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Can Sirius Minerals see a fresh rally back to 50p highs?

Chart guru Zak Mir reckons it is a real possibility, and says 35p is the trigger for new buyers to watch out for.

POLY4, the polyhalite product that will be made from the the new mine in North Yorkshire.
Polyhalite helps increase yields for crops, now is Sirius ready to grow its share price again?

Sirius Minerals PLC’s (LON:SXX) valuation pushed above £1bn this summer as the British mine developer advanced to around 50p per share; it has since fallen back to the 30p level, but could a fresh rally be on the way?

Chart guru Zak Mir reckons it is a real possibility, and he says a ‘buy’ trigger of 35p is what traders should be looking out for.

If this trigger occurs the popular resource stock could again rally higher to ‘re-test’ the 50p per share level, he says. The rally would likely happen in the two months following the trigger, Mir added.

Sirius Minerals is currently working on the project financing for its world-class fertiliser asset in Yorkshire, where earlier this year it hit major milestones by securing planning permission approval for the project.

In early September Sirius confirmed that the window for all appeals against the company’s giant fertiliser mine had slammed shut.

It follows the closure of the judicial review period for the mine’s proposed harbour facility on Teesside.

“As a result of this, all key planning and development consent approvals for the company's North Yorkshire Polyhalite Project have therefore been received and all related judicial review periods have expired without any objections being tabled,” Sirius said in short stock exchange statement.

Now, the focus will turn to actually building a mine that will, initially, churn out 10mln tonnes of this nutrient-rich polyhalite material to be transported 23 miles underground to the shipping site mentioned above.

The cost of the initial development is put at £833mln (US$1.09bn) to get the company producing its first exports by 2021.

There is the potential then to double capacity for a similar cost.

The project financing will come from the debt market, although investors may have to dig in their pockets one last time for the initial phase of the mine development.

Quick facts: Sirius Minerals PLC

Price: 3.41 GBX

LSE:SXX
Market: LSE
Market Cap: £2.39 m
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