Australian Potash (ASX:APC) I had a punt on these guys at 13c and ever since their share price has gone south. Announced today they are pausing their Lake Wells Potash project in WA, due to a lack of funding commitments. Inventors have been waiting for the FID for some time now and have been asked to tip in more cash too as since FY17 average shares have increased from 210m to 815m in FY22 . There new strategy is to look for rear earth minerals and lithium in clay apparently! This is either a stroke of genius or a sign of desperation, only time will tell. But time is not on their side, as their March quarterly update stated they had $2.4m cash on hand or 2.7 quarters of funding available. They may be able to stretch this a bit further by pausing the Lake Wells project, but fresh funding will be need soon. Given this, its not surprising to see where their F-score and Z2-score are:
I was purely speculating, well a wear of the risks , and only contributed a small amount of capital, but given the amount of capital they have raised, I am sure there are other shareholders out there who will have a few questions to ask the board come AGM time?
