JP Morgan Backs Sirius Minerals

(Stewart ) #1

I think we’re due a discussion on Sirius Minerals - brokers including Interactive Investor and HL have seen the ambitious fertiliser mining project among their top-traded stocks.

Some commentators have referred to the project as a “lottery ticket” with many retail investors anticipating huge returns if the mine turns profitable.

That has always been balanced with high risks - in particular recently when a Government loan was withdrawn leaving the company with a significant funding gap. That has now been filled with a new scheme backed by JP Morgan.
(https://www.proactiveinvestors.co.uk/companies/news/219328/sirius-minerals-launches-us38bn-markets-led-stage-2-project-financing-219328.html)

The share price has fallen 17% today as a result of the dilution, but does this mean the risks have also been lowered thanks to this big step? Are you looking to buy, increase, hold or sell a position in the near future?

9 Likes
#2

I was holding in hope for a quick profit but will probably hold this for the longer term now as i do see good potential. Also if a company offers the ability to buy more shares at a discount price etc how would freetrade notify us or would the companies contact us directly?

1 Like
(Gareth) #3

I’m going to keep my eye on the price over the next day or two to see how other investors react. Obviously the dilution is not great, but if it’s seen as less of a risk then I would expect the price to increase.
This is probably the riskiest stock I own so I’ve only got a very small amount in it, but I think this gives me confidence to invest more, provided I see the same confidence from the wider market.

1 Like
(Chris) #4

I sold out in the middle of Feb, with a very tiny loss.

I was super enthusiastic about this in 2018 but as 2019 moved on and their financing options narrowed I got less enthusiastic and found better opportunities elsewhere. The share dilution thats taken place has pretty much removed any incentive for me now and when you look at the other miners, I think there are better & safer options with bigger returns.

(Stewart ) #5

I was cautious until it surged 20% in a day about two weeks ago (I believe this was due to a pension fund) and decided to buy more when it returned to the previous price. As I see it, it’s fairly rare to have a growth stock that’s in something as grounded as mining. The amount of physical construction work completed tells me that this isn’t going to be dropped easily. The downside is the very real threat of complete loss of capital. Based on my high risk profile I see it as worth a punt in the same way I view things like crowdfunding - i.e. a significant lump sum in the hope of winning big, but will not be progressively investing long-term savings into it.

1 Like
#6

I was considering this but then opted to put my money into ASOS/JDSports.

#7

:eyes: still going down

#8

27% loss in my case at the moment we’ll see what time gona show

2 Likes
#9

Long road to recovery

#10

That’s going to take some time to recover.

(Gordon) #11

Anyone know how existing SXX shareholders in FT will be able to buy additional shares at the 15p offer? Think it’s 1 share for 22 you already have.

2 Likes
(Nick Slade) #12

I had around £20 worth a week or two ago and they weren’t doing great. Sold them and decided I would use the £20 to invest in FT.

So glad I got out when I did!

1 Like
(Kevyn) #13

I own some of these shares and my view is, time to buy now. I’m down 20% but I plan to double my shareholding. If JP Morgan are planning to invest £4 billion into it, it must have a good plan. I see it only went down because they offered discounted shares, pushing the price down.

4 Likes
(Emma) #14

Had some in my account way back in September but sold them when I opened the ISA. Bought some yesterday to see how it goes

1 Like
(Gary) #15

I have had Sirius minerals in my account since I started on FT. Did a little research and they sounded like a good prospect, they were cheap also so not breaking the bank. I have added to them over the past few months and bought a few more when the price dipped.

I am taking the recent news optimistically and intended to stay in it for the long run. I may even buy some more. My punt isn’t breaking the bank so I am happy with the risk of dilution.

I am a north east boy, they are a north east company and I like investing in a company that may be great for the local economy.

(I know that investing with your heart is not always the best way to make money :face_with_monocle:)

That’s my few pence worth.

3 Likes
#16

Is it a normal rights issue? If it is I don’t see why FT wouldn’t be able to support this (can’t you notify them to vote on particular AGM motions?).

(Stewart ) #17

Agreed, lower price but for much less risk in my view. The upside still seems massive. If they run for 100 years as speculated then this is one to buy and hold for life, +/- 25% now seems miniscule in context.

(Dave Smith) #19

I’ve just took a hundred quid punt after reading a bit about it. I didn’t have any before so I’m not eligible for the rights issue, but £105 got me over 600 shares. Will see how it goes. Not the end of the world if I lose £100

1 Like
(Ben) #20

“Beyond that, while Sirius would still be some years from becoming cash generative, an investment in the company should become progressively de-risked and enjoy significant value uplift as it advances towards production, we believe.”
https://www.proactiveinvestors.co.uk/companies/news/219565/sirius-minerals-is-now-at-a-critical-juncture-as-financing-efforts-continue-219565.html

Any investment in Sirius is surely a very long term commitment.

2 Likes
(Richard varga) #21

I’m thinking of cashing out when I take my pension… I’m 28 so long long term for me!

2 Likes