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Australian Potash Limited (AU:APC)
ASX:APC
Australian Market

Australian Potash Limited (APC) AI Stock Analysis

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Australian Potash Limited

(Sydney:APC)

Rating:22Underperform
Price Target:
Australian Potash Limited scores poorly due to significant financial instability, marked by no revenue, continuous losses, and negative equity. Technical indicators also show weak momentum, and despite a low P/E ratio, the valuation is not appealing given the financial risks.

Australian Potash Limited (APC) vs. iShares MSCI Australia ETF (EWA)

Australian Potash Limited Business Overview & Revenue Model

Company DescriptionAustralian Potash Limited (APC) is a mineral exploration and development company based in Australia. It operates primarily in the agricultural sector, focusing on the production and distribution of premium sulfate of potash (SOP) products, which are essential for plant growth and enhancing crop yield. The company's flagship project is the Lake Wells Sulphate of Potash Project, located in Western Australia, which is designed to produce high-quality SOP for both domestic and international markets.
How the Company Makes MoneyAustralian Potash Limited generates revenue through the exploration, development, and sale of sulfate of potash (SOP) products. The company seeks to monetize its key asset, the Lake Wells Sulphate of Potash Project, by extracting and processing brine deposits to produce SOP. This product is then sold to agricultural businesses and distributors who use it as a high-value fertilizer. Revenue streams include direct sales of SOP, long-term supply agreements, and potential joint ventures or partnerships with other companies interested in leveraging APC's expertise and resources. The company's earnings are influenced by factors such as global demand for potash, agricultural market trends, and the efficiency of its production operations.

Australian Potash Limited Financial Statement Overview

Summary
Australian Potash Limited is facing significant financial challenges. The company has no revenue generation, ongoing losses, negative equity, and cash flow issues, posing substantial risks to financial health and sustainability.
Income Statement
10
Very Negative
Australian Potash Limited shows a lack of revenue generation capabilities with zero revenue in recent periods. The net income remains negative, indicating ongoing losses. The absence of revenue growth and profitability metrics like gross profit margin and net profit margin suggest significant challenges in achieving profitability.
Balance Sheet
20
Very Negative
The company's balance sheet is concerning with a negative stockholders' equity indicating potential insolvency risks. A high debt-to-equity ratio due to negative equity and declining total assets further exacerbates financial instability.
Cash Flow
15
Very Negative
Cash flow statements highlight negative free cash flow and operating cash flow in recent periods, reflecting cash burn without a clear path to positive cash generation. The inability to cover operational costs through operating cash flow is a notable concern.
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue0.000.000.0070.56K159.36K163.38K
Gross Profit-19.99K-57.98K-107.00K-80.91K7.90K-23.40K
EBITDA1.81M187.33K-3.95M-5.40M-3.59M-734.00K
Net Income1.89M477.45K-41.61M-5.58M-3.73M-776.00K
Balance Sheet
Total Assets479.04K1.56M2.96M37.65M29.70M13.40M
Cash, Cash Equivalents and Short-Term Investments306.78K1.20M1.29M878.79K7.80M3.38M
Total Debt500.00K0.000.0044.12K117.50K194.90K
Total Liabilities1.13M813.89K5.52M4.62M5.74M2.28M
Stockholders Equity-654.63K746.39K-2.56M33.03M23.96M11.12M
Cash Flow
Free Cash Flow-3.04M-5.93M-21.32M-11.49M-4.39M
Operating Cash Flow-3.04M-3.11M-3.89M-3.03M369.87K
Investing Cash Flow35.45K1.06M-2.74M-17.43M-8.46M-4.44M
Financing Cash Flow2.39M1.89M6.25M14.39M15.91M5.50M

Australian Potash Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (43)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AULKE
49
Neutral
$47.61M-19.25%65.04%
43
Neutral
AU$1.37B-6.17-40.62%4.19%-4.78%-42.91%
AUAGR
37
Underperform
€48.22M-17.89%-141.86%
AUKLL
36
Underperform
$50.79M
AUAPC
22
Underperform
AU$2.64M0.27
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:APC
Australian Potash Limited
0.01
-0.01
-50.00%
AU:AGR
Aguia Resources Limited
0.03
<0.01
37.50%
AU:LKE
Lake Resources N.L.
0.03
-0.01
-30.23%
AU:KLL
Kalium Lakes Ltd
7.28
0.00
0.00%

Australian Potash Limited Corporate Events

APC Minerals Advances Gold Projects and Strengthens Financial Position
Apr 29, 2025

APC Minerals Limited has announced the commencement and completion of a 2,628-meter drilling program at the Laverton Downs Gold Project, with results pending. The company is also rationalizing its Lake Wells Gold Project to reduce costs and is exploring potential joint ventures or sales. Additionally, APC has executed a rights offer to raise $1.93 million and issued shares to settle an acquisition. The company is committed to minimizing non-exploration expenses and continues to assess new opportunities in the Eastern and north-Eastern Goldfields.

