Sirius Minerals Share Discussion Threads

[hazl] 22/8/2018 11:11

Getting 'serious ' now.
SXX well done.

[johnwise] 22/8/2018 11:02

Lithium boom unlikely to disrupt potash market — analyst

[johnwise] 22/8/2018 10:53

Sirius Senior Independent Director Noel Harwerth

[johnwise] 22/8/2018 09:31

A major mining project will “transformR21; Teesside’s economy and breath new life into the Wilton site, a new report claims.

The economic impact assessment by leading consultants Quod predicted the Sirius project – to mine and export a vast resource of natural fertilizer known as polyhalite – will create thousands of jobs and attract new investment into the area.

Since it was given the green light, Sirius Minerals has already started digging in North Yorkshire to mine polyhalite - which will then be transported to Teesside for processing.

Now a new independent study has estimated the £3.2 billion project will permanently add up to 17% to the economic output of North Yorkshire and increase the size of the Tees Valley economy by 18%.

And it said the benefits will be felt for decades to come – delivering a huge long-term boost for the area.

Construction work has already begun construction work on its Woodsmith Mine site near Whitby.

Two 1,600m long shafts are being drilled to extract the polyhalite, a unique fertilizer which contains four of the six minerals plants need to grow and has been proven to boost crop yields.

The polyhalite will then be transported through a 23-mile long underground tunnel to a new processing plant and specially-built harbour facility at Wilton International on Teesside.

The development will have a national impact

[spirito] 21/8/2018 22:31

It is misguided rather than old. Refers to missing June so at least after that.

[eurofox] 21/8/2018 22:22

.. it is out of date, SXX is not AIM-listed as this article states

[natdavis667] 21/8/2018 22:17

21st Aug 18. Not that old!

[eurofox] 21/8/2018 21:57

that must be a very old article

[spmc] 21/8/2018 21:49

Good write up:

[beeezzz] 21/8/2018 21:45

Are institutions shorting to keep the share price down or what?

[ppvn] 21/8/2018 18:30

The only legal change in this strategy in recent memory would be the move away from naked shorting. But that isn't really relevant WRT CBs since the bond is the hedge and CB holders by definition have no interest in deliberately crashing the price.

[anley] 21/8/2018 18:17

I think so but would still like some legal input as that is not how it was done in my days.....but still time has marched on so thanks.

[mr.oz] 21/8/2018 18:16

I think it'll take a while NMRN

[not my real name] 21/8/2018 16:51

anley,

This is hard work. If they redeem the bond they lose their 8.5% interest payment. If they short sell, which they have to because they don't have any shares, they get the money they spent on the bonds back, they paid the equivalent of 25p per share when they bought the bonds so they are making around 40% profit on the sale and they carry on getting their 8.5% payment.

When they are finally forced into redeeming the bonds they simply give the shares back to whoever they borrowed them from.

The money they spent on the bonds is largely back in their bank accounts as a result of their shorting so they will almost certainly have invested it elsewhere so it is making even more money.

We know there are still around 500 million shares still to be shorted and that is why the price is not moving. If they short too many they will lower the share price and make less money on the ones they sell.

Does this make sense now?

NMRN

[eurofox] 21/8/2018 16:42

Some of them are selling the shares via shorts in advance of being handed the shares in redemption of the bonds. The longer they can keep this up keeping the share price below the price at which redemption is triggered, the longer they get their juicy bond coupons as well as a profit on the bonds, whilst being in a better place should anything go wrong in the mean time. Nice job.

[anley] 21/8/2018 16:12

I am sorry but if I short then there is a point in time when I have to deliver the stock for settlement......would you agree?

You are using the wrong word as the Bond Holders are not shorting but selling shares in consideration under the terms of the issue. They put up money and got a bond which has been redeemed in consideration for ordinary shares.......or am I wrong?

[not my real name] 21/8/2018 14:48

If the hedge funds in tracker are not holding bonds then we are in BIG trouble because it means they have shorted 254 million shares between them with a view to buying them back cheaper at a later date.

And we know they started shorting at around 28p!

If they are bond holders then it is just the normal behaviour of a hedge fund..........hedging!

NMRN

PS. Of course it's legal. You can do it yourself if you wish.

Edit: When the enhanced offer was taken up around 220 million new shares were issued and the tracked shorts dropped by 157 million. Are you trying to tell me that was a coincidence? The shorters ARE the bond holders

[spirito] 21/8/2018 14:15

they are prob acting on behalf of a holder

[anley] 21/8/2018 12:57

But do Marshall Wace hold the bonds?
If not then that is a different matter.

[anley] 21/8/2018 12:44

Not sure on the legal side of the point.

[11_percent] 21/8/2018 12:43

NMRN,

I don't think some people have quite got the connection between the shorts and the guys that have the Convertible Bonds.

[not my real name] 21/8/2018 10:56

anley,

Our shorters do not have to buy them back. That is the whole point!

NMRN

[anley] 21/8/2018 10:31

Remember that SHORTERS have to buy back their positions at some time so good to have them.

EURO... now I understand your position but I have a feeling that this Phase 2 Loan will not be quoted.

JPM will be one of the lead banks and they have a 45p price by the end of 2018.