Blackfriar: Sirius looks set for promotion as chief's faith pays off

The group now says the £1bn first phase of its mine development near Whitby is on time and on budget.

The news comes as the firm prepares to move its shares to the main market later this month. The group said a premium listing will support its long-term strategy and provide it with a better platform for growth.

It added that the move is in keeping with the nationally significant nature of its North Yorkshire polyhalite project and its market capitalisation, which is over £700m.

The move will also raise the company’s global profile, increase its trading liquidity and provide it with a greater range of potential investors.

Analysts now believe it will be promoted to the FTSE 250 index in the June reshuffle, which will be a big bonus for the thousands of small Yorkshire shareholders who have backed the project from the start.

Inclusion in the FTSE 250 would certainly provide a boost to the share price.

Analyst Yuen Low at Shore Capital said: “Sirius is developing the paradigm-shifting North Yorkshire polyhalite project in England. We believe it is well positioned for the FTSE 250.

“Assuming its market cap remains at around the current level, Sirius should be well positioned to be considered for inclusion in the FTSE 250 index during the June 2017 rebalancing process.

“That said, we note that even inclusion in the All Share index would result in the relevant tracker funds being obligated to invest in the company.

“We believe that Sirius is already benefiting. We think that the recent sharp rise in the share price is occurring in anticipation.”

Sirius’ CEO Chris Fraser is the indomitable force behind Sirius’s success.

He has refused to be cowed by this huge undertaking, gaining local trust after going to extraordinary lengths to safeguard the natural beauty of the North Yorks Moors national park.

The mine, which is set to bring around 1,000 jobs to North Yorkshire, has faced serious concerns about its effect on the environment, but Mr Fraser has simply bowed to local worries and found a workable solution.

Five years ago he moved his family from Australia to Yorkshire as he set about building his dream.

He has said that the dryness and directness of Yorkshire folk reminds him of the Australians he grew up with.

The mine has been named the ‘Woodsmith Mine’, in honour of the two geologists who played a key role in the development of the site, Peter Woods and Rick Smith.

Speaking at a plaque unveiling ceremony, Northern Powerhouse Minister Andrew Percy said the mine is a real vote of confidence in the economic potential of the Northern Powerhouse.

“The Woodsmith Mine has the potential to create over a thousand jobs and generate billions of pounds of exports for the region, and so I’m excited to see it progress,” he said.

“This is a project of national importance.”

Mr Fraser believes the project will be transformational in terms of the economic benefits it can bring. It already has customers lined up to take 80 per cent of its initial output.

“We are making good progress and we are pleased to be progressing in line with schedule and budget,” he said.

Work on routes in and out of the mine have begun, while site preparation earthworks are due to get underway soon.

Mr Low at Shore Capital said there are signs that Sirius is actually ahead of schedule.

“From our point of view, any significant work that can be brought forward should have a positive de-risking impact, in that it would hopefully add to the time buffers available to cater for potential over-runs,” said Mr Low.

If Sirius can jump into the FTSE 250 in the June shuffle, it will be well on the way to achieving its goals and rewarding loyal Yorkshire shareholders.