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Salt Lake Potash losses widen but confidence undimmed
Aussie mineral exploration company Salt Lake Potash saw losses widen in its most recent trading year, but suggested it has enough cash to carry out its plans as it looks to develop the first salt-lake brine sulphate-of-potash operation Down Under.
Net loss after tax for the calendar year of A$5.35m were 8% wider than the previous year due to exploration and evaluation expenses moving ahead 6% to A$4.54m and the doubling of business development costs to A$374,784.
At the end of the period, Salt Lake had cash reserves of A$10.5m, down from the A$15.6m held a year earlier, as net assets declined 27.65% to A$12.3m, but the firm maintained that it was in a "financial position to conduct its current and planned exploration and development activities."
At its Lake Way project in Western Australia, Salt Lake signed a memorandum of understanding with Australian gold miner Blackham Resources to investigate a potential sulphate of potash operation, and at its Lake Wells asset, comprehensive geological and geotechnical investigation confirmed the widespread availability of ideal in-situ clay materials ideal for use in evaporation pond construction.
With initial surface aquifer exploration programme completed at its Lake Ballard and Lake Irwin projects and with all the other technical achievements across the group to date, directors said it highlighted "the potential for a very economic, large scale and long term project".
As of 0920 GMT, shares had gained 11.09% to 33.55p.