Barchart Opinion

Partnership with Archer Daniels Midland Company

Expanded partnership with Archer Daniels Midland Company

§ Archer Daniels Midland Company ("ADM"), a Fortune 500 US-based agri-business, confirmed as Sirius' North American POLY4 off-take partner

§ Sirius signs agreement with ADM for the supply of starch-based binding agent to be used in the production of Sirius' POLY4 product



Sirius Minerals Plc ("Sirius" or the "Company") announces the signing of an agreement with ADM for the supply of binder for its POLY4 product and names ADM as the Company's North American off-take partner.

Archer Daniels Midland Company (NYSE: ADM), a Fortune 500 company (currently ranked 48th) is one of the world's largest agricultural processors and food ingredient providers, with approximately 31,000 employees serving customers in more than 170 countries. With a global value chain that includes approximately 500 crop procurement locations, 270 ingredient manufacturing facilities, 44 innovation centers and the world's premier crop transportation network, ADM connects the harvest to the home, making products for food, animal feed, industrial and energy uses.

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

"Sirius has been working with ADM for more than four years and today's announcement further strengthens our relationship by securing ADM as an important supplier and as a customer aligning our interests for the long-term and demonstrating the significant role POLY4 will play in the world fertilizer markets."

ADM named as North American customer

more.....

Liberum Capital Buy 36.44 60.00 - Reiterates

What about the prospect of reaching the all time high of about.46 reached about 2 years back ?

Looking a bit "gappy" and over bought?

Arguably a breakaway gap - time will tell.

https://ftalphaville.ft.com/2018/08/07/1533614400000/Sirius-Minerals--money-for-a-hole-in-the-ground/

Very interesting article on SXX and discussion afterwards. Many different opinions and 'experts'. (You need to be registered with FT to read).

motley fool sell notice dosn't help. profit or in the black 2023 to long for me.
will buy , back in @ 23p BB

Procurement and capital estimate update
§ Design and build contract signed with STRABAG for the remaining mineral transport system drives

§ Materials handling facility EPC contract signed with Jacobs UK Limited

§ Finalising procurement and the associated risk allocations expected to result in stage 2 funding requirement increasing by US$400 - 600m

§ Company to review the most cost effective and efficient sources of capital to fund the additional capital requirement



Sirius Minerals Plc ("Sirius" or the "Company") announces the signing of two major construction contracts and a revised capital estimate for the Company's North Yorkshire Polyhalite Project (the "Project"). The Company has entered into design and build contracts for the construction of Drive 2 and 3 of the Company's mineral transport system ("MTS") and an EPC contract for the construction of the materials handling facility ("MHF") at Wilton. In addition, following the signing of these contracts which substantially completes procurement across the Project, the Company has finalised a revised estimate of the Project's capital cost, funding requirements revised operating costs.

Chris Fraser, Managing Director and CEO of Sirius, commented:
"The signing of the contracts for the remaining tunnel drives and the materials handling facility at Wilton are significant steps forward for the business with almost all procurement now complete. The expected increased funding requirement coming from this process reflects an optimisation of the MTS tunnel design and a significantly improved risk allocation for Sirius to support the senior debt financing. The Project's economics remain extremely compelling and we are confident they support the expected additional funding requirement."

http://www.moneyam.com/action/news/showArticle?id=6117306

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

Any views on what is behind all this ? Are there any new facts that are not already known?

I assume this is probably part of the reason:

"Capital funding requirement

The Company estimates that its revised stage 2 capital funding requirement will be between US$3.4 - 3.6bn (previously US$3bn), an increase of US$400 - 600m and primarily driven by an increase in the revised estimate of capital costs."

From the FT : "On the financing front, chief executive Chris Fraser also dangled a possibility of an unnamed white night, which may be enough to keep bulletin board interest in the stock alive, even though it would dilute the value of Sirius equity. He said on the call with analysts “we'll be looking to strategic partners” and mentioned the possibility of “bringing in a partner with a bigger balance sheet that Sirius minerals".

So the company now has a “chicken and egg” problem as one analyst put it. It must secure senior bank finance, conditional on a final capital raise of equity or some form of subordinated debt, and then finish it all up with a UK government guarantee against perhaps $1.5bn of lending."

