Tipped today as a speculative buy Too risky for the retail market.
Tipped today as a speculative buy why don’t they try the retail bond market - I’m sure there would be a lot of interest from private investors in a bond yielding c13% + warrants ?
Sirius Sirius Minerals boss Chris Fraser ‘confident’ of potash mine project revival ByKeane Duncan 16:28, 22 SEP 2019 The man in charge of Sirius says he is confident its Moors mine will get back on track as he hinted smalltime investors may have been misled. Chris Fraser is exploring options to reduce costs and attract new investment to the firm’s struggling £3bn potash project near Whitby. But with shares plunging in value , a shortfall in cash still to be plugged and staff being laid off, his company faces an uphill battle. The Australian miner told The Sunday Times : “I am confident we will get through this. "That doesn’t mean there isn’t a risk, but I am confident. We have an excellent project.” More via link below: [link]
Tipped today as a speculative buy Too many eggs in the same basket? The BBC reports that there are very many small investors who pitched in to sxx who are now facing big losses. Many of these are people local to Teeside who were hopeful that the new company might be able to boost their local economy. BBC News The people who spent thousands on a Yorkshire mine Sirius Minerals has 85,000 small investors, but the company's troubles mean many are stuck in a hole. The problem when inexperienced investors put their money into start-up operations is that they do not appreciate the level of risk that they are taking. Frog in a tree
Tipped today as a speculative buy SXX… XXXX I see Liberum put a buy recommendation on the next day 18th but with reduced target of 9p from previous 40p
Tipped today as a speculative buy Thanks devonplay. I see we are the last two posters on that board . what did you think of the link site i found and posted on that board. ( maybe if you answer better over there, as those looking here might prefer that )
Tipped today as a speculative buy @Ripley94 If you have an interest in property you might consider checking this out on the 27th November. I’ll be looking at the presentation at 8.30 20 September 2019 LONDONMETRIC PROPERTY PLC NOTICE OF HALF YEAR RESULTS LondonMetric Property Plc will announce its half year results for the six months ending 30 September 2019 on Wednesday 27 November 2019. There will be a presentation and conference call for analysts and investors at 8.30am on the morning of the results. For details of the meeting, please contact FTI Consulting. A live webcast and an on demand recording of the presentation will be available at www.londonmetric.com/investors/reports-and-presentations. [link]
Tipped today as a speculative buy Just looked at buy -sells , very low volume when compared to the past two days heavy turnover. Does that mean all remaining PIs are now settling for the long wait, for news in 6 months time? IB
Shares View SHARES’ VIEW We have to hold our hands up and admit we got it wrong on this occasion. We highlighted Sirius on 1 August as being an attractive stock to buy following recent price weakness. At the time commentary from analysts implied there was no reason to doubt the bond issuance and that Sirius’ shares had the potential to soar once the financing was done. Arguably we failed to properly take into account the company’s history in trying to raise finance, as well as the clear risks in the sector and investors’ appetite towards miners that aren’t generating any revenue at present. Let this be a reminder of the very high risks of investing in the mining industry, even in the UK, as well as the big risks of investing in any company attempting to clear a major financial hurdle. Anyone still holding the shares should know there’s no guarantee of a positive solution – and six months is a very long time to wait for news from a market perspective. Our view is that the risks are now so high for the company given the scale of the necessary funding requirement that it is best to sell the shares and claw back any money you can, rather than risk everything by clinging on in hope. Games
Tipped today as a speculative buy Ripley94: We have to hold our hands up and admit we got it wrong on this occasion. We highlighted Sirius on 1 August as being an attractive stock to buy following recent price weakness. What can you say?
Tipped today as a speculative buy Thanks Ripley, that has confirmed exactly to my conclusions i came to yesterday. Sirius has minimal value and high risk until further funding is secured. After even a small injection of further funding to add to their present £180 Mill cash, and say 12 months slowed down construction, everything will start to change for the better. The tunnel will keep going, the shafts will keep sinking. CF is talking about letting the Stella Rose TBM continue to Woodsmith, so saving the big spend on a 2nd TBM. The current problem with the shares in issue is probable dilution to raise some more money for an extra 6 months digging. So todays 4.3p could become 1p. That would be the time to have a new punt. The further the project gets along, the more confident the financials will become. You never know, the mine might take longer to build, but it could end up cheaper to construct that the present $4Billion, and great revenue returns. It is a waiting game now, no gambling, and only risking what you can afford to lose. IMHO. Cheers IB.
