Salt Lake Potash Ltd

Salt Lake Potash Ltd (SO4) owns nine largest salt lakes in Western Australia’s Northern Goldfields Region. The company plans the production of premium quality of organic SOP (Sulphate of Potash) from the salt lakes in the west of Australia.

Recent News
The company had received approval from DWER (Department of Water and Environmental Regulation) to begin construction at Lake Way Evaporation Ponds in Western Australia.

Financial Highlights – H1 Financial Year 2019 (AUD)

(Source: Annual Report, Company Website)
 
For the first half of the financial year 2019 ending 31^st December 2018, the company reported a finance income of AUD 38,800 against AUD 145,705 in H1 FY2018. With the increase of Exploration and evaluation expenses, Business development expenses and Corporate and administrative expenses the company’s loss before taxation and loss for the period increased from AUD 5,354,804 in the first half of the FY2018 to AUD 5,809,606 in the first half of the FY2019. The company’s basic and diluted loss per share increased by 2.58 per cent to 3.18 cents in H1 FY2019 from 3.10 cents in H1 FY2018. The company’s Cash and cash equivalents balance for the H1 FY2019 was AUD 12,028,224 versus AUD 5,709,446 in the H1 FY2018.

Share Price Performance

Daily Chart as at June-27-19, before the market closed(Source: Thomson Reuters)

On June 27, 2019, at the time of writing (before the market closed, at 2:34 PM GMT), Salt Lake Potash Ltdshares were trading at GBX 39.50 and remained same as the previous day closing price. Stock's 52 weeks High and Low is GBX 41.50 /GBX 22.00. The outstanding market capitalisation was around £82.19 million.

Conclusion
The company is in the development phase, hence, doesn’t generated any revenue. The company rely on its cash balances and fund raised from the stock market for all the operational tasks. The profitability margins have remained stagnant or declined. The company operates in a challenging environment which requires continuous investment, sometimes at the cost of profitability, to stay ahead of competitors. 

Keeping in mind the weak relative valuation of the company and weak financial performance, we recommend the investors to “Avoid” taking fresh positions at the current price of GBX 39.50 (before the market close).

 

Tiziana Life Sciences Plc

Tiziana Life Sciences Plc (TILS) is a Pharmaceuticals & Biotechnology company that specialises in the development of transformative therapies to fight against cancer and inflammatory diseases related to the liver. The company has many new products under its pipeline which includes hepatocellular carcinoma, Crohn's and NASH. The company is listed on NASDAQ: TLSA and AIM: TILS.

Recent News
Tiziana Life Sciences Plc announced an update on its IND (Investigational New Drug) application to the FDA (U.S. Food and Drug Administration). The company is looking forward to getting its application approved by the FDA to initiate the first phase clinical trial.

Financial Highlights – Financial Year 2018 (£, thousand)

(Source: Annual Report, Company Website)

For the financial year ending 31^st December 2018, the company’s reported Research and development cost declined by 11.55 per cent to £4,132 thousandfrom £4,672 thousand in FY2017. The company’s operating loss also declined to £7,445 thousand in FY2018 versus a loss of £8,246 thousand in FY2017. The loss before tax stood at £7,454 thousand in FY2018 against a loss of £8,255 thousand in FY2017. The company’s loss for the year attributable to owners stood at £5,995 thousand in FY2018 against a loss of £6,770 thousand in FY2017. The reported basic and diluted loss per share for FY2018 stood at 4.7 pence versus a loss per share of 6.4 pence in FY2017.

Share Price Performance

Daily Chart as at June-27-19, before the market closed(Source: Thomson Reuters)

On June 27, 2019, at the time of writing (before the market closed, at 3:47 PM GMT), Tiziana Life Sciences Plcshares were trading at GBX 72.40, down by 4.73 per cent against the previous day closing price. Stock's 52 weeks High and Low is GBX 148.00 /GBX 36.00. The outstanding market capitalisation was around £103.79 million.

Conclusion
The company is in the development phase, hence, doesn’t generated any revenue. The company rely on its cash balances and fund raised from the stock market for all the operational tasks. The profitability margins have remained stagnant or declined. The company operates in a challenging environment which requires continuous investment, sometimes at the cost of profitability, to stay ahead of competitors. 
Keeping in mind the weak relative valuation of the company and weak financial performance, we recommend the investors to “Avoid” taking fresh positions at the closing price of GBX 76 (as on 26^th June 2019). 

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