The broker has a ‘buy’ recommendation and a 50p per share price target, which suggests the UK mine developer could double in value.
Sirius shares were up 2.5% in Monday’s early deals.
Earlier today, Sirius revealed that it had now hired McLaughlin & Harvey Ltd as the contractor for the Teeside port handling facility development – including the engineering, procurement and construction of the facility.
Importantly, it also told investors that its stage 2 financing efforts are now nearing completion.
The financing is expected to cover the major construction packages with only the mineral transport system fit-out scope remaining.
STRABAG has been identified as a preferred contractor for the project’s mineral transport system (MTS) fit-out, and, negotiations are said to be in the final stages.
Shares could go sharply higher
“Only MTS fit out remains to be procured and negotiations are in the final stages,” said Liberum analyst Richard Knights.
“Once procurement is complete, the company will be in a position to finalise the conditional debt package, expected by year end.
“Expect the shares could move sharply higher by year end if key catalysts of debt package and European offtake can be delivered on time.”
Teeside port facility upgrading
In Monday’s statement, Sirius said the scope of the McLaughlin & Harvey contract includes product storage facilities for approximately 250,000 tonnes of product, ship loading equipment, ship outload infrastructure, and the final product screening facility.
Sirius noted that the lump-sum payment for the work will be in line with most recent estimates, stated in September, and, the programme will fit into the existing project schedule.
"We are pleased to have entered into another significant construction contract for the ongoing construction of our world leading polyhalite project,” said Chris Fraser, Sirius managing director.
“In 18 months we have made great progress and are now nearing the completion of the procurement programme to support our stage 2 financing process.
"The construction of our port infrastructure is another example of the level of investment and skilled job creation we are delivering in both Teesside and the UK as we develop a project that has the potential to make the UK a world leader in the fertilizer industry."