These figures, however, really only reflect the progress that the company has made towards establishing a definitive resource estimate for that Whitby prospect - which management already describes as "one of the world's single largest potash intersections". This view was given credence by highly promising coring and wire-line tests conducted last month. Sirius also has the benefit of a huge amount of seismic data previously collected at the site by Rio Tinto during the 1970s. Chief executive Chris Fraser reckons the group should be in a position to publish an informed resource estimate for the site during the first quarter of next year. Although, prior to October's resource update, Liberum Capital's mid-range valuation for the North Yorkshire prospect alone was 26p a share.
|SIRIUS MINERALS (SXX)|
|ORD PRICE:||23p||MARKET VALUE:||£237m|
|TOUCH:||22-23p||12-MONTH HIGH:||25p||LOW: 6.3p|
|DIVIDEND YIELD:||nil||PE RATIO:||na|
|NET ASSET VALUE:||9.5p*||NET CASH:||£14.9m|
|Half-year to 30 Sep||Turnover (£m)||Pre-tax profit (£m)||Earnings per share (p)||Dividend per share (p)|
|*Includes intangible assets of £93.2m or 9p a share|
After March's £20m placing, Sirius has plenty of cash and potash miners are certainly high up on the wish-list for large integrated resource players, such as BHP Billiton. But, for now - and with the potential at the UK site still being evaluated - it could be a while before the shares re-rate. Fairly priced.
Last IC view: none