Sirius Minerals - Strategic Overview

Benefitz Betty's picture

Sirius Minerals have published their latest Strategic Overview from the BMO Captial Farm to Market Conference 18 May 2016.  To market to market to ... some retrospective: Empire State Building The 8th wonder

"Please join us on Wednesday and Thursday, May 18-19, 2016 in New York City for the BMO Capital Markets 11th Annual Farm to Market Conference. This two day conference will provide both an in-depth look at each sector and a broad perspective on the challenges and opportunities ahead for the related industries.

This unique and expanding conference is designed to enable investors to gain insights across the entire food and agriculture value chain, from fertilizers, seeds, and animal health to packaged food and food retailing, and restaurants. Presenters and panel participants during the two-day event at the Grand Hyatt Hotel in New York City will include senior industry representatives and management teams from both public and private companies.

The Conference will be hosted by Food and Ag Product analyst Ken Zaslow, Fertilizer and Chemicals analyst Joel Jackson, Food and Beverage analyst Amit Sharma, Food Retailing and Distribution analyst Kelly Bania, Restaurants analyst Andrew Strelzik, and Pharmaceuticals analyst Alex Arfaei."

https://www.youtube.com/watch?v=SS8XRjf080E

"Company presentations begin early on Wednesday, May 18, and will see leaders from top agriculture, fertilizer, food retail and restaurant companies discuss the impact of depressed commodity prices on their sectors, as well as leading industry trends. This conference comes at a time when investors need to think critically about the space," said Joel Jackson, Fertilizer and Chemicals Analyst, BMO Capital Markets. "We are still waiting to see if fundamentals and commodity prices have bottomed or if there are still difficult times ahead."   Lots of odd bods, & Greg:  "This conference will see market leaders examine the challenges and opportunities facing industries that cover the world's food supply from production to consumption... This is going to be an exciting panel," said Mr. Zaslow. "We are taking the whole value chain from supplier, to manufacturer, to retailer and seeing how they are integrated and adjusting to consumer trends."

Senior executives from more than 70 leading agriculture, fertilizer, food, beverage, restaurant and retail companies will participate, including:

  • Agrium (AGU)
  • Archer Daniels Midland (ADM)
  • Bunge (BG)
  • Buffalo Wild Wings (BWLD)
  • CF Industries (CF)
  • Darden (DRI)
  • General Mills (GIS)
  • Hain Celestial Group (HAIN)
  • Hormel (HRL)
  • Ingredion (INGR)
  • Kroger (KR)
  • Monsanto (MON)
  • Potash Corp. (POT)
  • Sprouts Farmers Market (SFM)
  • Tyson Foods (TSN)
  • Yara (YAR)
  • Zoetis (ZTS)

source: https://www.bmocm.com/aboutus/news/detail/?id=34183

That should give some contextual context, erm Sprouts?  https://www.youtube.com/watch?v=RBJUHvQPFTI

Ah,so ... must get out more;-)  https://www.sprouts.com/

The Sirius motivational forces ... hook, line & sinker? Raising some dosh,  raising their profile or empire building.  OK so  New York does 'rent a crowd'.

Crowds n Crowns.  Hmmm ... clowning around 2016 tis the year of the Monkey afterall.  

http://siriusminerals.com/site/assets/files/4110/bmo_capital_farm_to_mar...

There's quite a lot of confirmationals in this presentation (3 tbm's/5),  but first impression tis looking a tad front loaded.  

https://www.youtube.com/watch?v=oMX1sc3eOTE

Slide 13 .... lots of prep works to the  MTS shaft sinking n cavern,  I was just kinda wondering if they were gonna sink the shafts in tandem? Ah, so ...  MSD v MTS.         

Slide 18 .... "Twin ramps will be approximately 1,500m in length each and driven 8m x 4m with 56 m separation pillar" - Erm is that enuff? Wos it 560m?

Top heavy.  Hey ho, wots gonna hold the left hand shaft from toppling over?  Nice doors by the way.

Can we have some examples of twin shafts that stand the tests of ... erm time? 

https://www.youtube.com/watch?v=CdXesX6mYUE

No TBM's til 2017, Ah so ... tis the year of the Rooster.

Distance.

 

 

Tags: 

16 Comments

Benefitz Betty's picture

Sprouts n Cabbages

http://www.engineerlive.com/content/mining-united-kingdom-0

"To gain an understanding of the current state of mining in Britain, in February 2016 the CBI published a report entitled The UK Mineral Extraction Industry. Even at a glance, the numbers further underline the importance of Britain’s natural resources: 210 million tonnes of mineral extraction per year, turning over £15 billion, providing 34,000 direct jobs and 4.3 million across the whole supply chain. Altogether this makes up 16% of the total UK economic turnover....

