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South Harz Potash Ltd (AU:SHP)
ASX:SHP

South Harz Potash Ltd (SHP) AI Stock Analysis

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AU:SHP

South Harz Potash Ltd

(Sydney:SHP)

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Neutral 48 (OpenAI - 5.2)
Rating:48Neutral
Price Target:
AU$0.03
▼(-3.33% Downside)
The score is mainly held down by weak financial performance (pre-revenue, ongoing losses, negative cash flow, and significant equity erosion), partially offset by cleaner balance-sheet leverage (no debt) and improving loss/cash-burn trends. Technical indicators are neutral-to-slightly positive, while valuation remains constrained by negative earnings and no dividend support.
Positive Factors
No reported debt
Zero reported debt reduces refinancing and interest-rate pressure, giving structural financial flexibility for a capital-intensive explorer. Over the next 2–6 months this lowers default risk, supports staged project spending and preserves financing optionality.
Focused potash resource strategy
Concentrated exposure to potash and evaporite deposits ties the business to an agricultural-input commodity (company notes potash is used mainly in agriculture). Advancing resources and permitting can convert exploration value into durable, long-term cash-generating assets.
Improving loss and cash-burn trend
Material narrowing of net losses and operating cash burn shows improving cost control and operational discipline. This sustained improvement reduces near-term financing pressure, lengthens runway, and increases the odds that future capital will fund project milestones rather than emergency liquidity needs.
Negative Factors
Pre-revenue operating profile
Being pre-revenue means no operating income to offset costs; value is contingent on exploration success and development. Over the medium term this creates binary project outcomes, prolongs cash burn, and necessitates continued external funding until commercial production or a sale is achieved.
Persistent negative cash flow
Consistent negative operating and free cash flow indicates structural cash consumption absent revenues. This forces reliance on capital markets or strategic partners, increasing dilution risk and constraining multi-year planning unless a clear path to sustained cash generation is established.
Sharp equity erosion raises funding risk
A rapidly shrinking equity base reduces the company's ability to absorb losses and limits its capital buffer. Over 2–6 months this heightens funding urgency, raises the likelihood of dilutive capital raises or asset sales, and weakens balance-sheet resilience during project advancement.

South Harz Potash Ltd (SHP) vs. iShares MSCI Australia ETF (EWA)

South Harz Potash Ltd Business Overview & Revenue Model

Company DescriptionSouth Harz Potash Limited explores for and develops mineral properties in Germany. The company primarily explores for potash deposits. It holds a 100% interest in the South Harz projects that includes three mining licences in Ohmgebirge, Mühlhausen-Nohra, and Ebeleben, as well as two exploration licences in Küllstedt and Gräfentonna. The company was formerly known as Davenport Resources Limited and changed its name to South Harz Potash Limited in May 2021. South Harz Potash Limited was incorporated in 2011 and is headquartered in West Perth, Australia.
How the Company Makes MoneySouth Harz Potash Ltd makes money through the exploration and eventual extraction and sale of potash from its mining operations. The company's primary revenue stream comes from selling potash to agricultural and industrial clients who use it in fertilizer production. Revenue is also influenced by potash prices in the global market, which can fluctuate based on supply and demand dynamics. Additionally, any strategic partnerships or joint ventures with other mining companies or agricultural businesses can contribute to its earnings, although specific partnerships are null at this time. The company may also engage in forward contracts and other financial instruments to hedge against price volatility and secure stable revenue streams.

South Harz Potash Ltd Financial Statement Overview

Summary
Pre-revenue with persistent losses and negative free cash flow. While net loss and cash burn improved materially in the latest year and there is no debt, equity has eroded sharply, increasing ongoing funding risk.
Income Statement
8
Very Negative
The company remains pre-revenue (total revenue is 0 across all reported annual periods), with persistent operating losses. Losses narrowed materially in the latest year (net loss improved to about -3.1M in 2025 vs. about -9.2M in 2024), indicating better cost control or lower activity levels, but profitability is still far from breakeven and margins are effectively not meaningful given no revenue.
Balance Sheet
30
Negative
Balance sheet shows no debt (total debt of 0), which reduces financial risk and provides flexibility. However, equity has declined sharply over time (from ~9.9M in 2021 to ~0.8M in 2025), reflecting ongoing losses and capital consumption; returns on equity are consistently negative, and the shrinking equity base increases funding risk if losses continue.
Cash Flow
12
Very Negative
Cash generation is weak: operating cash flow and free cash flow are negative in every year shown, consistent with an early-stage, cash-burning profile. The latest year shows a major improvement in cash burn (operating cash flow improved to about -2.6M in 2025 vs. about -8.2M in 2024), but cash flow remains firmly negative, implying continued reliance on external funding until revenue ramps.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue0.000.000.000.000.000.00
Gross Profit-25.97K-25.97K-40.26K-33.16K-3.69K-575.00
EBITDA-1.44M-3.05M-9.08M-8.61M-11.87M-2.25M
Net Income-1.45M-3.12M-9.15M-8.66M-11.86M-2.35M
Balance Sheet
Total Assets2.91M2.91M2.58M4.73M9.19M11.59M
Cash, Cash Equivalents and Short-Term Investments605.12K605.12K253.63K2.27M6.60M8.24M
Total Debt0.000.000.000.000.000.00
Total Liabilities2.13M2.13M2.09M1.34M940.44K345.57K
Stockholders Equity782.12K782.12K485.82K3.39M8.25M9.94M
Cash Flow
Free Cash Flow-2.60K-2.60M-8.21M-7.93M-11.46M-2.10M
Operating Cash Flow-2.60K-2.60M-8.21M-7.81M-11.43M-1.99M
Investing Cash Flow0.000.000.00-121.58K-27.47K-7.01K
Financing Cash Flow1.89M2.89M5.59M2.81M9.89M10.11M

