
Finance lease 19,030 11,829
Provisions 10 79,368 57,462
Total Current Liabilities 7,807,988 1,689,818
---------------------------------------- --- -------------- --------------
Non-Current Liabilities
Finance lease 39,166 38,992
Provisions 10 711,885 -
---------------------------------------- --- -------------- --------------
Total Non-Current Liabilities 751,051 38,992
---------------------------------------- --- -------------- --------------
TOTAL LIABILITIES 8,559,039 1,728,810
---------------------------------------- --- -------------- --------------
NET ASSETS 14,708,374 7,019,989
======================================== === ============== ==============
EQUITY
Contributed equity 11 155,917,578 123,501,153
Reserves 12 4,273,967 2,105,886
Accumulated losses (145,483,171) (118,587,050)
---------------------------------------- --- -------------- --------------
TOTAL EQUITY 14,708,374 7,019,989
======================================== === ============== ==============
The above Consolidated Statement of Financial Position should be
read in conjunction with the accompanying notes.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEARED 30 JUNE 2019
Share- Based Payment
Contributed Equity Reserve Accumulated Losses Total Equity
-----------------------------
$ $ $ $
----------------------------- ------------------- ----------------------------- ------------------- --------------
Balance at 1 July 2018 123,501,153 2,105,886 (118,587,050) 7,019,989
Net loss for the year - - (26,896,121) (26,896,121)
Total comprehensive loss for
the year - - (26,896,121) (26,896,121)
Shares issued from
placements 33,250,000 - - 33,250,000
Shares issued on exercise of
options 300,000 - - 300,000
Shares issued in lieu of
fees 467,633 - - 467,633
Share issue costs (1,601,208) - - (1,601,208)
Share based payment expense - 2,168,081 - 2,168,081
----------------------------- ------------------- ----------------------------- ------------------- --------------
Balance at 30 June 2019 155,917,578 4,273,967 (145,483,171) 14,708,374
============================= =================== ============================= =================== ==============
Balance at 1 July 2017 123,484,561 821,824 (107,259,942) 17,046,443
Net loss for the year - - (11,327,108) (11,327,108)
Total comprehensive loss for
the year - - (11,327,108) (11,327,108)
Shares issued in lieu of
fees 18,476 - - 18,476
Share issue costs (1,884) - - (1,884)
Share based payment expense - 1,284,062 - 1,284,062
Balance at 30 June 2018 123,501,153 2,105,886 (118,587,050) 7,019,989
============================= =================== ============================= =================== ==============
The above Consolidated Statement of Changes in Equity should be
read in conjunction with the accompanying notes.
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEARED 30 JUNE 2019
30 June 30 June
2019 2018
Note $ $
----------------------------------------------------------- ------ ------------- -------------
Cash flows from operating activities
Payments to suppliers and employees (20,130,140) (10,275,823)
Exploration investment scheme received - 30,000
R&D tax incentive received 1,652,110 456,709
Interest received 144,043 242,852
Net cash outflow from operating activities 13(a) (18,333,987) (9,546,262)
----------------------------------------------------------- ------ ------------- -------------
Cash flows from investing activities
Payments for property, plant and equipment (357,321) (256,890)
Net cash outflow from investing activities (357,321) (256,890)
----------------------------------------------------------- ------ ------------- -------------
Cash flows from financing activities
Proceeds from issue of shares 33,550,000 -
Lease payments (13,629) (11,829)
Payment of transaction costs from issue of shares (1,250,434) (72,332)
Net cash inflow/(outflow) from financing activities 32,285,937 (84,161)
----------------------------------------------------------- ------ ------------- -------------
Net increase/(decrease) in cash and cash equivalents held 13,594,629 (9,887,313)
Cash and cash equivalents at the beginning of the year 5,709,446 15,596,759
----------------------------------------------------------- ------ ------------- -------------
Cash and cash equivalents at the end of the year 5 19,304,075 5,709,446
----------------------------------------------------------- ------ ------------- -------------
The above Consolidated Statement of Cash Flows should be read in
conjunction with the accompanying notes.
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
The significant accounting policies adopted in preparing the
financial report of Salt Lake Potash Limited (Salt Lake or Company)
and its consolidated entities (Consolidated Entity or Group) for
the year ended 30 June 2019 are stated to assist in a general
understanding of the financial report.
Salt Lake is a Company limited by shares incorporated and
domiciled in Australia whose shares are publicly traded on the
Australian Securities Exchange (ASX), and the AIM Market (AIM) of
the London Stock Exchange.
The financial report of the Group for the year ended 30 June
2019 was authorised for issue in accordance with a resolution of
the Directors on 24 September 2019.
(a) Basis of Preparation
The financial report is a general purpose financial report,
which has been prepared in accordance with Australian Accounting
Standards ("AASBs") and other authoritative pronouncements of the
Australian Accounting Standards Board ("AASB") and the Corporations
Act 2001. The Group is a for-profit entity for the purposes of
preparing the consolidated financial statements.
The financial report has been prepared on a historical cost
basis. The financial report is presented in Australian dollars.
Statement of compliance
The financial report complies with Australian Accounting
Standards and International Financial Reporting Standards (IFRS) as
issued by the International Accounting Standards Board.
Going concern
The consolidated financial statements have been prepared on a
going concern basis which assumes the continuity of normal business
activity and the realisation of assets and the settlement of
liabilities in the ordinary course of business.
For the year ended 30 June 2019, the Consolidated Entity
incurred a net loss of $26,896,121 (2018: $11,327,108) and
experienced net cash outflows from operating and investing
activities of $18,691,308 (2018: $9,803,152). As at 30 June 2019,
the Group had cash and cash equivalents of $19,304,075 (2018:
$5,709,446) and net current assets of $12,419,123 (2018:
$4,246,901).
The Company has recently completed a successful Scoping Study
for the commercial scale development of its SOP project at Lake Way
and is currently in the process of completing a Bankable
Feasibility Study (BFS). The Scoping Study supports a low capital
and operating cost operation on a commercial scale with the ability
to support a long mine life. The Company has sufficient funds to
meet currently committed expenditure but in order to progress
development and construction of the Lake Way Project, it will
require additional funds.
In August 2019, the Company mandated Taurus Funds Management
(Taurus) to provide US$150m staged project financing for the Lake
Way Project. The Stage 1 Facility documentation has been executed
and conditions satisfied, which has enabled the Company to commence
drawing down on the initial facility of US$30m. The Project
Development Facility (PDF) for up to US$150m will be used for
refinancing the Stage 1 Facility and for project development and
working capital associated with the development of the Lake Way
Project. The PDF will become available upon completion of the BFS
and satisfaction of conditions precedent. Conditions precedent are
customary for a project financing of this nature and include
execution of financing agreements, satisfying the equity
requirement based upon a Cost to Complete analysis and offtake
agreements being finalised.
Based on the successful results of the Scoping Study, the
Directors are confident that they will be able to agree
documentation and satisfy the conditions precedent to access the
PDF to fund the ongoing development of the Lake Way Project.
In addition, the Directors have been involved in a number of
recent successful capital raisings for the Company and for other
listed resource companies, and accordingly, they are satisfied that
they will be able to raise additional capital when required to
enable the Consolidated Entity to meet its obligations as and when
they fall due, and accordingly, consider that it is appropriate to
prepare the financial statements on the going concern basis.
Should the Consolidated Entity be unable to access the PDF or
raise additional capital or debt as and when required, the
Consolidated Entity would need to reduce operational expenditure to
continue as a going concern. In the event that the Consolidated
Entity is unable to achieve the matters referred to above,
uncertainty would exist that may cast doubt on the ability of the
Consolidated Entity to continue as a going concern.
(a) Basis of Preparation (Continued)
These consolidated financial statements do not include any
adjustments relating to the recoverability and classification of
recorded asset amounts, or to the amounts and classification of
liabilities that might be necessary should the Consolidated Entity
be unable to continue as a going concern.
(b) New Accounting Standards
Since 1 July 2018, the Consolidated Entity has adopted all
Accounting Standards and Interpretations effective from 1 July
2018. Other than the changes described below, the accounting
policies adopted are consistent with those of the previous
financial year. The Consolidated Entity has not early adopted any
other standard, interpretation or amendment that has been issued
but is not yet effective.
The Consolidated Entity applied AASB 9 Financial Instruments
(AASB 9) for the first time from 1 July 2018. A discussion on the
impact of the adoption of AASB 9 is included below.
Several other new and amended Accounting Standards and
Interpretations applied for the first time from 1 July 2018. These
did not have an impact on the consolidated financial statements of
the Consolidated Entity and, hence, have not been disclosed.
AASB 9 Financial Instruments
AASB 9 replaces parts of AASB 139 Financial Instruments:
Recognition and Measurement (AASB 139) bringing together all three
aspects of the accounting for financial instruments: classification
and measurement; impairment; and hedge accounting. The accounting
policies have been updated to reflect the application of AASB 9 for
the period from 1 July 2018 (refer to note 1(f)).
The Consolidated Entity has applied AASB 9 retrospectively, with
the initial application date being 1 July 2018. The cumulative
impact of applying AASB 9 is recognised at the date of initial
application as an adjustment to the opening balance of retained
earnings. The Consolidated Entity has elected not to adjust
comparative information.
(i) Classification and Measurement
On adoption of AASB 9, the Company classified financial assets
and liabilities as subsequently measured at either amortised cost
or fair value through profit and loss. The classification is based
on two criteria; the Group's business model for managing the
assets; and whether the instruments' contractual cash flows
represent 'solely payments of principal and interest' on the
principal amount outstanding (the SPPI criterion). There were no
changes in the measurement of the Company's financial instruments
due to the change in classification of financial instruments.
At the date of initial application, existing financial assets
and liabilities of the Group were assessed in terms of the
requirements of AASB 9. The assessment was conducted on instruments
that had not been derecognised as at 1 July 2018.
There was no impact on the statement of comprehensive income or
the statement of changes in equity on adoption of AASB 9 in
relation to classification and measurement of financial assets and
liabilities. The following table summarises the impact on the
classification and measurement of the Group's financial instruments
at 1 July 2018:
Original New carrying
carrying amount
amount under
under AASB AASB
139 9
Presented in statement
of financial position AASB 139 AASB 9 $ $
Financial asset
at amortised Amortised
Cash and cash equivalents cost Cost 5,709,446 5,709,446
--------------------- ----------- ------------ -------------
Financial asset
at amortised Amortised
Trade and other receivables cost Cost 227,273 227,273
--------------------- ----------- ------------ -------------
Financial liability
at amortised Amortised
Trade and other payables cost Cost 1,620,527 1,620,527
--------------------- ----------- ------------ -------------
(ii) Impairment
The adoption of AASB 9 has changed the Consolidated Entity's
accounting for impairment losses for financial assets by replacing
AASB 139's incurred loss approach with a forward-looking expected
credit loss (ECL) approach. AASB 9 requires the Consolidated Entity
to recognise an allowance for ECLs for all debt instruments not
held at fair value through profit or loss.
The Company's receivables balance consists of GST refunds from
the Australian Tax Office and interest receivables from recognised
Australian banking institutions. While cash and cash equivalents
are also subject to the impairment requirements of AASB 9, all bank
balances are assessed to have low credit risk as they are held with
reputable financial institutions which have a credit rating of AA-
(Standard & Poor's) and above.
The loss allowances for financial assets are based on the
assumptions about risk of default and expected loss rates. The
Company uses judgement in making these assumptions and selecting
the inputs to the impairment calculation, based on the Company's
past history, existing market conditions as well as forward looking
estimates at the end of each reporting period. Given the Company's
receivables are from the Australian Tax Office and recognised
Australian banking institutions, the Company has assessed that the
risk of default is minimal and as such, no additional impairment
loss has been recognised against these receivables as at 30 June
2019.
(c) New and amended Accounting Standards and Interpretations not
early adopted
Australian Accounting Standards and Interpretations that have
recently been issued or amended but are not yet effective have not
been adopted by the Company for the reporting period ended 30 June
2019. Those which may be relevant to the Company are set out below.
Other than as discussed for AASB 16, these are not expected to have
any significant impact on the Company's financial statements.
Application
Applicable date for
Standard/Interpretation date of standard Group
AASB Interpretation 23, and relevant 1 January 1 July 2019
amending standards 2019
AASB 2019-1 Conceptual Framework for 1 January 1 January
Financial Reporting 2020 2020
1 January 1 July 2020
AASB 2018-7 Definition of Material 2020
------------------------------------- ------------------ ------------
AASB 16 Leases (AASB 16)
AASB 16 Leases will replace existing accounting requirements for
leases under AASB 117 Leases (AASB 117). Under current
requirements, leases are classified based on their nature as either
finance leases which are recognised on the Statement of Financial
Position, or operating leases, which are not recognised on the
Statement of Financial Position.
Under AASB 16, with the exception of short-term and low value
leases, the Company's accounting for operating leases as a lessee
will result in the recognition of a right-of-use (ROU) asset and an
associated lease liability on the Statement of Financial Position.
The lease liability represents the present value of future lease
payments. An interest expense will be recognised on the lease
liabilities and a depreciation charge will be recognised for the
ROU assets. There will also be additional disclosure requirements
under the new standard.
