Member Info for Eureka1963

Barclays PLC CEO Jes Staley on Q3 2020 Results...And the Board will decide on full year dividend and capital returns policies in February.

https://www.bbc.co.uk/news/business-54424686
Lloyds Banking Group, which includes Bank of Scotland and Halifax, said limiting bounce back loans to existing companies made applications speedy, as well as helping with fraud and money laundering checks.

AGM Presentation 31 May 2018
https://siriusminerals.com/downloads/agm-presentation-may-2018/
{pg.9} MYTH – MTS COSTS UNDERSTATED

Procurement and capital estimate update 6 September 2018
https://otp.tools.investis.com/clients/uk/sirius_minerals/rns/regulatory-story.aspx?cid=485&newsid=1176737
MTS Capital Costs
November 2016 - $858m
September 2018 - $1,461m
Change - $603m

LTV...Qatar initial investment was $100m (500 of the $200,000) Convertible Bonds 2023 which raised in total $400m, so owned 25% of those issued bonds.
Rule 2.9 Announcement:
https://otp.tools.investis.com/clients/uk/sirius_minerals/rns/regulatory-story.aspx?cid=485&newsid=1358352&culture=en-GB
Sirius also confirms that as at the close of business on 10 January 2020 it has USD 236,600,000 convertible bonds outstanding; these bonds are convertible into Sirius ordinary shares, and comprise 1) USD 137,600,000 8.5 per cent convertible bonds due 2023 (ISIN code: XS1515223516)...

So in effect, Qatar still holds $100m (500 bonds) or (72.67%) of the outstanding USD 137,600,000 (688 bonds) 8.5 per cent convertible bonds due 2023. (100m/137.6m).
Qatar investment into the Convertible Bonds 2023 remains at $100m.
Additional info:
http://www.blueshare.co.uk/community/index.php?threads/sxx-sirius-minerals-share-chat.1890/page-228#post-149877

"Given that Qatar once owned over 70% old CB, it must have sold some of the old CB"
These are two separate bonds...Qatar have not sold any bonds they hold.
Qatar hold 72.67% of the 8.5% Convertible Bond 2023 (XS1515223516)
Oasis hold 41.01% of the 5.0% Non-Escrow Bonds 2027 (XS1991118255)

http://staticcontents.investisdigital.com/media/a/anglo-american/plc/mp3/analyst-call-anglo-american-response-to-statement-from-sirius-minerals-plc.mp3

https://siriusminerals.com/downloads/annual-report-accounts-2018/
15. ROYALTY FINANCING {pg. 111}
The royalty financing is a financial instrument committing the Group to make future royalty payments over the life of the Project in return for an up-front payment by Han****. The contract commits the Group to make cash payments linked to its revenues and is therefore a financial liability. In substance, the royalty agreement means that the Group receives cash up-front from the counterparty, who will be repaid over the Project’s life through royalty payments, analogous to a loan arrangement.

Therefore, the royalty instrument is treated as a financial liability measured under amortised cost, with the value on initial recognition being equal to its fair value, which is the value of the cash that was received on drawdown.

Each period, an interest charge is recognised, with the interest rate applied being the instrument’s internal rate of return which discounts the present value of all expected cash flows over the royalty’s life back to the value of the proceeds received on the drawdown date.

If Cibra is a going concern do we gain any revenue from it currently?..............................please.

https://siriusminerals.com/downloads/half-year-results-for-the-period-ended-30-june-2019/
{pg. 9}
2019 Half Year Results - Loss from equity accounted investments (Cibra) (£m 1.3)

2018 Full Year Results - Loss from equity accounted investments (Cibra) (£m 0.6)
Note: Financial information covering the period over which the Group had significant influence over the associates from 26 November and at 31 December 2018. The losses incurred in this period are reflective of the seasonality of the associates’ businesses in relation to the portion of the year in which the Group began accounting for them.

Just finished a chat with IR:
Accordingly the Daily Mail article was 'not an absolute true reflection of what was discussed in the media interview', and that 'this, and several other (media) interviews that the CEO has given have been taken completely out of context and to provoke public interest'.
Sirius Minerals External Affairs and media relation team are preparing to make a statement.

IR have since contacted and have provided the following statement:
"There is NO intention to take Sirius Minerals private, our focus is to complete the Strategic Review and unlocking the value of our Project for shareholders, our community, and the UK as a whole".

In 2012, Yara entered into a C$40m investment for a 15 year off-take arrangement for 30% (c. 600,000 tpa) of all products (Sulphate of Potash - SOP) produced by IC Potash and its Ochoa Project. Over 2014/15 Yara made an impairment write-down of the associate IC Potash investment.

