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

Teesside port construction contract signed

Teesside port construction contract signed

§ Port handling facility EPC contract signed with McLaughlin & Harvey

§ Contract price in line with capital re-estimate announced on 6 September 2018

§ Procurement of the major construction packages for stage 2 financing near completion with only the MTS fit-out package outstanding

Sirius Minerals Plc ("Sirius" or the "Company") announces that its subsidiary York Potash Processing and Ports Ltd and McLaughlin & Harvey Ltd ("McLaughlin & Harvey") have entered into an engineering, procurement and construction contract for the development of the Company's port handling facility at Teesside (the "Contract").

The Contract scope comprises the design and build of works associated with the port handling facilities including; product storage facilities for approximately 250,000 tonnes of product, ship loading equipment, ship outload infrastructure, and the final product screening facility. The Contract price, which will be incurred in GBP and EUR, is on a lump sum basis and is in line with the Company's capital re-estimate announced on 6 September 2018. The proposed schedule for the works fits within the Company's overall Project schedule.

The Company's stage 2 financing related procurement programme is nearing completion for the major construction packages with only the mineral transport system ("MTS") fit-out scope remaining. The Company has identified STRABAG as its preferred contractor for the MTS fit-out and is in the final stages of negotiation for this scope of work.

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

"We are pleased to have entered into another significant construction contract for the ongoing construction of our world leading polyhalite project. In 18 months we have made great progress and are now nearing the completion of the procurement programme to support our stage 2 financing process.

"The construction of our port infrastructure is another example of the level of investment and skilled job creation we are delivering in both Teesside and the UK as we develop a project that has the potential to make the UK a world leader in the fertilizer industry."

Ben Houchen, Mayor of the Tees Valley, comments:

"I am delighted to see yet another step forward for Sirius Minerals' nationally significant project. The level of commitment to Teesside from this project is huge as it will continue to generate jobs for local people and help expand our global reputation. The successful development of the Sirius project will see over £400 million invested in Teesside and will importantly see the regeneration of the former Redcar steelworks port frontage. We expect many more regeneration projects will be announced on the South Tees Development Corporation site very soon."

Port handling facility

The port handling facility will receive the Company's polyhalite fertilizer after it has been transported from the Woodsmith mine site via the 37km underground mineral transport system and processed into the finished product, POLY4, at the Wilton Materials Handling Facility. At peak production the Company expects to export 20 million tonnes per annum of POLY4 to markets all over the world. Offtake agreements have already been signed with customers on four continents for 8.2 million tonnes per annum in peak aggregate volumes of POLY4.

Liberum Capital Buy 23.84 50.00 Reiterates

Let's hope the Retail Investors make something from this AIM miner with grand ideas. Whilst it is a long-term project, there will be dilution and rising costs as "projects" rarely run smoothly / or on budget.
Where there is good news:- it's that potash is there to be taken - and there is a World-wide demand for this - boosting UK Exports...( as I understand, you just spread it on farmland, for better yields ).
Hopefully some will find its way onto British soils; as we always need to reduce imports and maintain healthy low-mileage food distances.
We should be wary of the rail-tunnel aspect - this is only necessary because the potash is in the N.York Moors, which is a "sensitive region" - hopefully the extraction will go smoothly and might ( after 20 years?) become a Tourist trip to see the holes - as I'm not sure how deep extraction effects the topsoil - surely this must dip to fill the void - or could we see this being filled with inert rubbish, perhaps?

Procurement for major construction packages

Procurement complete for the major construction packages

§ Mineral transport system fit-out agreed and finalised with STRABAG

§ Fit-out price in line with capital re-estimate announced on 6 September 2018

§ Procurement now complete for the major construction packages for stage 2 financing, a significant milestone

§ The Company is working towards financial close of stage 2 financing in Q1 2019

more.....

Liberum Capital Buy 23.36 50.00 Reiterates

Completion of Cibra investment and share issue

There has been some "serious" buying of the stock since lunchtime when the local MP asked the Prime Minister if the government would financially support its project.

and the response was what?

She said she was particularly pleased to meet the CEO of Sirius in China but said that the discussions were commercially sensitive so it would not be appropriate for her to comment. She did seem to like the future for Sirius though!😊

one can but hope, but no more than that

Just a simple matter of obtaining the Treasury guarantee that they require. Hmm, who will be running the Treasury in the near future?!😃

sorry, but there's no money left :-)

That's not funny!

ed balls thought it was :-)

:-)

Lol!

Q4 Progress Update

§ The stage 2 financing is making progress towards obtaining commitments from lenders

§ Significant construction progress during the period

§ Procurement completed for the major construction packages to support stage 2 financing

§ Completion of the Cibra strategic investment

§ The Company remains on track to achieve first polyhalite and commercial production on time and in line with the cost schedule announced on 6 September 2018

Stage 2 financing

The Company is making progress with the US$3.0 billion (£2.4 billion) debt component of the stage 2 financing.

The Company has been engaging with prospective lenders throughout the process and has revised certain aspects of our proposed US$3.0 billion stage 2 senior debt financing to modify the credit risk allocation amongst the various prospective lenders. The original structure contemplated two equal tranches of debt, one commercial bank tranche and one IPA guaranteed tranche, which would be drawn on a broadly pro-rata basis and also rank senior secure, pari passu. Our new structure contemplates three tranches of debt, totalling US$3 billion in aggregate, that will rank senior secure, pari passu, but will be drawn sequentially linked to key construction milestones. The first tranche will be an uncovered debt capital markets tranche, the second a commercial bank tranche, followed by the third being the IPA guaranteed bond tranche. This structure is designed to reduce both the risk and the quantum of any IPA guaranteed bond tranche to the taxpayer as by this time we will be past the major construction risks and POLY4 sales underway.

A group of lenders and the IPA will be working closely with the Company and the lenders' advisors to work through the due diligence reports and the detailed terms and conditions of the structure and the financing. The Company is working towards having agreed commitment letters as soon as possible.

Due diligence reports have been prepared by the lenders' advisors and the Company is engaging with prospective lenders and their consultants to address the due diligence matters that have been highlighted. The Company believes that the due diligence undertaken by the lenders' advisors supports the Company's Project cost estimates announced on 6 September 2018.

The Company is confident of being able to address the due diligence items highlighted by the respective consultant reports through negotiation of the detailed terms of the finance documents.

In relation to the additional capital the Project requires, the Company continues to progress all options previously outlined with a view to securing the additional capital in a manner which complements the senior debt financing and meets the liquidity requirements of the Project.

The Company's cash balance as at 31 December was £290 million, of which £230 million is unrestricted, which provides sufficient liquidity to fund project progress in line with the current Project schedule into the second quarter of 2019.

more.....