Sirius Minerals ($SXX), digging deeper into the myth

Is the recent dip in stock price an opportunity to buy?

3 interesting facts that every investor should take into account.

A)The external auditor warns the company might go bankrupt because Sirius is running out of cash. PricewaterhouseCoopers reports: “The Group is involved in efforts to secure short and long-term finance for its polyhalite project in North Yorkshire, the outcome of which is uncertain.  These conditions indicate the existence of a material uncertainty which may cast significant doubt about the Group’s ability to continue as a going concern.”  (going concern means “open for business”) 

B) Sirius approached 6 banks and has yet to secure any funding. No news are expected before 2018. According to today’s RNS: “The appointment of the MLAs does not constitute an offer of financing or an underwritten commitment by the MLAs to provide financing

C) Who is Huang Dian ? Sirius made the most serious off-take agreement in polyhalite’s history, to sell more than 6 million tonnes of POLY4 to “Yunnan Dian Huang Peony Industrial Group Co., Ltd”. You would expect Dian Huang to have a website as a regular buyer looking to attract sellers, but after many many searches it appears it is a company existing only in Sirus press releases. I might be wrong, if someone manages to find their website, please leave a message, I am curious to see where they are based and who are their customers/suppliers.

and one last

A couple of days ago, the big boys in potash Potash & Agrium decided to merge. If Sirius asset was that attractive, why they didn’t snap it out of the market?

One comment

  • Well I couldn’t find the website of their customer either, I tried googling Yunnan Dian Huang Peony but nothing, only Sirius references. It is weird, given the are supposed to be the biggest Poly buyer on earth..

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