 

 

Awwwes : -///

http://www.bbc.co.uk/news/world-us-canada-36407643

Tough decisions....

Benefitz Betty's picture

SXX: Brochures & Bumff

http://siriusminerals.com/site/assets/files/4067/sirius_minerals_factshe...

http://siriusminerals.com/site/flexpaper/Publications/project_summary_do...

Ah, so ... I was just gonna ask why the third shaft wasn't going to bottom of pit .... tripods ... n all that an hi ho .... there it is :-)))

The expansion 20mtpa ... well it would have seemed daft not to and that service shaft would be tripod tensiled or somin ... static.

Now you may recall that the PA weren't happy about the surface buildings and those were to be re-designed....

And, finally some fluff on the stuff:

http://siriusminerals.com/site/flexpaper/Publications/POLY4_brochure/POL...

Onwards n upwards ....

https://www.youtube.com/watch?v=NoD85qZhkWY

 

Captain Qahn's picture

Potash Corp - Tuesday's Shift

http://www.cbc.ca/news/canada/new-brunswick/potash-corp-sussex-last-day-...

"Tuesday marks the last day of work for most of the remaining employees with PotashCorp in the Sussex area....

""It's bittersweet but somehow liberating,"...

"The mine was one of the town's largest employers, and the jobs paid between $80,000 and $120,000.

A core crew of about 35 workers will be kept on at Picadilly for care and maintenance of the mothballed operation.

The $2.2-billion project, which was just recently completed, was expected to have a 73-year lifespan."

http://business.financialpost.com/legal-post/potash-corp-sues-over-alleg...

"The suit contains allegations that have yet to be proven in court....

"In one particular zone, the rock tended to “creep” inward and downward during mining, Potash Corp. says in its statement of claim. To prevent this from happening, the design of the shafts called for a foam “spacer” to be used that could accommodate the “creep” without damaging the concrete liner. However, Potash Corp. said Cementation elected to use a stiffer substance called “foamcrete” instead. This placed too much pressure on the shafts and caused major structural problems, according to the company.

In August 2015, Potash Corp. said it discovered a crack in the support structure of the production shaft. A few weeks later, it discovered broken concrete on the floor of the shaft, damage to all four corners of the support structure, and a 10-foot-long vertical hairline crack."

 

Captain Qahn's picture

Mumbai Salts ...

"MUMBAI, May 31 (Reuters) - Indian buyers have started talking with potash suppliers on new import contracts, trying to settle them at a steep discount to last year's price, two industry officials told Reuters, as plentiful supplies gave purchasers new bargaining power.

Contracts signed by India and China are considered benchmarks in Asia, and are closely watched by other potash buyers such as in Malaysia and Indonesia.

India typically opens negotiations for imports of the key fertiliser ingredient in February, aiming to sign new contracts before the start of the next fiscal year on April 1.

However, India halted potash imports in February this year and delayed negotiations after successive droughts dented demand in one of the world's biggest fertiliser consumers.

"We are negotiating with suppliers. Hopefully negotiations will be over this week," a senior official with an Indian fertiliser company told Reuters over the phone from Moscow, where he was attending a conference.

"If negotiations fail this week, then suppliers could visit New Delhi in June to settle the new contract," he said.

Under the previous contract, India was buying potash at $332 a tonne on a cost and freight basis (CFR).

Indian buyers are seeking a steep reduction as global potash prices have fallen to their lowest in a decade, weakened by declining U.S. farmer incomes, falling currencies in consuming markets such as Brazil and bloated mining capacity.

"Miners have to accept the fact that it is an oversupplied market. They have to reduce prices to boost the consumption," said an official with a co-operative fertiliser company.

India's imports of potash could rise if the suppliers reduce prices as the monsoon is forecast to deliver surplus rainfall, the official said.

Monsoon rains in June-September deliver about 70 percent of the country's annual rainfall and sustain the half of India's farmlands which lack irrigation.

State-run Indian Potash Ltd, the country's biggest importer, cut retail prices of muriate of potash for farmers by 1,000 rupees ($15) per tonne to boost the consumption, said P.S. Gahlaut, managing director of the company.

India imported around 3 million tonnes of potash in the 2015/16 fiscal year that ended on March 31.