The Company will initially apply AASB 16 on 1 July 2019, using
the modified retrospective approach. Therefore, the cumulative
effect of adopting AASB 16 will be recognised as an adjustment to
the opening balance of retained earnings at 1 July 2019, with no
restatement of comparative information.
When applying the modified retrospective approach to leases
previously classified as operating leases under AASB 117, the
Company can elect, on a lease-by-lease basis, whether to apply a
number of practical expedients on transition. The Company will
elect to use the exemptions proposed by the standard on lease
contracts for which the lease term ends within 12 months as of the
date of initial application, and lease contracts for which the
underlying asset is of low value.
The Company is in the progress of assessing the impact of the
new leases standard and the effect on the Group's financial
statements. In summary, the impact of AASB 16 is to create a
right-of-use asset and a lease liability. As a result of a
right-of-use asset and lease liability, depreciation expense and
interest expense is expected to increase and operating lease
expense will reduce. In addition, the classification between
cashflow from operating activities and cash flow from financing
activities will also change.
(d) Principles of Consolidation
The consolidated financial statements incorporate the assets and
liabilities of all subsidiaries of the Company as at 30 June 2019
and the results of all subsidiaries for the year then ended.
Subsidiaries are all entities (including structured entities)
over which the group has control. The group controls an entity when
the group is exposed to, or has rights to, variable returns from
its involvement with the entity and has the ability to affect those
returns through its power to direct the activities of the
entity.
The financial statements of the subsidiaries are prepared for
the same reporting period as the Company, using consistent
accounting policies. Accounting policies of subsidiaries have been
changed where necessary to ensure consistency with the policies
adopted by the Company.
Subsidiaries are fully consolidated from the date on which
control is transferred to the Company. They are de-consolidated
from the date that control ceases. Intercompany transactions and
balances, income and expenses and profits and losses between Group
companies, are eliminated.
(e) Cash and Cash Equivalents
Cash and cash equivalents include cash on hand, deposits held at
call with banks and other short-term highly liquid investments with
original maturities of three months or less.
(f) Financial Assets
Pre 1 July 2018 policy
Classification
Financial assets in the scope of AASB 139 Financial Instruments:
Recognition and Measurement are classified as either financial
assets at fair value through profit or loss, loans and receivables,
held-to-maturity investments, or available-for-sale investments, as
appropriate. When financial assets are recognised initially they
are measured at fair value, plus, in the case of investments not at
fair value through profit or loss, directly attributable
transaction costs. The Group determines the classification of its
financial assets after initial recognition and, when allowed and
appropriate, re-evaluates this designation at each financial
year-end.
Loans and receivables are non-derivative financial assets with
fixed or determinable payments that are not quoted in an active
market. They arise when the Group provides money, goods or services
directly to a debtor with no intention of selling the receivable.
They are included in current assets, except for those with
maturities greater than twelve months after the reporting date
which are classified as non-current assets. Loans and receivables
are included in receivables in the statement of financial
position.
Loans and receivables are carried at amortised cost using the
effective interest rate method.
Impairment
Collectability of trade and other receivables is reviewed on an
ongoing basis. Individual debts that are known to be uncollectible
are written off when identified. An impairment allowance is
recognised when there is objective evidence that the Consolidated
Entity will not be able to collect the receivable. Financial
difficulties of the debtor, default payments or debts more than 60
days overdue are considered objective evidence of impairment. The
amount of the impairment loss is the receivable carrying amount
compared to the present value of estimated future cash flows,
discounted at the original effective interest rate.
Post 1 July 2018 policy
Financial assets are recognised when the entity becomes a party
to the contractual provisions to the instrument. Financial assets
are initially measured at fair value. Transaction costs that are
directly attributable to the acquisition or issue of financial
assets (other than financial assets at fair value through profit or
loss) are added to or deducted from the fair value of the financial
assets or financial liabilities, as appropriate, on initial
recognition. Transaction costs directly attributable to the
acquisition of financial assets at fair value through profit or
loss are recognised immediately in profit or loss.
Classification and subsequent measurement of financial
assets
For the purpose of subsequent measurement, financial assets
other than those designated and effective as hedging instruments
are classified into the following categories upon initial
recognition:
-- amortised cost
-- fair value through profit or loss (FVPL)
-- equity instruments at fair value through other comprehensive income (FVOCI)
-- debt instruments at fair value through other comprehensive income
All income and expenses relating to financial assets that are
recognised in profit or loss are presented within other income or
expenses respectively.
Financial assets at amortised cost (debt instruments)
The Group measures financial assets at amortised cost if both of
the following conditions are met:
-- The financial asset is held within a business model with the
objective to hold financial assets in order to collect contractual
cash flows; and
-- The contractual terms of the financial asset give rise on
specified dates to cash flows that are solely payments of principal
and interest on the principal amount outstanding.
Financial assets at amortised cost are subsequently measured
using the effective interest rate (EIR) method and are subject to
impairment. Gains and losses are recognised in profit or loss when
the asset is derecognised, modified or impaired.
The Consolidated Entity's financial assets at amortised cost
include short term deposits and other receivables.
Impairment
The Group recognises an allowance for ECLs for all debt
instruments not held at fair value through profit or loss. ECLs are
based on the difference between the contractual cash flows due in
accordance with the contract and all the cash flows that the Group
expects to receive, discounted at an approximation of the original
EIR. ECLs are recognised in two stages. For credit exposures for
which there has not been a significant increase in credit risk
since initial recognition, ECLs are provided for credit losses that
result from default events that are possible within the next
12-months (a 12-month ECL). For those credit exposures for which
there has been a significant increase in credit risk since initial
recognition, a loss allowance is required for credit losses
expected over the remaining life of the exposure, irrespective of
the timing of the default (a lifetime ECL).
For receivables due in less than 12 months, the Group will
recognise a loss allowance based on the financial asset's lifetime
ECL at each reporting date. The Group will establish a provision
matrix for these receivables that is based on its historical credit
loss experience, adjusted for forward-looking factors specific to
the debtors and the economic environment as sales from product
eventuate or significant receivables come to hand.
The Group considers a financial asset in default when
contractual payments are 60 days past due. However, in certain
cases, the Group may also consider a financial asset to be in
default when internal or external information indicates that the
Group is unlikely to receive the outstanding contractual amounts in
full before taking into account any credit enhancements held by the
Group. A financial asset is written off when there is no reasonable
expectation of recovering the contractual cash flows and usually
occurs when past due for more than one year and not subject to
enforcement activity.
At each reporting date, the Group assesses whether financial
assets carried at amortised cost are credit impaired. A financial
asset is credit-impaired when one or more events that have a
detrimental impact on the estimated future cash flows of the
financial asset have occurred.
(g) Property, Plant and Equipment
(i) Recognition and measurement
All classes of property, plant and equipment are measured at
historical cost.
Plant and equipment is stated at historical cost less
accumulated depreciation and any accumulated impairment losses.
Such cost includes the cost of replacing parts that are eligible
for capitalisation when the cost of replacing the parts is
incurred. Similarly, when each major inspection is performed, its
cost is recognised in the carrying amount of the plant and
equipment as a replacement only if it is eligible for
capitalisation. All other repairs and maintenance are recognised in
the Statement of Profit or Loss and other Comprehensive Income as
incurred.
(ii) Depreciation and Amortisation
Depreciation is provided on a straight line basis on all
property, plant and equipment.
2019 2018
--------------------------------------------- -------- --------
Major depreciation and amortisation periods
are:
Plant and equipment: 22- 40% 22- 40%
The assets' residual values, useful lives and amortisation
methods are reviewed, and adjusted if appropriate, at each
financial year end.
(iii) Derecognition
An item of property, plant and equipment is derecognised upon
disposal or when no further future economic benefits are expected
from its use or disposal.
(h) Exploration, Evaluation and Pre-Development Expenditure
Expenditure on exploration, evaluation and pre-development is
accounted for in accordance with the 'area of interest' method.
Exploration, evaluation and pre-development expenditure
encompasses expenditures incurred by the Group in connection with
the exploration for and evaluation of mineral resources and early
development activities before the technical feasibility and
commercial viability of extracting a mineral resource are
demonstrable.
For each area of interest, expenditure incurred in the
acquisition of rights to explore is capitalised, classified as
tangible or intangible, and recognised as an exploration and
evaluation asset. Exploration and evaluation assets are measured at
cost at recognition and are recorded as an asset if:
a. the rights to tenure of the area of interest are current; and
b. at least one of the following conditions is also met:
-- the exploration and evaluation expenditures are expected to
be recouped through successful development and exploitation of the
area of interest, or alternatively, by its sale; and
-- exploration and evaluation activities in the area of interest
have not at the reporting date reached a stage which permits a
reasonable assessment of the existence or otherwise of economically
recoverable reserves, and active and significant operations in, or
in relation to, the area of interest are continuing.
Exploration, evaluation and pre-development expenditure incurred
by the Group subsequent to acquisition of the rights to explore is
expensed as incurred, up to and including costs associated with the
preparation of a bankable feasibility study.
(i) Impairment
Capitalised costs are reviewed each reporting date to establish
whether an indication of impairment exists. If any such indication
exists, the recoverable amount of the capitalised costs is
estimated to determine the extent of the impairment loss (if any).
Where an impairment loss subsequently reverses, the carrying amount
of the asset is increased to the revised estimate of its
recoverable amount, but only to the extent that the increased
carrying amount does not exceed the carrying amount that would have
been determined had no impairment loss been recognised for the
asset in previous years.
Where a decision is made to proceed with development,
accumulated expenditure is tested for impairment and transferred to
development properties, and then amortised over the life of the
reserves associated with the area of interest once mining
operations have commenced. Recoverability of the carrying amount of
the exploration and evaluation assets is dependent on successful
development and commercial exploitation, or alternatively, sale of
the respective areas of interest.
(i) Payables
Liabilities are recognised for amounts to be paid in the future
for goods and services received. Trade accounts payable are
normally settled within 30 days. Payables are carried at amortised
cost.
(j) Provisions
Provisions are recognised when the group has a legal or
constructive obligation, as a result of past events, for which it
is probable that an outflow of economic benefits will result and
that outflow can be reliably measured.
Rehabilitation
The Group is required to decommission and rehabilitate mines or
related assets at the end of their producing lives to a condition
acceptable to the relevant authorities. A rehabilitation provision
is recognised when the Group has a present obligation, whether
legal or constructive, as a result of a past event.
The expected cost of any approved decommissioning or
rehabilitation programme, discounted to its net present value, is
provided when the related environmental disturbance occurs. Until a
decision to mine is made, the cost is brought up front and expensed
whether the rehabilitation activity is expected to occur over the
life of the operation or at the time of closure. Once a decision to
mine is made, the rehabilitation cost will be capitalised and
amortised over the life of the operation and the increase in net
present value of the provision for the expected cost is included in
financing expenses. Expected decommissioning and rehabilitation
costs are based on the discounted value of the estimated future
cost of the detailed plans prepared. Where there is a change in the
expected decommissioning and restoration costs, the value of the
provision and any related asset are adjusted and the effect is
recognised in the profit or loss on a prospective basis over the
remaining life of the operation.
The estimated costs of the rehabilitation are reviewed annually
and adjusted as appropriate for changes in legislation, technology
or other circumstances. Cost estimates are not reduced by potential
proceeds from the sale of assets or from plant/site clean up at
closure.
The ultimate cost of rehabilitation is uncertain and costs can
vary in response to many factors including changes to the relevant
legal requirements, the emergence of new rehabilitation techniques
or experience at other sites. The expected timing of expenditure
can also change. Changes to any of the estimates could result in
significant changes to the level of provisioning required, which
would in turn impact future financial results.
In recognising the amount of rehabilitation obligation at each
reporting date, judgement is made on the extent of rehabilitation
that the Group is responsible for at each reporting date.
(k) Interest Income
Interest income is recognised as it accrues in profit or loss,
using the effective interest method, which is the rate that exactly
discounts estimated future cash receipts through the expected life
of the financial asset to the gross carrying amount of the
financial asset.
(l) Income Tax
The income tax expense for the period is the tax payable on the
current period's taxable income based on the national income tax
rate for each jurisdiction adjusted by changes in deferred tax
assets and liabilities attributable to temporary differences
between the tax bases of assets and liabilities and their carrying
amounts in the financial statements, and to unused tax losses.
Deferred tax assets and liabilities are recognised using the
full liability method for temporary differences at the tax rates
expected to apply when the assets are recovered or liabilities are
settled, based on those tax rates which are enacted or
substantively enacted for each jurisdiction. The relevant tax rates
are applied to the cumulative amounts of deductible and taxable
temporary differences to measure the deferred tax asset or
liability. An exception is made for certain temporary differences
arising from the initial recognition of an asset or a liability. No
deferred tax asset or liability is recognised in relation to these
temporary differences if they arose on goodwill or in a
transaction, other than a business combination, that at the time of
the transaction did not affect either accounting profit or taxable
profit or loss.
Deferred tax liabilities and assets are not recognised for
temporary differences between the carrying amount and tax bases of
investments in controlled entities where the Company is able to
control the timing of the reversal of the temporary differences and
it is probable that the differences will not reverse in the
foreseeable future.
