Another day and another apparently positive statement from Sirius Minerals (SXX) as it tries to maintain interest to keep its equity drawdown death spiral going. But as ever the maths are not all that supporters might have hoped for.
The worlds No 1 mining analyst Roger Bade of Whitman Howard expresses it thus:
The latest crop trails update is positive as it shows their proposed, so called POLY4 polyhalite product, is a fully soluble multi-nutrient fertiliser which does not raise soil salinity.
This is all well and good, now all they need to do is find buyers willing to pay US$175 per tonne (/t), or more for POLY4 to make their project economic.
Following recent falls in potash prices, polyhalite prices of around $100/t won’t do the economics any good.
And so as things stand: the mine that Sirrius cannot seem able to get planning permission for and has not secured funding for can produce stacks of product at a price which will not generate any positive returns at all.
At 7.07p you cannot be Sirrius is valued at £122 million. What it is worth is a rather different matter.
Seriously! I don't think this guy has a clue what he's talking about!
He wrote this 3 weeks ago ffs!
"The risk now is that while 10p caps the price action (this allows some wiggle room on the 20 day moving average feature) those who are short here can expect to see a sub 5p target early in the New Year on the basis that this would probably be the floor of a falling price channel from the end of July."
I was up there again at the weekend. The gates were still padlocked so i couldn't get access to the site but it was still possible to see the remains of the drilling rig - a rusting hulk half buried in the mud. The two site cabins were both derelict and some chickens were nesting in an abandoned Landrover. With the share price sinking a lot faster than their mineshaft I'm glad I got out of SXX at 26p, having previoulsy bought absolutely shed loads at 16p !. Naturally GLA to those who remain. I just hope the mega tunnel plan comes off - a bloke down the pub reckons they might share it with HS2. I could see it happening ! - why not ?.
If u sell now u could b caught on the hop. That sharp rise to 8p came from nowhere. I think there'll be another sharp rise this year followed by a slow climb up to high teens or 20+ poss. At the moment if u can afford to hold its a terriffic ride ahead.
Unless you bought at less than 7p you are in the same hsit as me and thousands of others. Just have to hold out and wait for either the ever unlikely PP next year ot a buy out by someone with better contacts and knows what they are doing.
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