RE: Goverment response5 Nov 2019 10:35
I agree Brexit might have been a big factor but mainly due to effect on the pound. My hunch would be if you were going to buy a bond in £ and you were a foreign investor holding another currency, you would want to see if you crashed out of Europe and took the pound down so the cost of your bond just got cheaper. I guess the return in % would be similar but if it recovers as it probably would then your returns would get better. A weak pound helps exporters so no worry to the investment itself. The fact Brexit was scheduled for October 31st and CF wanted to the end of October seems like more than a coincidence perhaps. Only problem now is we have an election not too far away, then another flextension deadline not too far after that. So will SM creep along waiting, or due to their cash burn decide they have to act sooner. I think they could wait for the election easy enough but might have to bluff out some reasons. JC would likely crash the pound alone and allegedly support SM so for them it could be a good thing whoever wins though, as tories would mean more Brexit certainty. North east MPs have been on the news saying Brexit uncertainty is halting investment all over the region so easily could be here. Also think SM are taking the chance/excuse to try to reduce costs because the fairly unique resource ain't going anywhere and with Boulby setting up in competition nearby they need to be extra certain they are going to be the more price competitive. With the tunnel, processing plant and the more advanced tech they should be and able to shift much more too to clawback the much larger set up cost due to bigger ambitions and details of their planning permission. Just my honest gut feelings about it. Don't think SM are in the very tight corner the market suggests on reflection. But I'm only an outsider to it all and not that long invested. I saw much more up than down in the risk/reward. Most locals thought they had missed the boat and many were saying "if it goes back down to 8p again we'll get some". Just now we are at 3p and I am thinking of averaging down from 4.2p! I'm prepared to lose it all though in my diverse portfolio. Take a look at AMC or EUA for alternative shares that might make some money back. Maybe NFX, FARN, I3E, ZOE, KEFI, BMN that's where I am looking and probably only 1 needs to take for me (or be taken over). EUA already recovered my Sirius loss. Do your own research of course I only started this 2 months ago with Sirius, who I still feel might turn out my best buy.
Sign In
Follow the stocks
