Sirius Minerals shares plunge by double digits on York update

10th Jul 2015 07:32

Shares in Sirius Minerals fell by more than a tenth after the firm detailed its plan for York potash mine.At 10.42 shares in the mining firm had fallen 10.59% to 19p.Sirius said in an update it was moving onto financing and construction for the mining of the world's biggest potash mine.Investec said a note it was intrigued by the York project as the sheer scale of the project was "mind boggling."Analysts at Investec would not give a definitive view before getting further details on the project.SP Capital noted steps still need to be achieved before final decision notices are issued."A number of steps still need to be taken with financing such a large scale of capex the next big challenge," analysts at SP Capital said. The AIM listed company said the first stage of financing, to pay for the construction phase, was expected to be completed by the end of the first quarter of 2016.A definitive feasibility study was to be finalised during the fourth quarter of 2015.Sirius Minerals chief executive Chris Fraser progress on the project was rapid."With the underlying strength of our business model, unique product and sector fundamentals I believe we are only at the beginning of a very steep value curve as we move towards becoming a major multi-nutrient fertilizer producer," Frasers said.