Sirius Minerals Plc
Report and Consolidated Accounts
For the year ended
31 March 2011
THE NEW POTASH
POWERHOUSE
SIRIUS MINERALS PLC  ANNUAL REPORT AND ACCOUNTS 2011 Sirius Minerals is a globally diversified potash development company. Its primary 
focus is to bring on stream major potash mining facilities through the acquisition and 
development of projects overlying recognised potash deposits. Its flagship project 
is the York Potash Project in the United Kingdom. It is also progressing earlier stage 
projects in the United States (North Dakota), and Australia (Queensland and Western 
Australia).  
The Company was formed in 2004 and listed on the London Stock Exchange’s AIM 
market in August 2005.  Its shares are also traded in the United States on the OTCQX 
through the use of a sponsored ADR facility.  
“ The world’s potash requirements have never  
been greater and show no sign of slowing in  
the future.”
Sirius Minerals Plc Report and Consolidated Accounts 2011
Canning
Basin
Dakota Salts
York Potash
Adavale Sirius Minerals Plc Report and Consolidated Accounts 2011 1
 
•	 	 £24.3	million	raised	through	three	separate	placings.	High	quality	institutions	now	hold	
some 15% of the Company’s issued share capital
•	 Acquisition	of	York	Potash	Limited	in	January	2011
•	 	 JORC	Exploration	Targets
1
	established	for	the	York	Potash	Project	of	between	3.3	and	
6.0 billion tonnes of 67% to 94% polyhalite (19% to 27% K
2
SO
4
)	and	of	between	330	
million	and	400	million	tonnes	of	35%	to	40%	KCl
•	 	 Board	strengthened	with	the	appointments	of	Chris	Fraser,	Andrew	Lindsay,	Russell	
Scrimshaw and Peter Woods
•	 Operational	management	team	expanded
•	 	 Ongoing	evaluation	activity	at	Sirius’	Adavale	and	Canning	Basin	properties	in	
Australia and first hole drilled at Dakota Salts in North Dakota
•	 	 Planning	applications	for	the	first	four	drill	sites	at	the	York	Potash	Project	approved	by	
the North York Moors National Park Authority
•	 Concept	Study	for	York	Potash	commissioned
•	 Drilling	programme	commencing	at	York	Potash
Highlights
Contents Page
Highlights	 1
Chairman’s statement 2
Chief Executive Officer’s report 4
Potash market 9
Principal risks and uncertainties 12
Board 14
Directors’ report 16
Corporate governance statement 17
Statement of Directors’ responsibilities 19
Auditor’s letter 20
Consolidated financial statements 21
Company financial statements 26
Notes to the consolidated accounts 30
Notice of AGM 57
Glossary 59
Directors & advisers and Company information 60
1
  These estimates of quality and grade are conceptual in nature and there has been insufficient exploration to define a Mineral Resource 
on the property, and it is uncertain if further exploration will result in the discovery of a Mineral Resource on the property reportable to 
an AIM standard.
Highlights Dear Shareholder,
When I wrote to you last year in my first 
Chairman’s Statement, I set out the case for 
the Company’s decision to focus on developing 
into a New Potash Powerhouse based upon 
multiple projects in OECD countries. A year on, 
with increasing global potash consumption and 
accelerating food price inflation becoming an 
international issue, I am convinced we have set 
the correct strategic direction and I am pleased 
to report that we are now making good progress 
down that path.
Increased pressure continues to be placed on 
a diminishing arable land bank as a result of 
population growth, rapid urbanisation in the 
developing nations and the transition to higher 
protein and higher value diets around the globe. 
These, amongst other factors, are contributing to 
the increasing long-term demand for potassium 
enriched fertilisers to improve the productivity 
of farmland in both developing and developed 
nations alike.  
Of late the investment community has deepened 
its understanding of the fertiliser sector and 
potash in particular, not least as a result of 
the	unsuccessful	BHP	Billiton	bid	for	Potash	
Corporation of Saskatchewan in August 2010 
and the subsequent acquisition of PotashOne 
by K+S AG. This improved understanding is 
leading investors to better appreciate the range 
of potassium based fertilisers that are required in 
the market. A new lexicon of terms has become 
common place such as polyhalite, muriate of 
potash (MOP) and sulphate of potash (SOP). 
The debates are now no longer based simply on 
the scale and risks associated with any potential 
project, but on the likely make-up and related 
value of the contained potash.
How	has	all	this	impacted	our	Company	in	the	
year under review?
Quite	simply,	it	led	the	Board	to	better	rank	and	
prioritise the Company’s portfolio of assets. It also 
helped us recognise the value of securing projects 
focused on premium potash products such as SOP 
given that they can trade at up to a 50% premium 
to the more common MOP products. 
“I am pleased 
to report your 
Company is 
now well funded 
and is on the 
way towards 
achieving its 
goal of becoming 
the New Potash 
Powerhouse”
Chairman’s
Statement
Christopher Catlow
Chairman
Sirius Minerals Plc Report and Consolidated Accounts 2011 2 Sirius Minerals Plc Report and Consolidated Accounts 2011 3
Chairman's Statement
We were delighted to finalise negotiations to 
acquire	York	Potash	Ltd	in	January	2011.	The	
York Potash Project in the UK undoubtedly has 
the potential to rapidly become  a “tier one” 
company-making asset.  It provides Sirius with 
a world-class project that has every chance of 
becoming a major potash production centre and a 
significant contributor to both the North Yorkshire 
and United Kingdom economies. The product 
suite from the sylvite and polyhalite is extensive 
and potentially includes SOP, MOP, magnesium 
hydroxide, magnesium oxide and gypsum.
Upon the acquisition of York Potash, its founder 
and	major	shareholder	Chris	Fraser	agreed	
to become our Managing Director and CEO. 
He	brings	to	Sirius	considerable	resource	
development and capital raising experience, is 
an excellent team builder with boundless energy 
and leads by example. Chris is already building a 
talented management team around him that will 
stand Sirius in good stead in the years to come. 
Your Company has a suite of other assets that 
also have considerable promise. Whilst we did 
not hit the jackpot in drilling our first hole in North 
Dakota, we confirmed the presence of potash 
and have established a new mineral province. In 
Australia we have conducted extensive analysis 
of existing data and are confident that we will 
achieve exploration success. Our innovative 
technological initiatives are beginning to show 
promise in synergistic ways and we anticipate a 
rewarding future in this area too.
I believe that the success of an organisation 
depends on its culture, which comes from the 
top. We will build Sirius from the outset on a 
strong culture of innovation, can-do approach and 
urgency to ensure that our projects are developed 
quickly and in the most effective manner.
To that end, we significantly strengthened our 
Board	during	the	year	with	the	appointments	of	
Russell Scrimshaw in December 2010, Andrew 
Lindsay	in	January	2011	and	Peter	Woods	in	May	
2011. Russell was until recently Deputy Chief 
Executive	of	Fortescue	Metals	Group	Ltd	and	
brings a wealth of relevant experience to the 
table, particularly with his marketing experience 
and his knowledge of China.  Meanwhile Andrew  
joined	us	as	Finance	Director	and	CFO	having	
had the same role at European Nickel for the 
last	seven	years.	Before	that	he	was	at	Anglo	
American.	Finally	we	were	delighted	to	welcome	
Peter	Woods	to	the	Board	as	a	non-executive	
director.  Peter brings immense local and industry 
knowledge in relation to our York Potash Project 
having been Chief Geologist at the neighbouring 
Boulby	mine	and	a	prominent	citizen	in	North	
Yorkshire for many years. 
I	would	also	like	to	thank	Jonathan	Harrison,	who	
stepped	down	from	the	Board	in	January	2011,	for	
his tireless efforts on behalf of the Company in its 
formative	years	in	his	role	as	Finance	Director.	
For	the	year	to	31	March	2011	the	Company	
generated	a	consolidated	loss	of	£7.1	million,	
some	£3.3	million	larger	than	last	year,	which	
reflects the increased level of activity in the 
Company	this	year	and	a	£4.8	million	charge	
for share based payments.  As at the end of 
the	year	the	group	held	£21.0	million	in	cash	
having	completed	a	£20.0	million	placing,	before	
expenses in March 2011.
Following	this	successful	placing,	which	saw	
some 15% of the Company’s shares placed with 
institutional shareholders, I am pleased to report 
your Company is now well funded and on the way 
towards achieving its goal of becoming the New 
Potash Powerhouse. 
Since the financial year end we have 
commissioned a Concept Study for York Potash, 
which is planned to be completed by the end 
of the year, and have also started our drill 
programme with the intention of announcing a 
resource in the first quarter of 2012. 
The coming year promises to be an exciting one 
for all of us at Sirius.
Chris Catlow 
Chairman
“The integration of the York Potash Project following 
the	acquisition	announced	on	17	January	2011	is	
proceeding well. The project is being moved forward 
on many fronts” Sirius Minerals Plc Report and Consolidated Accounts 2011 4
Strategic Overview
Sirius’s goal is to become a significant 
potash producer. It will build several projects 
utilising the latest construction and operating 
technology to build economically competitive, 
sustainable mines.
With the acquisition of the York Potash Project 
in	January	2011	the	Company	acquired	a	project	
with enormous potential to become one of 
the world’s most significant potash producers. 
Sirius will focus its efforts to add shareholder 
value by concentrating on advancing York 
Potash to production as quickly as possible. 
Consistent with its stated strategy, the 
Company’s other projects will continue to be 
moved forward in parallel, but on a balanced 
risk reward basis. In addition the Company 
will continue to seek out and review other 
potash opportunities that can add value for its 
shareholders and that align with its diversified 
geographical strategy.
The Company has embarked on a programme 
of recruitment of experienced and motivated 
employees to bring York Potash into 
production. A team is being built globally to 
deliver the Company’s goal of becoming the 
NEW POTASH POWERHOUSE.
Sustainable Development
Sirius is committed to sustainable development. 
At the same time as progressing its core 
projects, the Company is also investing in 
research and development to improve the 
long-term economic returns of its potash 
projects through sustainable innovations while 
reducing their carbon footprint. As part of this 
commitment to sustainable development Sirius 
has adopted the ten sustainable development 
principles issued by the International Council 
of	Metals	and	Mining	(“ICMM”)	in	2003.	The	
following summarises those principles:
1.  Implement and maintain ethical business 
practices and sound systems of corporate 
governance.
2.  Integrate sustainable development 
considerations within the corporate 
decision making process.
3.	 	 Uphold	fundamental	human	rights	and	
respect cultures, customs and values in 
dealing with employees and others who are 
affected by our activities.
4.  Implement risk management strategies 
based on valid data and sound science.
“York Potash holds 
options on mineral 
rights over a substantial 
portion of the largest 
known polyhalite 
deposit at mineable 
depths in the world”
Chief Executive 
Officer’s Report
Chris Fraser
Managing Director and CEO Sirius Minerals Plc Report and Consolidated Accounts 2011 5
CEO's report
5.  Seek continual improvement of our health and 
safety performance.
6.  Seek continual improvement of our environmental 
performance.
7.  Contribute to conservation of biodiversity and 
integrated approaches to land use planning.
8.	 	 Facilitate	and	encourage	responsible	product	
design, use, re-use, recycling and disposal of our 
products.
9.  Contribute to the social, economic and 
institutional development of the communities in 
which we operate.
10.  Implement effective and transparent engagement, 
communication and independently verified 
reporting arrangements with our stakeholders.
York Potash Project
The Company acquired the entire share capital of York 
Potash	in	January	2011	for	the	issue	of	150	million	
new ordinary shares, which together with an acquired 
outstanding	loan,	valued	the	company	at	£25.3	million,	
including	£6.6m	of	goodwill.	York	Potash	has	
options over a substantial mineral rights portfolio 
both onshore in North Yorkshire and in the adjacent 
offshore area underneath the North Sea.
Based	on	a	significant	amount	of	historical	information	
including over 97,000 metres of historic drilling 
and extensive 2D seismic work in the project 
area, completed in previous potash and oil and 
gas exploration, the Company and its advisers are 
targeting three separate known seams of potash in the 
following order of priority:
•	 Fordon Seam: the very large and potentially high 
grade polyhalite (potassium sulphate or K
2
SO
4
) 
target;
•	 Boulby Seam: a high grade sylvite (potassium 
chloride or KCl) target with known significant 
localised variability in thickness and grade; and
•	 Sneaton Seam: a thicker, but lower grade sylvite 
target.
 Conceptual geological stratigraphy at York Potash
To	the	north	of	the	York	Potash	Project,	ICL	Fertilizers,	
through its subsidiary Cleveland Potash Ltd, has 
historically	focused	its	mining	on	the	Boulby	Seam	at	
the	Boulby	mine	to	produce	MOP.	Recently,	however,	
they have commenced mining polyhalite from the 
Fordon	Seam	more	than	1.5	kilometres	offshore	under	
the North Sea. In addition, in April 2011 Cleveland 
was	successfully	awarded	a	£15	million	grant	from	
HM	Government’s	Regional	Growth	Fund.	This	grant	
was awarded to secure a positive decision from ICL 
to begin the world’s first commercial production 
of polyhalite from a plant in the Tees Valley. Sirius 
believes these are all positive endorsements of its 
strategy to focus on polyhalite as its priority target.
