Suvarna Garge (Editor)

Sirius Minerals Plc

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Type
  
Public

Industry
  
Fertilizers Minerals

Headquarters
  
United Kingdom

Net income
  
0 GBP (GBP)

Traded as
  
(AIM: SXX)

Website
  
www.siriusminerals.com

Revenue
  
0 GBP (Pound sterling)

Founded
  
2003

Sirius Minerals Plc httpswwwcomunikinfologossiriusmineralspl

Key people
  
Russell Scrimshaw (chairman) Chris Fraser (managing director and CEO)

Products
  
Potash Polyhalite POLY4

Stock price
  
SXX (LON) 17.25 GBX 0.00 (0.00%)22 Mar, 4:55 PM GMT - Disclaimer

Subsidiaries
  
York Potash Ltd, Sirius Exploration

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Sirius minerals plc chief discusses dfs and york potash financing


Sirius Minerals Plc is a fertilizer development company based in the United Kingdom, quoted on the London Alternative Investment Market (AIM: SXX). The Company’s stated focus is the development of its North Yorkshire polyhalite project which aims to exploit the world’s largest deposit of polyhalite, a type of potash.

Contents

The company plans to create a mine three miles south of Whitby and an underground conveyor system to transport the mineral from the mine site to a materials handling facility at Teesside almost 23 miles away.

The area of interest is located on the Yorkshire coast, mostly within the North York Moors National Park. The mineral seam lies 1,500 metres below the surface, covering an area of approximately 796 square kilometers (around 271 square kilometers onshore and 535 square kilometers offshore).

Operations

Following approval from the North York Moors National Park Authority in June 2015, the AIM-listed company has stated it will seek financing in order to begin construction.

Definitive feasibility study

The company announced the material findings of the project's definitive feasibility study on 17 March 2016. In summary:

  • 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 company has stated that the project, at full production capacity, will deliver:

  • A £2.3 billion annual contribution to the UK’s GDP
  • £2.5 billion of annual exports which represents a 7% decrease in the UK’s trade deficit
  • 2,500 direct and indirect production jobs
  • Over 2,000 jobs during construction

    • References

    Sirius Minerals Plc Wikipedia
    (Text) CC BY-SA