Mining companies 'in talks' over potential buyout for potash operation which employs 750 staff in east Cleveland - Stuart Arnold @Arnie_NEcho

A MINING company which plans to dig up a natural crop fertiliser from the North York Moors could snap up a long-standing potash mine just a few miles down the road.

Sirius Minerals is understood to be in talks with Israeli Chemicals Ltd (ICL), the owner of the Boulby potash mine in east Cleveland, about a potential sale of the plant.

Despite a number of job cuts in recent years, ICL remains east Cleveland’s biggest employer with 750 staff.

Sirius overcame a number of planning hurdles to gain permission to extract the fertiliser polyhalite from Sneaton, near Whitby, at a development known as the Woodsmith mine, and expects to create up to a thousand direct jobs when production begins in late 2021.

ICL is turning away from traditional potash mining, reserves of which are declining, in order to concentrate its operations on mining polyhalite from under the North Sea, which it markets as polysulphate.

The synergies don’t end there with Sirius planning to ship its polyhalite to Wilton, near Redcar, where it will be stored before being shipped from a new harbour on the River Tees.

ICL already has a portside operation at Tees Dock and its own railway transporting goods in and out of Boulby.

Reports from Israel suggest ICL has held discussions with Sirius to sell its British mining operations for a price that could reach between $150m and $200m.

Israeli news website haaretz.com said a delegation of executives from Sirius was in Israel last week to advance the talks.

Polyhalite, a natural fertiliser, is said to aid crop growth due to its potassium, magnesium, sulphur and calcium nutrients.

ICL hopes to extract and handle a million tonnes a year of it by 2019. Sirius, meanwhile, said earlier this month that it was talking to potential customers around the world after confirming its plans remained on time and on budget.

Polyhalite generates bigger cash revenues than potash because it doesn’t require as much processing and uses the same mining and logistic facilities.

ICL, which has interests in Israel, Hong Kong, China and Japan is said to be attempting to sell off its non-core operations in order to reduce the group’s debt.

A spokesman said: “The company is exploring options for co-operation, purchase or sale of companies and assets. When any of these options becomes concrete, the company will report it as required by law.”

A spokesman for Sirius said: “We do not comment on market rumours. We have commercial discussions with multiple partners at all times – we only ever comment on them if they reach a position that requires them to be disclosed to the stock market, in line with our obligations."

Former Middlesbrough South and east Cleveland MP Tom Blenkinsop said: “The two joining forces in some way, shape or form was always something we felt would be on the cards.

“This sounds pretty feasible and if it keeps the jobs for the guys at the site going forward, I’d welcome it and it’d be good for the local economy as it keeps a lot of families on good incomes.

“It’s a good conversation to be having if it provides more assurances for the existing site and workforce.

“Sirius have got some serious capital behind them, they have got people who know a lot about the mining industry, and furthermore it might bring more jobs to the Teesport area in terms of the distribution operation.”

Quarterly development update
§ The project remains on time and on budget
§ Diaphragm walling activities commencing at the Woodsmith site
§ Optimisation opportunities being progressed across several project components

Sirius Minerals Plc provide its latest quarterly development update.

Chris Fraser, Managing Director and CEO of Sirius, comments:
"Activity levels at the Woodsmith Mine continue to increase every month and now step up significantly as we commence diaphragm walling activities. Our team, including both employees and contractors, continues to grow as we expand the Company's execution capability and we are pleased with the progress being made and the positive attitude across the expanding team."

http://www.moneyam.com/action/news/showArticle?id=5684277

A bit here on SXX chart wise.

Flippin' heck skinny.......so, having read that it could go up, but it could also go down,....badly down,....but probably won't stay where it is (mucking around)!
But 'The tea leaves indicate' ......'with our customary note of caution'.....

Having said all that, sp looking interesting to buy for a long term view. :o)

Looking more positive.