Polyhalite is a complex hydrated sulphate mineral 
(K
2
SO
4
.MgSO
4
.2CaSO
4
.2H
2
O), which can be 
processed into various potassium based fertilisers 
as well as being a valuable source of magnesium 
minerals. Although there are currently no commercial 
scale operations based on polyhalite, extensive 
research was done into various process routes in the 
1930s	and	1940s.	In	addition,	ICL	has	recently	made	 Sirius Minerals Plc Report and Consolidated Accounts 2011 6
Chief Executive Officer’s Report continued
patent applications on further process routes focused 
on the production of potassium nitrate.
Polyhalite is potentially a valuable source of minerals 
including:
•	 Raw polyhalite: can be simply crushed for use as a 
direct application organic fertiliser;
•	 Sulphate of Potash (SOP): there are several 
known routes to produce commercial quantities of 
SOP from polyhalite. As part of its Concept Study 
announced	in	July	2011,	Sirius	will	be	working	to	
decide which process route is the most attractive 
economically and environmentally. More about 
the benefits of SOP is set out below in the Potash 
Market section;
•	 NOP: Potassium nitrate is a high value fertiliser 
product trading at prices above SOP due to its 
excellent solubility and lack of chloride ions. It also 
has industrial applications;
•	 Various potassium and magnesium fertiliser 
compounds: these combine the potassium 
sulphate with the important micro-nutrient 
magnesium and are typically used where soils are 
magnesium deficient;
•	 Magnesium hydroxide (Mg(OH)
2
): a compound 
that is increasingly seen as an environmentally 
sustainable and safer alternative to caustic soda in 
the water treatment and paper milling industries. 
In addition, it is a valuable feedstock for the 
production of other magnesium compounds; and
•	 Magnesium oxide (MgO): is used in global steel 
and other industries for refractory bricks in kilns 
and furnaces.
In	January	2011,	based	on	the	available	information	
on	the	then	mineral	rights	position	of	608km
2
 (now 
over 621km
2
),	FWS	Consultants,	a	Competent	Person	
under	JORC,	established	in-situ	JORC	Exploration	
Targets
1
 at the York Potash Project of between 3.3 and 
6.0 billion tonnes of 67% to 94% polyhalite (19% 
to 27% K
2
SO
4
) and of between 330 million and 400 
million tonnes of 35% to 40% KCl.
These estimates have been adjusted to exclude ore 
under urban areas and for known faults and dykes. In 
the case of the polyhalite the estimate assumes only 
a five metre extraction thickness out of an apparent 
higher	grade	zone	of	between	ten	and	fifteen	metres.	
In addition, the Company has increased and continues 
to increase its mineral rights position by entering into 
option agreements with additional landowners in the 
project area. As a result the Company believes that 
this is potentially a conservative Exploration Target for 
the polyhalite.
The Company plans to drill up to ten holes in the first 
phase of the exploration programme and expects 
to release a resource statement in the first quarter 
of 2012. The geological model of the deposit will be 
constantly updated as new data are generated and if 
necessary the drill programme will be adjusted based 
on this data.
The leading industrial potash and mineral salts 
focussed engineering firm Ercosplan was appointed in 
June	2011	to	conduct	a	Concept	Study	on	the	project.	
The	Company	also	appointed	Hatch	and	Murphy	
Pipelines to assist on certain aspects of the Concept 
Study. Murphy Pipelines will specifically focus on the 
slurry	pipeline	transport	options	for	the	project.	Hatch	
has provided some highly experienced individuals 
to support the Sirius team to analyse and consider 
the various options for the project, but specifically to 
evaluate the project’s polyhalite processing options. 
The Concept Study, integrating the work of all three 
consultants, is due to be completed before the end of 
the year. 
The Concept Study will also consider shaft sinking, 
mining and by-product processing and will provide 
estimates of capital and operating costs, project 
implementation schedules and timelines. Assuming a 
positive outcome of this study the Company plans to 
immediately advance onto further studies to refine the 
estimates and develop detailed project designs.
Sirius is committed to pursuing innovation. Innovation 
in all phases of the project will be embraced to ensure 
the latest technologies are reviewed, tested and if 
1  These estimates of quantity and grade are conceptual in nature and there has been insufficient exploration to define a Mineral Resource on 
the property, and it is uncertain if further exploration will result in the discovery of a Mineral Resource on the property reportable to an AIM 
standard.
Drilling at York Potash Sirius Minerals Plc Report and Consolidated Accounts 2011 7
CEO's report
appropriate incorporated into the project designs 
and implementation plans. This will ensure the mine 
that the Company builds will be as sustainable and as 
efficient as possible while ensuring that in the decades 
to come it is seen as a leading example in the global 
mining industry.
Dakota Salts
Having	acquired	the	outstanding	balance	of	Dakota	
Salts in 2009 the Company continued to increase 
its	land	position	in	Burke	County	in	North	Dakota.	
Following	extensive	geological	studies	during	2010	
a drill site location was identified, based on the 
historical data available. In August 2010 Dakota Salts 
was granted an Exploration Permit to drill a hole to a 
depth of over 2,700 metres and in November drilling 
commenced	on	the	hole	EBY-1.
Drilling was carried out by Schlumberger Water 
Services USA Inc (SWS) and the Company’s North 
American geological consultants North Rim Exploration 
Limited (North Rim), with Saxon Energy Services as 
t h e 	 d r i l l 	 c o n t r a c t o r . 	 F o l l o w i n g 	 c o m p l e t i o n 	 o f 	 t h e 	 h o l e 	 t o	
a depth of 2,794 metres the core was analysed at the 
Saskatchewan Research Council laboratory. North Rim 
reviewed the results and determined that the hole had 
i n t e r s e c t e d 	 8 . 5 	 m e t r e s 	 o f 	 t h e 	 E s t e r h a z y 	 m e m b e r 	 f r o m	
2,702 metres with a weighted average K
2
O grade of 
1 1 . 8 % 	 a n d 	 8 . 6 % 	 c a r n a l l i t e .
In light of the Company’s intense focus on the York 
Potash	Project	and	the	nature	of	the	result	of	EBY-1,	
Sirius is continuing to consider its options on how best 
to add value for its shareholders from its investment 
in North Dakota. The Company believes the potash 
potential of the Prairie Evaporites in North Dakota 
remain a promising exploration target in the global 
search for potash.
Adavale
The Company currently holds exploration permits 
covering over 600km
2
 of land overlying the prospective 
B o r e e 	 S a l t 	 M e m b e r , 	 a 	 f o r m a t i o n 	 w i t h 	 s i g n i f i c a n t 	 s a l t	
and potash potential. These properties lie some 50km 
s o u t h 	 o f 	 t h e 	 t o w n 	 o f 	 B l a c k a l l 	 i n 	 c e n t r a l 	 Q u e e n s l a n d .
R P S 	 B o y d 	 P e t r o S e a r c h 	 ( B o y d ) 	 h a s 	 c o n d u c t e d 	 a 	 f u l l	
interpretation of the existing seismic and petroleum 
drilling data for the permit land on behalf of the 
Company. This work was carried out in two phases 
and has now been completed. Phase I involved the 
interpretation of publicly available 2D seismic data and 
Phase II involved digitising the available raster data of 
seismic lines within the project area and integrating 
these with the initial interpretation to produce a new 
r o b u s t 	 i n t e r p r e t a t i o n 	 o f 	 t h e 	 B o r e e 	 S a l t 	 M e m b e r .
Boyd	calculated	that	approximately	100	billion	
tonnes of salts exist within the Company’s northern 
exploration permits, which is approximately 
100% more than the Company’s original estimate. 
Furthermore,	Boyd	did	not	identify	any	fatal	flaws	
in the current programme to explore for potash and 
following this work a site has been identified that is 
considered very prospective for potash formation.
The key challenges in the area are the availability of 
water in sufficient quantities and securing access to 
infrastructure. One potential source of water is from 
the waste water of coal seam gas producers in the 
area, if a process can be developed to clean their 
water sufficiently for use in the project’s processing 
plant. This would be a symbiotic solution as it would 
also solve a serious problem for the coal seam gas 
producers.	Furthermore	it	may	be	possible	to	share	
infrastructure links with the coal seam gas and coal 
mining industry, and this will be investigated.
In August 2010 the Company entered into a 
Memorandum of Understanding (MOU) with Sino-
Agri Mining Industry Co. Ltd (Sino-Agri), a division 
of China’s second largest fertiliser distributor, to 
develop the Adavale project. The MOU contained 
a n 	 e x c l u s i v i t y 	 p e r i o d 	 o f 	 1 8 0 	 d a y s 	 t o 	 c o n c l u d e 	 a 	 f u l l	
a g r e e m e n t . 	 T h i s 	 e x p i r e d 	 i n 	 F e b r u a r y 	 2 0 1 1 . 	 I n 	 l i g h t 	 o f 	 t h e	
transformational acquisition of York Potash earlier in 
the year the Company is now taking the opportunity to 
consider its overall strategic approach to China as the 
world’s largest consumer of potash and the source of 
substantial amounts of investment funds.
Canning Basin
In	October	2010	the	Company	instructed	Boyd	to	
conduct a full review of existing and newly acquired 
2D seismic data, together with the exploration data 
gathered	by	Rio	Tinto	Exploration	during	2008	and	
2009 for its Derby Salts tenements in Western 
Australia. Derby Salts’s five exploration licences cover 
some	1,236km
2
 of claims in the Kimberley region of 
Western	Australia	overlying	the	Canning	Basin.
The	Company	announced	Boyd’s	summary	findings	in	
May	 2011.	 Boyd	 had	 established	 that	 the	 Mallowa	 Salts	
are continuous with minimal disturbance, with salt 
mineralisation	ranging	from	approximately	179	to	630	
metres in thickness over a number of representative 
lines at a depth ranging from approximately 500 to 
1,300	metres.	There	was	no	evidence	of	major	faulting	
within the licence areas and five potential drill targets 
were identified.
These results warrant further study and the Company 
is now working with its consultants to plan the next 
phase of exploration work.
Research and Development
Research and development on several environmental 
technologies	provides	a	useful	second	horizon	of	value	 Sirius Minerals Plc Report and Consolidated Accounts 2011 8
Chief Executive Officer’s Report continued
for the Company’s activities. The nature of the studies 
are intended to provide direct potential economic 
benefits to the Company and with the acquisition 
of York Potash the Company is considering further 
research programmes suited for application at this 
project.
In April 2010 Dakota Salts was awarded a grant 
by the Industrial Commission of North Dakota 
of US$225,000 (payable in 2011/12) to carry 
out feasibility studies on using salt caverns for 
compressed air energy storage (CAES) from wind 
energy in North Dakota, one of the windiest states 
in the United States. The project seeks to determine 
whether specifically created caverns in the salt and 
potash seams are viable or whether legacy caverns 
from previous mining operations need to be used. 
Other factors such as the proximity of the caverns to 
key infrastructure are also being considered. 
The Company is working on the project with Electric 
Power and Research Institute (EPRI), Schlumberger 
Ltd and Tetra Tech Inc. Schlumberger is currently 
developing a model to determine the sustainability 
of the CAES concept under the parameters that have 
been determined by EPRI.
In September 2010 the Company and the University 
of Queensland completed a nine month proof-of-
concept study exploring an innovative approach to 
carbon sequestration using salt solutions. This newly 
developed method converts salt and CO
2
 into sodium 
carbonates (e.g. bicarbonate of soda), which can be 
safely stored in empty underground mine caverns 
preventing that CO
2
 from entering the atmosphere.
Sirius and the University of Queensland designed this 
technology to work in conjunction with potash solution 
mining.	Besides	providing	a	long-term	storage	solution	
for CO
2
, another attractive feature of this process is 
that it uses the sodium rich salt solution generated 
from the solution mining of potash, providing both a 
storage solution for sodium and clean water that can 
be pumped back down into the cavern. The Company 
and University of Queensland are applying for patents 
and have also applied for a grant from the Australian 
Research Council to continue the programme.
Funding activity
During	the	year	the	Company	raised	£24.3	million	
in three separate placings. The first of these was in 
September	2010	when	£3.0	million	was	raised	from	
international investors and existing shareholders 
at	6.0	pence	per	share.	A	further	£1.3	million	was	
injected into the Company by Mr Russell Scrimshaw 
who was appointed as non-executive director in 
December 2010.
Following	the	acquisition	of	York	Potash	the	
Company’s	new	management	raised	£20	million	
through	a	placing	of	153.8	million	new	ordinary	shares	
at	13	pence	per	share	in	March	2011	to	institutional	
investors in the United Kingdom, the United States and 
Australia. This placing brought onto the Company’s 
share register the Company’s first substantial 
institutional shareholders. The intention is to increase 
the proportion of the Company’s issued share capital 
held by institutions so as to provide the Company with 
a stable shareholder base with the capacity to fund the 
Company through to production.
Of	the	£20	 million	 raised	 in	the	last	placing	some	 £13.5	
million was planned to be expended on York Potash, 
with a substantial majority of the funds being used 
to fund the exploration programme that is currently 
underway.	Of	the	balance	some	£1.5	million	is	for	
expenditure on the Company’s other projects and the 
rest is to cover the issue costs and for working capital 
and corporate expenditure.