Royalty financing investment update

Royalty financing investment update

§ US$250 million royalty investment proceeds to be received no later than 19 September 2018

§ US$50 million equity component to align with Stage 2 financing commitments

§ Royalty drawdown provides sufficient liquidity to fund ongoing project progress in advance of stage 2 financing



Sirius Minerals Plc ("Sirius" or the "Company") announces that it has agreed an amendment to the Minerals Royalty Deed entered into with Hancock British Holdings Ltd ("Hancock") in October 2016 (the "MRD"). Pursuant to the amendment, Hancock has agreed to a drawdown in relation to the US$250 million royalty component of the MRD, with the proceeds provided no later than 19 September 2018. The US$50 million equity component of the MRD will be provided once stage 2 financing commitments are obtained to fully fund the initial 10 Mtpa development of the North Yorkshire polyhalite project (the "Project"). The royalty drawdown provides sufficient liquidity to fund the project into Q2 2019 when the proceeds of the stage 2 financing will be required.

The royalty component of the MRD entitles Hancock to a five per cent royalty on gross revenues from the Project payable on the first 13 Mtpa of production and one per cent on revenue from volumes thereafter ("Royalty"). The Royalty is secured over the assets of the Project, with such security to be fully subordinated to the stage 2 financing senior debt security once established.

Pursuant to the amendment, Hancock will have the right to observe the board meetings of Sirius upon funding the royalty component. Upon funding of the equity component, Hancock will have the right to appoint a Director to the board of Sirius. At such time Hancock will be the holder of approximately 200 million ordinary shares, equivalent to four per cent of the Company's existing issued share capital. Should Hancock dispose of any of these shares they will no longer have the right to appoint a Director to the board.

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

"The drawdown of the Hancock Royalty is another important milestone as we develop into a leading fertilizer business. We are delighted to have an experienced partner in the mining industry aligned to Sirius and one that has a growing, long term agricultural interest. The long-term nature of the royalty investment is well aligned to the underlying characteristics of this world-class, long-life asset."

Supply Agreement and Investment in South America

Sirius Minerals Plc

Major Supply Agreement and Downstream Investment in South America

§ Sirius signs its largest POLY4 supply agreement for up to 2.5 Mtpa

§ Long-term supply agreement with Cibra, Brazil's sixth largest fertilizer distributor group

§ Acquisition of 30 per cent. equity stake in Cibra in return for 95 million ordinary shares in Sirius

§ Sirius aggregate peak contracted take-or-pay sales volume increased to 8.2 Mtpa

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Liberum Capital Buy 28.52 60.00 50.00 Reiterates

Into the gap with decent volume.

StockMarketWire.com
Sirius Minerals announced a total loss of £95.3m for the six months to 30 June, well below the £151.3m loss seen in the equivalent prior-year period, and reported that the build of its huge Woodsmith potash mine in North Yorkshire remained on track.

"Construction activities at our sites continue at pace and significant milestones have been achieved in the first half of the year, such as breaking ground at Wilton. This, combined with excellent progress to our procurement process, has ensured the Project remains on track to deliver first polyhalite production on time in 2021," said Chris Fraser, Managing Director and CEO of Sirius.

But financing remained an issue. The company has spent £148m on the project during the period, leaving it with total funds of £323.4m at the period end.

Since the period end, and in line with the schedule set out in the firm's full year results, Sirius received US$250m from its stage 1 royalty financing instrument with Hancock to fund project progress in advance of stage 2 financing.

The Group now needed to find US$3.4bn to US$3.6bn in capital funding to complete the development of the project. Subject to the successful completion of due diligence and a satisfactory financing plan being presented by the Group, it expected to secure credit approved commitment letters from lenders in the fourth quarter of 2018 and achieve financial close of stage 2 financing in the first quarter of 2019.

"Post the balance sheet date we have finalised the major procurement packages for the Project and are diligently reviewing the most appropriate form of financing to cover the revised capital funding requirement increase of between US$400m to US$600m, to complement the successful delivery of stage 2 financing." said Fraser.

A number of financing alternatives to fund the increased capital requirement were "under active consideration", the company said.

The Board of Directors continued to believe that the stage 2 financing would be successfully completed, however there was a risk that a successful outcome may not be reached, it said.

Liberum Capital Buy 29.50 50.00 - Reiterates