Today's RNS aims to reassure investors, saying the project "remains on time and on budget."
Companies: Sirius Minerals
Sirius Minerals (LON: SXX) has released its quarterly trading update today, outlining the progress it has made at its flagship Woodsmith Mine.
Sirius CEO and MD Chris Fraser commented:
"Activity levels at the mine continue to increase every month and now step up significantly as we commence diaphragm walling activities."
The Group's Woodsmith site is the world's largest and highest-grade polyhalite deposit, which is a "unique-multi-nutrient fertilizer."
Management said they had identified a number of cost-saving opportunities at the North Yorkshire site, including simplifying its transport systems and refining its granulation processes.
The update also said its additional geotechnical boreholes were providing "positive data confirming the conservative nature of some parameters used in the current shaft design and construction methodology". The data will be used to refine the design of the mine.
Management also noted an opportunity to accelerate aspects of the shaft sinking programme, in particular, earlier diaphragm walling, but it said the opportunity could not be captured due to "mobilisation and design delays."
Shares did fall slightly this morning, down around 2.5%, but have since jumped back up to trade just below yesterday's closing price of 25.6p.
SXX currently has a market cap of £1.14bn, with investors clearly baking in a lot of future growth from the Group's polyhalite ventures. SXX are yet to turn a profit and repored a Net Loss of £170m in 2016.
To read the full report, click here.