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Sirius Minerals Share Chat (SXX)



Share Price: 14.20Bid: 14.15Ask: 14.21Change: 0.06 (+0.42%)Riser - Sirius Minerals
Spread: 0.06Spread as %: 0.42%Open: 14.02High: 14.25Low: 14.01Yesterday’s Close: 14.14


Share Discussion for Sirius Minerals




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GaiasKidney
Posts: 3,780
Opinion:No Opinion
Price:15.75
RE: Sub 15p 25/5/20?
19 May '19
Hi Tobin.

With the New CBs - $400m issued - I'm not thinking as to whether they are a good investment for the PI, though the terms are attractive, more on the potential level of new issue shares that can arrise on conversion of these bonds.

If a repricing of the conversion price were triggered (ie from if the sp goes sub 15p next May) then the number of new shares from converted New CBs will be 25% higher than if there is no trigger. Adds up to a possible 400m extra in issue. But in that instance conversion would probable only occur well into production as sub a 15p sp in one year's time would suggest the St2 financing plan had failed to sell the first Senior Bonds.

Not in my expectation.

ATB.

GK.
 
Tobin
Posts: 316
Opinion:No Opinion
Price:15.75
RE: Sub 15p 25/5/20?
18 May '19
I have read the prospectus a couple of times and I still wouldn’t like to say that I understand them but the look attractive except that it looks like the minimum size is $200,000.
Do you want to expand on your comments in plain English?
GaiasKidney
Posts: 3,780
Opinion:No Opinion
Price:15.75
Sub 15p 25/5/20?
18 May '19
Just had a moment with the New Convertible Bond terms before nipping to pub - such an exiting life! - and from my reading the reduction of the issue price can only come into force with the sp being lower than 15p around this time next year. P234 prospectus:

"The terms and conditions of the New Convertible Bonds provide for..the prevailing conversion price to be reset on 25 May 2020 to the average market price... plus the initial conversion premium of 25 per cent. above such average market price (provided such reset results in a conversion price that is lower than the prevailing conversion price and subject to a minimum reset conversion price which is equal to the initial reference share price of US$0.20.."

If I understand correctly.

If the co have failed to get the Initial Bond away this could well apply. However if that's the case we are all well flushed around the U bend anyhow! Conversaly with the bond away in all common sense 15p should then be a small pecentage of the then valuation.

Quite an 'all or (next to) nothing' structure.

GK.




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