Major potash suppliers to India include Uralkali, Potash Corp of Saskatchewan , Agrium Inc, Mosaic, K+S, Arab PotashCo and Israel Chemicals.

($1 = 67.2125 Indian rupees) (Reporting by Rajendra Jadhav; Editing by Tom Hogue)"

http://www.smh.com.au/business/mining-and-resources/germanys-ks-group-to...

"German potash and salt giant K+S Group has revealed plans to expand into Australia with a $350 million Pilbara salt project.

The €4.2 billion ($6.5 billion) company is the world's largest salt producer and one of the top global suppliers of potash for use in fertiliser.

K+S, which has projects in three continents, said Western Australia was a "perfect target" for its salt growth strategy because of the region's history of salt production and proximity to Asia.

"When we look at the global demand for salt we see Asia as being the largest-demand market and the market in which we are not significantly participating so in many respects it is a white spot on our map," K+S Group board member and salt business head Mark Roberts told Fairfax Media.

"We recognised the need to have production that would enable us to be more sustainably competitive in the growing Asian market, specifically for chemical salts."

The Ashburton Salt project is on the coast about 40 kilometres south-west of the town of Onslow, and is expected to produce about 3.5 million tonnes of salt a year at a development cost of about $350 million.

It is still in the early stages of development, with a final investment decision slated for 2019. If the project went ahead, K+S would join other Pilbara salt producers, including Rio Tinto and Japanese trading house Mitsui & Co..."

https://www.youtube.com/watch?v=2j1rJPiDKo0

 
Captain Qahn's picture

Boulby Biting the Bullet?

http://www.thenorthernecho.co.uk/business/14527792.Potash_find_leaves_Bo...

"Stefan Borgas, chief executive, said total, reported operating income was 66 per cent worse off at $107m (£74m) and adjusted earnings before interest, taxes, depreciation and amortization were lower at $223m (£154m) from $354 (£244m).

In the UK, Mr Borgas said sales stood at $98 (£66m), compared to $106m (£73m) a year ago, adding they accounted for eight per cent of total deals.

He said: “An increase in depreciation expenses, in the amount of approximately $4m, stemmed mainly from acceleration of the depreciation of ICL UK due to the update on potash reserves last year.

“The decrease in potash sales stems primarily from a decrease in quantities sold and a decline in prices.

“The slowdown in the global economy continued to challenge the business environment and crop commodities declined further during the first months of 2016, weighing heavily on farmers’ decisions to take positions on fertiliser volumes.

“The potash market is adversely affected by the delay of 2016 contracts with China, which is usually a trigger for other markets and sets a price benchmark.”

Ah, so ... they do have records

"To lessen the shortfall, the business, which officials say will remain east Cleveland’s largest employer despite the changes, will mine polyhalite.

Marketed as polysulphate, the company is already building a factory to process the mineral.

The firm, known locally as Cleveland Potash, previously said it hopes to be annually mining about three million tonnes of polyhalite after 2020, which will be complemented by its ongoing annual extraction of around half a million tonnes of road salt.

Officials say the polyhalite work will require fewer staff because it is simpler to mine than existing potash.

The company is also looking into extending the mine’s life by another 40 years, which Phil Bedford, head of engineering, told The Northern Echo will give the company’s Israel-based hierarchy real assurance to invest in the site.

He added: “We are creating a future; ICL wants us to stay in the area for a long time.

“We are doing all we can to give us longevity and safeguard jobs for years to come.

“That will build a business that can go on from 2018 mining polyhalite and salt.

“We are trying to set up a business for the next ten, 20, 30 and 40 years.

“We want to see more people going through to landmarks, such as 25 years’ service, including people who have not even started with us yet.”

Oooh, and the application form is in the post :-)

https://www.youtube.com/watch?v=G6Kspj3OO0s

Oh, OK. something real : http://www.thenorthernecho.co.uk/news/14527049.Mountainous_seas_batter_t...

Sums.

Captain Qahn's picture

SXX: Man v Nature : 10

Captain Qahn's picture

Current Potash Prices

http://marketrealist.com/2016/06/map-prices-remain-firm-week-ended-june-10/

Flat.

"Potash fertilisers contributed $650m, or 83.16 per cent, of Belarus’ exports to China in 2015. In 2014 the share of potash fertilisers totaled 71.1 per cent of Belarusian exports to China. This means that de facto Belarus reduced its exports in China...