South Harz Potash Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
48
Neutral
AU$4.35M-0.66-492.76%72.85%
46
Neutral
AU$9.45M-3.25-49.72%0.81%
45
Neutral
AU$11.97M-0.88-71.65%
45
Neutral
AU$5.10M-29.48%76.12%
44
Neutral
AU$4.70M-3.45-63.22%-7.41%
43
Neutral
AU$8.08M-1.48-430.00%-255.77%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:SHP
South Harz Potash Ltd
0.03
-0.13
-81.10%
AU:AKN
AuKing Mining Ltd
0.01
<0.01
30.00%
AU:APC
Australian Potash Limited
0.01
<0.01
10.00%
AU:EMT
eMetals Limited
AU:GES
Genesis Resources Limited
0.01
0.00
0.00%
AU:M24
Mamba Exploration Ltd.
0.04
0.03
166.67%

South Harz Potash Ltd Corporate Events

South Harz Potash Appoints New Director, Discloses Option Holdings
Jan 16, 2026

South Harz Potash Limited has announced the appointment of Christian Barbier as a director effective 13 January 2026, with an accompanying disclosure of his interests in the company’s securities in line with ASX requirements. Barbier holds no shares directly but is a beneficiary of the K&C Barbier Superannuation Fund, which holds 458,000 unlisted options exercisable at $0.058 and expiring on 13 January 2030, signalling potential future equity alignment while indicating no current contractual interests beyond these options.

The most recent analyst rating on (AU:SHP) stock is a Hold with a A$0.03 price target. To see the full list of analyst forecasts on South Harz Potash Ltd stock, see the AU:SHP Stock Forecast page.

South Harz Potash Issues 458,000 Unlisted Options Expiring 2030
Jan 16, 2026

South Harz Potash Ltd has notified the market of the issue of 458,000 unquoted options, exercisable at $0.058 and expiring on 13 January 2030. These unlisted securities, issued under previously announced arrangements and not intended to be quoted on the ASX, represent a form of long-term incentive or financing structure that may influence future capital structure and potential dilution for existing shareholders.

The most recent analyst rating on (AU:SHP) stock is a Hold with a A$0.03 price target. To see the full list of analyst forecasts on South Harz Potash Ltd stock, see the AU:SHP Stock Forecast page.

South Harz Potash Director Reinout Koopmans Steps Down but Retains Significant Equity Stake
Jan 13, 2026

South Harz Potash Limited has announced the cessation of director Reinout Koopmans from the board as of 13 January 2026, lodging a final director’s interest notice with the ASX. The filing details Koopmans’ remaining holdings in the company, including more than 1.5 million fully paid ordinary shares, a range of unquoted options with various exercise prices and expiries extending to 2028, and performance rights expiring in 2029, underscoring that he retains a significant equity and incentive-linked exposure to the company despite stepping down from his directorship.

The most recent analyst rating on (AU:SHP) stock is a Hold with a A$0.03 price target. To see the full list of analyst forecasts on South Harz Potash Ltd stock, see the AU:SHP Stock Forecast page.

South Harz Potash to Issue 458,000 Unlisted Options in Capital Management Move
Jan 12, 2026

South Harz Potash Ltd has notified the ASX of a proposed issue of 458,000 unlisted options with an exercise price of $0.058 and an expiry date of 13 January 2030, to be issued on 13 January 2026 as part of a placement or other type of security issue. The move modestly expands the company’s capital structure through long-dated options, potentially aligning recipients with future share price performance and signaling ongoing capital management activities as the company advances its potash-focused strategy.

The most recent analyst rating on (AU:SHP) stock is a Hold with a A$0.03 price target. To see the full list of analyst forecasts on South Harz Potash Ltd stock, see the AU:SHP Stock Forecast page.

