RE: IC article10 Jan 2019 15:20
Overall, it was a bullish write-up for Sirius in IC today. Summarised at the foot of the article. Sirius is labelled as a "favourite" among fertiliser companies .
"Favourites
Sirius Minerals has had a tricky year. After riding high on a series of new offtake agreements, shares in the prospective potash miner started to roll in September, after investors were told that capital expenditure requirements could be $400m-$600m higher than previously forecast. Worse, completion of second-stage financing was pushed back from late 2018 to the first quarter of 2019. And to compound matters, the Woodsmith mine’s long-term ramp-up was pushed back by a year.
However, all is not lost. As things stand, potential lenders have indicated their interest in participating in “a commercial debt tranche of approximately $1.5bn”, the government is still in the frame, and other options are on the table to close the shortfall. It is understandable that the shares reflect the current uncertainty, but resolution should provide a clear line of sight to production, and relieve some of the binary sentiment towards the shares."