Sirius Minerals Divident Payout

20SmthngSver

On Hargreaves Lansdown, it shows no dividend history. Has anyone actually had a pay-out from it at all?

Old_Lifer

The mine is not due to open until 2021.


Dividends will hopefully start some time after that but who knows when.

bowlhead99

20SmthngSver wrote: »

On Hargreaves Lansdown, it shows no dividend history. Has anyone actually had a pay-out from it at all?

They don't currently make profits with which to pay dividends. They are currently fundraising to build a mine, and it's not yet clear whether they will succeed.

Old_Lifer

As bowlhead says, it is in the balance.


The Company secured a huge funding package recently but key to accessing this was a bond issue. The bond issued was pulled by the company, I think about a week or so ago.



If the company cannot put together a successful bond issue in the next few weeks, it seems they will be unable to access the funding and I understand they will run out of money by October.



Pulling the bond issue caused the already depressed share price to fall even further.

AnotherJoe

What's the big deal with this? It's always in the most frequently traded on HLs stats page.

A_T

20SmthngSver wrote: »

On Hargreaves Lansdown, it shows no dividend history. Has anyone actually had a pay-out from it at all?

Don't bank on getting anything at all

grnglide

So the people who are digging a tunnel from North Yorkshire to Teeside don't, currently, have the money to complete this?


It has always seemed to be a very grand undertaking!

bowlhead99

grnglide wrote: »

So the people who are digging a tunnel from North Yorkshire to Teeside don't, currently, have the money to complete this?

Of course they don't, yet, but they don't need to get all the money to complete it yet because they are not going to be completing it in the coming days.

Nobody other than an eccentric billionaire would say, "hey I've got a few billion to build a mine and a tunnel at all costs, so get your shovels out and we'll just start it". First there's a lot of planning for feasibility studies and getting the permission and proving that the product will work and that there's a market for it... and that you can produce and sell the product at a price that makes it worthwhile to have put all the finance in and employed the thousands of people and other businesses to make it happen.

Then you can start it off with most of the finance happening later when there's actually something to pay for.

You don't borrow at a high rate of interest commensurate with the risks of the project, to have money sitting in a bank earning nothing while you're paying a high interest rate on the loan. So at the moment, no - they don't have the money in their bank account to complete it.

And you have to prove the project is viable and has started, for a bank to lend you money at an affordable rate as part of a finance package.

So at the moment they have got the process started with some equity finance and some debt finance... and then they need some more debt finance (at a high interest rate, because that money can't be paid back if it all fails) before the lenders will lend you more finance at a lower rate interest rate on a drawdown facility (in exchange for more senior rights to be paid off first).

Old_Lifer

Many believe it has the potential to become an FT 100 company in a few years.


I understand it has around 85,000 small shareholders.


Since the company has no income at present, I would expect the rating agencies to award the planned new bonds one of the 'B' categories - what I believe is called in today's parlance a 'junk bond'.


The actual construction appears to be on schedule.



There is a huge amount of detail including pictures, on the company's website.

cloud_dog

A lazy Q but, whilst we are talking SXX.... what was the reason for pulling the bond issue? And, did they achieve the required off-take agreements required for financing?

Thrugelmir

Market conditions was the word.