Sirius Minerals - DFS

Capt. 'Bob''s picture

"... the Company expects to announce the material findings of the Definitive Feasibility Study ("DFS") for its polyhalite project in North Yorkshire, on Thursday 17 March 2016 at 7am.  The announcement will be accompanied by an updated investor presentation and webcast, available on the Company's website ( Sirius will be hosting an analyst briefing at 15:00 GMT in London on the same day of the announcement.  Any analysts wishing to attend should email to register.  Chris Fraser, Managing Director and CEO of Sirius, comments:

"The DFS announcement will allow us to clearly outline the Company's strategy and value proposition throughout multiple scenarios and cycles.  I look forward to detailing the world class and robust nature of our polyhalite project in North Yorkshire."

Morning ;-)

A reminder :

17 March 2016

Sirius Minerals Plc

DFS defines world-class fertilizer business

-- DFS defines framework for production capacity of 20 million tonnes per annum ("Mtpa") with initial installed capacity of 10Mtpa

-- Project net present value ("NPV") of US$15 billion today at a 10% discount rate

-- Project NPV rising to US$27 billion upon commencement of production

-- Project after-tax debt-free internal rate of return ("IRR") of 26%

-- Annual operational EBITDA ranging between US$1 and 3 billion through various volume and price outcomes

-- High margin business model with average cash operating costs estimated at US$27.2 per tonne, delivering industry leading cash margins of 70 to 85%

-- Two stage financing plan with stage 1 comprising US$1.63 billion and stage 2 comprising US$1.93 billion (total US$3.56 billion) for installation of 10Mtpa capacity

-- Funding plans well developed to deliver tailored financing package

-- First product expected in 2021 followed by completion of fit out and ramp-up with 10Mtpa rate anticipated in 2023

The Directors of Sirius Minerals Plc (AIM: SXX, OTCQX: SRUXY) ("Sirius" or the "Company") announce the material findings from the Definitive Feasibility Study ("DFS") for its North Yorkshire polyhalite project ("the Project").

A detailed DFS presentation has been placed on the Company's website and a webcast of that presentation is available at The Company will be holding an analyst presentation today at 3pm (GMT). Further details can be obtained from

Chris Fraser, Managing Director and CEO of Sirius, comments:

"The business that is created from this Project will sit as a world leader in the fertilizer industry based here in the UK. It is expected to have a low operating cost structure, high margins and a very long asset life in one of the most business friendly, stable and dynamic economies in the world.

"In delivering this Project we can create thousands of jobs in North Yorkshire and Teesside, deliver billions of pounds of investment to the UK and put the country at the forefront of the multi-nutrient fertilizer industry.

"The DFS represents the blueprint to bring this global fertilizer business into large-scale production and successfully delivers on the core strategic vision of the Company to become a major low cost producer of multi-nutrient fertilizers.

""Work is advancing with our financing partners globally to bring together the pieces of the initial financing of this Project.  This process is expected to take a number of months but certain parts of the early construction activity, such as highways upgrades, are commencing soon to facilitate an efficient start of the Project."



Captain Qahn's picture

YCR: Shuffles & Shovels

Further, the DFS release confirms that the extensive planning conditions imposed by the NYMNPA must have now been satisfied by Balfour Beatty who have been working as consultants for the York Potash Project.

Those 'extensive' conditions, including roadworks, hydrological & prep works have now an extended time schedule within the DFS and should ... as all good scouts know ... save considerable time and cost in the overall efficient construction of the project.   

1st April ... tis a Friday .... as me old pa used to say...  never start a project on a Friday ;-)

Murphy's ...



Capt. 'Bob''s picture

LSE: Fund Raising

I just had my pup-hound chipped 'Shylock', can't think why ;-)

"The debt will definitely come before the equity (the web presentation confirms this) but will be conditional upon the equity. So the SP will be given a chance to rise before the big dilution. Of course, the rise will be constrained by the knowledge that a lot of new equity will be issued within a few weeks. And no doubt traders will be selling on the rise with a view to buying back after dilution. But at least the PIs who intend to purchase their full entitlement of new shares will hang on for the record date; and new PIs will be buying in so that they own shares on the record date. But after the record date, some PIs will sell in order to free up cash to buy their new discounted shares with.

But major fundraising events like a rights issue take a long time to organise, typically six weeks. So if they want to be shovelling away by June then they need to announce the debt deal in April and then allow the SP to settle for a couple of weeks before basing the rights issue price on it. If they launch the rights issue at the beginning of May, they will hopefully have the cash they need by mid-June."

LSE 'Shylock' Thu 17/03/16 23.44


Oh btw 'number of months' - Stage 1 financing on proper 'construction' not the prep works was previously stated as Q3/16, obs BB have b'fwd some works into the 'prep' stage ...  no ducks without all ducks, chuck ...

April looking extremely good for shovelling bunds n  bonds.

PS: 3 days notice ... ample ;-) a prophet is a profit afterall...


"I became insane, with long intervals of horrible sanity"

Capt. 'Bob''s picture

SM: RNS - Chair's Report

"...The principal risks and uncertainties facing the Group include exploration and development, reserves and resources estimates, mineral title risk, commodity price risk, liquidity risk, currency risk, permitting, community relations and competitor risk, product risk and operational risks including the development risk assessed in the DFS. 

The Company's Board, management and finance team continue to be focussed on both the efficient management of our existing funds and the ongoing (and extensive) work to secure financing for the construction of our Project.  We remain focussed on a range of funding options and continue to believe that the overall funding requirement can be delivered through a number of mechanisms, with debt funding likely to make up as much of the overall requirement as possible.

Finally, another change as result of our switch to a December year-end is that our annual general meeting will now be held in June..."