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“Sirius has already been pre-approved for IPA” when that got the red card Fraser went on to the plan below.
“Today we are pleased to announce that, as a result of that work, we are launching a comprehensive markets-led solution for our funding requirements which will enable Sirius Minerals to complete the development of its mine and unlock what we believe to be the world’s largest known high-grade polyhalite deposit.
The funding package will bring together equity, convertible bonds, high yield debt, and a US$2.5bn revolving credit facility in a multi-stage, flexible structure that balances the availability of capital with the needs of the project.
Today’s announcement provides a clear pathway to a fully financed project in the months ahead, while enabling us to progress construction at full speed.”
"Looks to me that ‘pre approval’ means getting through the first hurdle but not an actual sanction of the guarantee itself."
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We never heard why it was not approved or what would be needed to get approval.
they first announced that in Sep 2015. lots of ifs in there and further references in subsequent funding updates.
no doubt the government has been a big let down wrt supporting sirius. i have lobbied my local MP many times. they clearly dont give a shot about SHs. anglo is a win for them if it gets built.
my personal view is that sirius has been well and truly sold down the river by government over the years.
Infrastructure UK prequalification
The Directors of Sirius Minerals PLC (AIM: SXX, OTCQX: SRUXY) ("Sirius Minerals" or the "Company") announce that the Company has received prequalification status from Infrastructure UK ("IUK").
The Company has been in discussions with IUK for some time regarding the likely requirements of its planned second phase financing and prequalification. IUK is a unit within Her Majesty's Treasury ("HMT") and the prequalification is for consideration of a HMT guarantee in relation to the York Potash Project ("the Project"). The receipt of prequalification status does not constitute an offer of financing or an underwriting commitment by IUK. The Company expects IUK to undertake detailed technical, legal and commercial due diligence in parallel with other senior debt investors, at the relevant time during 2016.
If an HMT guarantee was obtained it could provide valuable liquidity for the financing of the Project, alongside senior debt from the bank or debt capital markets and any support from Government backed credit agencies.
An HMT guarantee would be expected to follow a similar form to others placed in the market to date by IUK under The UK Guarantees Scheme; an unconditional and irrevocable financial guarantee of the scheduled principal and interest and consistent with European Commission's Notice (2008/C 155/02) on state guarantees. A standard form guarantee can be reviewed on the HMT website.
If they call in administrators straight away they instantly wipe out their own shareholdings, so they may instead talk to anyone offering funding including what they previously rejected but don't want us to know the details of
TF the link.
https://www.sharesmagazine.co.uk/article/crunch-time-for-sirius-minerals-as-it-tries-to-secure-3bn
yes agreed ! but the BoD arent going to run it to the last day before trading as insolvent. suspect theyd call the administrators straight away. thats my worry anyway and it would be game over for us all
I agree that probably not many shareholders know about the site. However, that just supports my view that it’s counter-productive. The amount pledged is still far too small to show any viable solution to an institutional investor. It’s all done with the best will in the world, but he’s not going to move the needle.
As many have already said this morning Odey are just in it for another 2p on the offer and since the article in the Evening Standard there have been no further mentions of anybody coming in with an alternative funding solution.
Since a lot of the people who would vote yes have already sold out it’s clear that the most likely outcome is a no vote and then following on from that potentially another increased offer from AAL or it will go to admin and they will pick it up at that stage.
Just my views.
"im not sure id be basing my investment decisions on the rumours of the evening standard!"
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Well we based our decisions on that Aussie c**t spouting about pre approved for government guarantee. Whatever happened to that?
Think the story about the QIA is very plausible. It makes sense for them and other IIs to fund rather than lose their investment. They also will get a big chunk of equity for a small amount. Maybe you can tell us why this is not an option.
and the half year report was prepared before the strategic review was completed, following which there was a slowdown in operations to preserve cash, which is why, I recall, they have sufficient to see them through end of April
On my calendar there are 28 days between 3rd and 31st March. You're suggesting that nothing can be achieved in four weeks. Qatar could fund this in about four minutes, if they wanted to.
Which I would imagine is why QSI previously offered a bridging loan and may do again to protect their bond and shareholding if there is a no vote
Wholeheartedly agree Pianista
"If there honestly were anywhere close to 85k PIs left, this thing would be flying. It takes a couple of mins to complete and there is no obligation.
I would in fact argue that the site is counter productive since any prospective investor would actually look at it and see only minimal PI support".