Tipped today as a speculative buy Contact us and help Subscribe Sign In Shares Logo Search articles & share prices Magazine Tools News Awards Events Videos Podcasts ArchivesMagazine - 19 Sep 2019 Sirius Minerals’ shareholders need to make a big decision Either walk away or stay and risk everything in hope of a new financing plan 19 September 2019|Big NewsIssue: 19 Sep 2019 - Page 6 Potash miner Sirius Minerals (SXX) has stunned the market after being forced to cancel plans to raise $500m through a bond sale, meaning there is now great uncertainty over the future of its polyhalite mine in North Yorkshire. Its shares halved on the news (17 Sep) to 4.92p. A stock popular with many retail investors, Sirius Minerals was meant to be a poster boy for UK mining and engineering with myriad economic benefits. We will now explain exactly what’s happened, what’s next, and what it means for shareholders. WHAT’S HAPPENED? Sirius has scrapped a bond issue, money which was crucial to getting another $2.5bn via a revolving credit facility (RCF) from investment bank JP Morgan, and in turn that funding was vital to get the mine up and running. According to Sirius, feedback from potential bond investors was that the money could be raised if warrants were attached to the bond. A warrant is basically an extra sweetener to entice investors. They would normally be able to buy shares in the issuing company at a fixed price until a specific expiration date. Going down this path would have raised the effective yield for Sirius’ bond above 15%, breaking an earlier condition set by JP Morgan. The bank subsequently declined Sirius’ request for a waiver of this condition. Sirius now intends to terminate the RCF agreement with JP Morgan. WHY HAVE THE SHARES FALLEN SO MUCH? Having pulled the bond issuance, where Sirius goes from here is undecided. But what is certain is that $3bn that was meant to continue funding the project is now gone, at least for the time being. Sirius has therefore had to slow down operations at the mine in order to preserve some of its remaining cash. Getting the cash, in the eyes of some in the market, was meant to be a sure thing by now. So the fact it admits it won’t get the money and currently has no idea how additional funds will be obtained has been a shock to investors, triggering widespread selling. Certainly JP Morgan hasn’t been helpful, and Sirius painted the picture in its statement that the bank almost straitjacketed the firm, only allowing Sirius to borrow money if the bond was broadly distributed (instead of concentrated on a few big investors) and didn’t have a yield over 15%, evidently difficult for Sirius in the current environment. Shore Capital analyst Yuen Low highlights that for all its positive noises, ‘when push came to shove’ support from the UK Government was nowhere to be seen. When it paused the bond offering in August, Sirius talked to the Government about $1bn in funding if, and ‘if’ being the key word here, it couldn’t refinance the RCF it had with JP Morgan. In addition, that Government funding would’ve only kicked in after another 18 months of building work at the mine and a further $2bn being invested. The Government went away, mulled it over, and then said no. This has also failed to reassure investors. WHAT HAPPENS NEXT? Sirius will take up to six months to conduct a strategic review, looking at all available options. In the meantime, work at the mine will slow down because the company doesn’t have the cash to continue at the current pace. Sirius says one way forward could be bringing in a strategic partner. This could potentially be a large corporate in the same or a similar sector who takes up a large stake in a company in exchange for upfront cash. They would invest for strategic reasons instead of purely to make a return on that specific investment. They use their expertise to help the company grow, and if it’s a success, then it’s easier for them to acquire all of the company later on. Sirius says it previously identified strategic partners as a way to bring cash into the project and support its case to get investment banks to lend it money, and now intends to look at this again. However history suggests that finding a strategic partner in mining is often harder than companies think, so that option is by no means a certainty. SHARES’ VIEW We have to hold our hands up and admit we got it wrong on this occasion. We highlighted Sirius on 1 August as being an attractive stock to buy following recent price weakness. At the time commentary from analysts implied there was no reason to doubt the bond issuance and that Sirius’ shares had the potential to soar once the financing was done. Arguably we failed to properly take into account the company’s history in trying to raise finance, as well as the clear risks in the sector and investors’ appetite towards miners that aren’t generating any revenue at present. Let this be a reminder of the very high risks of investing in the mining industry, even in the UK, as well as the big risks of investing in any company attempting to clear a major financial hurdle. Anyone still holding the shares should know there’s no guarantee of a positive solution – and six months is a very long time