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(SXX) Sirius Minerals Share Chat

Discussion in 'General Share Chat (SXX)' started by mart101, Jul 30, 2015.

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  1. Graham Hacker

    Graham Hacker Moderator Moderator

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    Times. Today - part 2

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  2. Graham Hacker

    Graham Hacker Moderator Moderator

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    Times today - part 3

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  3. Groucho

    Groucho Member

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    Sirius plan on the brink of collapse as it faces cash crunch
    Investors could be wiped out as company’s plans for a giant fertiliser mine in Yorkshire are wound down

    By Jon Yeomans
    THOUSANDS of retail investors risk losing their money in Sirius Minerals after the company admitted its plan to build a fertiliser mine in Yorkshire was on the brink of collapse and the Government appeared to slam the door on a rescue.

    The FTSE 250 company warned that it had been unable to sell a $500m (£400m) junk bond it needed to unlock $2.5bn in debt financing from JP Morgan, throwing the future of its ambitious scheme to mine under the North York Moors into doubt.

    Up to 1,200 jobs are at risk as Sirius has only enough cash to last six months. It will wind down construction work at its site near Whitby as it desperately seeks alternative financing or a partner to save the mine.

    Sirius lost more than half its market value after the update, with the shares closing at 4.67p. The collapse left the company worth £326m, down from a peak of more than £1.5bn a year ago.

    Chris Fraser, chief executive, blamed “poor market conditions” and Brexit uncertainty for scaring off investors.

    “Nearly every meeting we had in July and August, every single investor asked about Brexit,” he said. “Certainty is absolutely critical for major investment to occur in a project like this. It just gives another reason for a bond investor to say, ‘do I need to invest my money here?’”

    Sirius revealed the Government refused a fresh request last month to provide a loan guarantee to support the mine. Theresa May, the former prime minister, lent her backing to Sirius as a building block in the “Northern powerhouse” earlier this year.

    Mr Fraser insisted the company would “continue dialogue” with ministers, but a government spokesman said requests for financial support had to meet “necessary lending criteria” and protect taxpayers’ money.

    Robert Goodwill, Conservative MP for Whitby, said he had lobbied Boris Johnson, the Prime Minister, about the project but added: “Backing companies like this is not something the Treasury generally does. It’s the type of project that markets can deliver. I hope a partner will come in. People who’ve put their confidence in the company must feel very let down.”

    Sirius has around 85,000 private investors, amounting to 50pc of its register. The company had been a magnet for local people, who bought into the project in the hope it would create up to 2,500 skilled jobs.

    Sirius wanted to have the mine up and running by 2021, producing polyhalite, a blend of fertiliser that includes potash. It has customers lined up to buy its product, although some analysts have questioned how much it would actually make from selling polyhalite, as it is not mined anywhere else and prices are difficult to gauge.

    Construction has begun on two mile-deep shafts and a 23-mile tunnel to Redcar port. Mr Fraser said the company would look to shave down costs in the hope of enticing new investors.

    Sirius raised £1.2bn in 2016, including £250m from Australian mining magnate Gina Rinehart.

    Petter Ostbo, chief executive of EuroChem, the world’s fifth largest fertiliser producer, ruled out stepping in to help. “From our perspective we don’t see the demand for polyhalite on the scale Sirius envisages,” he said. “But we hope for the best for them.”

    Daily Telegraph 18/09/19
     
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  4. SophieR

    SophieR Member

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    Hi

    Question for GK or anyone else who knows.

    If SXX goes into administration, what will happen to the remaining CB holders from 1st stage financing? Does the debt remain on the book?

    IMO, but do your own research, the only route now is an administration and the six months company wants is just an optimistic gloss over the reality. And, it makes financial sense for any possible investor (who has to finance the mine) to take over the project from an administrator. They, surely, do not want to be anchored with this failed management team and existing shareholders.

    The clue on what most likely to happen will be evident from short-sellers behaviour. If majority exit, there is a chance that SXX will avoid administration. If they hold or increase, an administration is likely.

    SR
    please do not mention/argue that the shorts were only covering CB holders. The events have proved otherwise.
     
  5. Viking

    Viking Demi God of BlueShare

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    Boris Johnson invited to Scarborough for talks over future of Sirius Minerals
    [​IMG]
    Woodsmith mine.
    Email
    Published: 08:37Wednesday 18 September 2019
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    Prime Minister Boris Johnson has been invited to Scarborough for crisis talks over the future of the Sirius Minerals polyhalite mine.

    The Labour leader of Scarborough Borough Council, Cllr Steve Siddons, has written to the Prime Minister urging him to take immediate action to secure the future of the company and its polyhalite mine outside Whitby.


    Cllr Siddons said: “I have written to Boris Johnson today inviting him to a meeting with myself, Government Ministers, Local MPs Robert Goodwill, Anna Turney and Simon Clarke, Teesside Mayor Ben Houchen and Sirius to discuss how the Government can support this vital project, ensuring it delivers the prosperity and well-paid jobs so urgently needed in the area.”


    Yesterday, Sirius announced it had cancelled plans to raise $500m (£403m) through a bond sale and blamed “market conditions”, including Brexit and lack of Government support for the decision.


