Sirius Minerals Share Discussion Threads

[2theduke] 16/9/2018 18:29

So .. does the recent earlier drawdown on the royalty facility mean that she has first charge security and a seat on the board until stage 2.
Or put another way if stage 2 doesn't happen she becomes the senior creditor on the mine in a default.... assuming the mine doesn't sell for much it seems like she'd be in a good spot to pick up the mine for a steal. That all depends on the credit waterfall on insolvency I guess, and how they would value the mine ?

[jw30] 16/9/2018 15:23

Yes I remember GK and his cronies were always talking their books, lol. They were part of the p&d team during the Aug 2016 spike. Gross misrepresentation mislead many new PIs.

[11_percent] 16/9/2018 14:24

Ok, cheers.

[muckshifter] 16/9/2018 14:23

No, 11%, it's obviously an option, and I think Sirius will be searching for any feasible option urgently at the moment.

[jw30] 16/9/2018 14:19

Hahaha, is that the GK who said the debt component would precede the equity raise in stage 1 and that the placing would be set at 50 to 60p ?
Think you have lost all credibility.

[11_percent] 16/9/2018 14:05

muck,

Good post.

Do you have a view on the sudden talk about a "new partner".

[11_percent] 16/9/2018 13:53

lenses
16 Sep '18 - 13:30 - 34329 of 34330
0 0 0
"Having spent ~ £630 million so far "

This is false.

$250m extra in the bank on Wed. ~$3.5bn more in Q1 '19. Plan remains intact. Desperation of bashers showing.

L.

=============

GK,

What makes you think there will "~$3.5bn more in Q1 '19."

That gives CF 6 months to get a deal in place, where he has failed for the last year and a half.


Having said that......the deal is all but done with our new "equity partner"......

[johnveals] 16/9/2018 13:44

My question related to after the most recent RNS, the share price dropped after the previous RNS.

[lenses] 16/9/2018 13:30

"Having spent ~ £630 million so far "

This is false.

$250m extra in the bank on Wed. ~$3.5bn more in Q1 '19. Plan remains intact. Desperation of bashers showing.

L.

[dp1umb] 16/9/2018 13:20

Not reflected in share price??!!! Trading at circa 38p then down to 22p after RNS ok the shares have recovered a bit, but in my view the risks have increased (insolvency) and the rewards have decreased ( high probability of heavy dilution)

[jw30] 16/9/2018 12:13

According to the company’s financial reports, they had ~£660 million at end of 2016 and ~£400 million free cash at end of 2017. Having spent ~ £630 million so far means they have ~£30 million left. Cash burn of ~£370 million during the first eight months of the year and averaging £46 million a month. Gina’s £200 million will only last just over 4.3 months.
Think they could do with more than £200 million to last until Q2 19.
Hence my question why didn’t Gina commit the full amount.
Aimho.

[11_percent] 16/9/2018 11:29

clotted cream
16 Sep '18 - 10:22 - 34324 of 34325
0 1 0
He may have a range of funding options or he may not have. There seems to be a need to find a creditable partner and why is that appeared at this stage?

====================

"a need to find a creditable partner"

This is not new.....the plan was always to bring in a partner.

My guess is, it will be a financial partner.

[jw30] 16/9/2018 10:26

Just looking for answers to some questions. Didn’t think they were unreasonable. Not my intention to malign the company but on the other hand I have learnt not to invest with blind faith. Best to see both sides of the coin I guess so not making any assumptions here.

[clotted cream] 16/9/2018 10:22

He may have a range of funding options or he may not have. There seems to be a need to find a creditable partner and why is that appeared at this stage?

The business plan is either good enough in today's marketplace to be supported or not. It has risks on different levels and these have to be acceptable to all parties and the gov't risk committee approval is said to be essential by the Chairman.

[johnveals] 16/9/2018 10:00

If this latest development is so bad, as some would have us believe, why hasn’t this been reflected in the share price. As a LTH I was always expecting some loss of “shareholder value” going into stage 2 funding. CF still has a range of funding options and there is still an enormous political investment in this project. Therefore are some on here over reacting ?

[not my real name] 16/9/2018 09:45

Jw30.

A bit unfair to describe it as witholding. She has brought forward one part of her original agreement to benefit Sirius and is sticking to the original terms for the smaller part.

NMRN

[jw30] 16/9/2018 08:49

How about the early stage of a mine with the D walls etc or the assets of the project, lol.

[bazildonbond] 16/9/2018 08:14

There isn't a mine at this stage!

[jw30] 16/9/2018 07:12

Indeed dp1umb and cc.
Just wondering why is Gina withholding the $50 million equity component of the MRD as she already has the mine as security.
If she was confident of stage 2 then why not release it as she already has the mine as security.
Is she saying the mine is not worth $300 million at this stage?

[ppvn] 15/9/2018 22:55

Ah I thought you were being funny. Expression of rights in the description you gave would be 3 rights to one share. I hadn't calculated it the other way around - amount looks a lot more reasonable but I still personally believe unlikely.

[dp1umb] 15/9/2018 22:36

PPVN my 3 for 1 rights would raise approximately £350m which would be about 15% of the stage 2 fundraising