Deferred tax assets are recognised for deductible temporary
differences and unused tax losses only if it is probable that
future taxable amounts will be available to utilise those temporary
differences and losses.
The carrying amount of deferred income tax assets is reviewed at
each reporting date and reduced to the extent that it is no longer
probable that sufficient taxable profit will be available to allow
all or part of the deferred income tax asset to be utilised.
Unrecognised deferred income tax assets are reassessed at each
balance date and are recognised to the extent that it has become
probable that future taxable profit will allow the deferred tax
asset to be recovered.
Current and deferred tax balances attributable to amounts
recognised directly in equity are also recognised directly in
equity.
Deferred tax assets and deferred tax liabilities are offset only
if a legally enforceable right exists to set off current tax assets
against tax liabilities and the deferred tax liabilities relate to
the same taxable entity and the same taxation authority.
Tax consolidation
Salt Lake Potash Limited and its wholly-owned Australian
subsidiaries have formed an income tax consolidated group under the
tax consolidation regime. Each entity in the group recognises its
own current and deferred tax liabilities, except for any deferred
tax assets resulting from unused tax losses and tax credits, which
are immediately assumed by the Company. The current tax liability
of each group entity is then subsequently assumed by the Company.
The tax consolidated group has entered a tax sharing agreement
whereby each company in the Group contributes to the income tax
payable in proportion to their contribution to the net profit
before tax of the tax consolidated group.
(m) Employee Entitlements
Provision is made for the Group's liability for employee
benefits arising from services rendered by employees to balance
date. Employee benefits that are expected to be settled within 12
months have been measured at the amounts expected to be paid when
the liability is settled, plus related on-costs. Employee benefits
expected to be settled later than 12 months after the year end have
been measured at the present value of the estimated future cash
outflows to be made for those benefits.
(n) Earnings per Share
Basic earnings per share (EPS) is calculated by dividing the net
profit attributable to members of the Company for the reporting
period, after excluding any costs of servicing equity, by the
weighted average number of Ordinary Shares of the Company, adjusted
for any bonus issue.
Diluted EPS is calculated by dividing the basic EPS earnings,
adjusted by the after tax effect of financing costs associated with
dilutive potential Ordinary Shares and the effect on revenues and
expenses of conversion to Ordinary Shares associated with dilutive
potential Ordinary Shares, by the weighted average number of
Ordinary Shares and dilutive Ordinary Shares adjusted for any bonus
issue.
(o) Goods and Services Tax
Revenues, expenses and assets are recognised net of the amount
of GST, except where the amount of GST incurred is not recoverable
from the Australian Tax Office. In these circumstances the GST is
recognised as part of the cost of acquisition of the asset or as
part of the expense. Receivables and payables in the statement of
financial position are shown inclusive of GST.
Cash flows are presented in the cash flow statement on a gross
basis, except for the GST component of investing and financing
activities, which are disclosed as operating cash flows.
(p) Acquisition of Assets
A group of assets may be acquired in a transaction which is not
a business combination. In such cases the cost is allocated to the
individual identifiable assets (including intangible assets that
meet the definition of and recognition criteria for intangible
assets in AASB 138 Intangible Assets) acquired and liabilities
assumed on the basis of their relative fair values at the date of
purchase.
(q) Impairment of Non-Current Assets
The Group assesses at each reporting date whether there is an
indication that a non-current asset may be impaired. If any such
indication exists, or when annual impairment testing for an asset
is required, the Group makes an estimate of the asset's recoverable
amount. An asset's recoverable amount is the higher of its fair
value less costs of disposal and its value in use and is determined
for an individual asset, unless the asset does not generate cash
inflows that are largely independent of those from other assets or
groups of assets and the asset's value in use cannot be estimated
to be close to its fair value. In such cases the asset is tested
for impairment as part of the cash-generating unit to which it
belongs. When the carrying amount of an asset or cash-generating
unit exceeds its recoverable amount, the asset or cash-generating
unit is considered impaired and is written down to its recoverable
amount.
In assessing the value in use, the estimated future cash flows
are discounted to their present value using a pre-tax discount rate
that reflects current market assessments of the time value of money
and the risks specific to the asset.
An assessment is also made at each reporting date as to whether
there is any indication that previously recognised impairment
losses may no longer exist or may have decreased. If such
indication exists, the recoverable amount is estimated. A
previously recognised impairment loss is reversed only if there has
been a change in the estimates used to determine the asset's
recoverable amount since the last impairment loss was recognised.
If that is the case the carrying amount of the asset is increased
to its recoverable amount. That increased amount cannot exceed the
carrying amount that would have been determined, net of
depreciation, had no impairment loss been recognised for the asset
in prior years. Such reversal is recognised in profit or loss.
After such a reversal the depreciation charge is adjusted in future
periods to allocate the asset's revised carrying amount, less any
residual value, on a systematic basis over its remaining useful
life.
(r) Issued and Unissued Capital
Ordinary Shares are classified as equity. Issued and paid up
capital is recognised at the fair value of the consideration
received by the Company.
Incremental costs directly attributable to the issue of new
shares or options are shown in equity as a deduction, net of tax,
from the proceeds.
(s) Foreign Currencies
(i) Functional and presentation currency
The functional currency of each of the Group's entities is
measured using the currency of the primary economic environment in
which that entity operates. The consolidated financial statements
are presented in Australian dollars which is the Company's
functional and presentation currency.
(ii) Transactions and balances
Foreign currency transactions are translated into functional
currency using the exchange rates prevailing at the date of the
transaction. Foreign currency monetary items are translated at the
year-end exchange rate. Non-monetary items measured at historical
cost continue to be carried at the exchange rate at the date of the
transaction.
Exchange differences arising on the translation of monetary
items are recognised in the Statement Profit or Loss and other
Comprehensive Income, except where deferred in equity as a
qualifying cash flow or net investment hedge.
Exchange differences arising on the translation of non-monetary
items are recognised directly in equity to the extent that the gain
or loss is directly recognised in equity, otherwise the exchange
difference is recognised in the other Comprehensive Income.
(iii) Group companies
The financial results and position of foreign operations whose
functional currency is different from the Group's presentation
currency are translated as follows:
-- assets and liabilities are translated at year-end exchange
rates prevailing at that reporting date;
-- income and expenses are translated at average exchange rates for the period; and
-- items of equity are translated at the historical exchange
rates prevailing at the date of the transaction.
Exchange differences arising on translation of foreign
operations are transferred directly to the group's foreign currency
translation reserve in the statement of financial position. These
differences are recognised in the Statement of Profit or Loss and
other Comprehensive Income in the period in which the operation is
disposed.
(t) Share-Based Payments
Equity-settled share-based payments are provided to officers,
employees, consultants and other advisors. These share-based
payments are measured at the fair value of the equity instrument at
the grant date. Fair value of options is determined using the
Binomial option pricing model. Further details on how the fair
value of equity-settled share based payments has been determined
can be found in Note 18.
The fair value determined at the grant date is expensed on a
straight-line basis over the vesting period, based on the Company's
estimate of equity instruments that will eventually vest. At each
reporting date, the Company revises its estimate of the number of
equity instruments expected to vest. The impact of the revision of
the original estimates, if any, is recognised in profit or loss
over the remaining vesting period, with a corresponding adjustment
to the share based payments reserve.
Equity-settled share-based payments may also be provided as
consideration for the acquisition of assets or provision of
services. Where Ordinary Shares are issued, the transaction is
recorded at fair value based on the quoted price of the Ordinary
Shares at the date of issue. The acquisition is then recorded as an
asset or expensed in accordance with accounting standards.
(u) Use and Revision of Accounting Estimates, Judgements and Assumptions
The preparation of the financial report requires management to
make judgements, estimates and assumptions that affect the
application of accounting policies and the reported amounts of
assets, liabilities, income and expenses. Actual results may differ
from these estimates. The estimates and underlying assumptions are
reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised if the
revision affects only that period, or in the period of the revision
and future periods if the revision affects both current and future
periods.
In particular, information about significant areas of estimation
uncertainty and critical judgements in applying accounting policies
that have the most significant effect on the amounts recognised in
the financial statements are described in the following notes:
(i) Exploration and Evaluation Expenditure (Note 8)
The future recoverability of exploration and evaluation
expenditure is dependent on a number of factors, including whether
the Group decides to exploit the related area of interest itself
or, if not, whether it successfully recovers the related
exploration and evaluation asset through sale.
To the extent that exploration and evaluation expenditure is
determined not to be recoverable in the future, profits and net
assets will be reduced in the period in which this determination is
made.
(ii) Mine Rehabilitation (Note 10)
The Group assesses its mine rehabilitation provision in
accordance with the accounting policy stated in Note 1(j). In
determining an appropriate level of provision, consideration is
given to the expected future costs to be incurred, the timing of
those future costs and the estimated level of inflation. The
ultimate rehabilitation costs are uncertain, and cost estimates can
vary in response to many factors, including estimates of the extent
and costs of rehabilitation activities, technological changes,
regulatory changes, cost increases as compared to the inflation
rates, and changes in discount rates. The expected timing of
expenditure can also change. These uncertainties may result in
future actual expenditure differing from the amounts currently
provided. Therefore, significant estimates and assumptions are made
in determining the provision for mine rehabilitation. As a result,
there could be significant adjustments to the provisions
established which would affect future financial results. The
provision at reporting date represents management's best estimate
of the present value of the future rehabilitation costs
required.
(iii) Share-Based Payments (Note 18)
The assessed fair value at grant date of options granted as
share-based payments during the period was determined using a
binomial option pricing model that takes into account the exercise
price, the price of the underlying share at grant date, the life of
the option, the volatility of the underlying share, the risk-free
rate and expected dividend payout and any applicable vesting
conditions. Management was required to make assumptions and
estimates in order to determine the inputs into the binomial option
pricing model. The assessed fair value at grant date of performance
rights granted as share-based payments during the period was
determined as at the date of grant based on the underlying share
price.
2. SEGMENT INFORMATION
The Consolidated Entity operates in one operating segment, being
mineral exploration in Australia. This is the basis on which
internal reports are provided to the Directors for assessing
performance and determining the allocation of resources within the
Consolidated Entity.
3. EXPENSES
2019 2018
Note $ $
----------------------------------------- ---- --------- ---------
(a) Depreciation included in statement
of comprehensive income
Depreciation of plant and equipment 7 193,630 75,031
========================================= ==== ========= =========
(b) Employee benefits expense (including
KMP)
Salaries and wages 3,618,088 1,942,801
Superannuation expense 304,812 176,466
Share-based payment expense 18 2,168,081 1,284,062
Total employment expenses included in
profit or loss 6,090,981 3,403,329
========================================= ==== ========= =========
4. INCOME TAX
2019 2018
$ $
----------------------------------------------------- ---------- ------------
(a) Recognised in the statement of comprehensive
income
Current income tax
Current income tax benefit in respect
of the current year - -
Deferred income tax
Deferred income tax - -
Income tax expense reported in the statement
of Profit or Loss and other Comprehensive
income - -
================================================= ============== ============
(b) Reconciliation between tax expense
and accounting loss before income tax
Accounting loss before income tax (26,896,121) (11,327,108)
================================================= ============== ============
At the domestic income tax rate of 30.0%
(2018: 27.5%) (8,068,836) (3,114,955)
Expenditure not allowable for income
tax purposes 691,952 511,763
Income not assessable for income tax
purposes (491,903) (125,595)
Capital allowances (380,363) -
Change in tax rate (780,158) -
Adjustment in respect of current income
tax of previous years 770,554 (3,447)
Deferred tax assets not brought to account 8,258,754 2,732,234
Income tax expense/(benefit) reported
in the statement of Profit or Loss and
other Comprehensive income - -
================================================= ============== ============
2019 2018
$ $
----------------------------------------------------- --------- ---------------------------
(c) Deferred Tax Assets and Liabilities
Deferred income tax at 30 June relates
to the following:
Deferred Tax Liabilities
Accrued income 3,370 4,833
Exploration and evaluation assets 47,137 43,209
Deferred tax assets used to offset deferred
tax liabilities (50,507) (48,042)
------------------------------------------------ -------------- ---------------------------
- -
================================================ ============== ===========================
Deferred Tax Assets
Accrued expenditure 9,900 21,813
Provisions 213,566 -
Capital allowances 463,242 243,070
Tax losses available for offset against
future taxable income 16,974,847 9,183,494
Deferred tax assets used to offset deferred
tax liabilities (50,507) (48,042)
Deferred tax assets not brought to account (17,611,048) (9,400,335)
------------------------------------------------ -------------- ---------------------------
- -
================================================ ============== ===========================
The benefit of deferred tax assets not brought to account will
only be brought to account if:
-- future assessable income is derived of a nature and of an
amount sufficient to enable the benefit to be realised;
-- the conditions for deductibility imposed by tax legislation
continue to be complied with; and
-- no changes in tax legislation adversely affect the Group in
realising the benefit.
Deferred tax assets have not been recognised in respect to tax
losses because it is not probable that future taxable profit will
be available against which the Group can utilise the benefits.
Tax Consolidation
The Company and its wholly-owned Australian resident entities
have formed a tax consolidated group and are therefore taxed as a
single entity. The head entity within the tax consolidated group is
Salt Lake Potash Limited.