The year ahead
The next twelve months in the life of Sirius will be 
transformational. The Company is growing and 
undertaking activities on a scale it has never done 
before. This work is planned to deliver significant 
shareholder value as quickly as possible. Sirius is 
now well set on its strategy to be the NEW POTASH 
POWERHOUSE.
Chris Fraser 
Managing Director and CEO
Preparing the drill bit Sirius Minerals Plc Report and Consolidated Accounts 2011 9
Potash Market
Potash Market
Potash is the common term for a group of potassium 
containing salts, the most common of which is 
potassium chloride. Potassium is one of the three 
elements required by all plant life to grow, the 
other elements being nitrogen and phosphorus (or 
phosphate in its natural form). Potash occurs in large 
rock deposits in a limited number of areas of the 
world, most commonly as sylvite and sylvinite, but 
also as polyhalite, carnallite, kainite, langbenite and 
alunite.
The application of potash improves the take-up by 
plants of nitrogen and phosphorus and reduces water 
loss, slows crop diseases, assists photosynthesis and 
increases drought resistance, yields, and shelf life. 
The world’s potash requirements have never been 
greater and show no signs of slowing in the future. 
High	global	population	growth,	urbanisation,	changes	
in diet and the ever decreasing supply of arable land 
places ever greater pressure on farmers to increase 
crop yields. In addition, crops in parts of the world are 
suffering from years of under-application of potash 
and the over-use of nitrogen as a lower cost, but 
unsustainable substitute. There is no commercial 
potassium substitute for potash.
MORE
POTASH
DEMAND
Global
Population
Growth
Emergence
of Biofuel
T echnologies
More
Effective and
Efficient
Potash
Applications
Decreasing
Supply of
Arable Land
Shift to
Higher-
Protein and
Higher Value
Diets
Nutrient
Depletion/
Re-Stocking
Global supply and demand dynamics continue to drive 
the need for more abundant, sustainable and higher 
quality food sources such as fruit and vegetables and 
protein. The United Nations estimates that each year 
the world population grows by 70-75 million people, 
which will result in over one billion extra mouths 
to	feed	by	2030.	Inside	this	population	boom	is	a	
growing middle class in countries such as India, China 
and other developing nations moving to higher protein 
diets and demanding more fruit and vegetables. This 
rising demand, along with the decrease of arable land 
on a per capita basis, the emergence of potash hungry 
biofuel crops and historical nutrient depletion have 
caused the potash industry to struggle to keep pace 
with demand.
Potash production and reserves are concentrated 
in only a few countries with Canada, Russia and 
Belarus	holding	nearly	90%	of	the	world’s	reserves.	
The largest markets for potash are China (20%), 
Brazil	(16%),	the	USA	(15%)	and	India	(14%)	with	
the largest consumption by crop being fruit and 
vegetables, corn, rice, sugar crops, soybeans and 
wheat, in that order. 
China
China is a key driver of the potash market producing 
only 20% of its own potash requirements. With 
diet changing to more meat, fruit and vegetables 
plus massive urbanisation, a decreasing amount of 
arable land and historical under-application, China 
already accounts for 20% of global demand. Meat 
consumption	has	increased	seven-fold	in	30	years	
and continues apace and while population growth is 
relatively modest the steady rapid growth in GDP per 
capita leads to ever increasing demands for better 
quality food.
India
India has similar characteristics to China, but has a 
much more rapid rate of population growth and poorer 
soil conditions. India’s population has increased by 
500	million	people	in	the	last	30	years,	putting	huge	
pressure	on	its	resources	and	is	still	increasing	at	1.3%	
per year. India is the world’s second largest producer 
of sugar, rice, wheat, fruit and vegetables with the 
majority consumed domestically. Currently India is the 
world’s largest phosphate importer and has almost 
no domestic potash production. Potash imports 
have tripled in the last 20 years and the Government 
heavily subsidises fertiliser usage to improve yields.
China	and	India’s	collective	demand	grew	8%	per	
annum	between	1993	and	2008,	which	is	twice	that	of	
the rest of the world.
Brazil
Brazil	is	by	far	the	biggest	user	of	potash	in	Latin	
America as its soil is potassium deficient. This makes 
it the world’s third largest consumer of potash. 
Brazil	has	to	import	90%	of	its	requirements	for	the	
production of sugar cane, soybean, rice and corn. It 
also produces 27% of the world’s meat exports putting 
more strain on crops destined for livestock.  Sirius Minerals Plc Report and Consolidated Accounts 2011 10
Potash Market continued
Asia (excluding China and India)
There has been significant economic growth in 
other Asian countries over the past decade leading 
to increased demand for more Western style diets 
similar to what is being seen in China and the need 
for higher yielding crops to meet that demand. Asia 
is a world-leading producer in rice, rubber and palm 
oil, but has limited arable land per capita. As a result 
of these factors there has been a 40% increase of 
fertiliser application in the region over the last two 
decades.
North America
North America is an agricultural powerhouse 
producing approximately 40% of the world’s 
corn,	soybeans	wheat	and	cotton.	Biofuels	crops,	
such as corn, now compete for land and boost the 
requirements for significantly higher yields.
Europe
Although Europe is a significant consumer of potash, 
overall growth is subdued. Eastern Europe is less 
intensively cultivated than Western Europe and 
Russia and Ukraine represent over 40% of the total 
agricultural	land	while	consuming	only	18%	of	the	
total. As the continent’s largest producers of fruit and 
vegetables, Spain and Italy are large users of SOP with 
33%	of	total	potash	consumption	in	these	countries	
being in the form of SOP compared with the global 
average of 10%.
1950
China India Developing Regions World
1960 1970 1980 1990 2000
Source: United Nations, World Urbanisation Prospects 2009
% Urban Population by Country & Region
0%
10%
20%
30%
40%
50%
0
2000
4000
6000
8000
10000
12000
1981
Source: World Bank, World Development Indicators 2009
1985
GDP per Capita Growth in China & India
1989 1992
INDIA
CHINA
1997 2001 2005 2009
1990
China India USA
1995 2000 2005
Source: Food and Agriculture Organisation of the United Nations Statistics Division
Meat Consumption by Country
g/person/ day
0
50
100
150
200
250
300
350
1990
China India USA
1995 2000 2005
Source: Food and Agriculture Organisation of the United Nations Statistics Division
Fruit & Vegetable Consumption by Country
g/person/ day
200
300
400
500
600
700
800
900
1000 Sirius Minerals Plc Report and Consolidated Accounts 2011 11
Potash Market
The Key Potash Products
The most common form of potash is potassium 
chloride, or Muriate of Potash (MOP) which occurs 
naturally as sylvite, sylvinite and carnallite. In 2010 
it accounted for some 90% of the world’s supply of 
over 52 million tonnes and contains around 60 – 62% 
potassium oxide (K
2
O). It is widely applied in all 
types of farming and is primarily used for row crops. 
However,	the	chloride	ion	in	MOP	can	be	detrimental	
to some plants, especially many fruits and vegetables, 
and it also inhibits plant growth in dry soils and saline 
areas. The soil’s chloride content has to be managed 
carefully by farmers as it can build up and cause low 
quality crops.
Sulphate of Potash (SOP) production in 2010 was 
approximately 5 to 6 million tonnes and accounts for 
some 10% of the world’s supply of potash. SOP has 
historically attracted a premium to the MOP price 
due to its limited availability and its historically higher 
production cost. Some 60% of SOP is produced 
from the reaction of sulphuric acid and MOP in the 
Mannheim	Furnace	process.
SOP	contains	50	–	53%	K
2
O and can be used in every 
application that MOP can, and is preferred in many 
circumstances such as in arid, saline and heavily 
cultivated soils and for the growth of potatoes, beans, 
fruits, vegetables, nuts, tobacco and other crops.
Muriate of Potash (MOP – KCI)
Most common form of potash
Suitable for row crops
Contains chloride ions
Not suitable for arid, saline nor heavily cultivated 
soils
Careful management needed
Sulphate of Potash (SOP – K
2
SO
4
)
Enhances yield
Improves quality
Extends shelf life
Suitable for a wider range of crops
Suitable for arid, saline and heavily cultivated soils
Outperforms or equals MOP on all crops
Fruit and vegetables are large users of SOP Sirius Minerals Plc Report and Consolidated Accounts 2011 12
Key performance indicators
The	Board	regularly	monitors	spending	
against budget through monthly reporting and 
meetings every two months. At the current 
stage of development of the Company’s 
projects there are few key performance 
indicators or comparatives to prior years.
Progress towards the development of the 
York Potash Project will be tracked against 
milestones such as the announcement of 
resource figures and completion of the Concept 
Study and other engineering and environmental 
studies, and in due course receiving planning 
consent for the mine. Resource figures will be 
prepared	to	JORC	standards.
In addition the Company monitors its share 
price performance relative to the market and 
its peers. Since last year’s annual report share 
price performance has been strong, but with 
weakness during the last six months.
The principal risks currently identified in the 
Company are as follows:
Exploration and production risk
Exploration and development risks are inherent 
in the mining industry. It is impossible to 
remove all risks or to establish for certain the 
true	extent	of	the	size	and	grade	of	an	orebody.	
However,	experience	developed	over	many	
years by the industry has established methods 
for assessing, evaluating and reducing the risks 
inherent in a project. The Company, with the 
assistance of experts in their respective fields, 
is currently applying these methods to the 
geological, mining, processing, infrastructure, 
environmental, construction and other aspects 
of its projects, the most advanced of which is 
York Potash. 
The Company is conducting an exploration 
drilling programme at York Potash to 
assess and quantify the extent of the 
potash resources, and to bring them to a 
level of certainty categorised according to 
international standards universally accepted 
within the mining industry. Other aspects 
of the development risk of the project are 
assessed during a sequence of ever more 
detailed and accurate engineering studies of 
which a concept study is currently underway. 
If the results of this study are positive the 
Company will conduct a pre-feasibility, then 
feasibility study on the project before moving 
to construction. There is no certainty that 
Principal Risks 
and Uncertainties Sirius Minerals Plc Report and Consolidated Accounts 2011 13
Risks & uncertainties
these studies will be positive or that the project will be 
developed into a commercial mining operation.
Mineral title risk
There is often an element of uncertainty about the 
validity of mineral titles as they rely on the quality of 
State record keeping over many years, even centuries. 
However,	the	Company’s	projects	are	all	in	countries	
with sophisticated land registry systems so the 
risk that the mineral and exploration rights that the 
Company holds not being valid is low. 
In the United Kingdom mineral rights and surface 
rights do not always go together and the land registry 
system is focussed on surface rights rather than 
mineral rights. This introduces an additional level of 
uncertainty and the Company makes considerable 
efforts to confirm mineral rights ownership before 
entering into option and exploration agreements with 
the mineral rights owners.
Permitting risk
A large number of permits and licences are required 
to bring a mining operation successfully into 
production. These permits and licences vary country-
by-country and relate to conducting exploration 
work, construction, traffic, environmental, operations 
and a host of other areas. The nature of the process 
means that permits and licences can only be applied 
for when the development of a project reaches the 
stage that the particular permit or licence is required. 
It is not possible to say that all such licences will be 
obtained when they are needed, but the Company 
and its specialist consultants will continue to take all 
necessary actions to be successful in its applications.
Potash price risk
There is a risk that the potash price could fall to 
levels at which it would not be economically viable 
to develop any or all of the Company’s projects. The 
potash price has fluctuated over recent years and 
can be expected to do so over the coming years as 
well. While the Company does not expect the potash 
price to decline to levels at which its projects are not 
viable there is a risk that this could occur either before 
construction of the project, or once it is in operation. 
However,	current	price	trends	are	positive.	
Liquidity risk
There is a risk that the Company will have insufficient 
funds to develop its projects. To successfully 
develop any of its projects the Company will need 
to raise additional funds and there is no assurance 
that adequate funds will be available when they are 
required	to	finance	the	Company’s	activities.	However,	
the directors of the Company have a reasonable 
expectation that additional funds will be secured when 
they are required.
Currency risk
At present the Company raises funds in sterling 
and the considerable majority of its expenditure is 
also	in	sterling.	However,	the	Company	expects	an	
increasing proportion of its expenditure to be incurred 
in Euros, US Dollars, Canadian Dollars and Australian 
Dollars during the period of project evaluation and 
development. Once in production sales will largely be 
determined in US Dollars, but priced in the European 
market in Euros. The Company constantly assesses 
its currency exposure and currently holds funds in its 
key currencies, roughly in proportion to its expected 
exposure. Sirius Minerals Plc Report and Consolidated Accounts 2011 14
Chris Catlow, Non-Executive Chairman (50)
Chris Catlow is highly experienced in the 
international resources industry having worked 
on the development and operations of oil and 
gas, hard rock and sand mining projects over 
a	25	year	career.	He	most	recently	was	CFO	
and	then	Business	Development	Director	of	the	
ASX-listed	iron	ore	mining	company	Fortescue	
Metals	Group	Ltd	(FMG)	having	joined	shortly	
after	its	formation	in	2003.	During	his	seven	
years	at	FMG	the	company	grew	to	become	
Australia’s third largest iron ore producer 
behind	Rio	Tinto	and	BHP	Billiton.
