I think this is all to do with the potash cartel falling out and deciding to go it alone, so the price of potash is no longer held artificially high (even though SXX would be producing polyhalite). At some point the price of potash should stabilise as it appears that the market will take up all of the current production level. The usual 'supply & demand' equation, but as SXX production is way off in the future, I can't see this as anything but a kneejerk reaction to the dissolution of the cartel.

Culmination of that and the delay.

Looks like I can finally buy @12p - think I'll wait for 9p now though.

I got a small order in at 9.5p Skinny.

.

Sounds reasonable Shortie, I've had a TP of 12p for quite a while, but the game has now changed.

Somewhere between 6 & 10p looks about right and its much more of a gamble now.

how things change!

Sirius putting off their presentation on 29 July is I reckon where all this started. You would have thought the company would have been well prepared for Amec's report cited above.

All this shilly shallying could and should have been avoided , needless to say ! A complete shambles !!

This has always been about capital risk and Sirius had overstated the need to build the minehead within the park.

Sirius now faces the daunting task of having to assuage the park authority's concerns before it decides whether to approve the project, not to mention the challenge of raising capital to fund construction if it does get the go-ahead.

Lets also remember that Polyhalite as a potash fertiliser its very low grade due to its relatively low potassium component

A report prepared in April by Integer Research for AMEC said the main value of polyhalite would come from its potassium content, despite the existence of other nutrients, which it said would be seen by most buyers as "worthless bulk".

"Either you accept Chris Fraser's proposition that this is a product whose time has come and that the world now needs sulphur and magnesium, or it's a fantasy," said Freeman.

The only company in the world currently mining polyhalite is Cleveland Potash, a subsidiary of Israel Chemicals Ltd. Its mine lies 11 miles north of Sirius's planned site but sits just outside the North York Moors' boundary.

Last year it mined just 50,000 tonnes of the mineral, a hundredth of what Sirius intends to produce annually.

GENERAL UPDATE

pretty much a lame duck atm.

A defiant update with a note at the end - "The Company's brokerage contract with Jefferies Hoare Govett ("Jefferies") has been terminated and Jefferies will cease to be a broker on 26 August 2013 at the end of the contractual three-month notice period."

Now why would they do that?! :o)

They probably need a broker that specialises in cash calls! :-)

Or one that doesn't say the shares are crap!! :o)

In other words, not to put to fine a point on it, a difference of opinion.You cannot help but wonder how a company could have such a brokler !!

:o)
Quite a difference!

York potash project financially robust, says Sirius
StockMarketWire.com
Sirius Minerals insists the York potash project is financially robust on a range of pricing scenarios.

It says the project is a tier 1 asset with projected cash costs that would place it at the bottom of the global potash cost curve.

And it says robust economics will underpin the financing and development of the 2.66 billion tonne inferred polyhalite resource.

Managing director Chris Fraser says: "There is little doubt that potential reductions in MOP (muriate of potash) prices present a problem for existing high cost producers, which could in turn lead to further supply consolidation, but the York potash project has a robust business model to underpin its financing and development into a long term independent supplier.

"The volatility caused in the potash market by this speculation perfectly demonstrates the dangers of the supply of such an important mineral being concentrated amongst a small number of producers and re-emphasises the need for new, lost-cost, long-life projects that can operate outside the existing restricted market

On the basis of the above statement, one cannot see where the broker differs.

12 August 2013

Sirius Minerals Plc


Sirius Minerals secures £25 million Convertible Security Financing


§ Convertible security financing of up to £25 million secured with New York based Institutional Investor

§ Provides funding certainty to progress with approvals process and development initiatives to further de-risk the York Potash Project

§ Financing is staged to minimise dilution to existing shareholders, and maximise flexibility to the Company

§ At a time of great volatility in the potash industry, this financing further endorses York Potash as a Tier 1 project


The Directors of Sirius Minerals Plc (AIM: SXX, OTCQX: SRUXY) ("Sirius" or the "Company") are pleased to announce that the Company has secured financing of up to £25m with a New York based institutional investor (the "Investor").

Chris Fraser, Managing Director and CEO of Sirius, comments:

"We are delighted to secure this financing which demonstrates confidence in the on-going development of the York Potash project, especially at a time of increased volatility in the sector. These funds will enable the Company to undertake the necessary work needed to secure the required approvals, in addition to other development initiatives including global crop trials that will continue to demonstrate the unique value of polyhalite and de-risk the project."

Under the agreement that has been entered into, the Investor will inject up to £25m into the Company by purchasing up to four tranches of interest free convertible securities (the "Convertible Securities"), which are convertible into ordinary shares in the capital of the Company ("Shares"). The first tranche is £10m with a face value of £11m. The subsequent three tranches can be activated at 120 day intervals at the Company's discretion with a minimum of £1m with a face value of £1.1m and a maximum of £5m with a face value of £5.5m per tranche.

Each Convertible Security will have a maturity of 18 months.

The conversion price for each of the Convertible Securities will be, at the Investor's discretion, either (a) 92.5% of the average of 3 daily VWAPs per Share, as selected by the Investor, during the 10 consecutive trading days immediately prior to the relevant conversion date notice, or (b) at 19.5p (being 120% of the average of the daily VWAPs per Share for the 10 consecutive trading days immediately prior to execution of the agreement), save that (b) may only apply in respect of up to £12.5m worth of Convertible Securities.

The Investor will also receive 6,000,000 options with an exercise period of 36 months from the date of issue (the "Options"). The Options will entitle the Investor to subscribe for one Share per Option at an exercise price of 19.5p.

The Company will make an announcement each time a tranche of Convertible Securities is issued. In addition, the Company will make an announcement each time any Convertible Security is converted into Sirius shares or an Option is exercised. An application will be made to the London Stock Exchange for any Shares issued and allotted on conversion of the Convertible Securities or exercise of the Options to be admitted to trading on AIM.

The agreement includes terms that grant Sirius the right to repurchase the nominal value of the Convertible Securities for cash and limit the ability of the Investor to dispose of shares received on conversion. Sirius also has the right to terminate the agreement at any time by the payment of a modest termination fee, or alternatively, at no cost if the Company's share price falls below a certain level.

The proceeds of this financing will be used by the Company for general corporate purposes, and added to existing cash of £8.5m (as of 31 July 2013) will provide funding for at least 12 months of the necessary work to secure approvals for the York Potash Project and other initiatives including global crop trials that will continue to demonstrate the unique value of polyhalite

I don't see how this de-risks anything, still mining the same resource, still need to convince buyers that polyhalite isn't mainly worthless bulk, still need to finalise and approve mining plans so capital risk remains... "this financing further endorses York Potash as a Tier 1 project" - complete crap, a New York based Institutional Investor will be in and out before any real mining actully begins and will sit on options should this be a good future investment..

Minerals PLC Jefferies International Underperform 13.38 9.00 9.00 Reiterates