21.875p +0.375p

Sirius Minerals set for the stars? This is what our chart guru says

Cautious investors might look for Sirius to break the 200-day moving average of 23.75p before jumping on board.

Sirius Minerals set for the stars? This is what our chart guru says
The charts are predicting a brighter future for Sirius investors.

Shares in Sirius Minerals PLC (LON:SXX) should move to “better levels” in the trading range, according to a well-followed technical analyst.

Zak Mir, in his regular slot for Proactive Investors, said he is expecting a spring back following a fundraising round that hit the price.

WATCH: The 'king of charts' in his own words

He is also hoping there won’t be any “sustained action” below 20p.

“There is an uptrend line there from the beginning of the year running through the twenty-one pence level,” he said.

“That at least appears to have temporarily halted the pullback from forty pence-plus that we’ve had since the summer. Ideally there won’t be any sustained price action back below twenty pence.”

Cautious investors might look for Sirius to break the 200-day moving average of 23.75p before jumping on board.

“If that breaks relatively soon we should see the shares back towards the better levels of the range,” said Mir.

Shore Capital on the fundamentals
Sirius owns a giant polyhalite fertiliser deposit in North Yorkshire and recently completed the first round of funding to build the mine.

In a recent note City broker Shore Capital provided some insight into the worth of the mine once the first phase of development is complete in 2018.

Analyst Yuen Low also doffed his cap to chief executive Chris Fraser and the team, who have sewn up just under £1bn of financing with investors agreeing to stump up £370mln of that.

“Sirius has attracted myriad detractors and doubting Thomases over the years, who have tried to find fault with the company and its paradigm-shifting North Yorkshire project from virtually any and all conceivable angles,” he said.

“For example, [the detractors said] the global market for polyhalite would be a few hundred thousand tonnes at best, that permitting would be impossible, that the Stage 1 funding requirement was too large to be successfully raised.”

“To its credit, Sirius has made its critics eat humble pie at every step of the way thus far, systematically proving false their claims (which in our view range from simply unresearched to maliciously poisonous).”

Worth £7.4bn?
Anyway, having moved the project into development, its net present value is now £7.4bn, according Low.

This equates to 129-166p a share fully diluted on the Shore analyst’s base case assumptions.

The risked NPV, which factors in all the potential hurdles between now and 2018, comes in at a more modest 65-82.5p a share. That lower figure is still roughly three-times the current share price.

As ramps go, not bad. However, development costs highly likely to exceed current estimates.

Results of open Offer

Sirius Minerals Plc (the "Company") announced on 2 November 2016 the details of a proposed Firm Placing and Placing and Open Offer to raise gross proceeds of £370 million (approximately £352 million, net of expenses), in connection with its Stage 1 financing requirements to begin the construction of its North Yorkshire polyhalite project. On 3 November 2016, it announced the results of the Firm Placing and the Placing.

Capitalised terms not otherwise defined in the text of this announcement have the meanings given in the Company's announcement of 2 November 2016.

The Open Offer closed for acceptances at 11.00 am on 23 November 2016 in accordance with its terms and was modestly oversubscribed. The Company therefore announces that it has received valid acceptances under the Open Offer in respect of 185,089,529 Open Offer Shares representing 100 per cent of the Open Offer Shares available pursuant to the Open Offer.

Chris Fraser, Managing Director and Chief Executive Officer, said:

"I would like to thank our shareholders for their continuing support and playing their part in this important moment in the Company's history. It has always been our intention to make this provision available and it's good to see so many existing shareholders taking part."

The Firm Placing and Placing and Open Offer are conditional on (i) the Resolutions being passed at the General Meeting and (ii) the Placing and Open Offer Agreement otherwise becoming unconditional in all respects and not having been terminated in accordance with its terms prior to Admission. The conditions contained in the Placing and Open Offer Agreement include, inter alia, (i) the Royalty Financing Agreement (which comprises a US$250 million royalty purchase amount and a US$50 million equity subscription) not having been terminated prior to Admission, (ii) the subscription agreement in connection with the Convertible Bond Offering having been entered into and not having been terminated prior to Admission, and (iii) Admission becoming effective by not later than 8.00 am on 29 November 2016 (or such later time and/or date as the Company and the Joint Bookrunners may agree).

An application will be made to the London Stock Exchange for the New Ordinary Shares issued in connection with the Firm Placing and Placing and Open Offer to be admitted to trading on AIM. It is expected that Admission will become effective, and that dealings in the New Ordinary Shares will commence on AIM, at 8.00 am on 28 November 2016.

