Sirius Minerals Share Discussion Threads

[mr.oz] 29/3/2018 15:08

We have a celebrity in the house, folks
Blessed.

[johnwise] 29/3/2018 15:01

Peter Stephens | Thursday, 29th March, 2018

Could Sirius Minerals plc make you an ISA millionaire in 20 years?

Making a million from an ISA is becoming easier thanks to higher allowances which are now in place. However, this still doesn’t solve the question of which stocks to buy. At a time when the wider stock market is volatile, it is easy to adopt a short-term focus. But in doing so, it may mean that investors miss out on long-term growth opportunities which could help their ISA to reach seven-figure status.

One company which could help investors to achieve that goal is Sirius Minerals (LSE: SXX). It released a quarterly progress update on Thursday. Although its shares have been volatile, they could generate high returns in the long run.

In-line performance

In many ways, the update from the company was a case of ‘so far, so good’. The construction of its ambitious production facility in North Yorkshire is moving ahead as planned, with there being no cost or time overruns at the present time. There has also been progress in terms of finding the right contractors. In fact, on this front the company has been able to make pragmatic changes in recent months which may lead to the delivery of first production up to six months earlier than previously anticipated.

The development of further customer relationships remains a key goal for the business. It anticipates there will be progress in this regard over the medium term. It is also continuing to make progress with agronomy trials, while it expects developments to be made on its mineral transport system following the progress on early works and mine shafts.

Long-term potential

Since Sirius Minerals is not due to commence production for around two or three years, the prospect of a significantly higher share price during this time may be somewhat limited. However, the potential for the business to generate high levels of capital growth once production commences seems to be significant.

One reason for this is the company’s net present value of $15.4bn. This assumes production of 20m tonnes per year of its POLY4 fertiliser, which at the present time seems to be an achievable goal. Since the stock has a market cap of £1.4bn (around $2bn at current exchange rates), there seems to be a wide margin of safety. Therefore, over the long run there could be scope for significant share price growth if the company is able to continue to deliver on its strategy.

[secretsqu] 29/3/2018 13:50

Morning fellow investors.Heading over 30p..........offtake news and 50p by end of week.......--------The usual BS from juicehead.Wrong again!!!!!

[eurofox] 29/3/2018 13:49

thanks for correcting things Mr Oz, PPVN is a valuable contributor

[oggyrocks] 29/3/2018 13:39

Great to have you back ppvn.

[ppvn] 29/3/2018 13:32

Thanks Mr. Oz, thought I'd said something untoward but wasn't quite sure what! Appreciate you adding me back in, and apologies for setting up a rival chat (will close it if possible?). Anyway thanks and pleased to be back

[mr.oz] 29/3/2018 13:12

OMG, you are right!
must have been fat fingers or some other more sinister forces at work
Apologies to PPVN
Hopefully all back to normal now

[eurofox] 29/3/2018 13:09

he did what?

[chrisatbirdies] 29/3/2018 12:16

Hi ppvn
I enjoy reading your comments and indeed I have learnt a lot from them.so keep them coming you have plenty of readers

[ppvn] 29/3/2018 11:58

Apologies for the now defunct thread, appreciate the comments here but will be back on the main thread now!

[johnwise] 29/3/2018 11:41

The important bit:

"The production shaft borehole, SM14B, reached total depth of 1,627m during the period. A total of 53m of polyhalite was intersected with very similar characteristics to the intersection recorded at the service shaft."

[johnwise] 29/3/2018 11:37

The important bit:

"The production shaft borehole, SM14B, reached total depth of 1,627m during the period. A total of 53m of polyhalite was intersected with very similar characteristics to the intersection recorded at the service shaft."

[johnwise] 29/3/2018 11:32

Simon Carter is the Chief Development Officer at Sirius, he added:

"We undertook a competitive tender process in respect of drive 1 of the Mineral Transport System, from Wilton to Lockwood Beck, to ensure that the best tunnelling option was developed.

STRABAG provided a compelling offer in terms of price, schedule, safety management and risk allocation.”

[not my real name] 29/3/2018 11:05

Mr Oz.

Once again, agree with everything you say. Fully expected the rise on the back of the update but if you are a CB holder the higher price becomes more tempting from a shorting point of view.
As PPVN has explained many times, that is not a bad thing but what it does mean is that the share price will tend to be held up in the short term.

I was just sounding a note of caution to anyone expecting massive rises on the back of this update. NMRN

[peteship] 29/3/2018 10:52

Yes, excellent update

[11_percent] 29/3/2018 10:08

He's late...

[11_percent] 29/3/2018 09:57

Webcast coming up.......will they punt Wilmar again??....

[11_percent] 29/3/2018 09:30

They cant hold it......I am buying....