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Sirius Minerals Share Chat (SXX)



Share Price: 19.25Bid: 19.00Ask: 19.25Change: 0.25 (+1.32%)Riser - Sirius Minerals
Spread: 0.25Spread as %: 1.32%Open: 19.00High: 19.25Low: 18.75Yesterday’s Close: 19.00


Share Discussion for Sirius Minerals


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Good2bhere
Posts: 27
Off Topic
Opinion:No Opinion
Price:19.00
New mine
Today 14:49
In the meantime would it be worth considering sinking a small shaft and a working mine in order to access some of our valuable assets. Considering the area's expertise ( ex coal mining) and modern technology, this might not be as expensive as one might imagine. This could be worked along side, and as well as our current plans for mine, tunnel and harbour. It would be self cash generating. Products could be sold to the home market. We would at least have some income instead of relying solely on borrowed money. It would give some exposure to our products plus I could buy some for my tomatoes.
Am I being too simplistic?
What are your thoughts?

RS
 
laurenlouise
Posts: 360
Off Topic
Opinion:No Opinion
Price:19.25
RE: it's still about dilution
Today 14:26
Hello Scotman, as an investor in sxx ,I care what the share price is and will be .

I was taking the market cap of 2 point 4 billion as read, whatever the ratio of debt to equity was.

The share price for our 2 point 4 billion pound company can vary widely depending on the number of shares issued.

So for the above m/cap if there were 10 billion shares I would be unhappy and if there were 4 billion shares I would be happy, and a sliding scale in between.
So the price that new shares are issued at matters to me, and the factors that influence this also.

Oh well ,back to the beach.
Good2bhere
Posts: 27
Off Topic
Opinion:No Opinion
Price:19.25
Re Its still about dilution.
Today 14:25
I can see the sense in waiting for better news in order to push up share price before going to the market with a placing price. At these volumes a penny can make a hell of a difference. As I've said before placing price needs to be below actual price in order to give some incentive. Otherwise they would just buy on dips (which I think some are doing already). This doesn't help SXX at all.
Dilution nearly always benefit the company, very rarely shareholders.

RS
chelsey
Posts: 25
Off Topic
Opinion:No Opinion
Price:19.25
SP, diluted or otherwise
Today 14:25
These days I like the "what will be will be "approach. I really don't want to go back to the days of fishing out my Parry's Valuation Tables to consider discounted cash flows and the year's purchase of a £ in perpetuity (especially in metric!). The fact of the matter is no one on this board has any real influence over the end result come the day the finance arrangements are announced and the market, being the market, will do its unpredictable own thing, much as we've seen in the past. But I guess it's entertaining banter while you're waiting.
kyoung
Posts: 2
Off Topic
Opinion:No Opinion
Price:19.00
RE: it's still about dilution
Today 14:00
Laurenlouise
The equity deal is more important hence just announcing the debt deal on its own will not serve any constructive purpose other than cause unnecessary volatility in the SP.
Scotman
Posts: 8,720
Observation
Opinion:No Opinion
Price:18.75
RE: it's still about dilution
Today 13:24
I was merely pointing out that the share price would depend on the number of share that had been issued. The dilution.
---
You mean the share price will depend on the market capital of the company divided by the volume of shares issued?
That's hardly rocket science. GK did his sums on a benchmark of 50/50 for the stage one monies. It's fair to say the MC will be what the MC will be and the sp will be based on that!
Split hairs for ever but you're stating the obvious!
laurenlouise
Posts: 360
Off Topic
Opinion:No Opinion
Price:19.00
RE: it's still about dilution
Today 13:02
Kyoung, you say:

Negotiations for debt and equity have to run concurrently for a win win situation for both the equity investor and the company.

I agree. Do you think that they will be announced separately or together?

My original post on this subject was assuming that the debt and equity were in place on a 50/50 ratio and we were post a finance deal being announced. Gk had speculated that at this point the company may have a market cap of 2 point 4 billion and I was merely pointing out that the share price would depend on the number of share that had been issued. The dilution.
kyoung
Posts: 2
Off Topic
Opinion:No Opinion
Price:19.00
RE: it's still about dilution
Today 12:13
Equity investors have less priority than lenders in the event of failure hence are exposed to more risks. Highly unlikely for equity investors to go in post debt deal announcement because SP can go either way depending on how the market perceive the terms of the deal. Negotiations for debt and equity have to run concurrently for a win win situation for both the equity investor and the company.
laurenlouise
Posts: 360
Off Topic
Opinion:No Opinion
Price:19.00
RE: it's still about dilution
Today 11:50
Nelly ,assuming you are an Asian elephant, then you would be closer to the action than me.
laurenlouise
Posts: 360
Off Topic
Opinion:No Opinion
Price:19.00
and another thing
Today 11:44
I do feel that sxx will consolidate its share price with this round of finance

Say at 5 for 1 ,giving a share price of one pound at today's value.

I believe that institutions don't like buying low value shares. Must admit I don't know why as it's logically the same, but I'm told that they dont




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