ShoreCap upbeat on outlook for Sirius Minerals

(Sharecast News) - Analysts at ShoreCap sounded an upbeat note on the prospects for Sirius Minerals, the outfit developing the world's largest polyhalite deposit, in North Yorkshire.To back up their case, they pointed to the fact that construction of the North Yorkshire mine was on track to produce its first polyhalite "on time and in line" with the approved budget, with "good" progress having been made on all aspects of the upcoming $3.0bn senior debt sale.The debt sale was still seen going ahead in September 2019 "if not earlier", they said.Their expectation was that it would rive a "major" re-rating in the share price, as it was the "key" to unlocking the company's "vast" value.Yes, the company would remain variois years from turning cash generative, but as it progressed towards production it should become progressively derisked and "enjoy significant value uplift".Under their base case assumptions, the miner's end-2019 net present value using an 8% discount rate was pegged at £6.3bn or 65p per share, or 40p a share on a risked basis.ShoreCap was acting as joint broker to the firm.