Sirius Minerals Share Discussion Threads

[johnwise] 18/9/2018 09:31

VIDEO

London's potential for mining finance, investment and deal making

Panel discussion: London - Capitalising on its potential for mining finance,
investment and deal making

Participants included:

Russell Scrimshaw, Chairman, Sirius Minerals

Tom Attenborough, Head of International Business Development, Primary Markets, LSE

Paul Atherley, Managing Director, Berkeley Energia

Charlie Bendon, Partner, Tamesis Partners

Video..

[johnwise] 18/9/2018 09:10

VIDEO

London's potential for mining finance, investment and deal making

Panel discussion: London - Capitalising on its potential for mining finance, investment and deal making

Participants included:

Russell Scrimshaw, Chairman, Sirius Minerals

Tom Attenborough, Head of International Business Development, Primary Markets, LSE

Paul Atherley, Managing Director, Berkeley Energia

Charlie Bendon, Partner, Tamesis Partners

Video

[johnwise] 18/9/2018 08:41

Growth potential

Of course, Sirius Minerals may offer higher returns in the long run than BHP Billiton. Monday’s news was the latest in a series of deals that have boosted its aggregate contracted take-or-pay sales volume to 8.2 Mtpa (million tonnes per annum). The latest deal is a long-term supply agreement with Cibra, which is Brazil’s sixth-largest fertiliser distributor group. As part of the agreement, Sirius Minerals will take a 30% stake in Cibra, in return for 95m ordinary shares in the company. Investors seem to have reacted relatively positively to the news.

[7rademark] 18/9/2018 08:40

It isn't hard to do spirito.Looking strong here today though,

[spirito] 18/9/2018 08:37

Hmmm. No thanks John

[7rademark] 18/9/2018 08:35

Imagine no possessions

[ch1rp] 18/9/2018 08:32

Do you excel in spelling?

[spirito] 18/9/2018 08:31

Fair enough and some truth in what you say, hence we are not at 60p yet.

[1234gold] 18/9/2018 08:27

I'm not saying they won't produce anything, just that first product in late 2021 and then followed by what appears to be a fairly slow ramp up is not 'soon'. The Cibra deal looks to be simply a facilitation deal, The ramp up to full volume appears to be fairly long dated. Based in my humble view, SXX appears to be an expensive, long dated call option on a risky development project in a commodity that doesn't currently have a market for the volumes being forecast. Hmmmm...not one for me.

[spirito] 18/9/2018 08:24

Imagine if you'd have been scared into selling at 24p?

[spirito] 18/9/2018 08:18

Thought we may struggle to break 30 this morning

[mr.oz] 18/9/2018 07:53

Indeed. And not to everyone's pleasure. Am liking Mr Fraser more and more.

[spirito] 18/9/2018 07:31

but they'll have poly4........

[clotted cream] 18/9/2018 07:01

It is difficult to see the growth needed to achieve 2.5 mt/year of poly4 being achieved without vèry significant investment. Currently doing 1.2 m/t across all fertilisers and poly4 unlikely to be more than 20% of the product mix, with nitrogen and phosphates the majors. A ten fold increase in capacity needed over 12 years, possible but not from cash flow. Some big players in Brazil market too.

[mr.oz] 18/9/2018 06:58

Twas my initial thoughts and reaction
But CF covered it well in his presentation.
A needed alliance and the market is there for anyone ambitious and unconventional enough

[excellance] 18/9/2018 00:47

omg a professor

quite right, boulby potash and york potash dont actually have "potash", they do have polyhalite which is a mixture of various salts, commonly but incorrectly termed potash.

[not my real name] 18/9/2018 00:27

Excellance.

There is zero chance of them ever producing one ounce of potash let alone 10 million tonnes. That is not what they are mining. They have polyhalite underneath!

You are expecting silver from a gold mine!

Please do some research.

NMRN

[excellance] 17/9/2018 23:57

yeah but you dont really know do you, so maybe, just maybe, they will produce potash, and maybe they'll get to sell some in brazil.

[1234gold] 17/9/2018 23:31

Also, these are 'take or pay' contracts that we don't know the actual details of. Any of the offrake partners coyld decide to not take the product and just pay a penalty fee. That penalty fee could be a fraction of the actial price, In which case SXX ends up owning a massive stockpile of product that noone wants. And, these agreements all have ramp up schedules that mean little product has actually been committed to in the early years.

[1234gold] 17/9/2018 23:27

My definition of 'soon' is obviously a bit different from that of excellance.

There is still a real possibility it never produces any potash.

[excellance] 17/9/2018 23:14

don't you think it was the banks that encouraged this deal?

[11_percent] 17/9/2018 23:10

but will the prospective stage 2 lenders and government view it so favourably?

===========

No....

[11_percent] 17/9/2018 23:00

The deal/RNS was good in that it served its purpose......it got them over the line for 7 Mtpa.......on the face of it.

However......don't think it will impress the banks.

It also served its secondary purpose....in that the timing got the share price up.

[henchard] 17/9/2018 22:57

What advantage is it to SXX to make a 90m shares, 30% equity investment in the 6th largest fertiliser distribution group in Brazil. Other than to secure a deal to meet the minimum take-or-pay threshold for the stage 2 financing. I mean, it kinda looks like a bribe does it not? The market's buying it, judging by the rise in the share price today, but will the prospective stage 2 lenders and government view it so favourably?