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Sirius Minerals' rumoured interest in nearby mine gets cool reception from Shore Capital

Sirius executives were reportedly in Israel last week to advance the talks over a possible sale of the assets, located some 12 miles from the UK company's Woodsmith minehead

Woodsmith mine, north east England
Caveat emptor, says Shore

Shore Capital is not wild about reports that Israel Chemicals (ICL) is in talks to sell its north of England polyhalite assets to Sirius Minerals PLC (LON:SXX).

The broker was responding to reports in the Israeli press that suggested ICL is mulling selling its Boulby muriate of potash (MOP)/polyhalite mine, situated some 12 miles away from Sirius’s Woodsmith minehead, near Whitby in the north-seat of England.

Shore Capital is not a fan of Sirius buying the ICL assets, “unless the price was really compelling” and ICL retained responsibility for any historical liabilities.

Buying the assets would provide Sirius with earlier production and cash flows than would otherwise be possible, albeit with the added operational risks entailed by Boulby’s generally aged infrastructure, Shore said.

That being said, some form of cooperation between the two companies could be a possible, Shore believes.

The broker has a ‘buy’ recommendation on Sirius Minerals.

Quick facts: Sirius Minerals PLC

Price: 5.167 GBX

Market: LSE
Market Cap: £362.73 m

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