He	has	a	BSc	in	Engineering	Science	from	the	
University	of	Durham	in	the	UK	and	is	a	Fellow	
of the Institute of Chartered Accountants in 
Australia.	He	is	currently	Chairman	of	Indo	
Mines	Limited	and	Allied	Healthcare	Group	
Limited both listed on the ASX.
Chris Catlow was appointed Chairman of Sirius 
Minerals in April 2010.
Chris Fraser, Managing Director and CEO (37) 
Chris	Fraser	has	over	15	years’	finance	
experience in the mining industry. During this 
time he worked for Citigroup, Rothschild and 
KPMG and has market leading expertise in 
all aspects of the financing and development 
of major mining projects. At Citigroup he 
led the bank to become one of the leading 
investment banking franchises in the mining 
industry in Australia. In particular he was 
the lead adviser on the US$2.5 billion initial 
development	capital	financing	for	Fortescue	
Metals	Group	Ltd	(FMG).	He	has	provided	
strategic advice to many of the world’s leading 
mining	companies	including	BHP	Billiton,	Rio	
Tinto, WMC Resources and Paladin Energy. In 
2010 he founded York Potash Ltd to undertake 
the exploration and development of the York 
Potash Project. 
Chris	Fraser	joined	the	Board	in	January	2011.
Richard Poulden, Non-Executive Deputy 
Chairman (59) 
Following	a	law	degree	from	Oxford	University,	
Mr	Poulden	qualified	as	a	Barrister	after	which	
he moved into merchant banking where he 
worked for Samuel Montagu & Co Limited. 
He	then	studied	for	an	MBA	at	the	London	
Business	School	before	joining	the	international	
management consultancy firm, Arthur D Little, 
where he worked in their European strategy 
practice	and	was	co-founder	of	their	Financial	
Industries Group.
Board Sirius Minerals Plc Report and Consolidated Accounts 2011 15
Board
He	has	founded	or	co-founded	successful	companies	
in healthcare, retail and natural resources and in all 
these sectors he has executed successful strategies 
for	growth	by	acquisition.	He	is	CEO	of	PCG	
Entertainment Plc, a director of MoneySwap Plc and 
Chairman	of	Black	Swan	Plc.	
Richard	Poulden	is	a	founding	member	of	the	Board.
Andrew Lindsay, Finance Director and CFO (48) 
Andrew Lindsay has over 25 years’ experience in the 
mining	industry.	Between	2003	and	2010	he	was	
the	Finance	Director	at	European	Nickel	plc.	Prior	
to European Nickel, Andrew Lindsay held a series 
of business development and corporate finance 
management roles within the Anglo-American Group 
between	1985	and	2002	based	in	the	United	Kingdom,	
South Africa, Australia and Chile. 
Andrew	Lindsay	joined	the	Board	in	January	2011.
Professor Michael Mainelli, Non-Executive Director 
(52) 
Michael Mainelli is Chairman of Z/Yen, the UK’s 
leading risk/reward group, where he has worked 
since	1994.	He	started	his	career	as	a	research	
scientist and then spent seven years as a partner in 
a leading accountancy firm directing much of their 
consultancy work in the UK and overseas. Michael 
Mainelli has worked for public, private and not-for-
profits companies, led several privatisation projects, 
was	Chief	Scientist	of	the	DTI	Foresight	Challenge	
award-winning	Financial	Laboratory,	and	Corporate	
Development Director on the board of Europe’s 
largest R&D organisation – the 12,000 strong Defence 
Evaluation and Research Agency of the UK’s Ministry 
of Defence. 
Michael Mainelli brings independent advice to the 
Board	and	is	the	Chairman	of	the	Audit	Committee	
and	the	Remuneration	Committee.	He	joined	the	
Board	in	May	2005.
Russell Scrimshaw, Non-Executive Director (62) 
Russell Scrimshaw was until recently an Executive 
Director	of	Fortescue	Metals	Group	Ltd	(FMG)	and	
has	been	a	member	of	the	FMG	Board	since	2003.	
He	is	now	a	non-executive	director.	He	has	played	
an integral role in the commercial development 
of	FMG	and	its	Pilbara	project.	He	is	an	Associate	
Member of the Australian Society of Certified 
Practicing Accountants, an Adjunct Professor of 
Mining Economics at China Central South University in 
Changsha, China and a non-executive director of ASX-
listed Cleveland Mining Company Limited. 
Russell	Scrimshaw	joined	the	Board	in	December	
2010.
Derek Stonley, Non-Executive Director (69) 
Derek	Stonley	graduated	from	Cambridge	with	a	BA	
in Natural Sciences and has over 40 years’ experience 
in	the	mining	sector.	From	1980-1987,	he	held	
senior	positions	at	BP	Minerals	International	Limited	
in exploration in Europe and North America for 
stratiform	copper	and	lead-zinc,	diamonds,	gold	and	
copper-gold	porphyries.	From	1987-2002	he	worked	
for Rio Tinto on the exploration and assessment of 
projects in Africa, Russia and Europe for iron ore, 
diamonds, gold and bauxite. Since 2002 he has been 
running his independent consultancy with particular 
focus in Africa and Europe. 
Derek Stonley brings independent advice to the 
Board,	reviews	business	opportunities	for	the	Group	
and is a member of the Audit Committee and the 
Remuneration	Committee.	He	joined	the	Board	in	May	
2005.
Peter Woods, Non-Executive Director (73) 
Peter Woods is a consulting geologist and engineer 
with extensive experience in the potash industry 
having	worked	for	13	years	as	Chief	Geologist	at	the	
Boulby	Potash	Mine	in	North	Yorkshire,	initially	on	its	
development	and	start-up.	He	has	been	advising	York	
Potash Ltd since its establishment and has continued 
to	do	so	following	its	acquisition	by	Sirius	in	January	
2011. In addition to his potash knowledge Peter Woods 
has the valuable experience of serving as one of the 
Secretary of State’s Appointees on the North York 
Moors National Park Planning Committee from 1996 
to 1999 and has lived in the area, on and off, for over 
40	years.	He	joined	the	Board	in	April	2011. Directors' Report
Sirius Minerals Plc Report and Consolidated Accounts 2011 16
The	Directors	present	their	annual	report	and	audited	consolidated	acc ounts	for	the	year	ended	31	March	2011.
Principal activities and review of business
The principal activity of the Group is to acquire and develop properties with exploration and mining potential. Sirius Minerals Plc 
is a globally diversified company with properties overlying recognised potash deposits held in the United Kingdom, Australia and 
North America.
On	28	September	2010,	the	name	of	the	Company	changed	from	Sirius	Exploration	Plc	to	Sirius	Minerals	Plc.
A	review	of	the	business	of	the	Group	is	set	out	in	the	Chief	Executive 	Officer’s	report	on	pages	4	to	8.
Results and dividends
The	loss	of	the	Group	for	the	year	was	£7,090,000	(2010:	£3,839,000).	The	loss	of	the	Company	for	the	year	was	£6,704,000	
(2010:	£3,169,000).
The	directors	do	not	recommend	a	payment	of	a	dividend	for	the	year	(2010:	£nil).
Directors
The Directors of the Company during the year were:
CJ	Catlow Non-executive chairman Appointed 6 April 2010
CN	Fraser Managing director and CEO Appointed	17	January	2011
AM Lindsay Finance	director	and	CFO Appointed	17	January	2011
RO’D Poulden Non-executive deputy chairman
Dr	JPN	Badham Non-executive director Passed	away	19	June	2010
JC	Harrison Non-executive director Resigned	17	January	2011
Prof MR Mainelli Non-executive director
RJ	Scrimshaw Non-executive director Appointed 20 December 2010
DCW Stonley Non-executive director
On	18	April	2011,	PJE	Woods	was	appointed	as	a	non-executive	director.
Financial risk management
Details of the Group’s financial instruments and its policies with regard to financial risk management are given in note 25 to the 
consolidated accounts.  
Principal risks and uncertainties and key performance indicators
Details of the principal risks and uncertainties and key performance indicators relative to the Group are set out in the Operating 
Environment,	Principal	Risks	and	Uncertainties	report	on	pages	12	and	 13.
Creditor payment policy
Payment terms are normally agreed with individual suppliers at the time of order placement and are honoured, provided that 
goods and services are supplied in accordance with the contractual conditions.
At	the	year	end,	the	number	of	creditor	days	of	the	Group	was	30	(2010:	92).
Statement regarding disclosure of information to the auditors 
Each director of the Group has confirmed that, in fulfilling their duties as a director, they are aware of no relevant audit information 
of which the Group’s auditors are not aware and that they have taken all the steps that they ought to have taken as a director to 
make themselves aware of any relevant audit information and to establish that the Group’s auditors are aware of that information.
This	information	is	given	and	should	be	interpreted	in	accordance	wit h	the	provisions	of	section	418	of	the	Companies	Act	2006.
Auditors 
A resolution in respect of the re-appointment of Nexia Smith & Williamson as the Group’s auditors will be proposed at the 
forthcoming Annual General Meeting.
Approved	by	the	Board	of	Directors 
and	signed	on	behalf	of	the	Board
J Sembi
Company Secretary
Date: 2 August 2011 Corporate Governance Statement
Sirius Minerals Plc Report and Consolidated Accounts 2011 17
The	Board	recognises	the	importance	of	sound	corporate	governance	and	intends	to	ensure	that	the	Company	adopts	policies	and	
procedures which reflect the principles of the UK Corporate Governance Code that are consistent with the Corporate Governance 
Guidelines for Smaller Quoted Companies published by the Quoted Companies Alliance in September 2010, of which the 
Company is a member.
The Board
The	Board	comprises	two	executive	directors	and	six	non-executive	di rectors.	The	Chairman,	Chris	Catlow	is	non-executive.	The	
Deputy	Chairman,	Richard	Poulden	is	also	non-executive.	The	executive	directors	are	Chris	Fraser,	the	Managing	Director	and	
CEO	and	Andrew	Lindsay,	the	Finance	Director	and	CFO.	The	remaining	four	non-executive	directors	are	Michael	Mainelli,	Russell	
Scrimshaw, Derek Stonley and Peter Woods. 
The	Board	meets	regularly	during	the	year,	at	least	on	a	bi-monthly	basis,	to	discuss	significant	matters	including	long-term	
strategy, short term operational activities and financial performance. The latest management reports and accounts including 
variances	to	budget	are	presented	at	each	Board	meeting.
The Company’s Articles of Association require one third of the Directors to retire from office by rotation at every Annual General 
Meeting. 
The Company has established an Audit Committee and a Remuneration and Nominations Committee, both with formally 
delegated responsibilities by way of terms of reference. 
Audit Committee
The members of the Audit Committee are Michael Mainelli and Derek Stonley. Michael Mainelli is chairman of the committee. The 
committee consists entirely of non-executive directors. Its duties include reviewing the Company and Group financial statements, 
reviewing the effectiveness of the Company’s internal controls and risk management systems and, overseeing the relationship 
with the external auditor.  The committee meets at least three times a year. The executive directors attend meetings by invitation.
Remuneration and Nominations Committee
The members of the Remuneration and Nominations Committee are Michael Mainelli and Derek Stonley. Michael Mainelli 
is chairman of the committee. The committee consists entirely of non-executive directors. Its duties include reviewing the 
remuneration and service contracts of executive directors, reviewing the design of all share incentive plans and, evaluating the 
balance	of	skills,	knowledge	and	experience	on	the	Board	before	any	appointments	are	made.	The	committee	meets	at	least	once	
a year. Directors’ remuneration for the year is given in note 7 to the consolidated accounts and this disclosure forms part of this 
report.
The	performance	of	the	Board,	committees	and	individual	directors	are	evaluated	annually.	Individual	director	evaluation	includes	
whether	each	director	continues	to	contribute	effectively	and	demons trates	commitment	to	their	role	by	attending	Board	
meetings. 
Internal Controls
The	Board	has	overall	responsibility	for	the	effectiveness	of	the	Group’s	internal	controls	in	safeguarding	the	assets	of	the	Group.		
The internal control systems are designed to identify and manage risks to ensure that the possibilities of material misstatements 
or loss are kept to a minimum.
The	processes	used	by	the	Board	to	review	the	effectiveness	of	the	intern al	controls	are	through	the	Audit	Committee	and	the	
executive	management	reporting	to	the	Board	on	a	regular	basis	where	business	plans,	budgets	and	authorisation	limits	for	the	
approval	of	significant	expenditure	including	investment	are	appraise d	and	agreed.	The	Board	also	seeks	to	ensure	that	there	is	a	
proper organisational and management structure with clear responsibilities and accountability.
The Company has adopted and applies a share dealing code on the dealing in securities of the Company by directors and 
employees, to ensure compliance with Rule 21 of the AIM Rules.
Due	to	the	small	size	of	the	Group,	an	internal	audit	function	has	not	b een	established.	The	Board	receives	sufficient	assurance	on	
risk, control and governance from other assurance activities within the Group including from regular management information and 
the external auditors. 