South Harz Potash Adds Critical Minerals Specialist Barbier to Board as Strategy Broadens
Jan 12, 2026

South Harz Potash has appointed seasoned resources executive Christian Barbier as a Non-Executive Director, bringing more than three decades of experience in critical and industrial mineral supply chains, including senior sales and marketing roles at lithium producer Allkem and mineral sands major Iluka Resources. His appointment, alongside the recent expansion into copper-gold-silver projects and multiple exploration licence applications, is designed to strengthen South Harz’s execution of its multi-asset critical minerals strategy and enhance its industry positioning, while long-serving Non-Executive Director Dr Reinout Koopmans steps down after playing a key role in the company’s transition from a single-asset potash player to a diversified critical minerals group.

The most recent analyst rating on (AU:SHP) stock is a Hold with a A$0.03 price target. To see the full list of analyst forecasts on South Harz Potash Ltd stock, see the AU:SHP Stock Forecast page.

South Harz Potash Secures 25km Copper-Gold Corridor at Torsby West in Sweden
Dec 18, 2025

South Harz Potash has lodged three exploration permit applications for the Torsby West Project in Sweden, securing a 6,300-hectare area along a 25km corridor of structurally controlled copper-gold-cobalt mineralisation. The area hosts multiple historical high-grade copper workings, including mined grades reportedly up to 7% copper, and 19 historic diamond drill holes available for re-logging, which together offer a cost-effective path to rapidly validate and refine exploration targets. This move establishes a second regionally significant IOCG opportunity alongside the company’s Glava holdings, materially scaling its Scandinavian copper-gold portfolio at a time of strong copper prices and heightened European focus on domestic critical minerals supply, reinforcing South Harz’s strategic positioning in a top-tier mining jurisdiction.

South Harz Potash Expands Swedish Copper-Gold Exploration
Dec 10, 2025

South Harz Potash Ltd has submitted applications for three new exploration licences in the Värmland Province, Sweden, through its partner McKnight Resources AB. These applications aim to expand the company’s copper-gold exploration strategy in the region, which is known for its geological potential. The new licences, Glava 200, Glava 300, and Klinten 100, cover a total of 3,041 hectares and are strategically positioned to enhance South Harz’s control over a potential district-scale mineral system. This move is part of the company’s broader European strategy to strengthen its portfolio with key metals crucial for global supply chains and the energy transition.

South Harz Potash Ltd Announces Director’s Increased Stake
Dec 1, 2025

South Harz Potash Ltd announced a change in the director’s interest, with Leonard Stanley Jubber acquiring 1,111,111 ordinary shares and 555,556 unlisted options. This change reflects a strategic move to strengthen the director’s stake in the company, potentially signaling confidence in the company’s future prospects and impacting its market perception.

South Harz Potash Ltd Issues New Shares to Enhance Market Liquidity
Dec 1, 2025

South Harz Potash Ltd has announced the issuance of 1,555,555 fully paid ordinary shares without disclosure to investors, as per the Corporations Act 2001. This move demonstrates the company’s compliance with relevant legal provisions, potentially impacting its market operations by increasing share availability and liquidity.

South Harz Potash Ltd Issues Unlisted Options to Bolster Equity
Dec 1, 2025

South Harz Potash Ltd announced the issuance of 777,778 unlisted options with an exercise price of $0.09, set to expire on December 1, 2027. This move is part of previously announced transactions and is not intended to be quoted on the ASX, potentially impacting the company’s financial strategy and stakeholder interests by expanding its equity base.

South Harz Potash Ltd Announces New Securities Quotation
Dec 1, 2025

South Harz Potash Ltd has announced the issuance of 1,555,555 fully paid ordinary securities, which will be quoted on the Australian Securities Exchange (ASX). This move is part of a previously announced transaction, potentially impacting the company’s market presence and offering stakeholders an opportunity to engage with the company’s growth strategy.

South Harz Potash Expands European Portfolio with New Acquisition Option
Nov 28, 2025

South Harz Potash Ltd has announced an option to acquire Scandinavian Copper Gold, marking an expansion of its European portfolio. This strategic move is expected to enhance the company’s market positioning and operational capabilities in the region, potentially benefiting stakeholders through increased resource access and development opportunities.

South Harz Potash Expands into Scandinavian Copper-Gold Exploration
Nov 28, 2025

South Harz Potash Limited has executed an option agreement to acquire the Glava Copper-Gold-Silver Project in Sweden, marking its first step towards a diversified asset growth strategy. This acquisition provides the company with immediate exploration opportunities in a geologically prospective region, enhancing its position in the critical and precious metals market while maintaining its focus on German potash assets. The project, located in the Värmland Province, features high-grade copper mineralization and offers potential for significant discoveries, supported by a strategic partnership with McKnight Resources AB.

