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Sirius Minerals shares advanced on Wednesday, does this mark the start of a fresh rally?

Sirius Minerals may be headed back to 50p per share, so says chart guru Zak Mir.

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

Sirius Minerals PLC (LON:SXX) advanced around 13% on Wednesday, but is this the start of a fresh rally for the British potash mine developer?

The company’s project, a world class mine development in North Yorkshire, is very much a prized asset which promises great rewards for shareholders in the long term. Meanwhile, merger and acquisition chatter among investors is never too far away.

For Sirius itself, however, the focus is firmly on financing the first phase of construction for the mine.

All the while, investors wait for news and watch the share price.

Sirius’s valuation on AIM pushed above £1bn this summer as the price climbed to around 50p per share; it has since fallen back to the 30p level.

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.

North Yorkshire Polyhalite project is on the cusp of development

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: 3.256 GBX

LSE:SXX
Market: LSE
Market Cap: £228.55 m
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