Going Concern
The	Directors	have	reviewed	the	financial	performance	of	the	Group	s ince	31	March	2011	and	have	considered	the	Group’s	cash	
projections	for	the	12	months	from	the	date	of	approval	of	these	accou nts.	Based	on	these	projections,	the	directors	of	the	Group	
consider it appropriate to draw up the accounts on a going concern basis.  Sirius Minerals Plc Report and Consolidated Accounts 2011 18
Corporate Governance Statement continued
Key Performance Indicators
The Group's approach to KPIs is set out on page 12.
Operating Environment, Principal Risks and Uncertainties
A review of the Group's operating environment, principal risks and uncertainties is set out on pages 12 and 13. 
Communication With Shareholders
The Annual General Meeting, annual report and audited accounts, interim financial statements and other announcements issued 
through the Regulatory News Service are the primary vehicles through which the Company communicates with its shareholders.
Rule 26 of the AIM Rules requires companies to maintain a website on which certain information should be available, free of 
charge. This information is available on the Company’s website at www.siriusminerals.com. 
Approved by the Board of Directors  
and signed on behalf of the Board 
J Sembi 
Company Secretary
020_c105067 (Working Copy).indd   18 04/08/2011   15:01 Statement of Directors' Responsibilities
Sirius Minerals Plc Report and Consolidated Accounts 2011 19
The Directors are responsible for preparing the Directors’ Report and the accounts in accordance with applicable law and 
regulations.
Company law requires the Directors to prepare accounts for each financial year. Under that law the Directors have elected to 
prepare	the	Group	and	Company	accounts	in	accordance	with	applicable	law	and	International	Financial	Reporting	Standards	
(IFRS)	as	adopted	by	the	European	Union	and,	as	regards	the	Company	accounts,	as	applied	in	accordance	with	provisions	of	the	
Companies Act 2006. Under company law the Directors must not approve the accounts unless they are satisfied that they give 
a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period. In 
preparing these accounts, the Directors are required to:
•	 Select suitable accounting policies and then apply them consistently;
•	 Make judgements and accounting estimates that are reasonable and prudent;
•	 State	whether	applicable	IFRS	as	adopted	by	the	European	Union	have	been	followed	subject	to	any	material	departures	
disclosed and explained in the accounts; and
•	 Prepare the accounts on the going concern basis unless it is inappropriate to presume that the Group will continue in 
business.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Group’s 
transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure 
that the accounts comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company 
and of the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the 
Company’s website. Legislation in the United Kingdom governing the preparation and dissemination of accounts may differ from 
legislation in other jurisdictions.  Sirius Minerals Plc Report and Consolidated Accounts 2011 20
We have audited the accounts of Sirius Minerals Plc for the year ended 31 March 2011 which comprise the Consolidated Income 
Statement, the Consolidated and Company Statements of Comprehensive Income, the Consolidated and Company Statements of 
Financial Position, the Consolidated and Company Statements of Changes in Equity, the Consolidated and Company Statements of 
Cash Flows and the related notes 1 to 27. The financial reporting framework that has been applied in their preparation is applicable 
law and International Financial Reporting Standards (IFRSs) as adopted by the European Union and, as regards the company 
accounts, as applied in accordance with the provisions of the Companies Act 2006.
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 
2006.  Our audit work has been undertaken so that we might state to the company’s members those matters we are required to 
state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume 
responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for 
the opinions we have formed.
Respective responsibilities of directors and auditor
As explained more fully in the Directors’ Responsibilities Statement set out on page 19, the directors are responsible for the 
preparation of the accounts and for being satisfied that they give a true and fair view. Our responsibility is to audit and express 
an opinion on the accounts in accordance with applicable law and International Standards on Auditing (UK and Ireland).  Those 
standards require us to comply with the Auditing Practices Board’s (APB’s) Ethical Standards for Auditors.
Scope of the audit of the accounts
A description of the scope of an audit of financial statements is provided on the APB’s website at www.frc.org.uk/apb/scope/
private.cfm.
Opinion on accounts
In our opinion:
•	 the accounts give a true and fair view of the state of the group’s and of the company’s affairs as at 31 March 2011 and of the 
group’s loss for the year then ended;
•	 the group accounts have been properly prepared in accordance with IFRSs as adopted by the European Union;
•	 the company accounts have been properly prepared in accordance with IFRSs as adopted by the European Union and as 
applied in accordance with the provisions of the Companies Act 2006; and
•	 the accounts have been prepared in accordance with the requirements of the Companies Act 2006.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion the information given in the Directors’ Report for the financial year for which the accounts are prepared is consistent 
with the accounts.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our 
opinion:
•	 adequate accounting records have not been kept by the company, or returns adequate for our audit have not been received 
from branches not visited by us; or
•	 the company accounts are not in agreement with the accounting records and returns; or
•	 certain disclosures of directors’ remuneration specified by law are not made; or
•	 we have not received all the information and explanations we require for our audit.
Natasha Lee 25 Moorgate
Senior Statutory Auditor, for and on behalf of London
Nexia Smith & Williamson EC2R 6AY
Statutory Auditor
Chartered Accountants
Date: 2 August 2011
Independent Auditor’s Report to the Members of Sirius 
Minerals Plc
020_c105067 (Working Copy).indd   20 04/08/2011   15:01 21 Sirius Minerals Plc Report and Consolidated Accounts 2011 
Consolidated Income Statement
for	 the	 year	 ended	 31	 March	 2011
Notes
2011 
£000s
2010 
£000s
Continuing operations
Revenue – –
Administrative expenses (7,713) (3,840)
Exceptional administrative expenses: 
 Impairment charge 4 (732) (462)
 Acquisition costs 4 (48) (174)
 Share based payments – share options 4 (4,768) (1,659)
 Exploration costs expensed 4 (497) (398)
Other administrative costs (1,668) (1,147)
Operating loss 5 (7,713) (3,840)
Finance	income 6 45 1
Loss before taxation (7,668) (3,839)
Taxation 8 578 –
Loss for the financial year (7,090) (3,839)
Loss per share:
Basic	and	diluted 9 (1.0)p (1.0)p 22 Sirius Minerals Plc Report and Consolidated Accounts 2011
Consolidated Statement of Comprehensive Income
for	 the	 year	 ended	 31	 March	 2011
2011
£000s
2010
£000s
Loss for the year (7,090) (3,839)
Other comprehensive income
Exchange differences on translating foreign operations 1,161 5,575
Other comprehensive income for the year, net of tax 1,161 5,575
Total comprehensive (loss)/income for the year (5,929) 1,736
Total comprehensive (loss)/income shown above is fully attributable to equity shareholders of the Company in both years. 23 Sirius Minerals Plc Report and Consolidated Accounts 2011 Sirius Minerals Plc Report and Consolidated Accounts 2011 
Consolidated	 Statement	 of	 Financial	 Position
as	 at	 31	 March	 2011
ASSETS Notes
2011
£000s
2010
£000s
Non–current assets
Plant and equipment 10 36 1
Intangible assets 11 91,197 54,292
  91,233 54,293
Current assets
Other receivables 14 307 55
Cash and cash equivalents 16 21,010 1,782
Available-for-sale financial assets 17 – 729
  21,317 2,566
TOTAL ASSETS 112,550 56,859
EQUITY AND LIABILITIES
Equity
Share capital 18 2,581 1,658
Share premium account 95,658 47,959
Share based payment reserve 19 6,343 1,575
Retained earnings (10,700) (3,610)
Foreign	exchange	reserve 6,733 5,572
Total equity 100,615 53,154
Non-current liabilities
Deferred tax liability 20 9,701 3,233
Current liabilities
Trade and other payables 22 2,234 472
Total liabilities 11,935 3,705
TOTAL EQUITY AND LIABILITIES 112,550 56,859
The	accounts	were	approved	by	the	Board	of	Directors	on	2	August	2011	and	were	signed	on	its	behalf	by:
AM Lindsay
Finance	Director	and	CFO 24 Sirius Minerals Plc Report and Consolidated Accounts 2011
Consolidated Statement of Changes in Equity
for	 the	 year	 ended	 31	 March	 2011
Share 
capital
£000s 
Share 
premium 
account
£000s
Share 
based 
payments 
reserve
£000s
Retained 
earnings
£000s 
Foreign 
exchange 
reserve
£000s
Equity 
share-
holders’ 
funds
£000s
Minority 
interests
£000s
Total 
equity
£000s
At 31 March 2009 329 2,122 1 (2,059) (3) 390 341 731
Loss for the financial year – – – (3,839) – (3,839) – (3,839)
Foreign	exchange	differences	on	
translation of foreign operations – – – – 5,575 5,575 – 5,575
Total comprehensive income for 
the year – – – (3,839) 5,575 1,736 – 1,736
On acquisition – – – 2,021 – 2,021 (341) 1,680
Share capital issued in the year 1,329 45,961 – – – 47,290 – 47,290
Share issue costs – (124) – – – (124) – (124)
Share based payments – – 1,841 – – 1,841 – 1,841
Exercise options – – (267) 267 – – – –
At 31 March 2010 1,658 47,959 1,575 (3,610) 5,572 53,154 – 53,154
Loss for the financial year – – – (7,090) – (7,090) – (7,090)
Foreign	exchange	differences	on	
translation of foreign operations – – – – 1,161 1,161 – 1,161
Total comprehensive income for 
the year – – – (7,090) 1,161 (5,929) – (5,929)
Share capital issued in the year 923 48,626 – – – 49,549 – 49,549
Share issue costs – (927) – – – (927) – (927)
Share based payments – – 4,809 – – 4,809 – 4,809
Exercised options – – (41) – – (41) – (41)
At 31 March 2011 2,581 95,658 6,343 (10,700) 6,733 100,615 – 100,615
The share premium account is used to record the excess proceeds over nominal value on the issue of shares.
The share based payment reserve is used to record the share based payments made by the Group.
Foreign	exchange	reserve	records	exchanges	differences	which	arise	on	translation	of	foreign	operations	with	a	functional	
currency other than Sterling.  25 Sirius Minerals Plc Report and Consolidated Accounts 2011 
Consolidated	 Statement	 of	 Cash	 Flows
for	 the	 year	 ended	 31	 March	 2011
Notes
2011
£000s
2010
£000s
Cash outflow from operating activities 23 (622) (1,979)
Cash flow from investing activities
Purchase of intangible assets  11 (3,148) (315)
Purchase of plant and equipment 10 (37) (3)
Acquisition of subsidiary, net of cash acquired 12 (372) 1,174
Net cash (used in)/generated from investing activities (3,557) 856
Cash flow from financing activities   
Proceeds from issue of shares 18 24,342 2,764
Share issue costs 18 (927) –
Finance	income 45 –
Net cash generated from financing activities 23,460 2,764
Net increase in cash and cash equivalents (19,281) 1,641
Cash and cash equivalents at beginning of the year 16 1,782 9
Effect of foreign exchange rate changes (53) 132
Cash and cash equivalents at end of the year 16 21,010 1,782 26 Sirius Minerals Plc Report and Consolidated Accounts 2011
Company Statement of Comprehensive Income
for	 the	 year	 ended	 31	 March	 2011
2011  
£000s
2010
£ 000s
Loss for the year (6,704) (3,169)
Other comprehensive income/(loss) for the year, net of tax – –
Total comprehensive loss for the year (6,704) (3,169) 27 Sirius Minerals Plc Report and Consolidated Accounts 2011 Sirius Minerals Plc Report and Consolidated Accounts 2011 
Company	 Statement	 of	 Financial	 Position
as	 at	 31	 March	 2011
ASSETS Notes
2011
£000s
2010
£ 000s
Non-current assets
Plant and equipment 10 1 –
Investments in subsidiaries 13 69,539 44,217
69,540 44,217
Current assets
Other receivables 14 103 50
Loans to subsidiaries 15 3,785 1,038
Cash and cash equivalents 16 20,871 455
Available-for-sale financial assets 17 – 732
24,759 2,275
TOTAL ASSETS 94,299 46,492
EQUITY AND LIABILITIES
Equity attributable to equity holders of the Company
Share capital 18 2,581 1,658
Share premium account 95,658 47,959
Share based payment reserve 19 6,343 1,575
Retained earnings (11,658) (4,954)
Total equity 92,924 46,238
Current liabilities
Loans from subsidiaries 21 1,104 –
Trade and other payables 22 271 254
Total liabilities 1,375 254
TOTAL EQUITY AND LIABILITIES 94,299 46,492
The	accounts	were	approved	by	the	Board	of	Directors	on	2	August	2011	and	were	signed	on	its	behalf	by:
AM Lindsay 
Finance	Director	and	CFO 28 Sirius Minerals Plc Report and Consolidated Accounts 2011
Company Statement of Changes in Equity
for	 the	 year	 ended	 31	 March	 2011
Share capital
£000s
Share premium 
account
£000s
Share based 
payments 
reserve
£000s
Retained 
earnings
£000s
Equity share-
holders’ funds
£000s
At 31 March 2009 329 2,122 1 (2,052) 400
Loss for the year and total 
comprehensive income – – – (3,169) (3,169)
Share capital issued in the year 1,329 45,961 – – 47,290
Share issue costs – (124) – – (124)
Share based payment reserve – – 1,841 – 1,841
Exercised options – – (267) 267 –
At 31 March 2010 1,658 47,959 1,575 (4,954) 46,238
Loss for the year and total 
comprehensive income – – – (6,704) (6,704)
Share capital issued in the year 923 48,626 – – 49,549
Share issue costs – (927) – – (927)
Share based payment reserve – – 4,809 – 4,809
Exercised options – – (41) – (41)
At 31 March 2011 2,581 95,658 6,343 (11,658) 92,924
The share premium account is used to record the excess proceeds over nominal value on the issue of shares.