For example, Bloomberg reported that in 2015 Belarus sold potash to China for $315 per metric tonne, including shipping costs. Competitors considered this price to be unsustainably low. No clear information is available on the prices in 2016. However, according to data from VTB bank, market prices may go below the psychologically important level of $200."

"Sad to say, Chinese policy-makers are well aware of this and have an elaborate strategy to protect their economic interests on the potash market. Bloomberg’s and VTB’s experts report that

China is sitting on above-normal inventories of up to 5 million tonnes, domestic production is running at full speed and railway deliveries from Russia as large as 120,000 tonnes per month continue, so the country is not in a rush.

Some of this 5 million tonne stock certainly came from Belarus in 2015.

It is not the first time that the Chinese have adopted this strategy of buying low-priced potash fertilisers, accumulating large stocks and promoting further competition between suppliers to keep prices low. In particular, the same scenario occurred in 2013.

However, the Belarusian authorities do not have many choices: the country needs currency now, and it seems that nobody is thinking even in a medium-term perspective. The logical results of this policy already came to bear in the first half of 2016 when Belarus failed to make significant exports to China, including of potash fertilisers, and now risks facing a dramatically low price of $200 per metric tonne...

"The year 2016 is going to be a catastrophe for Belarusian exports to China due to low prices for potash fertilisers and the total absence of any opportunity to compensate these prices by increasing volume of supplies, as well as the lack of capacity to propose other goods to the Chinese market.

It seems Belarus is going to see significant currency losses in its trade with China this year in the context of a deepening economic crisis in the country.

Aliaksandr Filipau"

http://belarusdigest.com/story/will-belarus-lose-chinese-market-2016-26142

There's now't quite like Whitby Potash ...

It doesn't go bang ;-/

https://www.rt.com/news/346720-japan-fertilizer-blast-power/

"A blast has ripped through a fertilizer factory in Ibaraki, on the main Japanese island of Honshu, knocking out power in the neighborhood, according to local police.

At least 300 homes lost power as a result of the explosion, according to local media. The incident took place at around 3 p.m. local time (0400 GMT).
The explosion also destroyed the roofs of at least two buildings and heavily charred the interior, images from the scene showed."

https://www.youtube.com/watch?v=-Z7LpVF0Deo

Captain Qahn's picture

NE: Sirius Takes Steps

Stephen (been on holiday?) Hugill

http://www.thenorthernecho.co.uk/business/14557458.Sirius_Minerals_Whitb...

"...Referring to its preferred contractors, Chris Fraser, Sirius’ managing director and chief executive, said AMC UK, a joint venture between Thyssen Group and Redpath Group, has been chosen to develop the mine.

He added the Hochtief Murphy joint venture has been selected to build the mineral transport system, which will take polyhalite underground to a handling site at Wilton, near Redcar.

He said: “This is the culmination of a huge amount of work by successful and unsuccessful bidders and we are delighted to be moving forward with our selected partners.”

Mr Fraser also confirmed its Chinese supply deal, saying Dian Huang’s agreement will ramp up to one million tonnes of polyhalite annually over the first six years.

He added: “There is great potential for our product in Yunnan and China, so firming up this supply arrangement is another positive step for us.

"We look forward to working with Dian Huang for many years to come and our polyhalite playing a significant role in more sustainable agriculture.”

http://amcmining.com/our-story/

https://www.youtube.com/watch?v=VwEq3kaSU6E

https://www.youtube.com/watch?v=EFSdf_VeYG0

Captain Qahn's picture

Ruskies Get Ready to Rumble

https://www.rt.com/business/346608-investment-funds-trillion-spief/

http://www.ifa-moscow2016.org/

Who? http://www.ft.com/cms/s/0/e80c7ee0-9cfa-11e5-8ce1-f6219b685d74.html#axzz...

"Mr Jawahery said lower natural gas prices in the US would help profitability in 2016, while there was more demand for speciality fertilisers as more companies put money into research and development, helping sales."

Do ya spose  Raz was deported?

https://www.youtube.com/watch?v=y1fZg0hhBX8

Oh, OK: https://www.youtube.com/watch?v=QMQi0pZY_J8

Pie.

Captain Qahn's picture

WG: ICL 'Boulby' - Man Dies

"Mine officials say the incident is believed to have involved a gas blow-out—a sudden and powerful release of gas...

"The mine’s rescue team has been dealing with the incident and emergency services are at the scene.

Her Majesty’s Mines Inspectorate has also been informed of the incident.

