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Sirius Minerals PLC shoots up on DFS news

Shares in UK potash mine developer Sirius Minerals shot up over 14% in early deals as it said its hotly anticipated definitive feasibility study for its Yorkshire project will be issued this Thursday (March 17).

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Sirius Minerals' polyhalite product is used as fertiliser...

--ADDS BROKER COMMENT---

Shares in UK potash mine developer Sirius Minerals (LON:SXX, OTCQX:SRUXY) shot up over 16% in early deals as it said its hotly anticipated definitive feasibility study for its Yorkshire project will be issued this Thursday (March 17).

Chief executive Chris Fraser, told investors: "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."

The group is developing the world's largest and highest grade deposit of polyhalite, which  could enjoy a mine life of more than 100 years even at a full production rate of 20mln tonnes per annum (Mtpa).

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

Previous feasibility work has indicated total capital costs in the order of US$3bn.

In January this year, Fraser had said: "We are continuing to build a very robust business that will be capable of strong returns throughout the many cycles it will experience over its +100 year life."

Broker Shore Capital said: "While an investment in Sirius will become progressively derisked as the company advances towards production, we believe that it already offers a more robust, lower-risk investment with the prospect of better returns than typical of its peers."

It estimates a risked net present value of 50p a share and repeated a 'buy' recommendation.

Shares today in London added 16.9% to stand at 20.75p.

Quick facts: Sirius Minerals PLC

Price: 3.55 GBX

LSE:SXX
Market: LSE
Market Cap: £249.22 m
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