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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 46 (OpenAI - 5.2)
Rating:46Neutral
Price Target:
AU$0.03
▲(0.00% Upside)
The score is primarily held back by weak financial performance (pre-revenue status, ongoing losses, negative cash flow, and significant equity erosion), partially offset by the lack of debt and improving loss/cash-burn trend. Technicals are mixed with only mild positive momentum, while valuation signals are constrained by negative earnings and no dividend support.
Positive Factors
No corporate debt
Having zero reported debt removes fixed interest and principal obligations, lowering insolvency risk for an early-stage miner. This structural balance-sheet strength preserves strategic optionality for project funding, M&A, or staged development as exploration progresses.
Material narrowing of net loss
A large year-over-year reduction in net loss signals durable improvement in cost control or activity pacing, reducing future financing needs. If sustained, lower structural burn enhances runway and increases likelihood the company can advance permitting and development without severe dilution.
Exposure to potash used in agriculture
Owning potash-focused exploration assets aligns the company with long-term agricultural fertilizer demand, an enduring structural market. A successful resource or permit advancement could convert exploration optionality into a strategic, cash-generative asset over the medium term.
Negative Factors
Pre-revenue operating profile
Being pre-revenue means the business lacks operating cash generation and must fund exploration and development externally. This structural limitation prolongs dependency on capital markets and increases execution risk until commercial production or partner funding materializes.
Severe equity erosion increases funding risk
A materially shrinking equity base reduces the balance-sheet buffer against future losses and makes new capital raises more dilutive or costly. Structurally, diminished equity heightens the risk of insufficient internal resources to advance projects without significant external financing or asset sales.
Persistent negative operating cash flows
Consistent negative operating and free cash flow forces continued reliance on external funding for exploration and development. Even with recent improvement, structural cash deficits constrain long-term planning and increase vulnerability to funding cycles and investor appetite shifts.

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
South Harz Potash Ltd faces significant financial challenges, with no revenue generation, persistent operating losses, and negative cash flows. The absence of debt is a mitigating factor, but the overall financial position is weak, with a heavy reliance on external financing.
Income Statement
The company has reported zero revenue over multiple years, indicating a lack of sales activity. The consistent negative net income and EBIT margins demonstrate ongoing operating losses, which is a significant concern for financial health and sustainability.
Balance Sheet
The company's balance sheet shows zero total debt, which is positive, but the stockholders' equity has been declining. The equity ratio is shrinking, reflecting a reduced buffer for creditors, although the lack of leverage minimizes risk.
Cash Flow
The cash flow statements reveal negative operating and free cash flows, indicating that the company is not generating cash from its operations. The reliance on financing activities for cash inflows poses a risk if external funding becomes unavailable.
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%
47
Neutral
AU$5.02M-1.38-49.72%0.81%
46
Neutral
AU$4.08M-0.64-492.76%72.85%
45
Neutral
AU$4.05M-71.65%
45
Neutral
AU$5.10M-29.48%76.12%
44
Neutral
AU$5.48M-3.45-63.22%-7.41%
43
Neutral
AU$5.35M-1.23-430.00%-255.77%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:SHP
South Harz Potash Ltd
0.03
-0.13
-81.71%
AU:AKN
AuKing Mining Ltd
AU:APC
Australian Potash Limited
0.01
0.00
0.00%
AU:EMT
eMetals Limited
AU:GES
Genesis Resources Limited
0.01
0.00
0.00%
AU:M24
Mamba Exploration Ltd.
0.02
<0.01
30.77%

South Harz Potash Ltd Corporate Events

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 08, 2026