Sirius Minerals 👾 ⛏ - SXX

Thank you! (And to David and Nick). :smiley:

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True. This one is extremely risky and in my opinion nobody should buy any share unless you are ready to lose 100%

I read people in the area are buying shares ‘using an old pension pot’, Nuts: Sirius Minerals could be handed Government lifeline for cashflow problems - Teesside Live

“I invested because it was a guaranteed income”

That is how people lose their pensions right there.

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Cash flow negative mining / chemical company. I believe they’ve been cash flow negative since 2009. It’s ripe for death spiral financing.

If my data is correct, number of outstanding shares was 100M in 2009, today it’s 7 Billion. Think about this one. They’ve issued billions of shares diluting mainly retail investors!

I explained death spiral financing here -

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Is there a calculation of how much the shares will be worth if the project is successful and goes as planned? There are figures for the volume of the mineral down there and a market value for the product. They’ve also stated the tonnes that will be mined per year.

What would be the standard way to calculate the value, using discounted cash flow?

Awesome. Carrying on with those assumptions, if we look at established mining companies they have P/E ratios of around 10, on average.

To calculate the share price, do you literally just times the earnings by the P/E? So share price would go up to $1.20 in this instance, about 10x from what it is now.

If you do a P/E calculation on SXX you get a division by zero error

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We were looking at potential future earnings

Fantastic to see Sirius over 11 and happy and I brought more shares when the complete overreaction on the bonds issue last month.

RNS soon stating its financial position and then onwards to over 15 next.

As usual, do your own research folks.

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Sirius Minerals ain’t dead yet - I had some loose change in my account and took a punt on it! Long term is the vision, I ain’t expecting something massive to happen in the short term.

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Totally agree, it’s one of my mid-long term plays. Intending to be invested for a minimum of 3 years.

Agreed. I have change in Sirius but the concept is sound and it will happen (it is too valuable a resource not to) the question is whether the current shareholders will maintain any value which I would still say is a massive risk. If it does go bust then it is inconceivable that someone won’t buy the mine.

A bunch of new jobs added to the website, looks like they are prepping to ramp up!

https://sirius.recsite.com/

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Fingers crossed.

I think someone will buy the mine. Just like Debenhams though the shareholders would get nothing and that’s why I can’t invest yet.

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Alright, terrible announcement today, this is gonna fall big time.

One of the big investors also sold lots of shares yesterday, that was lucky…

Opened at 2p

:point_up:for anyone wondering what happened

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Not looking good for investors

had held since 2010, took some slices off along the way im glad to say but will now have to sell out completely. shame to see so many retail investors screwed over.

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