Sirius Minerals Plc (LON:SXX) today announced the unaudited half year results for Sirius and its subsidiaries (the “Group”) for the six-month period ended 30 June 2017.
Business highlights
· The development of the Woodsmith Mine and its associated infrastructure is on time and on budget.
· Enablement works completed for the Woodsmith Mine and formal commencement of development notice issued by the local planning authority.
· Admission to trading on London Stock Exchange Plc’s Main Market and inclusion in the FTSE 250 index.
· Launch of the Sirius Minerals Foundation’s first community funding programme.
· Shaft sinking contract formally awarded to AMC in July (post balance date).
Financial review
· The Group’s operating loss for the period was £14.7m compared to £4.7m in the prior corresponding period, reflecting a general increase in Group activity following commencement of development.
· Due to IFRS fair valuation requirements relating to elements of the stage 1 financing the 57% increase in the Company’s share price in the period has caused a total loss of £151.3m being recorded for the period. The fair valuation adjustments driving the loss are non-cash in nature. Further detail relating to the fair valuation adjustments can be found on page 5.
· The Company has deployed £121m during the six-month period ended 30 June 2017 for Project development of which £48.3m was capital expenditure.
· Total funds at the end of June 2017 were £584.6m, comprising bank deposits and cash equivalents of £491.0m and restricted cash of £93.6m.
Chris Fraser, Managing Director and CEO of Sirius Minerals Plc, comments: “The half year has been marked by excellent progress on the development of Woodsmith Mine and associated infrastructure. With highways and enablement works completed, and site preparation into the latter stages, we eagerly anticipate the commencement of shaft sinking activities. Good progress has also been made at Lockwood Beck, the intermediate site for the mineral transport system.
“We are continuing detailed dialogue with commercial partners around the world, as interest in future supplies of our POLY4 product remains strong. These discussions are supported by ever-present and expanding research and development work, which will support customers and farmers in the years to come. We also continue to add the skills we need to our team to progress our work quickly, safely and efficiently.”
