Key Highlights

  • A strategic Options review of the German potash Assets could lead to a separate company or a joint venture investor, with no decision made yet.
  • Ohmgebirge has a Probable Ore Reserve of 83.1Mt at 12.6% K₂O within a Mineral Resource of 286Mt at 13.1% K₂O.
  • Cash was $557,000 at 30 September after net operating outflows of $655,000, with an estimated 0.85 quarters of funding before the $265,000 Tranche 2 receipt.
  • The chief executive stepped down on 31 August 2026, and the three non-executive directors are sharing executive duties until a new chief executive is found.

Turnstone Resources (ASX:TSR), which changed its name from South Harz Potash Ltd in March 2026, is repositioning itself as a critical minerals explorer. It holds early-stage copper-gold licences in Sweden's Värmland district and the more advanced Ohmgebirge potash project in Germany.

The central development is a strategic options review for the German potash assets, set out in its September quarter report released on 28 October 2026. Options include spinning the assets into a separate company, listed or unlisted, or bringing in a joint venture investor. The company says no decision has been made on whether any transaction will proceed.

Two very different assets

Ohmgebirge is the more mature asset. The company reports a Probable Ore Reserve of 83.1Mt at 12.6% K₂O, within a Mineral Resource of 286Mt at 13.1% K₂O, and says it has perpetual Mining licence tenure. An Ore Reserve is an estimate of economically mineable material from a study, not a sign that a mine is funded or built.

Sweden is at a much earlier stage. In July the company flew drone magnetic surveys over about 670 line kilometres across its Glava, Torsby West and Klinten projects, covering roughly 100km² across seven licences. It reported their completion on 13 August 2026. Turnstone plans to combine the data with geological mapping before deciding on electromagnetic surveys or drilling. No drilling results or resources have been reported for these licences.

The licences are currently held on trust by the vendor, McKnight, and transfer applications have been lodged with the Mining Inspectorate of Sweden. The company expects the transfers in the December 2026 quarter.

Leadership change and placement

On 31 August 2026 the company announced that Managing Director and Chief Executive Officer Len Jubber would step down, moving to an advisory role on potash strategy. Richard Pearce became Non-Executive Chair, and the three non-executive directors are sharing executive duties until a new chief executive is found.

After a Trading halt on 2 September, Turnstone announced on 4 September 2026 a $1.1 million Placement at $0.02 per share, with GBA Capital as lead manager. Tranche 1 raised $835,000 in September. Shareholders approved Tranche 2 at a meeting on 13 October, and its $265,000, including $165,000 from directors, was received in October. In total the placement involves about 55 million new shares, a substantial addition against about 225 million shares on issue now. The lead manager is also due to receive 4 million options exercisable at $0.035.

Cash and funding runway

According to the September quarter Appendix 5B, Turnstone held $557,000 at 30 September 2026 after net operating outflows of $655,000. It estimated 0.85 quarters of funding. That estimate predates the $265,000 Tranche 2 receipt, which the company noted was excluded. It expects lower corporate costs following administrative changes and said it was confident of raising further capital if needed.

Sector context and risks

The company's strategy cites policy support for secure, local critical minerals supply. Potash developments, however, typically require large capital commitments.

Risks include the short funding runway and likely further dilution, uncertainty over the potash review, the absence of a chief executive, licence transfer timing in Sweden, and the early stage of the copper-gold exploration. The company is also assessing new critical minerals acquisitions, which could change its focus again.

What to watch

The Annual General Meeting is scheduled for 1.00pm (WST) on Monday 30 November 2026 in Perth. Other milestones are the Swedish licence transfers, the outcome of the potash review, and any decision on drilling.