FT12 Oct 2019 08:30
Sirius Minerals shares climb after deal with state-run Qatari group
Potash miner’s stock rallies on supply and distribution fertiliser agreement
Sirius Minerals shares, which were hit last month after the UK potash miner pulled a $500m bond sale, rallied almost 10 per cent following its announcement of a supply and distribution agreement with a fertiliser company owned by the Qatar state.
The 2m tonne-a-year agreement with Muntajat, which brings the miner’s total offtake contracts to just under 14m tonnes, comes as the company has been working on a strategic review in order to keep a $5bn potash project in Yorkshire alive.
Sirius is planning a financing update for the end of the month. The aborted junk bond was required to unlock a $2.5bn financing package for the mine, and analysts said that it needed a strategic partner to take a stake.
Qatar, which is a leading nitrogen fertiliser producer, is a top investor in the potash miner. Sirius said it was working with Muntajat to explore combining the UK group’s product made from the mineral polyhalite, with nitrogen products to create a multi-nutrient fertiliser.
Sirius shares, which more than halved last month on the bond news, were trading at 3.7563p.