In 2017, Cartesian Capital bought out IC Potash interest in the Ochoa Project, and together through its investment in PolyNatura Corp. (PolyNatura) will mine and process polyhalite and not SOP (as the initial purpose for the Ochoa mine). Production is set for 2021.

January, 2019 - PolyNatura and Nitron Group Announce Offtake Agreement for Polyhalite - Nitron will purchase 75% of PolyNatura’s production (1.5 million tons annually at peak production) over a five-year period commencing from first production.

QAFCO - Muntajat - Yara

https://www.businesswire.com/news/home/20170302005616/en/IC-Potash-Announces-Closing-Private-Placement-Diversification

Mr. Mehdi Azodi, President and Chief Executive Officer of the Company stated, “The medical cannabis space is growing rapidly in Canada and internationally. Canada, Netherlands, Australia, Germany, Israel, Uruguay and Colombia have all passed legislation to allow for the cultivation of medical cannabis.

The cultivation of the various strains of Cannabis plants in these different jurisdictions requires considerable fertilization by macro and micronutrients. All of the nutrients in polyhalite: Potassium, Magnesium, Calcium and Sulfate, are important nutrients for cannabis cultivation. Further, the cannabis leaves themselves benefit from non-chloride fertilizers and polyhalite is a non-chloride fertilizer. We are pleased to be expanding into this prolific space for future joint venture partners.

The fact that polyhalite is an organic fertilizer makes this natural based product favorable to numerous international growers. Potassium takes part in the photosynthesis process, improves the resistance of plants, increases the consistency and strength of the plant, and increases the weight, density, and volume of the buds. Potassium, Sulfate, Calcium, and Magnesium all provide benefits during the vegetative and flowering stages of cannabis cultivation.”

12 November 2018 e-mail to IR:
Is the Han**** Equity Purchase Price conditional on the share price?
For example, If Stage 2 Financing is viewed negatively by the market, and Convertible Bonds are to be issued with a discount to the share price.

21/11/2018 IR Response:
To clarify, the royalty agreement does not contain any conditions linked to the share price of Sirius. Assuming that all other outstanding conditions in relation to the equity component are met, then Han**** cannot refuse to proceed on the basis of our share price.

https://siriusminerals.com/downloads/annual-report-accounts-2018/
17. DERIVATIVE FINANCIAL INSTRUMENT {pg. 113}
The Group does not use derivative financial instruments for speculative purposes.

As part of the royalty financing agreement, Han**** is committed to subscribe for 200 million new ordinary shares in the Company for an additional consideration of US$50 million. Han**** is required to subscribe for these shares upon the Group’s securement of its stage 2 funding commitments. A derivative liability is recognised in respect of this commitment and its fair value is measured as the difference between the fair value of the US$50 million that will be received and the fair value of 200 million new ordinary shares that will be issued on the drawdown date.

Equity swap:
Contracts can be used in hedging risk exposures. The derivatives are frequently used to hedge against negative returns on a stock without forgoing the possession rights on it. For example, an investor holds some shares, but he believes that the recent macroeconomic trends will push the stock price down in the short term while substantially appreciating in the long term. Thus, he can enter the swap agreement to mitigate the negative short-term returns of stock without selling the shares.

Expiration Date:
Would be the settlement date where each party would transfer monies relating to the performance of the equity offered. In the case of Citigroup the equity would be SXX shares.

Exchangeable Bond (Convertible Bonds 2027) Final Maturity Date (being 23 May 2027)
Physical delivery:
Is a term in an options or futures contract which requires the actual underlying asset to be delivered upon the specified delivery date.

175,194,524 Equates to 214 Convertible Bonds
28,653,310 Equates to 35 Convertible Bonds
(Conversion Ratio 818,665 shares per bond)

So where should this $1.675bn get us?...

Taking the net funds raised (incl. c.$15m Initial Bonds arrangement fee) and unrestricted cash (2018) suggests c.$1.555bn and after deducting Free Project Cashflow c.$732m (2018) and c.$852m (2019) would imply the need to draw upon the first RCF tranche in 2020?
https://siriusminerals.com/downloads/agm-presentation-june-2019/
It should be noted that the Company have provided guideline as to the drawdown of the RCF (SLIDE 16).
That said there was also guidance in the May 2019 Prospectus SRK CPR Table 16-8: Annual Production {pg. 555} (2024) of 8,572 kt which, in the July 2019 SRK HY Bond CPR, has since been reduced to 7,630 kt.
RPA - Independent Engineer Final Due Diligence Report:
Since RPA’s Phase 1 Report, Sirius has undertaken further detailed productivity
simulations with two preferred equipment suppliers, Komatsu and Epiroc, to
confirm the equipment selection and productivities used in the mining schedule.
The CM productivity has been adjusted downwards from previous assumptions.