5. CASH AND CASH EQUIVALENTS
2019 2018
$ $
------------------------- ---------- ---------
Cash on hand and at bank 19,177,455 1,596,390
Deposit on call 126,620 4,113,056
19,304,075 5,709,446
========================= ========== =========
The Group has assessed the credit risk on cash and cash
equivalents using the life time expected credit losses method and
concluded that the probability of default is insignificant.
6. TRADE AND OTHER RECEIVABLES
2019 2018
$ $
-------------------------- ------- -------
Accrued interest 11,231 17,572
GST and other receivables 911,805 209,701
923,036 227,273
========================== ======= =======
Other receivables are non-interest bearing. There are no past
due nor impaired receivables at 30 June 2019. GST receivables are
due from the ATO. The Group has assessed the probability of default
as low and the expected credit loss is insignificant.
7. PROPERTY, PLANT AND EQUIPMENT
2019 2018
$ $
------------------------------------------ --------- ---------
(a) Plant and Equipment
Gross carrying amount - at cost 1,074,496 652,644
Accumulated depreciation (310,930) (117,300)
------------------------------------------- --------- ---------
Carrying amount at end of year, net
of accumulated depreciation 763,566 535,344
=========================================== ========= =========
(b) Reconciliation
Carrying amount at beginning of year,
net of accumulated depreciation 535,344 303,511
Additions 421,852 306,864
Depreciation charge (193,630) (75,031)
Carrying amount at end of year, net
of accumulated depreciation 763,566 535,344
=========================================== ========= =========
Finance Leases
The carrying value of plant and equipment held under finance
leases at 30 June 2019 was $58,196 (2018: $55,857). Additions
during the year include $21,004 (2018: Nil) of plant and equipment
under finance lease.
8. EXPLORATION AND EVALUATION EXPITURE
2019 2018
$ $
------------------------------------------------------- --------- ---------
(a) Areas of Interest
SOP Project 2,276,736 2,276,736
Carrying amount at end of year, net of impairment(1) 2,276,736 2,276,736
======================================================= ========= =========
(b) Reconciliation
Carrying amount at start of year 2,276,736 2,276,736
Impairment losses - -
Carrying amount at end of year net of impairment (1) 2,276,736 2,276,736
======================================================= ========= =========
Notes:
(1) The ultimate recoupment of costs carried forward for
exploration and evaluation is dependent on the successful
development and commercial exploitation or sale of the respective
areas of interest.
SOP Project
Salt Lake holds a number of large salt lake brine projects
(Projects) in Western Australia and the Northern Territory, each
having potential to produce highly sought after Sulphate of Potash
(SOP) for domestic and international fertiliser markets.
9. TRADE AND OTHER PAYABLES
2019 2018
$ $
--------------------- --------- ---------
Trade creditors 5,111,915 1,372,190
Accrued expenses 2,326,553 111,364
Employee obligations 271,122 136,973
--------------------- --------- ---------
7,709,590 1,620,527
===================== ========= =========
Terms and conditions of the above financial liabilities:
- Trade payables are non-interest bearing and are normally settled on 30-day terms.
10. PROVISIONS
2019 2018
$ $
----------------------- ------- ------
Current Provisions
----------------------- ------- ------
Annual Leave 79,368 57,462
----------------------- ------- ------
Non-Current Provisions
----------------------- ------- ------
Mine Rehabilitation(1) 711,885 -
----------------------- ------- ------
(1) Salt Lake has recognised the need to provide for the costs
of rehabilitating the land at Lake Way associated with the first
phase of the Lake Way evaporation ponds up to and including 30 June
2019. As the Company currently expenses items associated with AASB
6, the provision has been expensed until such point as the Company
finalises its decision to mine once the Bankable Feasibility Study
is completed, at which point costs associated with the project,
including future rehabilitation costs, will be capitalised.
11. CONTRIBUTED EQUITY
2019 2018
$ $
--------------------------------------------------------- ------------ ------------
Share Capital
245,137,865 (30 June 2018: 175,049,596) Ordinary Shares 155,917,578 123,501,153
--------------------------------------------------------- ------------ ------------
155,917,578 123,501,153
--------------------------------------------------------- ------------ ------------
(a) Movements in Ordinary Shares During the Past Two Years Were as Follows:
Issue Price
Number of Ordinary Shares $ $
------------------ --------------------- -------------------------- ------------ ------------
01-Jul-18 Opening Balance 175,049,596 123,501,153
16-Nov-18 Placement 29,035,714 0.42 12,195,000
20-Nov-18 Placement 214,286 0.42 90,000
31-Dec-18 Share issue (1) 268,604 0.50 134,300
09-Jan-19 Placement 1,702,381 0.42 715,000
15-May-19 Exercise of options 750,000 0.40 300,000
14-Jun-19 Placement 25,476,000 0.54 13,757,040
18-Jun-19 Placement 12,024,000 0.54 6,492,960
18-Jun-19 Share issue(1) 617,284 0.54 333,333
Jul-18 to Jun-19 Share issue costs - - (1,601,208)
30-Jun-19 Closing balance 245,137,865 155,917,578
------------------ --------------------- -------------------------- ------------ ------------
01-Jul-17 Opening Balance 175,007,596 123,484,561
18-Aug-17 Share issue (1) 42,000 0.44 18,476
Jul-17 to Jun-18 Share issue costs - - (1,884)
------------------ --------------------- -------------------------- ------------ ------------
30-Jun-18 Closing balance 175,049,596 123,501,153
------------------ --------------------- -------------------------- ------------ ------------
Notes:
(1) Shares issued to key consultants of the Company in lieu of
fees.
(b) Rights Attaching to Ordinary Shares:
The rights attaching to fully paid Ordinary Shares (Ordinary
Shares) arise from a combination of the Company's Constitution,
statute and general law.
Ordinary Shares issued following the exercise of Unlisted
Options in accordance with Note 12(c) or Performance Shares in
accordance with Note 12(d) or Performance Rights in accordance with
Note 12(e) will rank equally in all respects with the Company's
existing Ordinary Shares.
Copies of the Company's Constitution are available for
inspection during business hours at the Company's registered
office. The clauses of the Constitution contain the internal rules
of the Company and define matters such as the rights, duties and
powers of its shareholders and directors, including provisions to
the following effect (when read in conjunction with the
Corporations Act 2001 or the listing rules of the ASX and AIM
(Listing Rules)).
(i) Shares
The issue of shares in the capital of the Company and options
over unissued shares by the Company is under the control of the
Directors, subject to the Corporations Act 2001, ASX Listing Rules
and any rights attached to any special class of shares.
(ii) Meetings of Members
Directors may call a meeting of members whenever they think fit.
Members may call a meeting as provided by the Corporations Act
2001. The Constitution contains provisions prescribing the content
requirements of notices of meetings of members and all members are
entitled to a notice of meeting. A meeting may be held in two or
more places linked together by audio-visual communication devices.
A quorum for a meeting of members is two shareholders.
The Company holds annual general meetings in accordance with the
Corporations Act 2001 and the Listing Rules.
(iii) Voting
Subject to any rights or restrictions at the time being attached
to any shares or class of shares of the Company, each member of the
Company is entitled to receive notice of, attend and vote at a
general meeting. Resolutions of members will be decided by a show
of hands unless a poll is demanded. On a show of hands each
eligible voter present has one vote. However, where a person
present at a general meeting represents personally or by proxy,
attorney or representative more than one member, on a show of hands
the person is entitled to one vote only despite the number of
members the person represents.
On a poll each eligible member has one vote for each fully paid
share held and a fraction of a vote for each partly paid share
determined by the amount paid up on that share.
(iv) Changes to the Constitution
The Company's Constitution can only be amended by a special
resolution passed by at least three quarters of the members present
and voting at a general meeting of the Company. At least 28 days'
written notice specifying the intention to propose the resolution
as a special resolution must be given.
(v) Listing Rules
Provided the Company remains admitted to the Official List of
the ASX, then despite anything in its Constitution, no act may be
done that is prohibited by the Listing Rules, and authority is
given for acts required to be done by the Listing Rules. The
Company's Constitution will be deemed to comply with the Listing
Rules as amended from time to time.
12. RESERVES
2019 2018
Note $ $
----------------------------- ----- --------- ---------
Share-based payments reserve 12(b) 4,273,967 2,105,886
4,273,967 2,105,886
============================= ===== ========= =========
(a) Nature and Purpose of Reserves
(i) Share-based payments reserve
The share-based payments reserve is used to record the fair
value of Unlisted Options, Performance Rights and Performance
Shares issued by the Group.
(b) Movements in the share-based payments reserve during the past two years were as follows:
Number of Number of Number of
Performance Rights Performance Shares Unlisted Options $
------------------ --------------------- -------------------- --------------------- ------------------ ----------
01-Jul-18 Opening Balance 5,400,000 22,500,000 4,400,000 2,105,886
02-Nov-18 Issue of Performance 7,266,258
Rights - - -
02-Nov-18 Issue of Incentive -
Options - 5,000,000 -
31-Dec-18 Issue of Performance 10,781,258
Rights - - -
Cancellation/Expiry
of Performance
31-Dec-18 Rights (2,352,500) - - (984,383)
31-Dec-18 Issue of Incentive - - 2,450,000 -
Options
31-Dec-18 Expiry of - (5,000,000) - -
Performance Shares
15-May-19 Exercise of - - (750,000) -
Incentive Options
Cancellation of
30-Jun-19 Performance Rights (150,000) - - (32,273)
Share based payments
Jul-18 to Jun-19 expense - - - 3,184,737
30-Jun-19 Closing balance 20,945,016 17,500,000 11,100,000 4,273,967
------------------ --------------------- -------------------- --------------------- ------------------ ----------
01-Jul-17 Opening Balance 4,100,000 22,500,000 2,500,000 821,824
23-Sep-17 Performance Rights (1,000,000)
forfeited - - -
28-Nov-17 Issue of unlisted -
options - 1,100,000 -
22-Dec-17 Issue of unlisted -
options - 800,000 -
22-Dec-17 Issue of Performance 2,300,000
Rights - - -
Share based payments
Jul-17 to Jun-18 expense - - - 1,284,062
------------------ --------------------- -------------------- --------------------- ------------------ ----------
30-Jun-18 Closing balance 5,400,000 22,500,000 4,400,000 2,105,886
------------------ --------------------- -------------------- --------------------- ------------------ ----------
(c) Terms and Conditions of Unlisted Options
The Unlisted Options are granted based upon the following terms
and conditions:
-- Each Unlisted Option entitles the holder to the right to
subscribe for one Ordinary Share upon the exercise of each Unlisted
Option;
-- The Unlisted Options outstanding at the end of the financial
year have the following exercise prices and expiry dates:
- 750,000 Unlisted Options exercisable at $0.50 each on or before 29 April 2020;
- 1,000,000 Unlisted Options exercisable at $0.60 each on or before 29 April 2021;
- 250,000 Unlisted Options exercisable at $0.40 each on or before 30 June 2021;
- 500,000 Unlisted Options exercisable at $0.50 each on or before 30 June 2021;
- 750,000 Unlisted Options exercisable at $0.60 each on or before 30 June 2021;
- 400,000 Unlisted Options exercisable at $0.70 each on or before 30 June 2021;
- 1,700,000 Unlisted Options exercisable at $0.60 each on or before 1 November 2023;
- 2,750,000 Unlisted Options exercisable at $1.00 each on or before 1 November 2023; and
- 3,000,000 Unlisted Options exercisable at $1.20 each on or before 1 November 2023.
-- The Unlisted Options are exercisable at any time prior to the
Expiry Date, subject to vesting conditions being satisfied (if
applicable);
-- Ordinary Shares issued on exercise of the Unlisted Options
rank equally with the then Ordinary Shares of the Company;
-- Application will be made by the Company to ASX and to the AIM
market of the London Stock Exchange for official quotation of the
Ordinary Shares issued upon the exercise of the Unlisted
Options;
-- If there is any reconstruction of the issued share capital of
the Company, the rights of the Unlisted Option holders may be
varied to comply with the Listing Rules which apply to the
reconstruction at the time of the reconstruction; and
-- No application for quotation of the Unlisted Options will be
made by the Company.
(d) Terms and Conditions of Performance Shares
The Convertible Performance Shares (Performance Shares) were
granted as part of the consideration to acquire Australia Salt Lake
Potash Pty Ltd on the following terms and conditions:
-- Each Performance Share will convert into one Ordinary Share
upon the satisfaction, prior to the Expiry Date, of the respective
Milestone:
- 7,500,000 Performance Shares subject to Class B Milestone: The
announcement by the Company to ASX of the results of a positive
Bankable Feasibility Study on all or part of the Project Licences;
and
- 10,000,000 Performance Shares subject to Class C Milestone:
The commencement of construction activities for a mining operation
on all or part of the Project Licences (including the commencement
of ground breaking for the construction of infrastructure and/or
processing facilities) following a final investment decision by the
Board as per the project development schedule and budget in
accordance with the Bankable Feasibility Study, within five years
from the date of issue.
