Sirius Minerals Confident About UK Project

Sirius Minerals Plc  (LSE:SXX) does not think that weak potash prices will persist, and is optimistic that its $1.7 billion dollar potash project in North Yorkshire won’t be affected.

Sirius was downgraded to “underperform” following the news of Uralkali’s defection from the global potash cartel. Analyst Seth Rosenfeld said in a note to investors:

Should the potash price fall from $400 to $300/t, as predicted by Uralkali, the price Sirius will realise for its unique polyhalite product is likely to fall below management’s target of $150/t.

Sirius, however, maintained:

[A] drop in prices would be of more concern to miners that have high operating costs, adding that Uralkali’s views were more relevant for producers of potassium chloride, or muriate of potash (MOP)

Click here to view the full report.