Shares in Sirius Minerals (SXX) plunged 15 per cent after "a number of negative statements" were published about the environmental study for the York potash project by consultants for the North York Moors National Park Authority.
The consultants reportedly criticised Sirius’ baseline environmental information and the amount of spoil that would be generated at the proposed minehead. The revelation comes just before the park's Director of Planning releases his report and recommendations on Friday 19 July. But his recommendation is not binding, and the approval or rejection of Sirius' mine plan application will be decided at a public planning meeting on Monday 29 July.
Broker Roger Bade of Whitman Howard estimates the company currently has around £8m of cash left and may need to raise money at the currently depressed share price or significantly reduce its £3m a month cash outflow should the application be delayed or rejected. Even if this were to be the case, Mr Bade believes "governmental approval will be forthcoming on appeal".