APC Minerals Completes Drilling at Laverton Downs Gold Project
Apr 14, 2025

APC Minerals Limited has completed a Reverse Circulation (RC) drilling program at the Laverton Downs Gold Project, drilling 2,628 meters across 22 holes. This program aimed to follow up on previous drilling results and explore new areas, enhancing the company’s geological understanding of the project. The results, expected in 4 to 6 weeks, could impact the company’s operations and positioning in the gold mining sector.

APC Minerals Limited Updates on Equity Securities Issuance
Apr 9, 2025

APC Minerals Limited has announced an update regarding the issuance of unquoted equity securities, specifically APCAK Options. The update highlights a minor discrepancy in the number of options issued due to rounding differences, resulting in a net issuance of 18 more options than previously reported. This adjustment reflects the company’s commitment to transparency and accuracy in its financial reporting, which is crucial for maintaining stakeholder trust and ensuring compliance with regulatory standards.

APC Minerals Limited Issues Unquoted Options
Apr 9, 2025

APC Minerals Limited has announced the issuance of 117,173,536 unquoted options, set to expire on April 10, 2027. This issuance is part of previously announced transactions and is not intended to be quoted on the ASX, potentially impacting the company’s financial strategies and stakeholder interests.

APC Minerals Limited Announces Quotation of New Securities on ASX
Apr 9, 2025

APC Minerals Limited has announced the quotation of 175,760,272 ordinary fully paid securities on the Australian Securities Exchange (ASX) as of April 9, 2025. This move is part of previously announced transactions and could potentially enhance the company’s market presence and liquidity, impacting stakeholders by increasing the availability of its shares for trading.

APC Minerals Limited Concludes Entitlement Offer with Significant Shortfall
Apr 4, 2025

APC Minerals Limited recently concluded a pro-rata renounceable entitlement offer, aiming to raise $1,933,363. The offer was fully underwritten, but only 25.58% of the shares were subscribed, resulting in a shortfall of 127,633,176 shares. The company has notified the underwriter about the shortfall and plans to issue and allot the new shares and options by April 9, 2025. This move reflects APC’s strategic efforts to bolster its capital structure, although the low subscription rate indicates potential challenges in investor confidence.

APC Minerals Initiates Drilling at Laverton Downs Gold Project
Mar 23, 2025

APC Minerals Limited has announced the commencement of a 2,500-meter reverse circulation drilling program at its Laverton Downs Gold Project, with drilling contractor OreEx mobilizing to the site. This initiative aims to explore untested targets along the Lancefield structure, potentially enhancing APC’s position in the gold mining sector by uncovering new gold deposits in a historically productive region.

Australian Potash Limited Releases Interim Financial Report for 2024
Mar 13, 2025

Australian Potash Limited has released its interim financial report for the half year ending December 31, 2024. The report includes various financial statements and declarations, providing a comprehensive overview of the company’s financial position and performance during the period. This release is crucial for stakeholders as it offers insights into the company’s financial health and operational efficiency, potentially impacting investor decisions and market perception.

APC Minerals Announces $1.93 Million Entitlement Offer
Mar 12, 2025

APC Minerals Limited has announced a pro-rata renounceable entitlement issue to raise up to $1,933,363. Eligible shareholders can subscribe for three new shares for every two existing shares at an issue price of $0.011 per share. This capital raising initiative is aimed at strengthening the company’s financial position and supporting its ongoing operations. The entitlement offer also includes an option for shareholders to apply for additional shares not subscribed for in the initial offer. This move is expected to enhance the company’s market presence and provide additional resources for its strategic initiatives.

APC Minerals Announces $1.93 Million Entitlement Issue
Mar 4, 2025

APC Minerals Limited has announced a renounceable pro-rata entitlement issue to raise approximately $1.93 million, offering three new shares for every two shares held by eligible shareholders at $0.011 per share. The funds will be used primarily for the LDP and Nexus Projects, loan conversions, and general working capital. Ineligible shareholders, those outside Australia and New Zealand, will have their entitlements sold by a nominee, with proceeds distributed after expenses, although there is no guarantee of sale or proceeds.