But I suspect only a small proportion of PIs even know about the fundsirius website. How many of "the 85,000" are keeping in touch through this BB, for example? If you extrapolate the interest already shown across the whole PI population, it is substantial, not minimal.
not according to the last half year report on 17 Sept last year -
“The Group will need to secure additional external financing in order to allow it to continue operations after 31 March 2020.”
im not in finance but id say it will be pretty hard to deliver an alternative between 3 Mar and 31 Mar.
I recall funds were available to meet costs through end of April. The vote is on 3rd March. There is time to put plan b in place, not much time, but there is time.
agree on Odey. they dont give a monkies about LTHs. there in at 5 ish so not in same boat. great if they force a rise but doubt they are saviours of hopes
im not sure id be basing my investment decisions on the rumours of the evening standard! the thing about this being to big to fail for instos is a non starter to my mind. they are unlikely to get a choice because the board will just panic and call administrators. amazing what the threat of people coming after your own assets will do to decision making.
the fund sirius work is great but is any insto going to take it credibly ? have those pledging got the funds to back it up and what if they change there mind ? remember we are running out of time massively. id have more confidence if it was at +£100-200 m at this stage
To a raise at 10p most sensible investors would’ve said, I don’t like it but I understand it. Now I’ll make a smaller profit and have a smaller dividend but at least I’ll still make a profit and receive a dividend.
What were being offered is a long way from that.
But if AAL pick this up at the expense of shareholders they will not ever have an easy ride. Disgruntled shareholders will attempt to sabotage and object to the build at every turn.
AAL have significantly underestimated local sentiment imo. They could’ve picked up a majority stake and kept the required debt off their bookS, and had a passive investment that someone else could’ve run, where they could’ve exited their investment with much greater flexibility by selling shares over a long period of time ( they probably could’ve sold enough on the rise post funding to be in for about a third of the company for free).
But instead the greedy bastards want the whole lot and to stiff us all.
Let’s see what happens next. I think they may have been a tad too greedy.
I agree with your post/assessment Truthfactory
Tex, I’m fairly sure the Qataris could find someone to run it. If not directly, through the regular recruitment channels. I pointed out recently that their massive infrastructure project they’ve been undertaking to host World Cup 2024 probably sees them well placed to find someone to run the Sirius build. I’m sure there are many qualified candidates that would be more than capable and would make themselves available for this undertaking.
True Calamari, that’s most likely.
TRue that was reported LTV.
However, it is not even a rounding error to them, their total portfolio is $300bn plus so a fraction of a %.
The question is therefore would they want to underwrite a mining project and who would they get in to run it? This is not their normal caper.
Again, I would suggest the website reflects some link to an II or similar, and ‘spells out they plan’. Plus there is no mention of CF going, which is clearly a prohibitor to many pledging.
Tex, according to the Evening Standard, QIA have already floated the idea of a bridging loan. Rounding error or not their $140M investment is significant and not something I think they would want to write off. You can make the counter argument that funding of $600M is also a rounding error for those guys. They could turn that rounding error into several BILLION on production. Several Billion is not a rounding error for anyone.
“ I'm not sure the institutions heavily invested in this - bonds and shares - will let this fall into administration.”
I think their investment is a rounding error to their overall value and portfolios.
More likely that a new investor comes along rather than trying to persuade the old ones to stump up more. However, personally I see that as very unlikely (could be wrong though).
If the purpose of the survey is to entice a new II to underwrite the cash raise then this needs to be specified on the page ASAP. As I said over three weekend, it’s still not clear to me what the purpose of that website is. It doesn’t seem more than a polling mechanism and currently we just seem to be seeing a repeat of the signing of the petition, no one is interested in doing it. Still not even 10% pledged.
If there honestly were anywhere close to 85k PIs left, this thing would be flying. It takes a couple of mins to complete and there is no obligation.
I would in fact argue that the site is counter productive since any prospective investor would actually look at it and see only minimal PI support.
If a no vote happens (which I think it will) then it will be a higher offer to get Odey on board or admin.
If it’s admin then hundreds will lose their jobs and the local area will lose all the associated investment from the mine. CF will just lose his £10k and just go and find another Exec role. PIs lose all their money in Sxx.
I am already thinking to the next vote against a revised offer of 7p or certain admin. What will people do then?
There - a contrarian view for debate to bring some balance back.