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Sirius Minerals forging ahead with world-class potash site

Sirius Minerals, which is developing the world's largest and highest grade deposit of polyhalite in the UK, said it continues to look at a range of options to fund the project, as it outlined a 'transformational' six months.

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Sirius Minerals' product is used in the fertiliser industry...

Sirius Minerals (LON:SXX), which is developing the world's largest and highest grade deposit of polyhalite in the UK, said it continues to look at a range of options to fund the project, as it outlined a 'transformational' six months.

In October, following other key planning permissions, the group got the green-light for the mine and mineral transport system, which brought to an end a long four-year planning process.

Now, a definitive feasibility study is close to being completed, the findings of which are expected in January. Previous feasibility work has indicated total capital costs in the order of US$3bn.

"We remain focused on a range of options and the overall funding requirement can be delivered through a range of mechanisms, with debt funding likely to make up as much of the overall requirement as possible," said chairman Russell Scrimshaw.

On the broader potash sector, Scrimshaw said price squeezes tended to root out high-cost producers and leave the most competitive businesses very well placed.

He noted that the York project had an "extremely competitive" operating cost structure due to the expected mining efficiency (1:1 ore to product ratio), simple low energy processing stages and was also near to a deep water port.

For the six months to September 30, the miner made a group loss of £4.7mln compared to a loss of £6.7mln in the same time in 2014.

Cash at the end of the period was £25.1 million compared to £27.4 million at the same time last year.

Quick facts: Sirius Minerals PLC

Price: 3.5127 GBX

LSE:SXX
Market: LSE
Market Cap: £246.6 m
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