19 Dec 2014 07:00
19 December 2014
Sirius Minerals Plc
Additional take-or-pay offtake agreement and sales commitments
§ 300,000 tonnes per annum with an option for an additional 150,000 tonnes per annum take-or-pay agreement with a leading South American fertilizer distributor
§ Additional letters of intent for 396,000 tonnes per annum
§ Total sales commitments now at 6 million tonnes per annum with options for additional 0.9 million tonnes per annum
The Directors of Sirius Minerals Plc (AIM: SXX, OTCQX: SRUXY) ("Sirius" or the "Company") announce further sales progress for polyhalite from the York Potash Project.
The Company has entered into a further take-or-pay agreement with a leading South American fertilizer distributor for sale into several key markets in that region. This agreement is a conversion of an existing sales commitment that was entered into during 2013.
The seven year agreement from first production, with an option for a further three years, builds up to an annual sales volume of 300,000 tonnes per annum over the initial ramp-up period of the York Potash Project. In addition the agreement contains an option for the customer to increase the minimum amount in the agreement by an additional 150,000 tonnes per annum. The pricing mechanism in the agreement is based on a formula linked to the market price of nutrients contained within the Company's 'POLY4' product and is in line with previous guidance.
The Company has also secured additional sales commitments in the form of letters of intent between customers and Sirius' marketing partner KEYTRADE. These total 396,000 tonnes per annum and relate to certain markets in South East Asia, Africa and Europe.
The Company now has a total of six million tonnes of annual sales commitments in various forms. The current total of take-or-pay agreements within the total commitments is now 2.05 million tonnes per annum. In addition these take-or-pay customers hold options for up to an additional 0.9 million tonnes of annual sales volumes.
Chris Fraser, Managing Director and CEO of Sirius, commented:
"We have made tremendous progress during 2014 defining a strong and growing global market for polyhalite from the York Potash Project. Customers recognise the value proposition that our commercial arrangements can deliver and the strong results we have achieved in our global agronomy programme."
For further information, please contact:
Sirius Minerals Plc Investor Relations
|
Email: ir@siriusminerals.com |
Tel: +44 845 524 0247 |
Joint Brokers Liberum Capital Limited |
Clayton Bush |
Tel: +44 20 3100 2222 |
Macquarie Capital (Europe) Limited (NOMAD) | Steve Baldwin, Raj Khatri | Tel: +44 20 3037 2000 |
WH Ireland
| Adrian Hadden | Tel: +44 20 7220 1666 |
Media Enquiries Tavistock | Jos Simson, Mike Bartlett, Emily Fenton | Tel: +44 20 7920 3150 |
Warrant Trading Enquiries Liberum Capital Limited |
Simon Smith |
Tel: +44 20 3100 2171 |
About Sirius Minerals Plc
Sirius Minerals is a potash development company with properties in the United Kingdom (North Yorkshire) and the United States (North Dakota). Its primary focus is the development of the York Potash Project which has the world's largest and highest grade deposit of polyhalite, a multi-nutrient form of potash containing potassium, sulphur, magnesium and calcium. Incorporated in 2003, Sirius Minerals' shares are traded on the London Stock Exchange's AIM market. Its shares are also traded in the United States on the OTCQX through a sponsored ADR facility. Further information on the Company can be found at www.siriusminerals.com.