New Ordinary Shares issued under the Firm Placing and Placing and Open Offer in uncertificated form are expected to be credited to CREST accounts on 28 November 2016, and definitive share certificates for the New Ordinary Shares issued under the Firm Placing and Placing and Open Offer in certificated form are expected to be dispatched within five Business Days of Admission.

The Enlarged Share Capital of the Company following Admission will be 4,164,514,405 Ordinary Shares in aggregate. This figure may be used by shareholders (and others with notification obligations) as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, Sirius Minerals Plc under the FCA's Disclosure Guidance and Transparency Rules.

A General Meeting is to be held today at 11.00 am for the purpose of passing certain Resolutions in relation to the proposed Firm Placing and Placing and Open Offer, the Convertible Bond Offering and the Royalty Financing Ordinary Shares. The results of the General Meeting will be announced later today.

This announcement is released by Sirius Minerals Plc and contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 (MAR), encompassing information relating to the Firm Placing and Placing and Open Offer and the Stage 1 Financing described above, and is disclosed in accordance with the Company's obligations under Article 17 of MAR.

For the purposes of MAR and Article 2 of Commission Implementing Regulation (EU) 2016/1055, this announcement is being made on behalf of the Company by Tristan Pottas, Investor Relations Manager.

Results of General Meeting

Admission of New Ordinary Shares

Liberum Capital today reaffirms its buy investment rating on Sirius Minerals PLC (LON:SXX) and set its price target at 60p

An increase of 10p.

Yes, but no guidance when the sp will get to 60p. Lets hope it is within our lifetime!!!

I'll have a word with Santa! :o)

Well according to post #757 'Serious worries on Sirius Minerals chart? ', 19.5p has been breached, which is not a good sign.

The listed trades suggest a lot more buying than selling! Surely something is amiss.

sold @ 37p will buy back in @ 12p to many ords in circulation to be worth any more. BB

Director/PDMR Dealing & Option Adjustments

By the looks since Last Friday the 3 days chart it says the lows have gone. Very strong order book on the bid side depth 131 v 74

Nice chart.
200 week MA is definitely a value area to buy!

Notice anything about the two corrections?
Aug 23 to Sept 28 and then Oct 27 to Dec 2.
Symmetry in terms of time and price.

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This is bound to lead to a sustained upward trend sooner or later. Apparently 25p, the 200 day average is one significant signal for such an upward trend, but patience is the order of the day

spread 19.25 v 19.50p +0.25p

The bounce is still on with the order book as strong as yesterday

DEPTH 129 v 79

Sirius Minerals shares at critical point - By Alistair Strang | Wed, 21st December 2016 - 09:55

Sirius Minerals (LSE:SXX)

To deal with Sirius (SXX) first, our prior outlook speculated on the dangers of closure below the immediate uptrend. Essentially, closure below 19.5p risked opening a shaft with an initial target at 12.7p and secondary, if broken, at a bouncy bottom of 8p.

Painfully, the share price indeed has taken steps with thus far, weakness reaching 17.25p. It's now been a month and our grotty prediction of 12.7p making a guest appearance hasn't happened.

The situation now feels like anything below 17.25p should provoke 15.25p and, hopefully, a bounce if the share is exhibiting symptoms of inherent strength.



A movement such as this would not endanger the uptrend since 2015 as, at time of writing, it's at roughly 13.889p.

However, with a break of the red line on the chart, it becomes highly probable the share price intends to explore the chasm with 8p at the bottom.

On the bright side, we've given the price a month and it has made no real effort to get to our prior 12.7p. If strength is indeed lurking just below the surface, what's needed to inject of dose of optimism?

On Tuesday, the share was "trading" around the 18.5p mark and need only better 19.5p to suggest a change in direction. A triggering movement like this should prove capable of bringing up a cycle toward 20.5p, maybe even 22.75p.

Achieving such a level would be especially interesting as, if bettered, further oomph toward 26p and a future challenge of the blue downtrend can be expected. Only with closure above 'blue' will we be impressed as it shall require another stir of the tea leaves to figure out the next phase of its future.

Will be a great share in 2017.

Tea leaves, alignment of the stars or female intuition? ;o)

Tipped in the Times apparently Harry.

Here is the link - Safety-first shares will avoid bumpy ride in 2017