Sirius Minerals (SXX)

Sector:

Industrial Chemicals

Index:

FTSE 250

5.46p
   
  • Change Today:
    -0.035p
  • 52 Week High: 24.15
  • 52 Week Low: 2.87
  • Currency: UK Pounds
  • Shares Issued: 7,020m
  • Volume: 52,186,880
  • Market Cap: £382.95m
  • RiskGrade: 523

Sirius Minerals outlines two-stage development plan for North Yorkshire mine

By Iain Gilbert

Date: Monday 11 Nov 2019

LONDON (ShareCast) - (Sharecast News) - Fertiliser development firm Sirius Minerals unveiled plans for the two-stage development of its North Yorkshire polyhalite mine on Monday, with the group looking to secure $600m funding for the project's first stage.
Sirius fell out of the FTSE 250 in October after its decision to pull a £400m fundraising attempt a month earlier sent shares into freefall and raised doubts over the potash project's future.

However, despite struggling to lock in funding for the project, Sirius said it remained focused on extracting first polyhalite from the mine as part of an effort to remove the "greatest perceived construction risk associated with deep shaft construction".

The London-listed firm said that having held a "comprehensive" review to look at ways of securing a funding lifeline, it had decided to split funding for the project into two stages.

Sirius will now aim to raise an initial $600m by the end of March 2020 in order to fund the construction of the mineshafts at its Woodsmith asset, while the raising of the remaining £2.5bn required will be deferred for 12 to 24 months.

Sirius said it was already in discussions with potential investors to raise the initial $600m.

At 1020 GMT, the shares were up 16.6% at 3.70p.

Russ Mould, investment director at AJ Bell, said: "It seems like Sirius' army of retail shareholders - which are in the tens of thousands - remain optimistic that its potash mine will be built, despite a major funding setback earlier this year.

"A lot of miners make confident statements about finding strategic investors as if you can just pick them off the shelf. In reality they are hard to come by, at least ones which will agree to a deal that doesn't heavily dilute existing shareholders so they are left with next to nothing.

"At this stage, Sirius has no cards to play. It is desperate for money and will have little bargaining power in any negotiations with a potential strategic investor. A third party looking to bail Sirius out of a tricky situation will want the best possible deal for them, as they are taking on considerable risk backing a project which is not yet generating any revenue."

Neil Wilson, chief market analyst at Markets.com, said the new plan "will require significantly less capital than the previous incarnation".

He said this was a "possible way out of the mire, but needs to be picked over in more detail".

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Sirius Minerals Market Data

Currency UK Pounds
Share Price 5.46p
Change Today -0.035p
% Change -0.64 %
52 Week High 24.15
52 Week Low 2.87
Volume 52,186,880
Shares Issued 7,020m
Market Cap £382.95m
RiskGrade 523

Sirius Minerals Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
39.68% above the market average39.68% above the market average39.68% above the market average39.68% above the market average39.68% above the market average
70.00% above the sector average70.00% above the sector average70.00% above the sector average70.00% above the sector average70.00% above the sector average
Price Trend
94.08% below the market average94.08% below the market average94.08% below the market average94.08% below the market average94.08% below the market average
100% below the sector average100% below the sector average100% below the sector average100% below the sector average100% below the sector average
Income Not Available
Growth Not Available

What The Brokers Say

Strong Buy 0
Buy 0
Neutral 1
Sell 0
Strong Sell 0
Total 1
neutral
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Sirius Minerals Dividends

No dividends found

Trades for 24-Jan-2020

Time Volume / Share Price
16:35 2,436,300 @ 5.46p
16:29 55,115 @ 5.46p
16:29 48,000 @ 5.46p
16:29 38,530 @ 5.46p
16:29 38,000 @ 5.46p

Sirius Minerals Key Personnel

Finance Director Thomas Staley

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