South Harz Potash Ltd Announces Proposed Securities Issue
Nov 27, 2025

South Harz Potash Ltd announced a proposed issue of securities, including 777,778 unlisted options and 1,555,555 ordinary fully paid shares, with the issue date set for November 28, 2025. This move is part of the company’s strategic efforts to raise capital, potentially impacting its market position and providing opportunities for investors.

South Harz Potash Passes All Resolutions at 2025 AGM
Nov 26, 2025

South Harz Potash Limited announced that all resolutions presented at its 2025 Annual General Meeting were passed by the required majority. Key resolutions included the adoption of the Remuneration Report, the re-election and election of directors Rory Luff and Richard Pearce, and the approval of securities issuance to Len Jubber and Richard Pearce. The successful passage of these resolutions supports the company’s governance and strategic initiatives, potentially strengthening its market position and operational capabilities.

South Harz Potash Ltd Announces Cessation of Securities
Nov 24, 2025

South Harz Potash Ltd announced the cessation of 224,444 securities due to the expiry of options that were not exercised by the expiration date of November 23, 2025. This announcement may impact the company’s capital structure and could influence investor perceptions regarding the company’s financial strategies and market positioning.

South Harz Potash Ltd Issues New Unquoted Equity Securities
Nov 14, 2025

South Harz Potash Ltd announced the issuance of 578,333 unquoted equity securities, specifically options expiring on July 31, 2027, with an exercise price of $0.09. This move is part of a previously announced transaction, indicating the company’s strategic efforts to strengthen its financial position and support its ongoing projects, potentially impacting its market presence and stakeholder interests.

South Harz Potash Ltd Announces Quotation of New Securities
Nov 14, 2025

South Harz Potash Ltd has announced the quotation of 1,156,667 fully paid ordinary securities on the ASX, with an updated issue price of $0.045 following a share consolidation. This move is part of an Entitlements Offer initially proposed in June 2025, reflecting the company’s strategic efforts to strengthen its financial position and enhance shareholder value.

South Harz Potash Ltd Issues New Shares in Compliance with Legal Standards
Nov 6, 2025

South Harz Potash Ltd announced the issuance of 906,737 fully paid ordinary shares without disclosure to investors under the Corporations Act 2001. The company has complied with all necessary legal provisions and confirmed there is no excluded information required to be disclosed, indicating a transparent and compliant operation.

South Harz Potash Ltd Announces Quotation of New Securities
Nov 6, 2025

South Harz Potash Ltd has announced the quotation of 906,737 ordinary fully paid securities on the Australian Securities Exchange (ASX) as part of a previously announced transaction. This move is expected to enhance the company’s financial flexibility and market presence, potentially impacting its operational capabilities and stakeholder interests positively.

South Harz Potash Announces Director’s Interest Change
Nov 5, 2025

South Harz Potash Limited announced a change in the director’s interest, specifically involving Leonard Stanley Jubber. The change includes the disposal of 350,000 performance rights expiring on 1 July 2027, with no new acquisitions reported. This adjustment in director’s interests may reflect strategic financial decisions impacting the company’s governance and stakeholder interests.

South Harz Potash Ltd Reports Cessation of Performance Rights
Nov 5, 2025

South Harz Potash Ltd announced the cessation of 350,000 performance rights due to unmet conditions, as reported in their latest securities update. This cessation reflects a potential shift in the company’s operational strategy or performance metrics, which could impact stakeholders’ expectations and the company’s future market positioning.

South Harz Potash Ltd Announces 2025 Annual General Meeting
Oct 27, 2025

South Harz Potash Ltd has announced its 2025 Annual General Meeting, scheduled to be held in person on November 26, 2025, in Perth, Western Australia. The meeting will provide shareholders with updates and the opportunity to vote on company matters. The company has made meeting materials available online and has outlined procedures for proxy voting, emphasizing the importance of shareholder participation in the governance process.

South Harz Potash Ltd Issues New Unquoted Securities
Oct 22, 2025

South Harz Potash Ltd has announced the issuance of 111,111 unquoted securities, set to expire on July 31, 2027, with an exercise price of $0.09. This issuance is part of previously announced transactions and reflects the company’s ongoing efforts to strengthen its financial position and support its operational strategies, potentially impacting its market standing and stakeholder interests.

South Harz Potash Ltd Advances Dual-Asset Strategy Amid Market Challenges
Oct 21, 2025

South Harz Potash Ltd is advancing its dual-asset strategy by identifying new asset opportunities to complement its existing South Harz Potash Project. The company has completed fundraising initiatives to support this strategy and is focusing on projects in Europe and the UK. Despite current market challenges, South Harz remains committed to enhancing the long-term value of its potash project and is pursuing non-dilutive funding sources. The company is also consolidating its operations in Germany and advocating for potash to be recognized as a critical raw material by the EU.

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: Jan 15, 2026