Sirius Minerals says bond offering unlikely to be achievable; delays project development
Source - SMW
Sirius Minerals booked a narrower first-half loss, but said it had decided to slow the development of its flagship fertilizer project in Yorkshire due to a lack of funding.
Pre-tax losses for the six months through June amounted to £3.1m, compared to losses of £96.3m on-year, when it incurred £85.5m of financing-related expenses.
Operating expenses rose to £13.0m, up from £10.8m.
The company recently pulled a $500m bond offering, citing market uncertainty partly caused by Brexit wranglings.
On Tuesday, it said that the bond offering was now 'unlikely to be achievable'.
'The company has therefore today announced that the scope of construction activities on the project will now be adjusted while the company undertakes a strategic review of its options,' Sirius Minerals said.
'The board considers that a reduced pace of development focused on key areas of the project that will ultimately serve to preserve the most value for the project will provide the company with a period of up to six months to review all available options for the company to move forward.'
'The group will need to secure additional external financing in order to allow it to continue operations after 31 March 2020.'