The response from IR as to the reduction in the 2024 annual production rate is:
"We have optimized our mine plan and as a result of this the ramp up to 2024 will be slower which is why the production target in 2024 is lower."

mjkismgs... "That's notwithstanding the interest cost of the outstanding bonds and of RCF borrowing , which of course reduces the cash available for capital and operational expenditure."

https://www.fitchratings.com/site/pr/10083060
Both the USD500 million bond and the RCF will be senior and will rank pari passu with each other. There will be no amortisation of senior debt, apart from the planned cash sweep of the outstanding RCF balance once the project reaches completion...

...As the debt is non-amortising, Fitch also considered the PLCR at completion as an indication of the project's capacity to repay the debt, assuming a 25-year mine life. The PLCR under Fitch base case is 3.2x, which underscores the strong economics of the project after construction is completed.
(Note - Breakeven Status: We run breakeven scenarios to a PLCR of 1.0x at completion to test the project's capacity to pay off the outstanding debt. Polyhalite prices can be 46% lower than Fitch base case, while the maximum production rate can drop by 55%.)

Firm Placing and Placing and Open Offer - Prospectus (May 2019)
12.6.4 Stage 2 Debt - Commitment Letter {pg. 275}
The RCF is expected to include a cash sweep mechanism that will require a semi-annual sweep following completion of the Project of amounts standing to the credit of certain operating accounts, less a maintenance capital expenditure buffer and an expansion capital expenditure buffer sufficient to achieve production of 13 mtpa of product. Such amounts are to be applied in permanent prepayment and cancellation of the RCF.

https://www.handbook.fca.org.uk/handbook/DTR/5/2.pdf
5.2.1 R: A person is an indirect holder of shares for the purpose of the applicable definition of shareholder to the extent that he is entitled to acquire, to dispose of, or to exercise voting rights in any of the following cases or a combination of them.

(e): voting rights which are held, or may be exercised within the meaning of points (a) to (d) or, in cases (f) and (h) by a person undertaking investment management, or by a management company, by an undertaking controlled by that person;

TR-1: 11. Additional information:
AFFM S.A. as management company of the Alken Fund SICAV and the Alken Capital Fund FCP/SIF is the beneficial owner of the shares/voting rights and has full discretion to exercise them. the Alken Fund SICAV and the Alken Capital Fund FCP/SIF are the legal owner of the shares/voting rights but delegated the beneficial ownership via a management company service agreement to AFFM S.A. and has no influence on the execution of them.

https://www.fertilizerseurope.com/fileadmin/user_upload/Staff_2018/Staff_2018_cropped/Fertilizers_Europe_Feeding_Life_2030_The_European_Fertilizer_Industry_at_the_crossroads_between_Nutrition_and_Energy.pdf

Feeding Life 2030: (EU Specific but would be adopted globally)
The United Nations estimates that the world’s population will reach 8.6 billion people by 2030, up from 7.6 billion today. This represents an annual increase of approximately 80 million people per year. In other words, we need to find a way to feed an extra Germany every year.

In 2008, researchers from Wageningen University in the Netherlands argued that fertilizers, in effect, fed 48% of the global population.

The Vision foresees that professional farmers and growers will become even more knowledgeable and demanding of nutrient input by 2030.

Return on investment in fertilizers will be even more in focus by 2030. Increasing returns can be achieved by ensuring that farmers and growers apply the right nutrients to their plants at the optimum time.

The importance of all nutrients, including primary nutrients (nitrogen, phosphate and potash), secondary and micronutrients, will be included in all on-farm decision-making in order to maximise efficient plant growth.

Fertilizer production itself will also face increased regulatory pressure. New rules will limit emissions from production facilities and control wastes and by-products from fertilizer production sites. Producers will focus even more on sustainable techniques and inputs, including raw materials.

A new, better-educated generation of farmers and growers will operate much larger enterprises.

Sirius Minerals: Mar 18th

https://www.youtube.com/watch?v=h8VutOe8ddM

Hurricane Communications:

The replacement rope’s arrival at the Aoka Mizu is imminent.

The [rope's] specification is unchanged, though an additional protective sheave layer has been added to avoid potential exterior damage.

https://events.ipipotash.org/
13th IPI-CAU-ISASS International Symposium

Potash and Polyhalite: Potassium, Sulphur, Magnesium and Calcium for Efficient Balanced Plant Nutrition

6-8 November 2019, Kunming, China