The share based payment reserve is used to record the share based payments made by the Company. 29 Sirius Minerals Plc Report and Consolidated Accounts 2011 
Company	 Statement	 of	 Cash	 Flows
for	 the	 year	 ended	 31	 March	 2011
Notes
2011
£000s
2010
£000s
Cash outflow from operating activities 23 (1,200) (1,271)
Cash flow from investing activities
Purchase of intangible assets 11 – (11)
Purchase of plant and equipment 10 (1) –
Investment in subsidiary 12 (373) –
Loans to subsidiary companies 15 (2,571) (1,038)
Net cash used in investing activities (2,945) (1,049)
Cash flow from financing activities
Proceeds from issue of shares 18 24,342 2,764
Share issue costs 18 (927) –
Loan from subsidiary company 21 1,104 –
Finance	income 42 4
Net cash generated from financing activities 24,561 2,768
Net increase in cash and cash equivalents 20,416 448
Cash and cash equivalents at beginning of year 16 455 7
Cash and cash equivalents at end of the year 16 20,871 455 Sirius Minerals Plc Report and Consolidated Accounts 2011 30
Notes to the Consolidated Accounts
for	 the	 year	 ended	 31	 March	 2011
1. Accounting policies
Basis of preparation
The annual accounts of Sirius Minerals Plc (“the Company”) and its subsidiaries (“the Group”) have been prepared in accordance 
with	International	Financial	Reporting	Standards	(“IFRS”)	as	adopted	 by	the	European	Union	(“EU”)	applied	in	accordance	with	the	
provisions of the Companies Act 2006.
IFRS	is	subject	to	amendment	and	interpretation	by	the	International	 Accounting	Standards	Board	(“IASB”)	and	the	International	
Financial	Reporting	Standards	Interpretations	Committee	(“IFRIC”)	an d	there	is	an	ongoing	process	of	review	and	endorsement	by	
the	European	Commission.	The	accounts	have	been	prepared	on	the	basis	of	the	recognition	and	measurement	principles	of	IFRS	
that	were	applicable	at	31	March	2011.
The accounts have been prepared under the historical cost convention except for the revaluation of certain financial instruments. 
The principal accounting policies set out below have been consistently applied to all periods presented.
Going concern
The	Group	has	incurred	trading	losses	during	the	year	ended	31	March	2011.	The	Directors	have	reviewed	the	financial	
performance	of	the	Group	since	31	March	2011	and	have	considered	the	Group’s	cash	projections	for	the	12	months	from	the	
date	of	approval	of	these	accounts.	Based	on	these	projections,	the	Di rectors	of	the	Group	consider	it	appropriate	to	draw	up	
the accounts on a going concern basis. The accounts do not include any adjustments that would result if the going concern 
assumption was no longer deemed appropriate.
International Financial Reporting Standards in “issue” but not yet effective
At	the	date	of	authorisation	of	these	consolidated	accounts,	the	IASB	 and	IFRIC	have	issued	standards	and	interpretations	
which are effective for annual accounting periods beginning on or after the stated effective date. Whilst these standards and 
interpretations are not effective for and have not been applied in the preparation of these consolidated accounts, the following 
may have a material impact going forward:
•	 IAS	24	(Revised)	‘Related	Party	Transactions’	(effective	from	1	January 	2011);
•	 IFRS	9	‘Financial	Instruments’	(effective	from	1	January	2013);
•	 IFRIC	19	‘Extinguishing	Financial	Liabilities	with	Equity	Instruments’	(e ffective	from	1	July	2010);
•	 IFRS	7	(Amendment)	‘Disclosures	–	Transfer	of	Financial	Assets’	(effe ctive	from	1	July	2011);
•	 IAS	12	(Amendment)	‘Deferred	Tax:	Recovery	of	Underlying	Assets’	(effective	from	1	July	2011);
•	 IFRS	10	‘Consolidated	Financial	Statements’	(effective	from	1	January	 2013);
•	 IFRS	11	‘Joint	Arrangements’	(effective	from	1	January	2013);
•	 IFRS	12	‘Disclosure	of	Interests	in	Other	Entities’	(effective	from	1	Janu ary	2013);
•	 IAS	28	‘Investments	in	Associates	and	Joint	Ventures’	(effective	from 	1	January	2013);
•	 IFRS	13	‘Fair	Value	Measurement’	(effective	from	1	January	2013);
New and amended standards adopted by the Group
The	Group	has	adopted	the	following	new	and	amended	IFRSs	as	of	1	April	2010:
•	 IAS	36	(Amendment)	‘Impairment	of	Assets’	(effective	from	1	Januar y	2010):
  The revised standard requires that goodwill acquired in a business combination be allocated to each of the acquirer’s cash-
generating units or groups of cash-generating units that represent the lowest level within the entity at which goodwill is 
monitored	for	internal	management	purposes	and	are	not	larger	than	an	operating	segment	as	defined	by	paragraph	5	of	IFRS	
8	Operating	Segments;	before	aggregation.	The	Group	has	applied	this	revised	standard	from	1	April	2010.
•	 IAS	38	(Amendment)	‘Intangible	Assets’	(effective	from	1	January	2010):
  The revised standard allows entities to estimate the fair values of intangible assets acquired in a business combination using 
techniques including discounting estimated future net cash flows from the asset. The Group has applied this revised standard 
from 1 April 2010. Sirius Minerals Plc Report and Consolidated Accounts 2011 31
Notes to the Consolidated Accounts continued
for	 the	 year	 ended	 31	 March	 2011
•	 IFRS	2	(Amendment)	‘Group	Cash-Settled	and	Share-Based	Payment	Transactions’	(effective	from	1	January	2010):
  The revised standard requires that when an entity receives goods or services in a share-based payment arrangement, the 
entity must account for those goods and services no matter which entity in the Group settles the transaction and whether the 
transaction is settled in shares or cash. An entity must also measure the goods or services it received as either an equity-
settled or cash-settled share-based payment transaction assessed from its own perspective. The Group has applied this 
revised standard from 1 April 2010.
Basis of consolidation
The Group’s consolidated accounts incorporate the accounts of the Company and entities controlled by the Company (its 
subsidiaries)	prepared	to	31	March	each	year.	Control	is	achieved	where	the	Company	has	power	to	govern	the	financial	and	
operating policies of an investee entity so as to obtain benefits from its activities.
The results of the subsidiaries acquired or disposed of during the year are included in the consolidated income statement from the 
effective date of acquisition or up to the effective date of disposal, as appropriate.
Where necessary, adjustments are made to the accounts of subsidiaries to bring the accounting policies used into line with those 
used by the Group.
All intra-group transactions and balances and any unrealised gains and losses arising from intra-group transactions are eliminated 
in preparing the consolidated accounts.
As a consolidated income statement is published, a separate income statement for the parent Company is omitted from the Group 
accounts	by	virtue	of	section	408	of	the	Companies	Act	2006.	The	loss	 for	the	Company	for	the	year	was	£6,704,000	(2010:	
£3,169,000).
Business combinations and goodwill
On acquisition, the assets and liabilities and contingent liabilities of subsidiaries are measured at their fair values at the date 
of acquisition. Any excess of cost of acquisition over the fair value of identifiable net assets acquired is recognised as goodwill. 
Any deficiency of the cost of acquisition below the fair values of the identifiable net assets acquired (i.e. discount on acquisition) 
is credited to the income statement in the period of acquisition. Goodwill arising on consolidation is recognised as an asset 
and reviewed for impairment at least annually. Any impairment is recognised immediately in the income statement and is not 
subsequently reversed.
Plant and equipment
Plant and equipment are stated at cost less depreciation less any recognised impairment losses. Cost includes expenditure that 
is directly attributable to the acquisition or construction of these items. Subsequent costs are included in the asset’s carrying 
amount only when it is probable that future economic benefits associated with the item will flow to the Group and the costs can 
be measured reliably. All other costs, including repairs and maintenance costs are charged to the income statement in the period 
in which they are incurred. Depreciation is provided on all tangible fixed assets and is calculated on a straight-line basis to allocate 
cost, other than assets in the course of construction, over the estimated useful lives, as follows:
Computer equipment 33.3%	per	annum
Fixtures	&	furniture 33.3%	per	annum
Exploration and evaluation assets
Costs arising from exploration and evaluation activities are accumulated separately for each area of interest and only capitalised 
where such costs are expected to be recouped through successful development, or through sale, or where exploration and 
evaluation activities have not, at the reporting date, reached a stage to allow a reasonable assessment regarding the existence of 
economically recoverable reserves.
Expenditure capitalised comprises direct costs that have a specific connection with a particular area of interest.
Capitalised expenditure in respect of areas of interest is written off in the income statement when the above criteria do not apply 
or when the directors assess that the carrying value may exceed the recoverable amount.
Capitalised costs in respect of an area of interest that is abandoned are written off in the period in which the decision to abandon 
is made.
Once production commences, capitalised expenditure in respect of an area of interest is amortised on a unit of production basis by 
reference to the reserves of that area of interest. Sirius Minerals Plc Report and Consolidated Accounts 2011 32
Notes to the Consolidated Accounts continued
for	 the	 year	 ended	 31	 March	 2011
Impairment
At each balance sheet date, the Group reviews the carrying amounts of its tangible and intangible assets to determine whether 
there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount 
of the asset is estimated in order to determine the extent of the impairment loss (if any). Where the asset does not generate cash 
flows that are independent from other assets, the Group estimates the recoverable amount of the cash-generating unit to which 
the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future 
cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time 
value of money and the risks specific to the asset, for which the estimates of future cash flow have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying 
amount of the asset (cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised as an 
expense immediately, unless the relevant asset is carried at a re-valued amount, in which case the impairment loss is treated as a 
revaluation decrease.
Where an impairment loss subsequently reverses, the carrying amount of the asset (cash-generating unit) is increased to the 
revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that 
would have been determined had no impairment loss been recognised for the asset (cash-generating unit) in prior periods. A 
reversal of the impairment loss is recognised in the income statement immediately.
Foreign currencies
The reporting and functional currency of the Group is Sterling. Transactions denominated in a foreign currency are translated into 
sterling at the rate of exchange ruling at the date of the transaction. At the balance sheet date, monetary assets and liabilities 
denominated in foreign currency are translated at the rate ruling at that date. All exchange differences are dealt with in the profit 
and loss account.
On consolidation, the assets and liabilities of foreign operations which have a functional currency other than Sterling are 
translated into Sterling at foreign exchange rates ruling at the balance sheet date. The revenues and expenses of these subsidiary 
undertakings are translated at average rates applicable in the period. All resulting exchange differences are recognised as a 
separate component of equity.
The foreign exchange rates at the balance sheet date and the average rates for the year that were used in preparing the 
consolidated accounts were:
Balance sheet date Average rate
Australian Dollars to Sterling 1.56 (2010: 1.64) 1.65	(2010:	1.88)
US Dollars to Sterling 1.60 (2010: 1.51) 1.55 (2010: 1.59)
Canadian Dollars to Sterling 1.56 (2010: 1.54) 1.58	(2010:	1.74)
Investments
Investments by the Company in respect of its subsidiaries are held at cost less any provision for impairment when required.
Available-for-sale financial assets
Available-for-sale financial assets are those non-derivative financial assets that are designated as available-for-sale financial 
assets, or are not classified in any of the other three financial asset categories. After initial recognition, available-for-sale financial 
assets are measured at fair value with gains or losses being recognised as a separate component of equity until the investment is 
derecognised or until the investment is determined to be impaired at which time the cumulative gain or loss previously reported in 
equity is included in the income statement.
Unlisted share investments are carried at fair value where it can be reliably obtained, otherwise they are stated at cost less 
impairment.
Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-
maker	as	required	by	IFRS	8	‘Operating	Segments’.	The	chief	operating	decision-maker,	who	is	responsible	for	allocating	resources	
and	assessing	performance	of	the	operating	segments,	has	been	identified	as	the	Board	of	Directors. Sirius Minerals Plc Report and Consolidated Accounts 2011 33
Notes to the Consolidated Accounts continued
for	 the	 year	 ended	 31	 March	 2011
The accounting policies of the reportable segments are consistent with the accounting policies of the Group as a whole. Segment 
loss represents the loss incurred by each segment without allocation of foreign exchange gains or losses, investment income, 
interest	payable	and	tax.	This	is	the	measure	of	loss	that	is	reported	t o	the	Board	of	Directors	for	the	purpose	of	resource	
allocation and the assessment of segment performance.
When	assessing	segment	performance	and	considering	the	allocation	of	resources,	the	Board	of	Directors	review	information	
about	segment	assets	and	liabilities.	For	this	purpose,	all	assets	and	lia bilities	are	allocated	to	reportable	segments	with	the	
exception of the assets and liabilities in relation to the Group’s head offices.
