Sirius Minerals Plc (SXX) undertakes the business of evaluation & exploration of resource properties and focus on the Woodsmith mine development in the UK. It constructs Woodsmith Mine, located in the Whitby, North Yorkshire. SXX holds interests in North Yorkshire polyhalite project, which produces polyhalite, a unique multi-nutrient fertiliser containing potassium, sulphur, magnesium and calcium. The company through its projects serves local, regional and national economies. Sirius Minerals is headquartered in London, the UK. Fertilizer and Polyhalite are the company’s key product offerings. Extracting Services and Materials Handling Facility are the key services provided by the company.
The company on 30th April 2019, Tuesday launched a financing plan worth $3.8 billion (£2.9 billion) for its North Yorkshire polyhalite venture in the UK. The plan also covers shares offerings at a discounted rate. The fund will be used for the timely completion of the project and will help the company in the extraction of mineral salt from the world’s largest high-quality polyhalite reserve.
Polyhalite works as a useful fertilizer and can also be used for many other industrial uses. Sirius Minerals has made many fertiliser supply contracts with many companies across South America, China, Africa and Europe.
As per the official statement issued by the company, the financing will include a credit facility of $2.5 billion approximately. The credit facility will include equity of $400 million, a $644 million of convertible bonds and senior secured bonds worth $500 million. A convertible bond issued worth $ 400 million were underwritten fully at the time of launch.
Sirius Minerals Plc Share Price Performance
Daily Chart as at May-01-19, before the market close (Source: Thomson Reuters)
On 1st May 2019, at the time of writing (before the market close, GMT 09:26 AM), Sirius Minerals Plc shares were trading at GBX 16.22, down by 6.89 per cent against its previous day closing price. Stock's 52 weeks High and Low is GBX 39.85/GBX 15.5. At the time of writing, the share was trading 59.29 per cent lower than its 52w High and 4.65 per cent higher than its 52w low. The outstanding market capitalisation was around £829.55 million.
The equity raise will include the issue of new shares by the company at a price of 15 to 18 pence per share. The share for Sirius minerals Plc closed at 21.90 pence on 29th April 2019 Monday. The company also posted a net loss for the full year ended December 31, 2018. The company posted an operating loss of £24.2 million for the FY2018 as compared to a loss of £24 million for FY2017. The Loss before taxation stood at £13.5 million for FY2018 against negative £79.3 million in FY2017. The company’s Net loss was £12.5 million for FY2018 against loss of £78.9 million for FY2017.
Due to the issue of financing plan, the shares of the company were trading down by 14.8 per cent at 18.65 pence by GMT 8:00, at the time of writing as on 30-Apr-19 and was trading even lower at 17.50 pence in the session earlier. The share reported worst intraday per cent loss in the period of over 7 months.
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