Sirius Minerals reduces losses during year on 'significant accomplishments'

15th Aug 2013 09:43

Sirius Minerals, a potash development company, dramatically reduced its losses for the 12 months ended March 31st after admin expenses for the period came in markedly lower during what the company described as a year of "significant accomplishments". Admin expenses for the 12 month period totalled £15.2m (2012: £63.3m), while the finance income for the year totalled £0.60m (2012: £0.16m), resulting in a total pre-tax loss of £14.57m (2012: £63.1m). The loss per share for the period declined from 5.6p to 0.6p year-on-year. During the period the company completed both a study confirming the technical and economic viability of the York Potash Project, as well as the pre-feasibility study that simplified and significantly reduced capital cost of the project.However, the project did suffer a delay in a planning decision, which had a negative effect on the share price during the period. Since the year-end the maiden inferred resource was increased to 2.66bn tonnes of 85.7% Polyhalite within 7% of the York Potash project area. Mineral rights were secured over 95% of the project area during the full-year period.The group's year-end cash and equivalents position was approximately £18m (2012: £54m). In a statement, the group's Chairman said: "Over the past year a large proportion of our effort has focused on preparing our submission for the onshore mining approval required for the York Potash Project [...] "Whilst the planning decision for the mine was targeted for the middle of this calendar year which is outside of the financial year for this report, it would be wrong not to comment on this critical objective for the York Potash Project. "Requesting a delay to the most recent targeted approval date was not an easy decision to make and is very frustrating for all [...] However, it is absolutely right that the company properly, and in appropriate detail, addresses all outstanding concerns brought to our attention by the various key and interested parties. "Our final submission must and will be robust, and as complete and expert as possible, in order to achieve the positive planning decision on the application." NR