Sirius Minerals makes good progress at Woodsmith

Sirius Minerals issued its quarterly update to shareholders on Monday, reporting that its main project at Woodsmith remained “on track” to deliver first polyhalite and commercial production on time.

The FTSE 250 firm said the fully-procured and financed capital estimate would be provided to the market once binding financing commitment letters have been executed.

It said a supply agreement for Nigeria was signed during the period, taking peak aggregate contract volumes from 4.4 Mtpa to 4.7 Mtpa.

It also reported “active engagement” on multiple commercial discussions for new supply agreements in Brazil and Europe.

Initial responses had been received from banks participating in the stage two financing process, with the board describing them as “positive”.

“It has been a quarter of good progress as we continue to construct our Woodsmith Mine, as well as breaking-ground on Teesside,” said Sirius managing director Chris Fraser.

“Work to deliver the stage two financing continues at pace and we are delighted to add a new, well established customer, in the high potential African region, to our growing list of partners.”

Fraser said the economic and social benefits to the company’s “nationally significant” infrastructure project were “vast”, pointing to QUOD's recent independent economic impact assessment.

He added that the board was “looking forward” to delivering what he called important and long-lasting benefits to both national and local economies.

“With commercial momentum and the development of our world-class mine continuing to progress well, we remain confident of delivering on our key milestones for 2018 and ultimately delivering on our vision to be a world-class fertiliser business.”