In an operations update on Monday, the FTSE 250 company said it was on target to deliver first polyhalite production from its Woodsmith mine in North Yorkshire in 2021.
To do that, it still needs to raise another US$2.6bn or so, and Sirius confirmed that it still expects to finalise this second and final round of funding by the end of this year.
In order to convince banks to put up the necessary cash, the firm has been working on securing offtake deals and it now has agreements in place to sell 4.7mln tonnes of fertiliser a year.
JP Morgan wants more of these to be signed over the coming months, while it also wants to see more procurement deals inked for the outstanding bits of work at the mine which haven’t been priced up or contracted out yet.
“We reaffirm our view that the near-term equity thesis will be dictated by SXX’s ability to secure the next tranche of financing, and as such look for additional procurement contracts (MTS drive 2 & 3, port etc.) and off-take agreements as focal points going forward,” read a brief research note.
The US investment bank kept its ‘overweight’ rating on hold, as well as its 45p price target.
Sirius shares were down 0.7% to 32.2p in late-morning trade on Tuesday.