POLY4 Offtake Agreement - South East Asia

§ Take or pay offtake agreement for sale of POLY4 to Wilmar Group, a leading agribusiness group, for use and resale exclusively in South East Asia
§ Seven-year agreement with volumes ramping up to 750,000 tonnes per annum
§ Pricing mechanism consistent with the Company's portfolio of existing offtake agreements


Sirius Minerals Plc ("Sirius" or the "Company") announces the signing of a binding take or pay offtake agreement ("the Agreement") to supply POLY4 to PT Chemical Indonesia, which is a wholly owned subsidiary of Wilmar Group ("Wilmar") for exclusive resale into key South East Asian territories including Indonesia, Malaysia, Vietnam, Thailand, Philippines and Myanmar.

Wilmar is listed on the Singapore Stock Exchange and is one of the leading agribusinesses in South East Asia with extensive distribution channels, a mature logistics network in the region and over 250,000 hectares of its own farming operations. South East Asia is one of the fastest growing fertilizer regions in the world, with a population of over 650 million people.

The prices to be paid pursuant to the Agreement are calculated using a formula linked to the market price of certain nutrients contained in POLY4 and is broadly in line with the Company's existing supply agreements.

The term of the Agreement is for an initial seven years following initial production which may be extended by a further three years by Wilmar. The Agreement has a delivery schedule of up to 750,000 tpa in the seventh year. In addition, Wilmar has an option to increase the minimum volumes of supply up to 1 million tpa.

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

"We are delighted to be partnering with one of the largest and most established fertilizer buyers and distributors in South East Asia. Wilmar is a partner with the capacity to reach a diverse customer base through well established, trusted relationships. South East Asia is a fast-growing market which provides Sirius with an attractive opportunity to further diversify and grow our current portfolio of customers."

I assume that spike is false data?

Looks good though! All MAM closing prices appear to be wrong.

Never mind this should make us feel better.

By Peter Stephens | Tuesday, 21st November, 2017


Why Sirius Minerals plc is a growth bargain I’d buy and hold for 25 years


The time horizon of investors varies significantly. However, one thing which many appear to share is an impatience to generate profit from their investments. This is understandable, since it can be hugely frustrating when a stock price fails to rise as much as had been expected at the outset. Worse still, a falling share price and paper losses can lead to even more disappointment.

However, patience in underperforming shares can be significantly rewarded in the long run. One stock which could be a prime example of this is Sirius Minerals (LSE: SXX). The mining company has disappointed in recent months and is down almost 10% in the last six months. However, in the long run the company could deliver high returns.

Slow and steady progress
This year has seen Sirius Minerals make rather ‘slow and steady’ progress. Its operations have moved forward as anticipated, with the company’s Woodsmith Mine developing as expected. There have been offtake agreements signed as the business builds up its marketing capabilities ahead of first production in just under four years’ time. And with crop studies showing that the company’s polyhalite fertiliser could potentially perform better than other options, the Sirius outlook has remained positive throughout the year.

Risks
However, market sentiment has been downbeat of late and it seems that some investors are still unsure about the level of risk the company faces. For example, the project is still in its early days, and there are various risks which could lead to higher costs and/or delays to the first production start date. Furthermore, there is a lack of certainty on the company’s future success at marketing the product, nor is there complete clarity on pricing.

Returns
Despite these risks, Sirius Minerals seems to have high return potential. Further offtake agreements could be signed over the next few years which could help to build investor confidence in its outlook. Progress on further financing initiatives may also help to generate improving investor sentiment. And if the company’s project can remain on track, its forecasts for production volumes and profitability in future years may seem to be more realistic. This could lead to a higher share price in the long run, which is why the company could be worth holding for a sustained period of time.

StockMarketWire.com
Sirius Minerals said its Woodsmith mine project in North Yorkshire remained on track to deliver first polyhalite and commercial production on time and on budget.

Current diaphragm walling activities are about two months behind schedule following some delays commissioning equipment and adverse weather conditions.

The company, however, said it was confident the "small loss of time" would be recovered over the remainder of the project schedule.

Sirius said it was continuing negotiations with a number of potential customers in multiple regions.

Activities relating to the stage two financing process of the project would gather momentum as the coming year unfolds, it added.

SXX off to china with T May:

https://news.sky.com/story/downing-street-races-to-clinch-deals-ahead-of-mays-china-visit-11222951

Given a buy recommendation in this week's I.C.

