It’s been over a year since we simultaneously – and controversially, as it turned out – tipped shares in Sirius Minerals (SXX) as both a ‘buy’ and ‘sell’ in the same week. The strongly contrasting views on Sirius and its York potash project held by our mining two specialists prompted us to try that approach. But following a site visit and a raft of permitting delays, there is now accord that the shares are not worth investing in.
- Offtake agreements in place
- Upside based on NAV estimates
- Extremely difficult permitting process
- Enormous capital cost
- Weak potash market
- Burning through cash
One year on, and nothing very much has changed with Sirius. The company is still waiting to receive the approvals needed to build a mine in the North York Moors National Park. In fact, it has yet to even apply for them. Sirius had an application in last year but withdrew it after third-party consultants for the park authority said more environmental studies were required.