-- Expiry Date means:
- in relation to the Class B Performance Shares, 31 December
2019 (amended following Shareholder approval on 11 June 2018);
and
- in relation to the Class C Performance Shares, 5 years from the date of issue (12 June 2020);
-- If the Milestone for a Performance Share is not met by the
Expiry Date, the total number of the relevant class of Performance
Shares will convert into one Ordinary Share per holder;
-- The Company shall allot and issue Ordinary Shares immediately
upon conversion of the Performance Shares for no consideration;
-- Ordinary Shares issued on conversion of the Performance
Shares rank equally with the then Ordinary Shares of the
Company;
-- In the event of any reconstruction, consolidation or division
into (respectively) a lesser or greater number of securities of the
Ordinary Shares, the Performance Shares shall be reconstructed,
consolidated or divided in the same proportion as the Ordinary
Shares are reconstructed, consolidated or divided and, in any
event, in a manner which will not result in any additional benefits
being conferred on the Performance Shareholders which are not
conferred on the Ordinary Shareholders;
-- The Performance Shareholders shall have no right to vote,
subject to the Corporations Act;
-- No application for quotation of the Performance Shares will
be made by the Company; and
-- The Performance Shares are not transferable.
(e) Terms and Conditions of Performance Rights
The Performance Rights are granted based upon the following
terms and conditions:
-- Each Performance Right automatically converts into one
Ordinary Share upon vesting of the Performance Right;
-- Each Performance Right is subject to performance conditions
(as determined by the Board from time to time) which must be
satisfied in order for the Performance Right to vest;
-- The Performance Rights have the following expiry dates:
- 502,500 Performance Rights subject to the BFS Milestone
expiring on 31 December 2019 (amended following Shareholder
approval on 11 June 2018);
- 1,227,500 Performance Rights subject to the Construction
Milestone expiring on 30 June 2020; and
- 1,227,500 Performance Rights subject to the Production Milestone expiring on 30 June 2021.
- 3,452,500 Performance Rights subject to the Trench
Construction Milestone expiring on 1 November 2020.
- 3,052,500 Performance Rights subject to the Plant Construction
Milestone expiring on 1 November 2021.
- 3,550,000 Performance Rights subject to the Plant
Commissioning Milestone expiring on 1 November 2022.
- 3,550,000 Performance Rights subject to the Nameplate Capacity
Milestone expiring on 1 November 2023.
- 1,300,000 Performance Rights subject to the Schedule
Advancement Milestone expiring on 31 December 2021.
- 1,300,000 Performance Rights subject to the Reduce Capex
Milestone expiring on 31 December 2021.
- 250,000 Performance Rights subject to the Lake Way Approval
Milestone expiring on 31 December 2019.
- 250,000 Performance Rights subject to the Lake Wells Milestone expiring on 31 December 2020.
- 750,000 Performance Rights subject to the Financing Milestone expiring on 30 June 2020.
- 532,516 Performance Rights subject to the Short Term Incentive
Milestone expiring on 31 December 2019.
-- Ordinary Shares issued on conversion of the Performance
Rights rank equally with the then Ordinary Shares of the
Company;
-- Application will be made by the Company to ASX AIM market of
the London Stock Exchange for official quotation of the Ordinary
Shares issued upon conversion of the Performance Rights;
-- If there is any reconstruction of the issued share capital of
the Company, the rights of the Performance Right holders may be
varied to comply with the Listing Rules which apply to the
reconstruction at the time of the reconstruction; and
-- No application for quotation of the Performance Rights will
be made by the Company.
13. STATEMENT OF CASH FLOWS
(a) Reconciliation of the Loss after Tax to the Net Cash Flows from Operations
2019 2018
$ $
------------------------------------------------------- ------------ ------------
Net loss for the year (26,896,121) (11,327,108)
Adjustment for non-cash income and expense items
Depreciation of plant and equipment 193,630 75,031
Share based payment expense 2,168,081 1,284,062
Shares issued in lieu of fees 134,300 18,476
FX movement on equity settled transactions (17,441) -
Change in operating assets and liabilities
(Increase)/decrease in trade and other receivables (695,764) 84,784
Increase in trade and other payables 6,025,910 280,212
Increase in provisions 753,418 38,281
Net cash outflow from operating activities (18,333,987) (9,546,262)
======================================================== ============ ============
14. EARNINGS PER SHARE
2019 2018
$ $
The following reflects the income and share data used in the calculations of basic and
diluted
earnings per share:
Net loss attributable to the owners of the Company used in calculating basic and
diluted earnings
per share (26,896,121) (11,327,108)
======================================================================================== ============= =============
Number of Shares Number of Shares
2019 2018
Weighted average number of ordinary shares used in calculating basic and
diluted earnings
per share 195,720,503 175,043,958
================================================================================ ================= =================
(a) Non-Dilutive Securities
As at balance date, 11,100,000 Unlisted Options (which represent
11,100,000 potential Ordinary Shares), 17,500,000 Performance
Shares (which represent 17,500,000 potential Ordinary Shares) and
20,945,016 Performance Rights (which represent 20,945,016 potential
Ordinary Shares) were considered non-dilutive as they would
decrease the loss per share.
(b) Conversions, Calls, Subscriptions or Issues after 30 June 2019
The Company has issued 10,849,115 Ordinary Shares and 18,375,000
Unlisted Options since 30 June 2019.
There have been no other conversions to, calls of, or
subscriptions for Ordinary Shares or issues of potential Ordinary
Shares since the reporting date and before the completion of this
financial report.
15. RELATED PARTIES
(a) Subsidiaries
% Equity Interest
Name Country of 2019 2018
Incorporation
% %
----------------------------- ---------------- ------------ -------------
Ultimate parent entity:
Salt Lake Potash Limited Australia
Subsidiaries of Salt Lake
Potash Limited
Australia Salt Lake Potash
Pty Ltd (ASLP) Australia 100 100
Irve Holdings Pty Ltd Australia 100 -
Two Lake Holdings Pty Ltd Australia 100 -
SO4 Fertiliser Holdings Pty Australia 100 -
Ltd
Subsidiary of ASLP
Piper Preston Pty Ltd Australia 100 100
(b) Ultimate Parent
Salt Lake Potash Limited is the ultimate parent of the
Group.
(c) Transactions with Related Parties
Balances and transactions between the Company and its
subsidiaries, which are related parties of the Company, have been
eliminated on consolidation and are not disclosed in this note.
Transactions with Key Management Personnel, including remuneration,
are included at Note 16.
16. KEY MANAGEMENT PERSONNEL
(a) Details of Key Management Personnel
The KMP of the Group during or since the end of the financial
year were as follows:
Directors
Mr Ian Middlemas Chairman
Mr Tony Swiericzuk Chief Executive Officer (CEO) & Managing
Director (appointed 5 November 2018)
Mr Matthew Syme Non-Executive Director (resigned 23 July 2019)
Mr Mark Pearce Non-Executive Director
Mr Bryn Jones Non-Executive Director
(1) Mr Tony Swiericzuk was appointed to the position of CEO
& Managing Director on 5 November 2018. At this time, Mr
Matthew Syme transitioned into the role of Non-Executive
Director.
Other KMP
Mr Shaun Day Chief Financial Officer (appointed 16 September 2019)
Mr Clint McGhie Company Secretary (appointed 10 August 2018)
Mr Stephen Cathcart Project Director - Technical (appointed 6 November 2018)
Mr David Maxton Chief Operating Officer (resigned 21 December 2018)
Mr Sam Cordin Company Secretary (resigned 10 August 2018)
Unless otherwise disclosed, the KMP held their position from 1
July 2018 until the date of this report.
2019 2018
$ $
----------------------------- ---------- ----------
Short-term employee benefits 1,194,638 726,607
Post-employment benefits 88,172 49,875
Share-based payments 1,239,099 595,394
Total compensation 2,521,909 1,371,876
============================== ========== ==========
(b) Loans from Key Management Personnel
No loans were provided to or received from Key Management
Personnel during the year ended 30 June 2019 (2018: Nil).
(c) Other Transactions
Apollo Group Pty Ltd, a Company of which Mr Mark Pearce is a
Director and beneficial shareholder, was paid $100,000 (2018:
$150,000) for the provision of serviced office facilities,
corporate and administration services until the contract was
terminated effective 28 February 2019. The amount was based on a
monthly retainer adjusted for expended/consumed items at cost, due
and payable in advance, with no fixed term, and was able to be
terminated by either party with one month's notice. At 30 June
2019, Nil (2018: $25,000) was included as a current liability in
the Statement of Financial Position.
17. PARENT ENTITY DISCLOSURES
2019 2018
$ $
------------------------------ -------------- --------------
(a) Financial Position
Assets
Current assets 20,219,527 5,929,459
Non-current assets 2,334,973 2,106,089
------------------------------ -------------- --------------
Total assets 22,554,500 8,035,548
------------------------------ -------------- --------------
Liabilities
Current liabilities 7,728,621 1,632,356
Non-current liabilities 830,419 96,454
Total liabilities 8,559,040 1,728,810
------------------------------ -------------- --------------
Equity
Contributed equity 155,917,578 123,501,153
Accumulated losses (146,196,085) (119,300,301)
Share Based Payments Reserve 4,273,967 2,105,886
------------------------------ -------------- --------------
Total equity 13,995,460 6,306,738
============================== ============== ==============
(b) Financial Performance
Loss for the year (26,895,784) (11,329,214)
------------------------------ -------------- --------------
Total comprehensive loss (26,895,784) (11,329,214)
============================== ============== ==============
(c) Other information
The Company has not entered into any guarantees in relation to
its subsidiaries.
Refer to Note 21 for details of contingent assets and
liabilities.
18. SHARE-BASED PAYMENTS
(a) Recognised Share-based Payment Expense
From time to time, the Group provides incentive Unlisted Options
and Performance Rights to officers, employees, consultants and
other key advisors as part of remuneration and incentive
arrangements. The number of options or rights granted, and the
terms of the options or rights granted are determined by the Board.
Shareholder approval is sought where required.
In the current and prior year, the Company has also granted
shares in lieu of payments to key consultants in accordance with
the terms of engagement.
During the past two years, the following equity-settled
share-based payments have been recognised:
2019 2018
$ $
---------------------------------------------------- ---------- ------------
Expenses arising from equity-settled share-based
payment transactions relating incentive
options and performance rights 2,168,081 1,284,062
Expenses arising from equity-settled share-based
payment transactions to suppliers and consultants 134,300 18,476
---------------------------------------------------- ---------- ----------
Total share-based payments recognised during
the year 2,302,381 1,302,538
==================================================== ========== ==========
(b) Summary of Unlisted Options and Performance Rights Granted as Share-based Payments
The following Unlisted Options and Performance Rights were
granted as share-based payments during the past two years:
Series Issuing Entity Security Number Grant Date Expiry Exercise Grant
Type Date Price Date
Fair
Value
-------- ------------------ ---------- ---------- ----------- ----------
$ $
-------- ------------------ ---------- ---------- ----------- ---------- --------- -------
2019
Series Salt Lake Potash
30 Limited Options 1,000,000 2-Nov-18 1-Nov-23 0.6 0.219
Series Salt Lake Potash
31 Limited Options 2,000,000 2-Nov-18 1-Nov-23 1.0 0.159
Series Salt Lake Potash
32 Limited Options 2,000,000 2-Nov-18 1-Nov-23 1.2 0.139
Series Salt Lake Potash
33 Limited Options 700,000 31-Dec-18 1-Nov-23 0.6 0.206
Series Salt Lake Potash
34 Limited Options 750,000 31-Dec-18 1-Nov-23 1.0 0.148
Series Salt Lake Potash
35 Limited Options 1,000,000 31-Dec-18 1-Nov-23 1.2 0.129
Series Salt Lake Potash
36 Limited Rights 266,258 2-Nov-18 31-Jul-19 - 0.460
Series Salt Lake Potash
37 Limited Rights 1,500,000 2-Nov-18 1-Nov-20 - 0.470
Series Salt Lake Potash
38 Limited Rights 1,500,000 2-Nov-18 1-Nov-21 - 0.470
Series Salt Lake Potash
39 Limited Rights 2,000,000 2-Nov-18 1-Nov-22 - 0.470
Series Salt Lake Potash
40 Limited Rights 2,000,000 2-Nov-18 1-Nov-23 - 0.470
Series Salt Lake Potash
41 Limited Rights 266,258 2-Nov-18 31-Jul-19 - 0.460
Series Salt Lake Potash
42 Limited Rights 1,982,500 31-Dec-18 1-Nov-20 - 0.460
Series Salt Lake Potash
43 Limited Rights 1,582,500 31-Dec-18 1-Nov-21 - 0.460
Series Salt Lake Potash
44 Limited Rights 1,550,000 31-Dec-18 1-Nov-22 - 0.460
Series Salt Lake Potash
45 Limited Rights 1,550,000 31-Dec-18 1-Nov-23 - 0.460
Series Salt Lake Potash
46 Limited Rights 1,300,000 31-Dec-18 31-Dec-21 - 0.460
Series Salt Lake Potash
47 Limited Rights 1,300,000 31-Dec-18 31-Dec-21 - 0.460
Series Salt Lake Potash
48 Limited Rights 250,000 31-Dec-18 31-Dec-19 - 0.460
Series Salt Lake Potash
49 Limited Rights 250,000 31-Dec-18 31-Dec-20 - 0.460
Series Salt Lake Potash
50 Limited Rights 750,000 31-Dec-18 30-Jun-20 - 0.460
Series Issuing Entity Security Type Number Grant Expiry Date Exercise Price Grant Date Fair
Date Value
$ $
----------- ----------------- --------------- -------- ---------- ------------ --------------- ----------------
2018
Salt Lake Potash
Series 20 Limited Options 250,000 22-Nov-17 30-Jun-21 0.4 0.284
Salt Lake Potash
Series 21 Limited Options 350,000 22-Nov-17 30-Jun-21 0.5 0.256
Salt Lake Potash
Series 22 Limited Options 500,000 22-Nov-17 30-Jun-21 0.6 0.233
Salt Lake Potash
Series 23 Limited Options 150,000 15-Dec-17 30-Jun-21 0.5 0.228
Salt Lake Potash
Series 24 Limited Options 250,000 15-Dec-17 30-Jun-21 0.6 0.207
Salt Lake Potash
Series 25 Limited Options 400,000 15-Dec-17 30-Jun-21 0.7 0.188
Salt Lake Potash
Series 26 Limited Rights 575,000 15-Dec-17 30-Jun-18 - 0.486
Salt Lake Potash
Series 27 Limited Rights 575,000 15-Dec-17 30-Jun-19 - 0.486
Salt Lake Potash
Series 28 Limited Rights 575,000 15-Dec-17 30-Jun-20 - 0.486
Salt Lake Potash
Series 29 Limited Rights 575,000 15-Dec-17 30-Jun-21 - 0.486
----------- ----------------- --------------- -------- ---------- ------------ --------------- ----------------
(c) Summary of Unlisted Options and Performance Rights Granted as Share-based Payments
The following table illustrates the number and weighted average
exercise prices (WAEP) of Unlisted Options granted as share-based
payments at the beginning and end of the financial year:
Unlisted Options 2019 2019 2018 2018
Number WAEP Number WAEP
---------------------------------------- ----------- ------ ---------- ------
Outstanding at beginning of year 4,400,000 $0.54 2,500,000 $0.51
Granted by the Company during the year 7,450,000 $0.99 1,900,000 $0.57
Forfeited/cancelled/lapsed/exercised (750,000) $0.48 - -
Outstanding at end of year 11,100,000 $0.84 4,400,000 $0.54
======================================== =========== ====== ========== ======
Exercisable at end of year 3,650,000 $0.56 3,500,000 $0.51
======================================== =========== ====== ========== ======
The following table illustrates the number and weighted average
exercise prices (WAEP) of Performance Rights granted as share-based
payments at the beginning and end of the financial year:
Performance Rights 2019 2019 2018 2018
Number WAEP Number WAEP
---------------------------------------- ------------ ------ ------------ ------
Outstanding at beginning of year 5,400,000 - 4,100,000 -
Granted by the Company during the year 18,047,516 - 2,300,000 -
Forfeited/cancelled/lapsed/expired (2,502,500) - (1,000,000) -
Outstanding at end of year 20,945,016 - 5,400,000 -
======================================== ============ ====== ============ ======
(d) Weighted Average Remaining Contractual Life
At 30 June 2019, the weighted average remaining contractual life
of Unlisted Options on issue that had been granted as share-based
payments was 3.48 years (2018: 2.39 years) and of Performance
Rights on issue that had been granted as share-based payments was
2.42 years (2018: 1.75 years).
