Sirius Minerals: Technical target towards 60p through 2017

1 mins. to read
Sirius Minerals: Technical target towards 60p through 2017

It still looks as though Sirius Minerals (LON:SXX) is a situation which continues to fire the imagination of private investors and beyond.

The lesson which has become clear to me at the relatively late age of 50 is that the only resources companies which are really worth getting on the back of are those who are actually producing. This means one gets away from all the risk of jam tomorrow and thousands of ounces here, and billions of barrels there. Indeed, it is surprising that the management of such blue sky situations can raise the vast sums that they do ahead of anything being recovered from the ground.

However, there are exceptions that prove the rule. In the case of Yorkshire focused would-be Potash miner Sirius Minerals, we have a stock market darling whose latest move to the main board of the London Stock Exchange seems only to have enhanced the company’s reputation. Today’s news, which has initially boosted the stock, centres on the issue of 19.5 million shares off the back of the conversion of 30 convertible bonds.

From a charting perspective it can be seen how we have seen progress within a rising trend channel which can be drawn from as long ago as March last year. While there may be an initial dip for the stock back towards the 10 day moving average at 29.9p, the upside here could be as great as a 60p target, on a timeframe of 3-4 months.

SXX chart

Comments (2)

  • Alex Buckley says:

    Crazy to see sirus rise so much and as you say nothing out of the ground yet where as you have someone like bushveld minerals who is now actually producing vanadium in a market that has risen and is now virtually debt free but whos share price is dwarfed by sirus , oh well you can’t control the herds but I’m sure they will wake up and soon realise the grass is greener on the other side.

  • Alfacomp says:

    Yep and at least with Bushveld Minerals you can actually track the amount of Nitrovan (Vanadium Nitride – 5% more valuable than Ferrovanadium) that they are shipping out at the moment.

    For just the stuff that is going to the US (about 2/3rds of what they sell) it is 8M USD worth a month, of which more than 5.5M is profit. You can see every single shipment in detail on this webpage :-

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