Other receivables
Other receivables are recognised initially at fair value and subsequently measured at amortised cost less provision for impairment. 
Provision for impairment is established when there is objective evidence that the Group will not be able to collect all amounts due 
according to the original terms of the receivable. The amount of the impairment is the difference between the asset’s carrying 
amount and the present value of the estimated future cash flows, discounted at the effective interest rate.
Cash and cash equivalents
Cash and cash equivalents comprise on demand deposits held with banks, with an original maturity of three months or less.
Trade and other payables
Trade payables are initially measured at fair value, and subsequently measured at amortised cost, using the effective interest rate 
method.
Taxation
Current tax is provided at amounts expected to be paid (or recovered) using the tax rates and laws that have been enacted or 
substantially enacted by the balance sheet date.
Deferred taxation is provided in full, using the liability method, on temporary differences arising between the tax bases of 
assets	and	liabilities	and	their	carrying	amounts	in	the	consolidated	a ccounts.	However,	if	the	deferred	tax	arises	from	the	initial	
recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects 
neither accounting, nor taxable profit or loss, it is not accounted for. Deferred tax is determined using tax rates and laws that have 
been enacted (or substantially enacted) by the balance sheet date and are expected to apply when the related deferred tax asset is 
realised or the deferred tax liability is settled.
Deferred tax assets are recognised to the extent that it is probable that future taxable profit will be available against which the 
temporary differences can be utilised.
Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of the Group after deducting all of its liabilities. 
Equity instruments issued by the Group are recorded at the proceeds received, net of any direct issue costs.
Share based payments
The	Group	has	applied	the	requirements	of	IFRS	2	‘Share	based	Payments’.
The Group issues equity settled share based payments to certain directors, senior managers and consultants. Equity settled share 
based payments are measured at fair value (excluding the effect of non market based vesting conditions) at the date of grant. The 
fair value determined at the grant date of the equity settled share based payments is expensed on a straight line basis over the 
vesting period, based on the Group’s estimate of shares that will eventually vest and adjusted for the effect of non-market based 
vesting conditions.
Employee benefits
Provision is made in the financial statements for all employee benefits. Liabilities for wages and salaries including non-monetary 
benefits and annual leave obliged to be settled within twelve months of the balance sheet date, are recognised within accruals. The 
Group issues equity settled share based payments to certain directors, senior managers and consultants. Pension contributions 
are made in respect of the Group’s employees based in Australia and are charged to the income statement in the period to which 
the contributions relate.
Research and development expenditure
Early stage research and development expenditure relating to carbon sequestration and compressed air energy storage are 
expensed. Sirius Minerals Plc Report and Consolidated Accounts 2011 34
Notes to the Consolidated Accounts continued
for	 the	 year	 ended	 31	 March	 2011
2. Critical accounting estimates and judgements
The critical accounting estimates and judgements made by the Group regarding the future or other key sources of estimation, 
uncertainty and judgement that may have a significant risk of giving rise to a material adjustment to the carrying values of assets 
and liabilities within the next financial year are:
Impairment of exploration and evaluation assets
 At each reporting date, the Group assesses whether there is any indication that an asset may be impaired. Where an indication of 
impairment exists, the Group makes a formal estimate of recoverable amount. Where the carrying amount of an asset exceeds its 
recoverable amount the asset is considered impaired and is written down to its recoverable amount.
Recoverable amount is the greater of fair value less costs to sell and value in use. It is determined for an individual asset unless the 
asset does not generate cash inflows that are largely independent of those from other assets or groups of assets, in which case, 
the recoverable amount is determined for the cash-generating unit to which the asset belongs.
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including 
expectations of future events that are believed to be reasonable under the circumstances.
Goodwill
The Group tests annually whether goodwill has suffered any impairment, in accordance with the accounting policy. The 
recoverable amounts of cash-generated units will be determined based on value-in-use calculations. These calculations will 
require the use of estimates (see note 11).
Share based payments
In determining the fair value of equity settled share based payments and the related charge to the income statement, the Group 
makes assumptions about future events and market conditions. In particular, judgement must be made as to the likely number 
of shares that will vest and the fair value of each award granted. The fair value is determined using a valuation model which is 
dependent on further estimates, including the Group’s future dividend policy, the timing with which options will be exercised and 
the future volatility in the price of similar potash companies. Such assumptions are based on publicly available information and 
reflect market expectations and advice taken from qualified personnel. Different assumptions about these factors to those made 
by the Group could materially affect the reported value of share based payments.
3. Segmental analysis
Management has determined the operating segments by considering the business from both a geographic and product 
perspective.	For	management	purposes,	the	Group	is	currently	organi sed	into	two	operating	divisions:	resource	evaluation	and	
exploitation and environmental improving solutions. These divisions are the business segments for which the Group reports its 
segment	information	internally	to	the	Board	of	Directors.	The	Group’s 	operations	are	predominantly	in	the	United	Kingdom,	the	
United States of America and Australia. Sirius Minerals Plc Report and Consolidated Accounts 2011 35
Notes to the Consolidated Accounts continued
for	 the	 year	 ended	 31	 March	 2011
3. Segmental analysis continued
UK United States of America Australia
Resource 
evaluation and 
exploration
£000s
Resource 
evaluation and 
exploration
£000s
Environmental
solutions
£000s
Resource 
evaluation and 
exploration
£000s
Environmental 
solutions
£000s
Unallocated
£000s
T otal
£000s
Year ended 31 March 2011
Operating loss (301) (406) (18) (124) (4) (6,860) (7,713)
Finance	costs – – – – – – –
Finance	income – – – 3 – 42 45
Loss before taxation (301) (406) (18) (121) (4) (6,818) (7,668)
Taxation – – – 529 49 – 578
(Loss)/profit for the year 
from continuing operations (301) (406) (18) 408 45 (6,818) (7,090)
Total assets 32,406 5,067 177 53,578 301 21,021 112,550
Total liabilities (6,930) (1,481) (3) (3,123) (7) (391) (11,935)
Net assets 25,476 3,586 174 50,455 294 20,630 100,615
Capital expenditure 25,652 2,882 – 166 – 37 28,737
Depreciation and 
amortisation – – – 1 – 1 2
Impairment charge – – – – – 732 732
Share based payment costs – – – – – 4,768 4,768
Acquisition costs – – – – – 48 48
Exploration expensed 365 132 – – – – 497 Sirius Minerals Plc Report and Consolidated Accounts 2011 36
Notes to the Consolidated Accounts continued
for	 the	 year	 ended	 31	 March	 2011
3. Segmental analysis continued
United States of America Australia Macedonia
Resource 
evaluation and 
exploration
£000s
Environmental
solutions
£000s
Resource 
evaluation and 
exploration
£000s
Environmental 
solutions
£000s
Resource 
evaluation and 
exploration
£000s
Unallocated
£000s
T otal
£000s
Year ended 31 March 2010
Operating loss (466) (50) (119) (34) (1) (3,170) (3,840)
Finance	costs - - - - - - -
Finance	income - - - - - 1 1
Loss before taxation (466) (50) (119) (34) (1) (3,169) (3,839)
Taxation – – – – – – –
Loss for the year from 
continuing operations (466) (50) (119) (34) (1) (3,169) (3,839)
Total assets 2,238 189 52,960 235 4 1,233 56,859
Total liabilities (161) (25) (3,258) (8) – (253) (3,705)
Net assets 2,077 164 49,702 227 4 980 53,154
Capital expenditure 1,301 172 44,202 212 12 – 45,899
Depreciation and 
amortisation – – 2 – – 3 5
Impairment charge – – 22 – 440 – 462
Share based payment costs – – – – – 1,659 1,659
Acquisition costs – – – – – 174 174
Exploration expensed 331 – 11 34 22 – 398
4. Exceptional administrative expenses
During	the	year,	the	Group	issued	74,793,000	(2010:	57,756,000)	share	options	valued	at	£4,865,000	(2010:	£1,659,000).	
The total expense recognised within the income statement in relation to equity settled share based payment transactions of 
£4,768,000	(2010:	£1,659,000)	includes	options	that	were	exercised	and	forfeited	during	the	year	(see	note	19).
During	the	year,	the	Group	made	an	impairment	charge	of	£729,000	in	relation	to	the	investment	in	unlisted	equity	securities,	
as	it	was	not	listed	as	a	company	during	the	year,	as	expected.	Also,	th e	Group	made	an	impairment	charge	of	£3,000	(2010:	
£440,000)	 in	 relation	 to	 Sirius	 Exploration	 Balkan	 DOOEL,	 a	 subsidiary	 of	 the	 Company,	 as	 it	 was	 unsuccessful	 in	 a	 tender	 process	
for the Kadiica prospect. The subsidiary is fully impaired at the year-end. In 2010, the Group made a further impairment charge of 
£22,000	in	Auspotash	Pty	Limited,	a	subsidiary	of	Auspotash	Corpora tion	due	to	its	de-registration.
The	Group	expensed	£48,000	(2010:	£174,000)	of	costs	in	relation	to	the	acquisition	of	York	Potash	Limited	(2010:	Auspotash	
Corporation).
The	Group	expensed	£497,000	(2010:	£398,000)	of	exploration	costs. Sirius Minerals Plc Report and Consolidated Accounts 2011 37
Notes to the Consolidated Accounts continued
for	 the	 year	 ended	 31	 March	 2011
5. Operating loss is stated after charging: 
2011
£000s
2010
£000s
Auditors’ remuneration
Fees	payable	to	the	Company’s	auditor	for	the	audit	of	the	Group’s	consolidated	accounts	
(including	£18,000	in	respect	of	the	Company	(2010:	£16,000)) 38 28
Fees	payable	to	the	Company’s	auditors	and	their	associates	for	other	services	to	the	Group
– The audit of the Company’s subsdiaries pursuant to legislation 5 –
– Tax services 4 6
Impairment 3 462
Depreciation 2 5
Research and development 28 44
Foreign	exchange	gains (37) (23)
6. Finance income and costs
2011
£000s
2010
£000s
Bank	interest	received 45 1
7. Staff numbers and costs (including Directors)
2011
Number
2010
Number
Average number of staff (including Directors) 7 5
Staff costs (including Directors) during the year were:
2011
£000s
2010
£000s
Wages and salaries 324 225
Social Security 5 –
Pension 2 –
Other benefits 2 –
333 225 Sirius Minerals Plc Report and Consolidated Accounts 2011 38
Notes to the Consolidated Accounts continued
for	 the	 year	 ended	 31	 March	 2011
Directors emoluments during the year were:
2011
£000s
2010
£000s
CJ	Catlow 29 –
CN	Fraser 55 –
AM Lindsay 42 –
RO’D Poulden 60 120
JPN	Badham – 25
JC	Harrison 53 60
Prof MR Mainelli 10 10
RJ	Scrimshaw 3 –
DCW Stonley 10 10
262 225
Directors’	emoluments	includes	fees	and	other	benefits.	There	were	no	contributions	to	pension	schemes	(2010:	£nil).	Details	of	
the share options issued to the Directors during the year are given in note 19.
Key management are those persons having authority and responsibility for planning, controlling and directing the activities of the 
Group. The Directors are considered to be the key management personnel of the Group.
Key management personnel received the following compensation during the year:
2011
£000s
2010
£000s
Short-term employee benefits 267 225
Share based payments 1,368 –
1,635 225
Share options held by the Directors at the year-end were:
Grant date
Number 
of options 
(000s) Exercise price Vesting date Expiry date
CJ	Catlow 26 March 2010 50,000 0.0450 26 March 2010 25 March 2015
CN	Fraser 17	January	2011 10,000 0.1970 17	January	2011 31	December	2013
AM Lindsay 17	January	2011 4,000 0.1970 17	January	2012 31	December	2013
30	March	2011 1,747 0.2000 30	March	2012 29 March 2014
RJ	Scrimshaw 16 December 2010 12,500 0.2500 16 December 2010 15 December 2015
16 December 2010 12,500 0.3500 16 December 2010 15 December 2015
16 December 2010 12,500 0.4500 16 December 2010 15 December 2015 Sirius Minerals Plc Report and Consolidated Accounts 2011 39
Notes to the Consolidated Accounts continued
for	 the	 year	 ended	 31	 March	 2011
8. Taxation
2011
£000s
2010
£000s
Corporation tax
Current year (49) –
Deferred tax
Effect of change in tax rate (529) –
(578) –
The credit for the year can be reconciled to the loss per the income statement as follows:
2011
£000s
2010
£000s
Loss on ordinary activities before taxation (7,668) (3,839)
Loss on ordinary activities multiplied by the standard rate of corporation taxation in the UK of 
28%	(2010:	28%) (2,147) (1,075)
Taxation effects of:
Expenses not deductible for tax purposes 1,722 598
Effect of change in tax rate (529) –
Trading losses utilised (13) 99
Trading losses not utilised 438 378
Research and development (49) –
Tax credit for the year (578) –
The	Group	has	unused	tax	losses	of	£4,535,000	(2010:	£3,016,000).	The	related	deferred	tax	asset	has	not	been	recognised	in	
the accounts due to the uncertainty surrounding its recoverability. The deferred tax asset can be recovered against suitable future 
trading profits.