(e) Range of Exercise Prices
At 30 June 2019, the range of exercise prices of Unlisted
Options on issue that had been granted as share-based payments was
$0.60 to $1.20 (2018: $0.40 to $0.70). Performance Rights have no
exercise price.
(f) Weighted Average Fair Value
The weighted average fair value of Unlisted Options granted as
share-based payments by the Group during the year ended 30 June
2019 was $0.161 (2018: $0.231) and of Performance Rights granted as
share-based payments was $0.463 (2018: $0.486).
(g) Option and Performance Right Pricing Models
The fair value of the equity-settled share options granted is
estimated as at the date of grant using the Binomial option
valuation model taking into account the terms and conditions upon
which the Unlisted Options were granted. The fair value of
Performance Rights granted is estimated as at the date of grant
based on the underlying share price (being the five day volume
weighted average share price prior to issuance).
The table below lists the inputs to the valuation model used for
share options and Performance Rights granted by the Group in the
current and prior year:
2019
Inputs Series 30 Series 31 Series 32
----------------------------- ----------- ----------- -----------
Options
Exercise price $0.60 $1.00 $1.20
Grant date share price $0.470 $0.470 $0.470
Dividend yield (1) - - -
Volatility (2) 70% 70% 70%
Risk-free interest rate 2.32% 2.32% 2.32%
Grant date 2-Nov-18 2-Nov-18 2-Nov-18
Expiry date 1-Nov-23 1-Nov-23 1-Nov-23
Expected life of option (3) 5.00 years 5.00 years 5.00 years
Fair value at grant date $0.219 $0.159 $0.139
----------------------------- ----------- ----------- -----------
Inputs Series 33 Series 34 Series 35
----------------------------- ----------- ----------- -----------
Options
Exercise price $0.60 $1.00 $1.20
Grant date share price $0.460 $0.460 $0.460
Dividend yield (1) - - -
Volatility (2) 70% 70% 70%
Risk-free interest rate 2.10% 2.10% 2.10%
Grant date 31-Dec-18 31-Dec-18 31-Dec-18
Expiry date 1-Nov-23 1-Nov-23 1-Nov-23
Expected life of option (3) 4.84 years 4.84 years 4.84 years
Fair value at grant date $0.206 $0.148 $0.129
----------------------------- ----------- ----------- -----------
Notes:
(1) The dividend yield reflects the assumption that the current
dividend payout will remain unchanged.
(2) The expected volatility reflects the assumption that the
historical volatility is indicative of future trends, which may not
necessarily be the actual outcome.
(3) The expected life of the options is based on the expiry date
of the options as there is limited track record of the early
exercise of options.
Inputs Series 36 Series 37 Series 38 Series 39 Series 40
Milestones Short Term Trench/Pond Plant Plant Nameplate
Incentive Construction Construction Commissioning Capacity
------------------ ------------------ ------------------ ------------------ ------------------ ------------------
Performance
Rights
Exercise price - - - - -
Grant date share
price $0.470 $0.470 $0.470 $0.470 $0.470
Grant date 2-Nov-18 2-Nov-18 2-Nov-18 2-Nov-18 2-Nov-18
Expiry date 31-Jul-19 1-Nov-20 1-Nov-21 1-Nov-22 1-Nov-23
Expected life (1) 0.74 years 2.00 years 3.00 years 4.00 years 5.00 years
Fair value at
grant date (2) $0.470 $0.470 $0.470 $0.470 $0.470
------------------ ------------------ ------------------ ------------------ ------------------ ------------------
Inputs Series 41 Series 42 Series 43 Series 44 Series 45
Milestones Short Term Trench/Pond Plant Plant Nameplate
Incentive Construction Construction Commissioning Capacity
------------------ ------------------ ------------------ ------------------ ------------------ ------------------
Performance
Rights
Exercise price - - - - -
Grant date share
price $0.460 $0.460 $0.460 $0.460 $0.460
Grant date 31-Dec-18 31-Dec-18 31-Dec-18 31-Dec-18 31-Dec-18
Expiry date 31-Jul-19 1-Nov-20 1-Nov-21 1-Nov-22 1-Nov-23
Expected life (1) 0.58 years 1.84 years 2.84 years 3.84 years 4.84 years
Fair value at
grant date (2) $0.460 $0.460 $0.460 $0.460 $0.460
------------------ ------------------ ------------------ ------------------ ------------------ ------------------
Inputs Series 46 Series 47 Series 48 Series 49 Series 50
Milestones Advanced Schedule Reduced Capex Lake Way Lake Wells Financing
Application Application Milestone
------------------- ------------------ -------------- ------------------- ------------------- -------------------
Performance Rights
Exercise price - - - - -
Grant date share
price $0.460 $0.460 $0.460 $0.460 $0.460
Grant date 31-Dec-18 31-Dec-18 31-Dec-18 31-Dec-18 31-Dec-18
Expiry date 31-Dec-21 31-Dec-21 31-Dec-19 31-Dec-20 30-Jun-20
Expected life (1) 3.00 years 3.00 years 1.00 years 2.00 years 1.50 years
Fair value at
grant date (2) $0.460 $0.460 $0.460 $0.460 $0.460
------------------- ------------------ -------------- ------------------- ------------------- -------------------
Notes:
(1) The expected life of the Performance Rights is based on the
expiry date of the performance rights as there is limited track
record of the early conversion of performance rights.
(2) The fair value of Performance Rights granted is estimated as
at the date of grant based on the underlying share price (being the
closing share price at the date of issuance).
19. AUDITORS' REMUNERATION
The auditor of Salt Lake Potash Limited is Ernst and Young.
2019 2018
$ $
-------------------------------------------------------------- ------- -------
Amounts received or due and receivable
by Ernst and Young for:
* an audit or review of the financial report of the
entity and any other entity in the consolidated group 29,854 25,000
* tax and other advisory services 11,566 8,188
41,420 33,188
============================================================== ======= =======
20. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
(a) Overview
The Group's principal financial instruments comprise
receivables, payables, finance leases, cash and short-term
deposits. The main risks arising from the Group's financial
instruments are credit risk, liquidity risk and interest rate risk.
The Group's financial assets and liabilities are held at amortised
cost.
This note presents information about the Group's exposure to
each of the above risks, its objectives, policies and processes for
measuring and managing risk, and the management of capital. Other
than as disclosed, there have been no significant changes since the
previous financial year to the exposure or management of these
risks.
The Group manages its exposure to key financial risks in
accordance with the Group's financial risk management policy. Key
risks are monitored and reviewed as circumstances change (e.g.
acquisition of a new project) and policies are revised as required.
The overall objective of the Group's financial risk management
policy is to support the delivery of the Group's financial targets
whilst protecting future financial security.
Given the nature and size of the business and uncertainty as to
the timing and amount of cash inflows and outflows, the Group does
not enter into derivative transactions to mitigate the financial
risks. In addition, the Group's policy is that no trading in
financial instruments shall be undertaken for the purposes of
making speculative gains. As the Group's operations change, the
Directors will review this policy periodically going forward.
The Board of Directors has overall responsibility for the
establishment and oversight of the risk management framework. The
Board reviews and agrees policies for managing the Group's
financial risks as summarised below.
(b) Credit Risk
Credit risk is the risk of financial loss to the Group if a
customer or counterparty to a financial instrument fails to meet
its contractual obligations. This arises principally from cash and
cash equivalents and trade and other receivables.
There are no significant concentrations of credit risk within
the Group. The carrying amount of the Group's financial assets
represents the maximum credit risk exposure, as represented
below:
2019 2018
$ $
----------------------------- ----------- ----------
Financial assets
Cash and cash equivalents 19,304,075 5,709,446
Trade and other receivables 923,036 227,273
20,227,111 5,936,719
============================= =========== ==========
With respect to credit risk arising from cash and cash
equivalents, the Group's exposure to credit risk arises from
default of the counterparty, with a maximum exposure equal to the
carrying amount of these instruments. Where possible, the Group
invests its cash and cash equivalents with banks that are rated the
equivalent of investment grade and above. The Group's exposure and
the credit ratings of its counterparties are continuously monitored
and the aggregate value of transactions concluded is spread amongst
approved counterparties.
The Group does not have any significant customers and
accordingly does not have significant exposure to bad or doubtful
debts.
Trade and other receivables comprise interest accrued and GST
refunds due. Where possible the Consolidated Entity trades only
with recognised, creditworthy third parties. Receivable balances
are monitored on an ongoing basis with the result that the Group's
exposure to bad debts is not significant. At 30 June 2019, none
(2018 none) of the Group's receivables are past due.
(c) Liquidity Risk
Liquidity risk is the risk that the Group will not be able to
meet its financial obligations as they fall due. The Board's
approach to managing liquidity is to ensure, as far as possible,
that the Group will always have sufficient liquidity to meet its
liabilities when due. At 30 June 2019 and 2018, the Group had
sufficient liquid assets to meet its financial obligations.
The contractual maturities of financial liabilities, including
estimated interest payments, are provided below. There are no
netting arrangements in respect of financial liabilities.
<=6 Months 6-12 Months 1-5 Years >=5 Years Total
$
$ $ $ $
-------------------------- ----------- ------------ ---------- ---------- ----------
2019
Group
Financial Liabilities
Finance lease 9,515 9,515 39,166 - 58,196
Trade and other payables 7,709,590 - - - 7,709,590
-------------------------- ----------- ------------ ---------- ---------- ----------
7,719,105 9,515 39,166 - 7,767,786
-------------------------- ----------- ------------ ---------- ---------- ----------
2018
Group
Financial Liabilities
Finance lease 5,914 5,915 38,992 - 50,821
Trade and other payables 1,620,527 - - - 1,620,527
-------------------------- ----------- ------------ ---------- ---------- ----------
1,626,441 5,915 38,992 - 1,671,348
-------------------------- ----------- ------------ ---------- ---------- ----------
(d) Interest Rate Risk
The Group did not have any long-term borrowing or long term
deposits as at 30 June 2019 (2018: Nil), which would expose it to
significant cash flow interest rate risk.
