Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
I'm glad that I am invested in a nice stable share like SXX!
Whistling "Always look on the bright side" as the curtains close and the slightly squeaky conveyor helps you on the way to your final destination!
Good morning all
I hold my SXX shares in my SIPP and ISA with Interactive Investor
This morning I have 4 invitations to vote my shares
All the Best to almost All
Road to nohair by the Talking Bolix seems appropriate to me.
Still holding, still optimistic, still waiting!
Best wishes Eng.
Thank you for the comments, I was not anticipating trying to do a stripped down version with one shaft and road hauling it out. I don't think the National Park would go for that beyond the limited amounts already permitted in the planning. IMHO
My thoughts were, With the financial assistance of a strategic partner to fund the sinking of one or both shafts to the polyhalite horizon whilst continuing with Stellar Rose to construct the tunnel. Could we then raise the additional debt as completion bonds held in escrow until construction milestones are achieved, this would ensure that we have a financed route to production but with reduced perceived risk. My thoughts were whether due to the potential delay SM should aim for initial production of 13/14Mtpa. This may help to offset the implications of the rescheduling of the build. Dock capacity could be the next bottleneck.
My speculation, your thoughts most welcome. Regards
I think you misunderstand my question.
I was suggesting that we have a production shaft and service shaft, but the service shaft is configured to run half product and half personnel/equipment?
IMHO etc...
As there seems to be little to report at the moment I have been reassessing the CPR released in support of the unfortunate JPM debacle (did anybody else feel that their "best efforts, but not underwritten" felt and sounded like a game where you have to throw a double to start.?)
Assuming that we are not going bust and not filling the holes in (there are funds already ring fenced to do this as a planning requirement but let's not do that)I was looking into the possibility of heading for 13m tonnes capacity and then on to 20m.
From the CPR: (The production shaft)
The system incorporates two winders each with a hoisting capacity of 6.7 Mtpa, providing a total capacity of 13.4 So no additional shaft sinking required to get to 13Mtpa Good.
The service shaft is of similar size so my question to mining experts is this:
Could the service shaft run mineral skips in one half (adding a further 6.7Mtpa) and personnel /equipment in the other half?
Is this permitted? Qualified response please.
The alternative plan involves extending the Woodsmith MTS shaft to the polyhalite horizon with the obvious cost and time constraints. I am aware that there are further bottlenecks in processing and export port facilities.
IMHO as ever and best of luck to LTH
I think that it is interesting that the journalist was at various sites of this extensive build. Supposedly had an 80 minute interview with CF and largely the only thing that she thought fit to print was based on two or three lines regarding the current efficacy of the capital markets.
Remarkable IMHO
Totally agree with your thoughts, even with 14b shares the net profit on 14m tonnes of poly4 at $62 per tonne (net profit @$140 fob Teesside) should support a dividend over 5p and a reasonable share price of c£1
All of these numbers are from recent CPR reports.
The thing that is puzzling me regarding the DM article is:- Is this based on an interview that CF gave this week, in which case there is some meaning and some plan. Or is it a highly distorted edit of an interview from 3/4 weeks ago? If so it is an effective but unhelpful piece of journalism.
Any thoughts
IMHO etc....
I was hoping to spark a debate. It seems all I have done is to attract the attention of the loon on the bus!
IMHO no harm intended to loons or busses
Cheerio!
Good afternoon all! Long term lurker, Long term holder and general optimist.
I have read as much as I can regarding Sirius Minerals and the Engineering and Financial background to it. Thanks to the well informed posters on this BB.
I re-read the bond prospectus from earlier in the year (It is gripping and a real page turner even if you know the result)
However a couple of interesting pieces of information regarding the spend on the different elements of the build and the net profit possible at 14mtpa
Page 220/240 of the CPR has a bar chart showing actual spend on Shafts/mts/mhf etc for 2017 and 2018 and projected spend on these items for 2019 to completion. I think this provides an opportunity to concentrate on shafts (2 deep, 2 mts) and keep going with Stella rose, possibly holding the other spend for 12 months, take on a strategic partner for 600m and 45% ownership (fingers crossed) and then return to the debt market when the SBR has achieved the polyhalite horizon.
The further piece of information is that the total cost of poly4 fob Teesside is c$78 per tonne this figure I believe includes all costs except debt financing.
So to look forward to our potential business : net profit should be 140-78 so $68 per tonne.
68 X 14mtpa. = $952m pa to pay debt/dividends/extend to 20mtpa
Doubling the amount of shares to 14b would still give a potential dividend of 6.8 cents or 5.1p
At a 5% yield this gives a SP (at 14mtpa) of about £1
That is why I am still holding despite being 80% down. IMO etc....
Regards