to wait for news from a market perspective. Our view is that the risks are now so high for the company given the scale of the necessary funding requirement that it is best to sell the shares and claw back any money you can, rather than risk everything by clinging on in hope. < 20 years of helping investors make money Why the sharp jump in the oil price matter to investors > Find out how to deal online from £1.50 in a SIPP, ISA or Dealing Account. Save Share1 Yoosof Farah profile pic Yoosof Farah Issue Contents Aequitas Ask Tom Big News Sirius Minerals’ shareholders need to make a big decision Why the sharp jump in the oil price matter to investors Why the blockbuster London Stock Exchange bid may not be over Editor’s View Exchange-Traded Funds Funds Great Ideas Great Ideas Update Investment Trusts Main Feature Money Matters Talking Point Under The Bonnet Shares News Market News Portfolio Events Videos Latest Magazine Broker Forecasts Director Deals Stockwatch Shares Magazine Latest Issue Cover Latest Issue: 19 Sep 2019 Subscribe now Market Overview UKWorldForex FTSE 100 +0.60% FTSE 250 +0.11% All Share +0.51% SmallCap +0.17% AIM +0.24% 8AM10AM12PM2PM4PM 7287.67294.97310.37314.17333.07355.77357.87371.17378.4 Prices delayed by at least 15 minutes UK 350 Risers and Fallers Today1 week1 month Risers Price % IG Group Holdings 634.80p 9.71 Plus500 768.40p 5.26 Sanne Group 589.00p 4.80 Aston Martin Lagonda 578.40p 4.03 Intu Properties 41.78p 3.14 International Con… 463.80p 3.07 Fallers Price % Next 5,835.00p -5.43 Sophos Group 410.70p -4.82 Dunelm Group 834.00p -4.79 Ocado Group 1,281.75p -4.63 Ferrexpo 184.38p -4.42 Dechra Pharmaceut… 2,829.00p -3.84 Prices delayed by at least 15 minutes @SharesMag @SharesMagSteve: Today, 14:28 I also update on online trainer Learning Technologies… share price +60% since April Great Idea, what next for com… [link] @SharesMagSteve: Today, 14:26 Netflix has huge debt, cash burn, new streaming competition and 2020 PE of 50-odd, but the streaming TV service is… [link] @SharesMagSteve: Today, 13:35 RT @SHARESmag: Steven Frazer explains why BTG disposal should boost growth at Spectris #SXS $SXS < PreviousNext > Terms And Conditions Investment Warning Privacy Disclaimers Cookies About Shares The Shares Team Contact Us AdvertisementAdvertisement
No funding TX2: It is not Governments job to bank roll speculative mining projects & bail out shareholders in projects that are poorly managed financially. So, what is the difference between on-going QE and buying bonds in SXX? Far more to the point is Johnson running round the country making promises of new money all over the place. Including support for ‘the Northern Powerhouse’. When someone asks for some money right now, the answer is NO - as it has ever been and as it will be in the future if Johnson remains in power, I predict. But, hey. No problem with a tens of billions on a new underground line for London every decade or so.
Tipped today as a speculative buy Thanks Ripley. Yes, a lot better now. went in for a minor day operation, and ended spending 5 days in hospital because the wounds would not stop bleeding. Lots of pain and body trauma. Better now. I see Chris Fraser has bought 250,000 shares today, £10k worth. I think he bought my sell, hee hee . Who knows what will happen. No one as of today and probably for the next month or so. a) I could lose more value with further dilution, or b) find my remaining shares go to zero value. c) strategic partner comes in and shares value near to zero. d) CF sorts the funding problem out and SP gradually climbs and get back into positive value again, (my average share price is not too high) and wait for those big bucks in 5 years again. Which then easily clear my present loss. I can afford to wait and see. What i do like, is CFs ideas for saving money and reducing some construction costs. I look forward to hearing from SXX how these discussions go with his experts from the construction companies/engineers working at Woodsmith, Lockwood and Wilton. cheers Billy
No funding I gather that SXX’s funding shortfall is of the order of $3 billion based on the amount of the now collapsed funding programme the company announced of high interest “junk bonds” in the spring.It is probable that further funds would be required in additon before the project became revenue producing.The reality is nobody was interested in buying the loans as I assume they considered the chance of interest default & capital loss too high. I gather existing loans,other than those for which funds are held in escrow, are currently trading at around 50% of face value. Basically very high risk projects like this mine,which may have a highly profitable outcome if it works and if there is a profitable demand for its output both yet unproven, have to be funded largely with equity “risk” capital with only a small amount of loan capital. Here about 70% of the capital cost was to be met by bond holders who would be taking much of the risk.Bond holders want security of capital as first priority. It is not Governments job to bank roll speculative mining projects & bail out shareholders in projects that are poorly managed financially. If the project is viable private money will come forward.