Sirius Minerals (SXX) rose today to a high of 4.3p, compared with 3.82p last night as news of the company’s plans to conserve money and reduce cost/risk came to light. But late morning, the increase had been curtailed and the company closed down 0.3 per cent at 3.8p. Quite a swing for the day.
In today’s Times, SXX, CEO Chris Fraser, said that online shareholders were a disgrace and should be shut down. He said the FCA should investigate them, suggesting that private shareholders in the company had advised some to put their entire life savings into the shares. “They have these people sitting in their basements in their sweatpants, giving them investment advice - unregulated, unlicensed- and people follow them.” Fraser urged investors to “go and speak to professionals, otherwise, it is gambling”, going on to say "no one would tell a private investor to invest all your money from your pension and everything you have in a “high risk, but high reward potential venture” like Sirius.
This week Sirius announced the closure of the night shift at the Woodside Polyhalite mine to conserve cash, it has laid off 300 of its 1200 workers. The tunnelling at the mine has been going well, meaning that the company could well scrap plans for a third boring machine. SXX is looking at many plans to reduce project risk and bring forward production in order to generate cash earlier or use the existing waste convenor system. The strategic review is due at the end of October with detailed cost-cutting plans and potentially a new strategic investor in the project.
For now, I remain uninvested in SXX. Volatility great for trading opportunities though. The PR being generated by the company is rather impressive. From The Times to BBC…a lot of positive stories trying to generate interest in the company. For now though, funding remains the $64,000 question!