The Group currently does not engage in any hedging or derivative
transactions to manage interest rate risk.
(e) Capital Management
The Group defines its Capital as total equity of the Group,
being $14,708,374 as at 30 June 2019 (2018: $7,019,989). The Group
manages its capital to ensure that entities in the Group will be
able to continue as a going concern while financing the development
of its projects through primarily equity based financing. The
Board's policy is to maintain a strong capital base so as to
maintain investor, creditor and market confidence and to sustain
future development of the business. Given the stage of development
of the Group, the Board's objective is to minimise debt and to
raise funds as required through the issue of new shares.
The Group is not subject to externally imposed capital
requirements.
There were no changes in the Group's approach to capital
management during the year. During the next 12 months, the Group
will continue to explore project financing opportunities, primarily
consisting of additional issues of equity.
(f) Fair Value
The Group uses various methods in estimating the fair value of a
financial instrument. The methods comprise:
-- Level 1 - the fair value is calculated using quoted prices in
active markets.
-- Level 2 - the fair value is estimated using inputs other than
quoted prices included in Level 1 that are observable for the asset
or liability, either directly (as prices) or indirectly (derived
from prices).
-- Level 3 - the fair value is estimated using inputs for the
asset or liability that are not based on observable market
data.
At 30 June 2019 and 30 June 2018, the carrying value of the
Group's financial assets and liabilities approximate their fair
value.
21. CONTINGENT ASSETS AND LIABILITIES
(i) Contingent Assets
The Group has undertaken research and development (R&D)
activities during the years ended 30 June 2018 and 30 June 2019. It
is expected that these activities will be eligible for an R&D
tax incentive paid by the Australian Taxation Office. Whilst the
Company is yet to quantify the claim in respect of these years, it
anticipates lodging claims prior to 31 December 2019 and
recognising the tax incentive as revenue upon receipt.
As at the date of this report, no other contingent assets had
been identified in relation to the 30 June 2019 financial year.
(ii) Contingent Liability
As at the date of this report, no contingent liabilities had
been identified in relation to the 30 June 2019 financial year.
22. COMMITMENTS
Management have identified the following material commitments
for the consolidated group as at 30 June 2019 and 30 June 2018:
2019 2018
$ $
---------------------------------------- ------- -------
Finance Lease commitments
Within one year 19,030 11,829
Later than one year but not later than
five years 39,166 38,992
58,196 50,821
======================================== ======= =======
2019 2018
$ $
---------------------------------------- -------- --------
Operating Lease commitments
Within one year 169,346 200,018
Later than one year but not later than
five years 66,680 113,416
236,026 313,434
======================================== ======== ========
2019 2018
$ $
---------------------------------------- ---------- ----------
Exploration commitments
Within one year 5,193,242 1,896,500
Later than one year but not later than 4,713,776 -
five years
9,907,018 1,896,500
======================================== ========== ==========
23. EVENTS SUBSEQUENT TO BALANCE DATE
(i) On 23 July 2019, Salt Lake Potash announced the acquisition
of a strategic package of tenements and other key assets for the
Lake Way Project from Blackham Resources Limited. A placement to
raise A$7.4 million at $0.70 per share to fund the majority of the
acquisition consideration was also announced.
(ii) On 23 July 2019, Mr Matthew Syme resigned as Non-Executive Director.
(iii) On 5 August 2019, the Company announced that it had
mandated Taurus Funds Management to provide up to US$150m staged
project financing for the Lake Way Project, and the stage 1
Facility has been partly drawn down.
Other than as above, as at the date of this report there are no
matters or circumstances which have arisen since 30 June 2019 that
have significantly affected or may significantly affect:
-- the operations, in financial years subsequent to 30 June 2019, of the Consolidated Entity;
-- the results of those operations, in financial years
subsequent to 30 June 2019, of the Consolidated Entity; or
-- the state of affairs, in financial years subsequent to 30
June 2019, of the Consolidated Entity.
MINERAL RESOURCE STATEMENT
Salt Lake Potash's Mineral Resource Statement as at 30 June 2019
is reported by Lake, all of which are located in Western Australia.
To date, no Ore Reserves have been reported for these deposits.
Annual Review of Mineral Resources
In July 2018, the Company reported its maiden resource covering
the Blackham tenements at Lake Way. A significant extension of the
Mineral Resource Estimate at Lake Way was subsequently announced in
March 2019 following completion of an exploration program across
the 'whole of the lake". The Mineral Resource Estimate for Lake Way
is divided into resource classifications that are controlled by the
host geological units:
-- Lake Bed Sediment
-- Paleovalley Sediment
-- Paleochannel Basal Sands
In April 2019, the Joint Ore Reserves Committee (JORC) adopted
the AMEC Brine Guidelines requiring that the principal porosity
measurement for brine Minerals Resource Estimate is the specific
yield (Sy) or drainable porosity. Brines by their nature are not a
static resource as they are subject to groundwater movement,
dilution and concentration over time. Accordingly, the Company
believes that reporting both total and drainable porosity allows
the reflection of this dynamic resource environment, including the
consideration of the recharge and physical diffusion impacts on the
mine plan and production output. The Lake Way Mineral Resource
Estimate is reported in accordance with the AMEC Brine
Guidelines.
The Company has previously reported a resource estimate for the
Lake Wells Project using total porosity measurement. The Lake Wells
resource is no longer able to be reported following the adoption of
the AMEC Brine Guidelines by JORC as further work is required to
enable the Company to report the resource estimate using drainable
porosity. Accordingly, the previous resource estimate for Lake
Wells is not reported in this Annual Review of Mineral Resources as
at 30 June 2018 or 30 June 2019.
30 June 2019
Total Brine Concentration Mineral Tonnage Mineral Tonnage
Volume Calculated from Calculated from
Total Porosity Drainable Porosity
K Mg SO(4) Total Brine SOP Drainable Brine SOP
Porosi-ty Volume Tonnage Porosity Volume Tonnage
------- --------- --------- --------- ---------- ------- --------- ---------- ------- ---------
(Mm(3) (kg/m(3) (kg/m(3) (Kg/m(3) (Mm(3) (Mt) (Mm(3) (Mt)
) ) ) ) ) )
------- --------- --------- --------- ---------- ------- --------- ---------- ------- ---------
Lake Way
Measured
North Lakebed
(0.4-8.0
m) 1,060 6.8 8.0 27.6 0.42 445 6.8 0.11 117 1.8
------- --------- --------- --------- ---------- ------- --------- ---------- ------- ---------
Williamson
Pit 1.26 11.4 14.7 48.0 1.26 0.03
------- --------- --------- --------- ------------------------------------------ ------- ---------
Sub-Total 6.8 1.83
--------- ---------- ------- ---------
Indicated
Basal Sands
(Paleochannel) 686 6.1 8.2 25.0 0.40 274 3.7 15 103 1.4
------- --------- --------- --------- ---------- ------- --------- ---------- ------- ---------
Inferred
South Lakebed
(0.4-8.0
m) 316 6.8 8.0 27.6 0.42 133 2.0 0.11 35 0.5
------- --------- --------- --------- ---------- ------- --------- ---------- ------- ---------
Lakebed
(8m to
Base) 9,900 6.8 8.0 27.6 0.40 3,960 60.0 0.03 297 4.5
------- --------- --------- --------- ---------- ------- --------- ---------- ------- ---------
Sub-Total 62.0 5.0
--------- ---------- ------- ---------
Total 72.5 8.23
--------- ---------- ------- ---------
Governance
The Company engages external consultants and Competent Persons
(as determined pursuant to the JORC Code 2012) to prepare and
estimate the Mineral Resources. Management and the Board review
these estimates and underlying assumptions for reasonableness and
accuracy. The results of the Mineral Resource estimates are then
reported in accordance with the requirements of the JORC Code 2012
and other applicable rules (including ASX Listing Rules).
Where material changes occur during the year to the project,
including the project's size, title, exploration results or other
technical information, previous resource estimates and market
disclosures are reviewed for completeness.
The Company reviews its Mineral Resources as at 30 June each
year. A revised Mineral Resource estimate will be prepared as part
of the annual review process where a material change has occurred
in the assumptions or data used in previously reported Mineral
Resources. However, there are circumstances where this may not be
possible (e.g. an ongoing drilling programme), in which case a
revised Mineral Resource estimate will be prepared and reported as
soon as practicable.
Competent Person Statement - Mineral Resource Statement
The information in this Mineral Resource Statement that relates
to Mineral Resources is based on, and fairly represents,
information compiled by Mr Ben Jeuken, a Competent Person, who is a
member Australian Institute of Mining and Metallurgy. Mr Jeuken is
employed by Groundwater Science Pty Ltd, an independent consulting
company. Mr Jeuken has sufficient experience, which is relevant to
the style of mineralisation and type of deposit under consideration
and to the activity, which he is undertaking to qualify as a
Competent Person as defined in the 2012 Edition of the
'Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves'.
Mr Jeuken has approved the Mineral Resource Statement as a whole
and consents to its inclusion in the form and context in which it
appears.
ASX ADDITIONAL INFORMATION
1. TWENTY LARGEST HOLDERS OF LISTED SECURITIES
The names of the twenty largest holders of listed securities as
at 31 August 2019 are listed below:
Number of Percentage
Ordinary of Ordinary
Name Shares Shares
--------------------------------------- ------------ -------------
COMPUTERSHARE CLEARING PTY LTD 54,256,532 21.26
HSBC CUSTODY NOMINEES (AUSTRALIA)
LIMITED 35,245,178 13.81
CITICORP NOMINEES PTY LIMITED 13,968,993 5.47
J P MORGAN NOMINEES AUSTRALIA PTY
LIMITED 11,882,741 4.66
ARREDO PTY LTD 11,750,000 4.60
ARGONAUT SECURITIES (NOMINEES) PTY
LTD 6,641,300 2.60
HOWITT MGMT PTY LTD 4,620,001 1.81
MR NEIL DAVID IRVINE 4,000,000 1.57
ELLISON (WA) PTY LTD 3,980,000 1.56
ARLINGTON INVESTMENT HOLDINGS LIMITED 3,960,000 1.55
MR MARK STUART SAVAGE 3,600,000 1.41
AWJ FAMILY PTY LTD 3,020,000 1.18
HOPETOUN CONSULTING PTY LTD 3,000,000 1.18
MR TERRY PATRICK COFFEY & HAWKES BAY
NOMINEES LIMITED 2,290,889 0.90
AEGEAN CAPITAL PTY LTD 2,107,749 0.83
AROIDA INVESTMENTS PTY LTD 2,019,177 0.79
PILLING & CO STOCKBROKERS LTD 2,018,721 0.79
ROSEBERRY HOLDINGS PTY LTD 2,000,000 0.78
ARGONAUT SECURITIES (NOMINEES) PTY
LTD 2,000,000 0.78
APOLLO GROUP PTY LTD 2,000,000 0.78
Total Top 20 174,361,281 68.31
Others 81,625,699 31.69
--------------------------------------- ------------ -------------
Total Ordinary Shares on Issue 255,236,980 100.00
======================================= ============ =============
2. DISTRIBUTION OF EQUITY SECURITIES
An analysis of numbers of holders of listed securities by size
of holding as at 31 August 2019 is listed below:
Ordinary Shares
Number of Number of
Distribution Shareholders Ordinary Shares
------------------ ------------- ----------------
1 - 1,000 1,108 321,470
1,001 - 5,000 494 1,225,421
5,001 - 10,000 227 1,800,145
10,001 - 100,000 409 16,125,730
More than 100,000 165 235,764,214
------------------ ------------- ----------------
Totals 2,403 255,236,980
================== ============= ================
There were 901 holders of less than a marketable parcel of
Ordinary Shares.
3. VOTING RIGHTS
See Note 11(b) of the Notes to the Financial Statements.