    It will now undergo a six-month review of four different options for a new financing plan to resume the project.

    Its share price plummeted in response to the news and raised doubts over the future of the Woodsmith mine project under the North York Moors National Park, which had promised to create more than 1,000 jobs.

    Cllr Siddons said he now wants the Prime Minister to show he is committed to the North and save the project.

    He added: “Boris has spent much of the last couple of weeks touring the Northern heartlands recognising the devastation caused by years of austerity and lack of investment. It’s time for him to put his money where his mouth is and ensure this project delivers on its promise to the people of North Yorkshire.



    “This project has the potential to grow the North Yorkshire economy by 17%, provide a £2.3 billion annual contribution to UK GDP, as well as providing significant benefits locally, including the creation of circa 1,000 direct high-value jobs within the area and an estimated 1,500 further jobs within the local supply chain.

    “This project is central, not only to the future of the borough, but to the future of the wider North Yorkshire and Teesside regions in terms of economic growth and prosperity, but in providing a platform for raising aspiration and social mobility within our communities.

    “Additionally, thousands of local investors have supported this project with their hard-earned savings, putting faith in Sirius to deliver prosperity for the area.”
     
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  6. Groucho

    Groucho Member

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    Latest Given Reputation Points:
    magpies1862: 5 Points (85,000 private investors should all sign hopefully.....) Sep 18, 2019
  7. Groucho

    Groucho Member

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    AE359DFE-9AE9-4539-BD2D-4971DCD09561.jpeg 529ACDD2-771B-4EAE-A46A-E4CBF0071DB9.jpeg
     
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    Wilko: 5 Points (Thanks for posting) Sep 19, 2019
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  8. magpies1862

    magpies1862 " Joy No More !!"

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    85,000 private investors should help to get this over the debate threshold.....

    For what good that will do ?????

    GLA
     
  9. Viking

    Viking Demi God of BlueShare

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    Dropped into my local earlier today, the appropriately named " Farmers Arms" . No poly4 on draft so decided on a Carling .Found myself a seat, which wasn’t hard because I more or less had the place to myself ( it was after all just past midday).Anyway I sat down to read my paper that I had bought on the way to my destination , which you may not be surprised to know is the ‘ Daily Mirror.’ There in the financial section (the mirror does have a financial section, well kind of) was an article on SIrius Minerals .As I read it Elvis suddenly burst into a rendition of that classic Hank Cochran song, "Make The World Go Away", which I though was rather appropriate :rolleyes:



    And for a bit of balance



    Good luck to you all
     
  10. Groucho

    Groucho Member

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  11. Groucho

    Groucho Member

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  12. SophieR

    SophieR Member

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    SIRIUS MINERALS PLC LMR Partners LLP 0.58% up 0.37% 17 Sep 2019
    SIRIUS MINERALS PLC TT International 0.50% 0.0% 17 Sep 2019 (new short position)
    Both increased on 17 September.
     
    Last edited: Sep 19, 2019
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  13. Wilko

    Wilko Demi God of BlueShare

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  14. SophieR

    SophieR Member

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    I reduced by 85% on 17th (averaging 4.7p). I am not optimistic but will increase if sxx can get financing.
     
    Latest Given Reputation Points:
    Wilko: 5 Points (Thanks for reply - personaly still undecided, it's close to/is a binary bet) Sep 19, 2019
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  15. SophieR

    SophieR Member

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  16. Berwick

    Berwick Demi God of BlueShare

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    With the shadow of Brexit I can't see finance happening quickly/ if ever. North Yorks is Tory territory so let's hope a few marginal seats prompt a gov rethink on the loan guarantee. Much more likely IMO is that they scale the project back. Guess the tunnel will be mothballed. I'm not too impressed with waiting 6 months for a new strategy I guess they are still holding on for a positive shift in the money markets. Feeling a bit gutted. I never seem to learn. No one to blame but myself.

    B
     
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  17. Wilko

    Wilko Demi God of BlueShare

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    My guess FWIW is previous "money market financing plan" is DEAD.

    future if anything will be slicing risk into different compartments

    - Strategic partner funds shaft sinking taking on relevant risk there
    - possibly tunnel outsourced to infrastructure fund(s) BUT to be honest I can't see how this works ( what is the mechanism to help the fund if mines not built ? )

    SXX then come back to financial markets ( maybe US junk bond - maybe other ) with smaller lower risk proposal, with or without JPM.

    DYOR etc.
     
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  18. Viking

    Viking Demi God of BlueShare

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  19. Viking

    Viking Demi God of BlueShare

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    Where I stand.
    A couple of years ago with around six months to go to my retirement date and having a big chunk of my money tied up in SXX, I decided to de-risk. So I thought I’d try trading half my holding, which I did a few times and ended up selling out completely at one point. I recently bought back half my original holding at just under 10p. I have since sold out completely in 2 tranches 4.9/4.3. Luckily for me I have lost very little if anything as my average before trading was under 16p. I will be back in if finance is sorted. But one thing I will not be doing in future is putting money into start-ups. Not worth the stress.

    Good luck
     
  20. Groucho

    Groucho Member

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