The simple answer is, that as with Amur Minerals (AMC), mentioned in a separate post ten days ago, some of those golden oldies of 2010 which promised to make shareholders rich overnight, are showing definite signs that hopes and expectations may, given enough time, begin to bear fruit.
Sirius Minerals (SXX) has already stirred itself and risen from 6p in 2014 to a dizzy 24p only last week. Sirius is waiting for the planning decision to be announced for its huge potash mine on the North Yorkshire Moors, which if granted will transform not only the company but the North Yorks Moors and employment prospects in the region. The date for determination of the planning application has been fixed for the 30th June and if the committee needs more than a day, then the 31st has also been set aside, as has an additional overflow room in which the crowds will be able to see the meeting on a video feed.
For those with a good sense of timing, Sirius has been a good money spinner ever since 2009, when the sp was 15p, tumbling to 2p in 2010 and then soaring back up to 32p and a nasty looking double top in 2012 before the plunge to 6p in 2014. Even earlier today it was down as much as 15% on last Fridays close.
The main problems for Sirius are twofold. Firstly planning law requires that applications of this nature must be refused unless there are exceptional circumstances and for politicians, being politicians, this is a thorny issue. Secondly there is a fairly strong voice against any development of this sort in a very beautiful national park – a bit like Wordsworth and his views on the construction of the first railway line through the heart of his beloved Lake District.
As against that are the employment needs not just of the immediate area but of the region as a whole – because potash has to be shipped and it would be shipped worldwide – in ships – so there promises of jobs for the old industrial towns along the east coast. Whichever way they jump, the local worthies on the planning committee are going to be unpopular with one or other section of the community.
This could be a tight run race but the steady recent rise in the shares is an indication that investors are beginning to gamble on the application being granted.
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