Sirius signs shaft sinking contract with DMC Mining Services

Improved shaft sinking methodology opens opportunities to accelerate first polyhalite by up to six months

§ Design and build contract for the construction of all shafts has been entered into with DMC

§ Proven SBR systems to be used for the construction of the deep shafts for Sirius

§ DMC incentivised for early completion vs existing target price and schedule guidance



Sirius Minerals Plc ("Sirius" or the "Company") announce that it has entered into a design and build contract with DMC Mining Services UK Ltd and DMC Mining Services Ltd, both subsidiaries of KGHM Polska Miedz SA ("KGHM"), for the construction of the four shafts required for its polyhalite project in North Yorkshire. DMC Mining Services ("DMC") is one of the world's leading shaft sinking and mining contractors.

Sirius has been in extended discussions with AMC UK Ltd ("AMC") in respect of finalising the shaft sinking contract following the "notice of award" in July 2017 which anticipated execution of a finalised contract shortly afterwards. Due to protracted discussions with AMC regarding commercial arrangements Sirius engaged with DMC and other shaft sinking companies in parallel to consider alternatives.

Through this process, it has become clear that DMC, with their extensive and proven shaft sinking experience, are a strong construction partner for Sirius and will bring technical opportunities and a commercial partnership that can unlock potential savings in the construction schedule. Sirius has therefore entered into a design and build contract with DMC and has terminated ongoing arrangements it had for the shafts with AMC.

more.....

This may well be the key to prodding on the price. There have been several encouraging recommendations of late, but so far not much movement.

i recollect that this deposit may still be some 2 years away from full (profitable) production

Quite, but the price has certainly languished from its highs , and the financial support looks to be well in place.Plenty of orders also coming in.

Back above the 200ma, but starting to look over bought.

From the I C

The Sirius story has been long in the telling, and because first production isn’t expected until the end of 2021, the investment case will concern the Woodsmith mine’s development for some time yet. But investors now have a clear roadmap. This year, Sirius should complete the preparation of the site and mineshafts, sign a contract with AMC to sink the shafts 1,520m beneath the surface, and agree up to $2.6bn of debt financing.

That package, which follows the £370m equity fundraising at 20p in late 2016, will provide the cash to build the underground mine and transport system, and design and construct a handling facility 37km away at Wilton, Teeside, and a port at nearby Bran Sands. If all goes well, Woodsmith will produce 10mtpa (million tonnes per year) of polyhalite by 2023, and double that by 2026.

Critically, this epic job is now underwritten by a customer base for Sirius’s POLY4 product, a multi-nutrient crop fertiliser with growing acceptance among agronomy experts and farmers alike. At the time of writing, Sirius had signed seven long-term off-take agreements with agricultural groups in North America, China and south-east Asia, at an average sales price of $145 a tonne.

These deals, equivalent to 4.5mt of annual output, are supplemented by 3.4mtpa of loosely-defined “other commitments”, although Sirius has previously said 6-7mtpa of formal agreements will need to be signed for the debt financing green light. Accordingly, successful completion of ongoing negotiations “with a variety of potential customers in multiple regions” are the most likely source of a stock re-rating in 2018. Comments from JPMorgan analysts that “lender due diligence…is already under way” should supplement confidence.

Equally, prospective investors can take heart from the subscriptions of senior management: chairman Russell Scrimshaw coughed up £511,000 in the 2016 fundraising to keep his holding at 1 per cent, while chief executive Chris Fraser has a £28.5m stake in the FTSE 250 outfit. And according to broker WH Ireland, institutional investors who participated in the placing regularly top up their holdings on any weakness in the stock, providing a useful floor to the share price.

Notice of Full Year 2017 Results

Sirius Minerals Plc (the "Company"), the leading fertilizer development company focused on the development and operation of its polyhalite project in North Yorkshire, confirms that it will announce its full year results for the twelve month period ended 31 December 2017 on Tuesday 6 March 2018 at 7:00am (GMT).

Management will host a conference call for investors and analysts at 9.30am (GMT) on Tuesday 6 March 2018, including a question and answer session. Details of the call will be included in the results announcement.

current cap = £1.25bn
cash call due this year for £2.1bn

source = ST page 2 Biz

97.5% certain i shall take up any rights offered