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Sirius Minerals signs fertilizer supply agreement with Brazil’s 6th largest fertilizer distributor

• The chart above shows Sirius’ share price movements over the past month.
• The current share price is 28.77p (at time of writing).
• 8 month lows at 22.6p; 1 month highs at 39.7p
• Sirius signs 2.5 Mtpa POLY4 supply agreement with Cibra, Brazil’s 6th largest fertilizer distributor
• Sirius takes 30% equity stake in Cibra in return for 95m (2%) Sirius shares.
• Brokers at Liberum say this deal means it has comfortably surpassed the threshold off-take limit for its POLY4 fertilizer product, placing it in a strong position for stage-two financing for its flagship project in Yorkshire

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Trading Sirius Minerals – An Example

Let’s say you think that Sirius Minerals is likely to rise as a result of this news. You decide to buy exposure to £10,000 worth of Sirius Minerals using a CFD, at the current price of 28.77p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Sirius Minerals shares price rises by 20% following the news. Your profit would be £2,000, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 8% from the current price. Sirius Minerals shares fall back 8% and hits your stop-loss. Your loss would be £800

This is provided for information purposes only. It should not be taken as a recommendation.