APC Minerals Limited Announces Proposed Securities Issue
Mar 4, 2025

APC Minerals Limited has announced a proposed issue of securities, updating a previous announcement. This update involves the lodgment of Appendix 3B within seven days of the Prospectus lodgment, as per the Corporations Act. The proposed issue is a renounceable pro-rata issue, indicating a strategic move to raise capital, which may impact the company’s market positioning and stakeholder interests.

Australian Potash Limited Announces Entitlement Issue to Raise $1.93 Million
Mar 3, 2025

Australian Potash Limited is offering a pro-rata renounceable entitlement issue to its shareholders, aiming to raise up to $1,933,363. This move is conditionally underwritten by ShareX Pty Ltd and involves issuing three shares for every two held, with additional options. The offer is speculative and primarily targets existing shareholders in Australia and New Zealand, reflecting the company’s strategy to strengthen its financial position through shareholder engagement.

APC Minerals Limited Announces Proposed Securities Issue
Feb 27, 2025

APC Minerals Limited has announced a proposed issue of securities, with a maximum of 58,586,759 options expiring two years from the date of issue at an exercise price of $0.02. This move is aimed at raising capital through a placement or other type of issue, potentially impacting the company’s financial position and market activities.

APC Minerals Limited Announces Proposed Securities Issue
Feb 27, 2025

APC Minerals Limited has announced a proposed issue of securities, including 58,586,759 options expiring two years from the date of issue and 175,760,277 ordinary fully paid shares. This standard pro rata issue, which is renounceable, is set to have its ex-date on March 6, 2025, with a record date on March 7, 2025, and will close on April 2, 2025. The issuance is scheduled for April 8, 2025. This move is likely to impact the company’s financial structure and market positioning by potentially increasing liquidity and shareholder base.

APC Minerals Launches A$1.9 Million Entitlement Offer Amidst Gold and Niobium Discoveries
Feb 27, 2025

APC Minerals Limited has announced a A$1.9 million underwritten entitlement offer aimed at advancing its key projects, including the Laverton Downs Gold Project and the West Arunta REE Li Nb Project. This strategic move comes amid a surging gold price and new global-scale niobium discoveries, positioning the company to capitalize on regional successes and joint venture opportunities, potentially enhancing its market presence and stakeholder value.

APC Minerals Launches Entitlement Offer to Fund Gold Exploration
Feb 27, 2025

APC Minerals Limited has announced a renounceable entitlement offer to raise approximately A$1.93 million, which will fund a drilling campaign at the Laverton Downs Gold Project. The company aims to explore high-grade gold intercepts and further develop its projects in Western Australia, enhancing its position in the mining sector. The offer includes a significant discount to the market price and is underwritten, with funds allocated to exploration, heritage surveys, and working capital, potentially impacting shareholder value and project advancement.

APC Minerals Limited Announces Quotation of New Securities
Feb 25, 2025

APC Minerals Limited has announced the quotation of 12,500,000 ordinary fully paid securities on the Australian Securities Exchange (ASX). This move follows transactions previously announced and is part of the company’s ongoing financial strategies. The issuance of these securities is expected to enhance the company’s market presence and provide additional capital for its operations, potentially impacting its industry positioning and offering new opportunities for stakeholders.

APC Minerals Limited Announces Proposed Issue of Securities
Feb 25, 2025

APC Minerals Limited, listed on the Australian Securities Exchange (ASX), has announced a proposed issue of 12,500,000 ordinary fully paid securities. This move is part of a placement or other type of issue, with the proposed issue date set for February 25, 2025. The announcement indicates the company’s strategic decision to raise capital, which could impact its financial standing and market positioning.

APC Minerals Limited Announces Quotation of New Securities
Feb 25, 2025

APC Minerals Limited has announced the application for quotation of 2,500,000 ordinary fully paid securities on the Australian Securities Exchange (ASX). This move is part of previously announced transactions and reflects the company’s efforts to enhance its capital structure and market presence, potentially impacting its financial flexibility and stakeholder value.

APC Minerals Initiates Trading Halt for Capital Raising Announcement
Feb 25, 2025

APC Minerals Limited, a company listed on the Australian Securities Exchange, has requested a trading halt on its securities pending an announcement regarding a capital raising transaction. This move is intended to provide the company with the necessary time to finalize details of the transaction, which could have significant implications for its financial strategy and market positioning.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Apr 08, 2025