A spokesman said: "Company staff will be offering all possible support to the man’s family. All other workers in the mine at the time of the incident were safely evacuated."

http://www.whitbygazette.co.uk/news/local/man-died-in-gas-explosion-at-m...

http://www.thenorthernecho.co.uk/news/14563677.One_miner_confirmed_dead_...

 

Captain Qahn's picture

WG: Boulby Tragedy

http://www.whitbygazette.co.uk/news/local/today-s-tragedy-latest-in-line...

Ouch. Mistakes happen. Its a mine...

http://www.gazettelive.co.uk/news/teesside-news/man-dies-boulby-mine-liv...

"Our reporter at the scene has just said that senior management at the Boulby mine have confirmed to him that the worker killed this morning was John Anderson."

http://www.gazettelive.co.uk/business/business-news/no-extra-cash-retrai...

https://www.youtube.com/watch?v=0XZzglak-q4

Is it about time the Govt. stepped in and expedited the new mine?

Captain Qahn's picture

York Potash reaction to Boulby Tragedy

"Boulby Mine’s nearest rivals, York Potash which is planning on building a mine near Whitby also extended its sympathies to the victim and his family.

A spokesperson said: “There is a strong bond between many of our staff and the team at Boulby, through friendships and as former colleagues. We wish to offer our sincere condolences to the man’s family and our thoughts are with them as well as his friends and colleagues.”

http://www.whitbygazette.co.uk/news/local/boulby-questions-need-to-be-as...

Captain Qahn's picture

Boulby Bosses On Boulby Tragedy

http://www.whitbygazette.co.uk/news/local/boulby-bosses-speak-out-after-...

"At a press conference at the site this afternoon the safety manager, Simon Hunt, confirmed that mine operations were at an “additional secondary ore procedure”.

This means that usual working processes are changed when there are signs of possible gas blows - sudden and powerful realeases of gas.

Mr Hunt said: “These events are not uncommon and we have procedures in place to ensure safe working, there is no suggestion to say that these procedures were not being followed. At this early stage of the investigation it would appear that this particular event was unprecedented.”

The blast, which led to the death of miner John Anderson, displaced mineral pieces and occurred at 3am, 1000 metres underground and 4.5km out to sea.

Mr Anderson, of Easington, was driving a continuous miner machine which tunnels underground and makes a roadway when it happened. He was part of a team of eight men working in that particular area mining for potash but his colleagues were not injured.

Mr Hunt told the media that it was still not clear whether the gas blast or the following debris killed the 56 year-old man who had worked at Boulby for 35 years.

He added: “The investigations into the incident have already begun but they are at a very early stage. We will be co-operating fully with the Mines Inspectorate in order that we can discover exactly what happened.

“Naturally everyone involved with Boulby is affected by this tragic incident. First and foremost our thoughts are with John’s family and friends and we will be doing everything we can to help and support them through this very difficult time”.

Operations at the mine, which are usually 24/7 ceased while the 100 other workers down the mine at the time were located and brought to the surface.

Police were initially called along with other emergency services as a matter of routine but handed the investigation over to HM Inspectorate of Mines who remain at the site.

It is thought that operations will resume tomorrow (Saturday).

Mr Hunt also dismissed claims, being led by local MP Tom Blenkinsop, that job losses at the mine in a bid to save money are having an impact on health and safety.

Mr Hunt added: “It is an interesting and obvious question that will be asked. These concerns are misconstrued when you look at the risk assessment we did. There were no changes in the density of supervision, no change in the mining competence underground and since they have occurred we have been back to assess that impact and it is what we thought it would be - no change.”

Captain Qahn's picture

SXX & ICL at European Fertiliser Summit

via faceache :

"Our Corporate Agronomist, Robert Meakin, is speaking at the European Mineral Fertilizer Summit 2016 today

ACI’s European Mineral Fertilizer Summit will be taking place in London, UK, on the 14th & 15th September, 2016. The two day event will provide an exclusive platform in collaboration with Fertilizers Europe for discussion between a variety of industry perspectives including manufacturers, suppliers, distribution/logistics, academia and regulators homing in on the latest opportunities arising from plant technology and best practices within operational production. The main aim is to identify potential solutions, future work programmes and productive partnerships that overcome the key regulatory challenges and facilitate minimizing risk within the supply chain promoting access to safe and more efficient food security."

http://www.wplgroup.com/aci/event/european-mineral-fertilizer-summit/

btw: https://www.newscientist.com/article/dn28283-more-than-half-of-european-...

http://ec.europa.eu/food/plant/gmo/index_en.htm