4. SUBSTANTIAL SHAREHOLDERS
Substantial holders who have notified the Company in accordance
with section 671B of the Corporations Act 2001 are as follows:
Number of
Distribution Ordinary Shares
------------------------------------------------- ----------------
Lombard Odier Asset Management (Europe) Limited 35,047,501
FIL Limited 21,756,973
------------------------------------------------- ----------------
5. UNQUOTED SECURITIES
Performance Shares Performance Shares Subject to Bankable Performance Shares Subject to
Feasibility Study Milestone (Class B) Construction Milestone (Class C)
expiring expiring
Holder 31-Dec-19 12-Jun-20
----------------------------------- --------------------------------------- ----------------------------------------
JBJF Management Pty Ltd 2,550,000 3,400,000
Mr Aharon Arakel & Mrs Ida Arakel 2,475,000 3,300,000
Howitt MGMT Pty Ltd 2,310,000 3,080,000
Others (less than 20%) 165,000 220,000
----------------------------------- --------------------------------------- ----------------------------------------
Total 7,500,000 10,000,000
=================================== ======================================= ========================================
Total holders 4 4
Unlisted Options Unlisted Unlisted Unlisted Unlisted Unlisted Unlisted
Options Options Options Options Options Options
exercisable exercisable exercisable exercisable exercisable exercisable
at $0.50 at $0.60 at $0.40 at $0.50 at $0.60 at $0.70
Holder 29-Apr-20 29-Apr-21 30-Jun-21 30-Jun-21 30-Jun-21 30-Jun-21
----------------- -------------- --------------- --------------- --------------- --------------- ---------------
Hopetoun
Consulting Pty
Ltd 750,000 1,000,000 - - - -
JJB Advisory
Limited - - 250,000 350,000 500,000 -
Mr Sapan Ghai - - - 100,000 150,000 250,000
Mr Hannes Huster - - - - 100,000 150,000
Others (less - - - 50,000 - -
than 20%)
----------------- -------------- --------------- --------------- --------------- --------------- ---------------
Total 750,000 1,000,000 250,000 500,000 750,000 400,000
================= ============== =============== =============== =============== =============== ===============
Total holders 1 1 1 3 3 2
Unlisted Options Unlisted Options exercisable Unlisted Options exercisable Unlisted Options exercisable
at $0.60 at $1.00 at $1.20
Holder 01-Nov-23 01-Nov-23 01-Nov-23
----------------------- ---------------------------- ---------------------------- ----------------------------
Mr Tony Swiericzuk 1,000,000 2,000,000 2,000,000
Others (less than 20%) 700,000 750,000 1,000,000
Total 1,700,000 2,750,000 3,000,000
======================= ============================ ============================ ============================
Total holders 4 4 4
As at 31 August 2019, there are 20,412,500 Performance Rights
issued under an employee incentive scheme.
6. ON-MARKET BUY BACK
There is currently no on-market buyback program for any of Salt
Lake Potash Limited's listed securities.
7. EXPLORATION INTERESTS
Summary of Exploration and Mining Tenements held as at 31 August
2019
Project Status License Number Interest (%)
31-Aug-19
Western Australia
-------------------- ------------- ---------------- -------------
Lake Way
-------------------- ------------- ---------------- -------------
Central Granted E53/1878 100%
-------------------- ------------- ---------------- -------------
East Application E53/2057 100%
-------------------- ------------- ---------------- -------------
South Granted E53/1897 100%
-------------------- ------------- ---------------- -------------
South Application E53/2059 100%
-------------------- ------------- ---------------- -------------
South Application E53/2060 100%
-------------------- ------------- ---------------- -------------
West Application L53/208 100%
-------------------- ------------- ---------------- -------------
Central Application M53/1102 100%
-------------------- ------------- ---------------- -------------
Lake Wells
-------------------- ------------- ---------------- -------------
Central Granted E38/2710 100%
-------------------- ------------- ---------------- -------------
South Granted E38/2821 100%
-------------------- ------------- ---------------- -------------
North Granted E38/2824 100%
-------------------- ------------- ---------------- -------------
Outer East Granted E38/3055 100%
-------------------- ------------- ---------------- -------------
Single Block Granted E38/3056 100%
-------------------- ------------- ---------------- -------------
Outer West Granted E38/3057 100%
-------------------- ------------- ---------------- -------------
North West Granted E38/3124 100%
-------------------- ------------- ---------------- -------------
West Granted L38/262 100%
-------------------- ------------- ---------------- -------------
East Granted L38/263 100%
-------------------- ------------- ---------------- -------------
South West Granted L38/264 100%
-------------------- ------------- ---------------- -------------
South Granted L38/287 100%
-------------------- ------------- ---------------- -------------
South Western Granted E38/3247 100%
-------------------- ------------- ---------------- -------------
South Granted M38/1278 100%
-------------------- ------------- ---------------- -------------
Central Application E38/3380 100%
-------------------- ------------- ---------------- -------------
Lake Ballard
-------------------- ------------- ---------------- -------------
West Granted E29/912 100%
-------------------- ------------- ---------------- -------------
East Granted E29/913 100%
-------------------- ------------- ---------------- -------------
North Granted E29/948 100%
-------------------- ------------- ---------------- -------------
South Granted E29/958 100%
-------------------- ------------- ---------------- -------------
South East Granted E29/1011 100%
-------------------- ------------- ---------------- -------------
South East Granted E29/1020 100%
-------------------- ------------- ---------------- -------------
South East Granted E29/1021 100%
-------------------- ------------- ---------------- -------------
South East Granted E29/1022 100%
-------------------- ------------- ---------------- -------------
South Application E29/1067 100%
-------------------- ------------- ---------------- -------------
South Application E29/1068 100%
-------------------- ------------- ---------------- -------------
East Application E29/1069 100%
-------------------- ------------- ---------------- -------------
North Application E29/1070 100%
-------------------- ------------- ---------------- -------------
Lake Irwin
-------------------- ------------- ---------------- -------------
West Granted E37/1233 100%
-------------------- ------------- ---------------- -------------
Central Granted E39/1892 100%
-------------------- ------------- ---------------- -------------
East Granted E38/3087 100%
-------------------- ------------- ---------------- -------------
North Granted E37/1261 100%
-------------------- ------------- ---------------- -------------
Central East Granted E38/3113 100%
-------------------- ------------- ---------------- -------------
South Granted E39/1955 100%
-------------------- ------------- ---------------- -------------
North West Granted E37/1260 100%
-------------------- ------------- ---------------- -------------
South West Granted E39/1956 100%
-------------------- ------------- ---------------- -------------
Lake Minigwal
-------------------- ------------- ---------------- -------------
West Granted E39/1893 100%
-------------------- ------------- ---------------- -------------
East Granted E39/1894 100%
-------------------- ------------- ---------------- -------------
Central Granted E39/1962 100%
-------------------- ------------- ---------------- -------------
Central East Granted E39/1963 100%
-------------------- ------------- ---------------- -------------
South Granted E39/1964 100%
-------------------- ------------- ---------------- -------------
South West Granted E39/1965 100%
-------------------- ------------- ---------------- -------------
Lake Marmion
-------------------- ------------- ---------------- -------------
North Granted E29/1000 100%
-------------------- ------------- ---------------- -------------
Central Granted E29/1001 100%
-------------------- ------------- ---------------- -------------
South Granted E29/1002 100%
-------------------- ------------- ---------------- -------------
West Granted E29/1005 100%
-------------------- ------------- ---------------- -------------
West Application E29/1069 100%
-------------------- ------------- ---------------- -------------
Lake Noondie
-------------------- ------------- ---------------- -------------
North Granted E57/1062 100%
-------------------- ------------- ---------------- -------------
Central Granted E57/1063 100%
-------------------- ------------- ---------------- -------------
South Granted E57/1064 100%
-------------------- ------------- ---------------- -------------
West Granted E57/1065 100%
-------------------- ------------- ---------------- -------------
East Granted E36/932 100%
-------------------- ------------- ---------------- -------------
Lake Barlee
-------------------- ------------- ---------------- -------------
North Granted E30/495 100%
-------------------- ------------- ---------------- -------------
Central Granted E30/496 100%
-------------------- ------------- ---------------- -------------
South Granted E77/2441 100%
-------------------- ------------- ---------------- -------------
Lake Raeside
-------------------- ------------- ---------------- -------------
North Granted E37/1305 100%
-------------------- ------------- ---------------- -------------
Lake Austin
-------------------- ------------- ---------------- -------------
North Application E21/205 100%
-------------------- ------------- ---------------- -------------
West Application E21/206 100%
-------------------- ------------- ---------------- -------------
East Application E58/529 100%
-------------------- ------------- ---------------- -------------
South Application E58/530 100%
-------------------- ------------- ---------------- -------------
South West Application E58/531 100%
-------------------- ------------- ---------------- -------------
Lake Moore
-------------------- ------------- ---------------- -------------
Central Granted E59/2344 100%
-------------------- ------------- ---------------- -------------
Northern Territory
-------------------- ------------- ---------------- -------------
Lake Lewis
-------------------- ------------- ---------------- -------------
South Granted EL 29787 100%
-------------------- ------------- ---------------- -------------
North Granted EL 29903 100%
-------------------- ------------- ---------------- -------------
8. COMPETENT PERSONS STATEMENTS
The information in this report that relates to Mineral Resources
is extracted from the announcement entitled 'Significant High-Grade
SOP Resource Delineated at Lake Way' dated 18 March 2019. This
announcement is available to view on www.so4.com.au. The
information in the original ASX Announcement that related to
Mineral Resources was based on, and fairly represents, information
compiled by Mr Ben Jeuken, who is a member Australasian Institute
of Mining and Metallurgy (AusIMM) and a member of the International
Association of Hydrogeologists. Mr Jeuken is employed by
Groundwater Science Pty Ltd, an independent consulting company. Mr
Jeuken has sufficient experience, which is relevant to the style of
mineralisation and type of deposit under consideration and to the
activity, which he is undertaking to qualify as a Competent Person
as defined in the 2012 Edition of the 'Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore
Reserves'. Salt Lake Potash confirms that it is not aware of any
new information or data that materially affects the information
included in the original market announcement and, in the case of
estimates of Mineral Resources, that all material assumptions and
technical parameters underpinning the estimates in the relevant
market announcement continue to apply and have not materially
changed. Salt Lake Potash Limited confirms that the form and
context in which the Competent Person's findings are presented have
not been materially modified from the original market
announcement.
The information in the Annual Report that relates to Process
Testwork Results is extracted from the announcement entitled
'Premium Grade Water Soluble Sulphate of Potash Produced from Lake
Way Salts' dated 18 September 2019. This announcement is available
to view on www.so4.com.au. The information in the original ASX
Announcement that related to Process Testwork Results was based on,
and fairly represents, information compiled by Mr Bryn Jones,
BAppSc (Chem), MEng (Mining) who is a Fellow of the AusIMM. Mr
Jones is a Director of Salt Lake Potash Limited. Mr Jones has
sufficient experience, which is relevant to the style of
mineralisation and type of deposit under consideration and to the
activity which he is undertaking, to qualify as a Competent Person
as defined in the 2012 Edition of the 'Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore
Reserves'. Salt Lake Potash Limited confirms that it is not aware
of any new information or data that materially affects the
information included in the original market announcement. Salt Lake
Potash Limited confirms that the form and context in which the
Competent Person's findings are presented have not been materially
modified from the original market announcement.
The information in the Annual Report that relates to the Process
Plant, Non-Process Infrastructure and Capital and Operating Costs
is extracted from the report entitled 'Exceptional Economics of
Commercial Scale Development at Lake Way' dated 13 June 2019. This
announcement is available to view on www.so4.com.au. The
information in the original ASX Announcement that related to
Process Plant, Non-Process Infrastructure and Capital and Operating
Costs was based on, and fairly represents information compiled by
Mr Peter Nofal, who is a fellow of AusIMM. Mr Nofal is employed by
Wood, an independent consulting company. Mr Nofal has sufficient
experience, which is relevant to the style of mineralisation and
type of deposit under consideration and to the activity, which he
is undertaking to qualify as a Competent Person as defined in the
2012 Edition of the 'Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves'. Salt Lake Potash
Limited confirms that it is not aware of any new information or
data that materially affects the information included in the
original market announcement. Salt Lake Potash Limited confirms
that the form and context in which the Competent Person's findings
are presented have not been materially modified from the original
market announcement.
9. PRODUCTION TARGET
The Lake Way 200ktpa Production Target stated in this
presentation is based on the Company's Scoping Study as released to
the ASX on 13 June 2019. The information in relation to the
Production Target that the Company is required to include in a
public report in accordance with ASX Listing Rule 5.16 and 5.17 was
included in the Company's ASX Announcement released on 13 June
2019. The Company confirms that the material assumptions
underpinning the Production Target referenced in the 13 June 2019
release continue to apply and have not materially changed.
10. FORWARD LOOKING STATEMENTS
This report contains 'forward-looking information' that is based
on the Company's expectations, estimates and projections as of the
date on which the statements were made. This forward-looking
information includes, among other things, statements with respect
to pre-feasibility and bankable feasibility studies, the Company's
business strategy, plans, development, objectives, performance,
outlook, growth, cash flow, projections, targets and expectations,
mineral reserves and resources, results of exploration and related
expenses. Generally, this forward-looking information can be
identified by the use of forward-looking terminology such as
'outlook', 'anticipate', 'project', 'target', 'potential',
'likely', 'believe', 'estimate', 'expect', 'intend', 'may',
'would', 'could', 'should', 'scheduled', 'will', 'plan',
'forecast', 'evolve' and similar expressions. Persons reading this
news release are cautioned that such statements are only
predictions, and that the Company's actual future results or
performance may be materially different. Forward-looking
information is subject to known and unknown risks, uncertainties
and other factors that may cause the Company's actual results,
level of activity, performance or achievements to be materially
different from those expressed or implied by such forward-looking
information. Forward-looking information is developed based on
assumptions about such risks, uncertainties and other factors set
out herein, including but not limited to the risk factors set out
in Schedule 2 of the Company's Notice of General Meeting and
Explanatory Memorandum dated 8 May 2015.
The full version of the 2019 Annual Report is available on the
Company's website at www.so4.com.au
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
FR SEUSIWFUSEEU
(END) Dow Jones Newswires
September 27, 2019 02:01 ET (06:01 GMT)
Salt Lake Potash (LSE:SO4)
Historical Stock Chart
From Apr 2024 to May 2024
Salt Lake Potash (LSE:SO4)
Historical Stock Chart
From May 2023 to May 2024