Sirius Minerals Plc is focusing on the development of the Woodsmith mine, which will have access to the world`s largest and highest polyhalite deposit in North Yorkshire, UNITED Kingdom. The company`s POLY4 product is a unique multinutrient fertilizer that can be used to increase balanced fertilization worldwide. Sirius Minerals shares are traded on the London Stock Exchange`s premium list. Its shares are also traded in the United States via the OTCQX via a sponsored ADR mechanism. For more information about the company, see: www.siriusminerals.com. For more information about POLY4, see www.poly4.com. Sirius has signed another contract to acquire the « Sirius » wood mine, which in 2018 is about 30 times larger than the total size of the polyhalite market. The company`s plan to rapidly increase production to more than 10 million tonnes just a few years after the start of operations reinforces the fear of a significant disruption in the wider fertilizer markets, even with its many self-sacrifice agreements, » Knight said in September MINING.COM. Sirius Minerals Plc (« Sirius » or « the company ») announces the signing of an « agreement » for the supply of POLY4 to Intercontinental Trade DMCC Dubai (« ITL Trading »). In January 2014, an offtake contract to sell at least 500,000 t/y polyhalit of the project in North America was signed with a Fortune 500 limited company based in the United States for an initial five-year period, renewable for a further five years.
JP Morgan believes that Sirius Minerals will increase its chances of obtaining the second and final round of financing if it is able to sign new acquisition and contracting contracts. The supply agreement is a seven-year contract from the first production of a volume of POLY4, which increases to 350,000 tonnes per year in the fourth year, and provides for exclusive marketing rights to Nigeria. The agreement has a pricing mechanism linked to a relevant product repository that is compatible with the company`s existing portfolio of agreements. As a follow-up to the agreement, the company`s revenue increased from 4.4 Mtpa to 4.7 Mtpa. On October 26, 2017, Sirius Minerals announced the signing of a seven-year count or toll contract for the sale of POLY4 to Wilmar Group, a leading group of agricultural companies, for use and resale exclusively in Southeast Asia, with quantities reaching up to 750,000 tonnes per year. The agreement can be extended for another three years and extended by Wilmar to 1 million tpa. To convince the banks to find the necessary money, the company is working to secure taketake agreements and has now entered into agreements for the sale of 4.7 million tonnes of fertilizer per year. Last year, the company signed a seven-year acquisition agreement with a subsidiary of the Wilmar Group in Indonesia for 750,000tpa Polyhalit. « We reaffirm our view that the short-term equity thesis will be determined by SXX`s ability to secure the next tranche of financing and to seek additional purchase contracts (MTS drive 2-3, Port, etc.) and takeover agreements as such, » says a brief research note. Paul Smith, an analyst at asset management and brokerage firm WH Ireland, offers his views on Sirius Minerals (LON:SXX), the AIM list, which today renewed a major acquisition agreement.
In September, it signed a Memorandum of Understanding (MoU) with Sinoagri for the sale of 500,000 tonnes per year of the project`s polyhalit for ten years and framework sales agreements (FSAs) with customers in Africa and Latin America. Two other MoUs with a capacity of 500,000 tons per year were signed the following month with Chinese customers and in December another MoU for a capacity of 500,000 mtpa with Sichuan AMPC.