ASX:APC

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Australian Potash Limited engages in the exploration of mineral properties in Australia. More Details


Snowflake Analysis

Reasonable growth potential with adequate balance sheet.

Share Price & News

How has Australian Potash's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: APC is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 12% a week.

Volatility Over Time: APC's weekly volatility (12%) has been stable over the past year.


Market Performance


7 Day Return

3.8%

APC

4.6%

AU Metals and Mining

1.3%

AU Market


1 Year Return

60.7%

APC

14.7%

AU Metals and Mining

-1.7%

AU Market

Return vs Industry: APC exceeded the Australian Metals and Mining industry which returned 14.7% over the past year.

Return vs Market: APC exceeded the Australian Market which returned -1.7% over the past year.


Shareholder returns

APCIndustryMarket
7 Day3.8%4.6%1.3%
30 Day3.8%9.5%10.4%
90 Day28.6%2.7%8.8%
1 Year62.6%60.7%20.8%14.7%1.7%-1.7%
3 Year9.5%8.0%59.4%37.5%23.1%7.9%
5 Year128.1%125.0%200.7%143.5%57.2%26.0%

Long-Term Price Volatility Vs. Market

How volatile is Australian Potash's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Australian Potash undervalued compared to its fair value and its price relative to the market?

5.91x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate APC's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate APC's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: APC is unprofitable, so we can't compare its PE Ratio to the AU Metals and Mining industry average.

PE vs Market: APC is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate APC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: APC is overvalued based on its PB Ratio (5.9x) compared to the AU Metals and Mining industry average (2.5x).


Next Steps

Future Growth

How is Australian Potash forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

60.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: APC is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.3%).

Earnings vs Market: APC is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: APC's is expected to become profitable in the next 3 years.

Revenue vs Market: APC is forecast to have no revenue next year.

High Growth Revenue: APC is forecast to have no revenue next year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: APC's Return on Equity is forecast to be high in 3 years time (39%)


Next Steps

Past Performance

How has Australian Potash performed over the past 5 years?

19.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: APC is currently unprofitable.

Growing Profit Margin: APC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: APC is unprofitable, but has reduced losses over the past 5 years at a rate of 19.2% per year.

Accelerating Growth: Unable to compare APC's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: APC is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (38%).


Return on Equity

High ROE: APC has a negative Return on Equity (-6.98%), as it is currently unprofitable.


Next Steps

Financial Health

How is Australian Potash's financial position?


Financial Position Analysis

Short Term Liabilities: APC's short term assets (A$3.6M) exceed its short term liabilities (A$2.2M).

Long Term Liabilities: APC's short term assets (A$3.6M) exceed its long term liabilities (A$113.7K).


Debt to Equity History and Analysis

Debt Level: APC is debt free.

Reducing Debt: APC has not had any debt for past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: APC has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: APC has less than a year of cash runway if free cash flow continues to reduce at historical rates of 27% each year


Next Steps

Dividend

What is Australian Potash current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate APC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate APC's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if APC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if APC's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of APC's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average management tenure


CEO

Matt Shackleton (54 yo)

2.25yrs

Tenure

AU$299,032

Compensation

Mr. Matthew William Shackleton, also known as Matt, B.Comm., MBA, CA has been Managing Director and Chief Executive Officer of Australian Potash Limited since August 2018. Mr. Shackleton was the Executive ...


CEO Compensation Analysis

Compensation vs Market: Matt's total compensation ($USD221.06K) is about average for companies of similar size in the Australian market ($USD282.32K).

Compensation vs Earnings: Matt's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Matthew Shackleton
CEO, MD & Director2.25yrsAU$299.03k1.34%
A$ 992.4k
Scott Nicholas
Chief Financial Officer1.5yrsAU$330.09k0.070%
A$ 52.2k
Rhett Brans
Project Director & Director3.5yrsAU$47.60k0.040%
A$ 29.7k
Jay Hussey
Chief Commercial Officer2.5yrsno datano data
Leigh-Ayn Absolom
Financial Controllerno datano datano data
Sophie Raven
Company Secretary2.83yrsno datano data

2.3yrs

Average Tenure

Experienced Management: APC's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Matthew Shackleton
CEO, MD & Director2.25yrsAU$299.03k1.34%
A$ 992.4k
Rhett Brans
Project Director & Director3.5yrsAU$47.60k0.040%
A$ 29.7k
Brett Lambert
Independent Non-Executive Director3.5yrsAU$36.35k0.096%
A$ 71.0k
James Walker
Independent Non-Executive Chairman2.25yrsAU$61.91k0.23%
A$ 169.4k
Catherine Moises
Non-Executive Director0.33yrno datano data

3.5yrs

Average Tenure

59yo

Average Age

Experienced Board: APC's board of directors are considered experienced (3.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 53.7%.


Top Shareholders

Company Information

Australian Potash Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Australian Potash Limited
  • Ticker: APC
  • Exchange: ASX
  • Founded: 2011
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: AU$74.202m
  • Shares outstanding: 549.64m
  • Website: https://www.australianpotash.com.au

Location

  • Australian Potash Limited
  • 22 Railway Road
  • Suite 31
  • Subiaco
  • Western Australia
  • 6008
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
APCASX (Australian Securities Exchange)YesOrdinary SharesAUAUDDec 2011
APCCHIA (Chi-X Australia)YesOrdinary SharesAUAUDDec 2011

Biography

Australian Potash Limited engages in the exploration of mineral properties in Australia. The company explores for potash, gold, and nickel sulphide minerals. It holds a 100% interest in the Lake Wells sulp...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/29 07:04
End of Day Share Price2020/11/27 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.