Sirius Minerals share price rises as it reiterates confidence over finding funding for its Yorkshire potash mine

Jessica Morris
Follow Jessica
Autumn Colours In The North Yorkshire Moors
Sirius wants to build a fertiliser mine between Whitby and Scarborough in North Yorkshire (Source: Getty)

The figures

Sirius Minerals reported losses of £7m in the nine months to the end of December, while it had cash of £29.1m at the end of this period.

This was broadly in line with a loss of £9.6m in the 12 months to March 31, while analysts expected cash reserves of £26.6m.

The latest batch of results cover a shorter time frame because Sirius changed its financial calendar to align it with most main market businesses.

The Aim-listed company's shares were up as much as 5.1 per cent in early afternoon trading.

Why it's interesting

Sirius wants to build a fertiliser mine between Whitby and Scarborough in North Yorkshire. The firm secured planning approvals this year from various local authorities for the key infrastructure needed to start construction.

But there's a question mark hanging over how the gigantic project will be funded. The company needs to raise $3.5bn (£2.4bn) to build the mine, which will create at least 1,000 jobs and add over £1bn to the UK economy.

Russell Scrimshaw, Sirius' chairman, said today it will prioritise debt financing in order to do this.

"We remain focused on a range of funding options and continue to believe that the overall funding requirement can be delivered through a number of mechanisms, with debt funding likely to make up as much of the overall requirement as possible."

What Sirius said

"The market view for mining companies, commodities and both potash and fertiliser companies generally has been poor during the period," Scrimshaw said.

"However, this has not had an effect on Sirius Minerals's progress towards its goals. While general capital market sentiment has been bearish during this time, it is my belief that there are significant opportunities for companies with world-class development assets such as our project.

In short

Sirius shares rose as the miner's losses stayed broadly flat, and it reiterated confidence over its ability to find financial backing for its Yorkshire potash mine.