Back on the up and over £0.10p! Fingers crossed it goes to previous levels and beyond once the funding is sorted out!
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It’s all or nothing now. If they secure the funding then I think we’ll see a six-fold increase over the next couple of years. If not, the company will disappear along with all the investors’ money!
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Hopefully the latter 
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Why do you want them to disappear?
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Why shouldn’t Govt underwrite financing for a project if it is of benefit to the UK? Seems pretty sensible to me if it helps get financing for a scheme that will pay back many times over in taxes (direct and indirect).
True but seems unnecessary when they can just proceed with the bond offering and unlock the same funding via JP Morgan.
If it’s such a guaranteed return then they can fund it another way. Potentially wasting £500m on only 4,000 jobs (most of which are probably low paid so very little in taxes) is a bad deal. £500m is 66% of their market cap! Do they even have much in assets?
Can’t proceed with the bond offering if the coupon rate is too high.
It isn’t just 4000 jobs though but an investment in a community. Trickle down of money from suppliers and workers.
As to why don’t they borrow from elsewhere, that assumes that there is a lender willing and able to lend at a reasonable price - far from always the case. That doesn’t make the project not worth investing in.
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But if the product is not competitive (which nobody knows yet) it could be just a literal waste of tax-payer money.
Also this argument is basically asking for state ownership and funding of companies and thus communism. Just throwing money at everything to keep people employed.
A lender is specialised in deciding if projects are worth investing in or just too risky. They’re much more qualified to say if it’s worthwhile than some local MP who wants re-election.
Suppliers will probably be wherever is cheapest (included abroad) unless the government placed some restrictions on where they could get supplies from.
If the government was going to waste 66% of market cap then they may as well just let it fail and buy the mine on the cheap and nationalise it after investors are wiped out
£2.5bn to dig for a replacement for cow dung, which will probably also be bad for the environment from all the mining (despite what they say)…that money could be spent in university labs across the country finding an alternative scientific solution
For heavens sake, no one is talking about state ownership (which isn’t remotely the same as communism anyway - the State owns plenty of investments in companies that compete in the market). Furthermore the State already underwrites (which is not the same as owning or even investing in) plenty of projects that it seems to be worthwhile for the public good - that includes some industries that would fail without state support.
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“A lender is specialised in deciding if projects are worth investing in or just too risky”
Seriously? How many lenders really understand even mid size capital projects? Most of the lenders I’ve seen involved in capital projects absolutely don’t have the expertise or understanding to evaluate the risk - despite their best efforts. Even assuming that the lender does have an understanding that doesn’t mean they have the capital necessary to lend or that they would do it at a rate that would work for a particular project.
There’s an astonishing amount of naivety being displayed from a group of potential investors!
How much do you have invested in SXX?
Just some spare change mate. Less than I would bet on Brighton to win their next football match.
I invested about 2% of my portfolio because I know it’s risky. Can I ask something without being judged? Why is Sirius risky? From what I understand there’s stuff in the ground, worth a lot of money, and all Sirius has to do is get it out of the ground. IIRC there is only one other polyhalite mine in the world. Can someone explain why this isn’t a sure thing, or why this is any different to buying a gold mine or oil well?
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I think predominantly because they may never get to that point - they are about to run out of cash and they will either secure the funding or they won’t. The risk is that they will disappear before they even get started.
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I am not too familiar with SXX but getting that stuff out of the ground takes a lot of capital and there are many political and pricing risks.
Adding to the 2 answers above:
It’s a new product. Nobody knows if the agricultural community actually will use it. Depends on the price, which is unknown. So there are no rentability projections possible even if they get financing and succeed to haul it out of the earth.
There are only unknowns in this company, no knowns. It could be a 100x if it survives and it can profit on first-mover advantages but most likely it will just go bust.
Mining is incredibly capital intensive and price sensitive. Even gold- and other miners do not run constant profits every year, but occur losses in many years.