TIDMSXX
RNS Number : 6760A
Sirius Minerals Plc
28 March 2017
28 March 2017
Sirius Minerals Plc
Project quarterly update for Q1 2017
-- The Project remains on time and on budget
-- Enabling works nearing completion
-- Formal construction in the form of site preparation is
scheduled to commence in the second quarter of 2017
-- Move to the Main Market expected be completed during
April
Sirius Minerals Plc ("Sirius" or the "Company") provides its
quarterly update on the development of its North Yorkshire
polyhalite project (the "Project") for the first quarter of
2017.
Chris Fraser, Managing Director and CEO of Sirius, comments:
"We are making good progress with the development of the
Woodsmith Mine and associated infrastructure, having successfully
secured around GBP1 billion in November 2016 in our Stage 1
Financing, and we are pleased to be progressing in line with
schedule and budget."
Safety
No recordable incidents were incurred during the period and the
Project continues with its delivery with a total recordable
incident frequency rate of zero.
Cost and schedule
The Project remains on schedule.
The budget for 2017 is broadly consistent with the projection
outlined as part of the Stage 1 Financing plan. The Company is
actively evaluating opportunities to accelerate components of the
shaft and tunnel spend to further de-risk the implementation of the
construction project and also to potentially create opportunities
for shortening the Project schedule. Further updates will be
provided as appropriate.
Land and access
Options have been exercised for the purchase of all land
required at the Woodsmith Mine and for some of the parcels
associated with the intermediate shaft locations. An option to
acquire a portion of the land required for the materials handling
facility ("MHF") has also been exercised. The remaining MHF land
requirements remain under option and will be exercised on an as
required basis. The process for acquiring the Company's strategic
harbour site has commenced and will be completed over the next 12
months.
The process of converting the mineral transport system option
agreements into leases has commenced and will continue through the
first half of 2017. The majority of mineral rights are now secured
under long term agreement having been converted from options in
2016.
Commercial
Contracts for the highways works, geotechnical drilling at the
mine site and shaft engineering have been signed and are within
budget. Negotiations are ongoing with AMC for the broader shaft
sinking contract.
Permitting
The Company is making good progress in clearing the conditions
outlined in the Project's planning agreements. It is anticipated
that the Company will be able to commence site preparation
activities in the second quarter of 2017 as scheduled.
Site preparation
Highways works have commenced around the Woodsmith Mine and in
other locations as required. The first set of these works is on
schedule to be completed in the coming weeks. Modifications
required for access to Lockwood Beck will commence in the second
quarter of 2017.
Site preparation earthworks at the Woodsmith Mine site are
scheduled to commence in the second quarter of 2017.
Shaft sinking
AMC has continued with detail design of the shafts including
associated surface facilities such as the production and service
shaft winder buildings. Design and preparation work is already
underway with AMC and Bauer, AMC's preferred diaphragm walling
("D-Walling") sub-contractor. The D-Walling activity is the process
used to sink the first 120m of the production, services and TBM
shafts. D-Walling preparation activities include the mobilisation
of the rigs and planning for the support infrastructure such as the
concrete batch plant, welfare, workshops and offices.
The design of the winders has progressed and manufacturing slots
have been secured to enable two of the winders to be available in
time for the commencement of the main shaft sinking. Electrical
design for the winders has proceeded in parallel.
Sales and marketing
The sales and marketing team has expanded with Heads of Latin
America, South East Asia and Europe now established in their
respective markets. These executives join the Company from Koch
Fertilizers, Belaruskali and GrowHow respectively. Resourcing for
market analysis and agronomy is also growing to support the
marketing efforts.
Commercial discussions are ongoing in the key growth markets of
Europe, Brazil and Africa. Each of these opportunities represents a
material volume opportunity in a new market for Sirius. In addition
to this, the Company is working to expand its footprint in the
Chinese and Central American markets via commercial opportunities
that are complementary to the existing arrangements in place. A
number of smaller opportunities are also being pursued on a country
by country basis.
Agronomy
New crop trials have commenced in North America, Brazil, China,
Africa and South East Asia covering a range of attractive
opportunities in each region. Numerous studies have also been
completed in the period, providing greater support for the
value-in-use proposition of the Company's POLY4 product and also
identifying opportunities for new crops and markets.
The agronomy programme continues to validate the four
cornerstones of the POLY4 value proposition; efficiency,
effectiveness, flexibility and sustainability.
Admission to the Main Market
The Company has announced its intention to apply for admission
to listing of its ordinary shares on the premium listing segment of
the Official List of the UK Listing Authority and admission to
trading on the London Stock Exchange's main market for listed
securities. It has also given notice of its intention to cancel
trading on the AIM market of the London Stock Exchange at the same
time. A prospectus will be lodged with the UKLA and the move is
expected to be completed by late April. It is anticipated that
following the move, the company will be included in the FTSE UK
index series from June, based on the current market
capitalisation.
The Company directors believe that a premium listing will
support the long-term strategy of the Company by providing the
Company with a more appropriate platform for its growth and is in
keeping with the nationally significant nature of the Company's
Project and its market capitalisation.
For further information, please contact:
Sirius Minerals Plc Tristan Pottas
Investor Relations Email: ir@siriusminerals.com Tel: +44 845
Manager 524 0247
------------------------- ------------------------------ ---------------
Joint Brokers
Liberum Capital Limited Neil Elliot, Tel: +44 20
(NOMAD) Clayton Bush, 3100 2222
Jill Li
J.P. Morgan Cazenove Ben Davies, Jamie Tel: +44 20
Riddell 7742 4000
WH Ireland Adrian Hadden Tel: +44 20
7220 1666
------------------------- ------------------------------ ---------------
Media Enquiries Jos Simson, Mike Tel: +44 20
Tavistock Bartlett, 7920 3150
Emily Fenton
------------------------- ------------------------------ ---------------
About Sirius Minerals Plc
Sirius Minerals Plc is the fertilizer development company
focused on the construction and development of its North Yorkshire
polyhalite project in the United Kingdom. It believes the Project
represents the world's largest high-grade known deposit of
polyhalite, a multi-nutrient form of potash containing potassium,
sulphur, magnesium and calcium. Incorporated in 2003, Sirius
Minerals' shares are traded on the London Stock Exchange's AIM
market (AIM: SXX). Its shares are also traded in the United States
on the OTCQX through a sponsored ADR facility. Further information
on the Company can be found at: www.siriusminerals.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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