During the year, the deferred tax liability on the acquisition of Auspotash Corporation brought forward from 2010 was reduced by 
£529,000	to	reflect	a	change	in	the	rate	of	tax	in	Canada	from	33.5%	to	28.5%	(see	note	20).
9. Loss per share
Basic	loss	per	share	is	calculated	by	dividing	the	earnings	attributable	 to	ordinary	shareholders	by	the	weighted	average	number	of	
ordinary shares outstanding during the year.
Given the Group’s reported loss for the year, share options are not taken into account when determining the weighted average 
number of ordinary shares in issue during the year and therefore the basic and diluted earnings per share are the same.
2011
£000s
2010
£000s
Loss for the purposes of basic earnings per share being net loss attributable to equity 
shareholders of the parent (7,090) (3,839)
Loss for the purpose of diluted earnings per share (7,090) (3,839)
2011
Number
000s
2010
Number
000s
Number of shares
Weighted average number of ordinary shares for the purpose of basic and diluted earnings 
per share 733,827 397,016 Sirius Minerals Plc Report and Consolidated Accounts 2011 40
Notes to the Consolidated Accounts continued
for	 the	 year	 ended	 31	 March	 2011
Earnings per share
If the Company’s share options were taken into consideration in respect of the Company’s weighted average number of ordinary 
shares for the purpose of diluted earnings per share, it would be as follows:
2011
Number
000s
2010
Number
000s
Number of shares
Weighted average number of ordinary shares for the purposes of diluted earnings per share 790,939 398,412
Basic	and	diluted	loss	per	share (1.0)p (1.0)p
10. Plant and equipment – Group and Company
Group
Computer
equipment
£000s
Group
Fixtures &
furniture
£000s
Group
T otal
£000s
Company
Computer
equipment
£000s
Cost
At 1 April 2009 5 – 5 5
Additions 2 – 2 –
At 1 April 2010 7 – 7 5
Additions 12 25 37 1
At	31	March	2011 19 25 44 6
Depreciation
At 1 April 2009 1 – 1 1
Charge for the year 5 – 5 4
At 1 April 2010 6 – 6 5
Charge for year 1  1 2 –
At	31	March	2011 7 1 8 5
Net book value
At	31	March	2011 12 24 36 1
At	31	March	2010 1 – 1 – Sirius Minerals Plc Report and Consolidated Accounts 2011 41
Notes to the Consolidated Accounts continued
for	 the	 year	 ended	 31	 March	 2011
11. Intangible assets – Group
Exploration
costs and rights
£000s
Goodwill
£000s
T otal
£000s
Cost
At 1 April 2009 1,441 – 1,441
Additions 255 – 255
Additions acquired on acquisition of subsidiary 45,642 2,240 47,882
Foreign	exchange	movement 5,162 288 5,450
Transfer to available–for–sale financial assets (54) – (54)
As at March 2010 52,446 2,528 54,974
Additions 3,148 – 3,148
Additions acquired on acquisition of subsidiary 25,552 6,644 32,196
Foreign	exchange	movement 1,602 (38) 1,564
As	at	31	March	2011	 82,748 9,134 91,882
Provision for permanent diminution in value
At	31	March	2009 (220) – (220)
Impairment (462) – (462)
At	31	March	2010 (682) – (682)
Impairment (3) – (3)
At	31	March	2011 (685) – (685)
Net book value
31	March	2011	 82,063 9,134 91,197
31	March	2010	 51,764 	2,528 54,292
Goodwill
The goodwill acquired during the year as part of the business combination relating to York Potash Limited has been allocated to 
the cash generating unit (CGU) of resource evaluation and exploitation in the geographical location of the UK, which is expected 
to benefit from the business combination.
The recoverable amount of the goodwill on the acquisition of York Potash Limited has been assessed by reference to value in use. 
The valuation is based on cash flow projections that incorporate best estimates of recoverable reserves and resources, forecasted 
selling prices, production rates, future capital expenditure and production costs over the life of the tenements.
The cash flow projections are based on long term plans covering the expected life of the operation. The expected life is more 
than 25 years. The valuations are particularly sensitive to changes in assumptions about volumes of production, selling prices 
and operating costs. Long term average selling prices are forecast taking account of market data in respect of potash and 
management’s	current	expectations.	Forecasts	of	volumes	of	product ion	and	operating	costs	are	based	on	management’s	current	
expectations.
Discount rates represent an estimate of the rate the market would apply having regard to the time value of money and the risks 
specific to the asset for which the future cash flow estimates have not been adjusted. A discount rate of 12 per cent, which is 
considered	to	be	appropriate	for	a	project	of	this	nature	and	size,	has	 been	applied	to	the	pre-tax	cash	flows.
No reasonably possible change in the key assumptions on which York Potash Limited’s recoverable amount is based would cause 
its	value	to	fall	short	of	its	carrying	amount	as	at	31	March	2011.
The recoverable amount of the goodwill on the acquisition of Auspotash Corporation in September 2009, has also been assessed 
by reference to value in use. The valuation is based on cash flow projections that incorporate best estimates of forecasted selling 
prices, production rates, future capital expenditure and production costs over the life of the tenements. Sirius Minerals Plc Report and Consolidated Accounts 2011 42
Notes to the Consolidated Accounts continued
for	 the	 year	 ended	 31	 March	 2011
The cash flow projections are based on long term plans covering the expected life of the operation. The expected life is 
approximately 20 years. The valuations are particularly sensitive to changes in assumptions about volumes of production, selling 
prices and operating costs. Long term average selling prices are forecast taking account of market data in respect of potash and 
management’s	current	expectations.	Forecasts	of	volumes	of	product ion	and	operating	costs	are	based	on	management’s	current	
expectations.
Discount rates represent an estimate of the rate the market would apply having regard to the time value of money and the risks 
specific to the asset for which the future cash flow estimates have not been adjusted. A discount rate of 12 per cent, which is 
considered	to	be	appropriate	for	a	project	of	this	nature	and	size,	has	 been	applied	to	the	pre-tax	cash	flows.
No reasonably possible change in the key assumptions on which Auspotash Corporation’s recoverable amount is based would 
cause	its	value	to	fall	short	of	its	carrying	amount	as	at	31	March	2011.
Impairment
The	impairment	charge	to	exploration	costs	and	rights	of	£3,000	relates	to	Sirius	Exploration	Balkan	DOOEL	(see	note	4).
11. Intangible assets – Company
Exploration
costs and rights
£000
Cost
At 1 April 2009 699
Additions 15
Transfer to available-for-sale financial assets (54)
At	31	March	2010	and	31	March	2011 660
Provision for permanent diminution in value
At 1 April 2009 (221)
Impairment (439)
At	31	March	2010	and	31	March	2011 (660)
Net book value
31	March	2011	 –
31	March	2010	 –
12. Business combinations
On	14	May	2010,	the	Company	paid	£197,000	for	an	option	to	acquire	100%	of	the	issued	share	capital	of	York	Potash	Limited;	a	
company incorporated in the UK with options to acquire mineral rights in North Yorkshire.
On	16	January	2011,	the	Company	exercised	this	option	and	issued	150,000,000	new	ordinary	shares	of	0.25p	each	to	the	
shareholders of York Potash Limited as consideration for the company. The market value of each of the shares issued on the date 
of	acquisition	was	16.75p.	Therefore,	the	fair	value	of	the	shares	issued	was	£25,125,000.
The	Company	also	repaid	a	loan	to	York	Potash	Limited	from	Sigiriya	C apital	Pty	Limited,	a	company	related	to	CN	Fraser,	for	
£176,000. Sirius Minerals Plc Report and Consolidated Accounts 2011 43
Notes to the Consolidated Accounts continued
for	 the	 year	 ended	 31	 March	 2011
This transaction has been accounted for by the acquisition method of accounting.
 £000s
Fair	value	of	share	consideration 25,125
Add fair value of cash consideration 197
25,322
Less fair value of net assets acquired (18,678)
Goodwill 6,644
The goodwill balance results from the requirement to recognise a deferred tax liability calculated on the difference between the 
provisional fair value of the assets and liabilities acquired and their related tax basis.
IFRS
carrying
values
£000s
Fair value 
adjustments
£000s
Fair
value of net
assets acquired
£000s
Exploration rights – 25,552 25,552
Trade and other receivables 35 – 35
Cash and cash equivalents 1 – 1
Trade and other payables (266) – (266)
Deferred tax liability – (6,644) (6,644)
Net assets (230) 18,908 18,678
Cash flows arising from acquisitions are as follows:
 £000s
Cash consideration (197)
Repayment of loan (176)
Net cash acquired with subsidiary 1
Net cash outflow arising on acquisition (372)
Transaction	costs	of	£48,000	in	relation	to	the	acquisition	of	York	Po tash	Limited	have	been	recognised	as	an	expense	within	the	
income statement.
The	loss	before	tax	of	York	Potash	Limited	from	the	date	of	acquisition 	to	the	year-end	date	was	£301,000.	If	the	acquisition	had	
been	completed	on	the	first	day	of	the	financial	year,	Group	loss	for	the	 year	would	have	been	£7,538,000.	York	Potash	Limited	
contributed no revenue to the Group. Sirius Minerals Plc Report and Consolidated Accounts 2011 44
Notes to the Consolidated Accounts continued
for	 the	 year	 ended	 31	 March	 2011
13. Investments in subsidiaries – Company
2011
£000s
2010
£000s
At 1 April 44,217 370
Additions 25,322 43,850
Transfer from available-for-sale financial assets – (3)
At	31	March 69,539 44,217
The	addition	of	£25,322,000	relates	to	the	acquisition	of	York	Potash	Limited	(see	note	12).
At the year-end date, the Company’s investments in subsidiaries were:
Name
Country of 
incorporation Activity
Percentage of 
ordinary share 
capital held by 
the Company
York Potash Limited UK Resource exploration 100%
Sirius Exploration Limited UK Dormant 100%
Sirius Resources Limited UK Dormant 100%
Sirius Potash Limited UK Dormant 100%
Auspotash Corporation Canada Holds	investment	in	
Queensland Potash Pty 
Limited 100%
Queensland Potash Pty Limited Australia Resource exploration * 100%
Adavale	Holdings	Pty	Limited Australia Resource exploration 100%
Derby Salts Pty Limited Australia Resource exploration 100%
Bicarb	Sequestration	Pty	Limited Australia Environmental solutions 100%
C0
2
 Energy Storage Pty Limited Australia Environmental solutions 100%
Sirius Minerals (Australia) Pty Limited Australia Australian head office 100%
Dakota Salts LLC USA Resource exploration 100%
C0
2
 Energy Storage Limited USA Environmental solutions 100%
* This investment is held indirectly by the Company. Sirius Minerals Plc Report and Consolidated Accounts 2011 45
Notes to the Consolidated Accounts continued
for	 the	 year	 ended	 31	 March	 2011
14. Other receivables
2011
£000s
2010
£000s
Group
Other debtors 260 21
Prepayments 47 34
 307 55
Company
Other debtors 56 16
Prepayments 47 34
103 50
The Directors consider that the carrying amount of other receivables approximates to their fair value.
No	bad	and	doubtful	debt	charges	have	been	recognised	by	the	Group	in	the	income	statement	during	the	year	(2010:	£nil).	
At	31	March	2011,	no	receivables	were	either	impaired	(2010:	£nil)	or	past	due	but	not	impaired	(2010:	£nil).
15. Loans to subsidiaries – Company
2011
£000s
2010
£000s
Dakota Salts LLC 2,666 677
Adavale	Holdings	Pty	Limited 288 84
Queensland Potash Pty Limited 9 9
CO
2
 Energy Storage Limited 177 138
CO
2
 Energy Storage Pty Limited 19 17
Bicarb	Sequestration	Pty	Limited 114 113
York Potash Limited 454 –
Sirius Minerals (Australia) Pty Limited 45 –
Derby Salts Pty Limited 13 –
3,785 1,038
The loans to subsidiaries are non-interest bearing and are repayable on demand.
The Directors consider that the carrying amount of these loans approximate their fair value.
At	31	March	2011,	none	of	the	above	loans	were	either	impaired	(2010:	£nil)	or	past	due	but	not	impaired	(2010:	£nil). Sirius Minerals Plc Report and Consolidated Accounts 2011 46
Notes to the Consolidated Accounts continued
for	 the	 year	 ended	 31	 March	 2011
16. Cash and cash equivalents
 2011 2010
£000s £000s
Group
Cash at bank 21,010 1,782
Cash and cash equivalents 2011 2010
£000s £000s
Company
Cash at bank 20,871 455
The Directors consider that the carrying amount of these assets approximates to their fair value. 
The credit risk on liquid funds is limited because the counter-parties are banks with high credit ratings.
The Group and Company’s cash at bank is held in the following currencies: 
 2011 2010
£000s £000s
Group
Sterling 18,855 417
US Dollars 1,074 99
Canadian Dollars 32 645
Australian Dollars 1,049 621
21,010 1,782
 2011 2010
£000s £000s
Company
Sterling 18,851 417
US Dollars 1,045 38
Australian Dollars 975 –
20,871 455 Sirius Minerals Plc Report and Consolidated Accounts 2011 47
Notes to the Consolidated Accounts continued
for	 the	 year	 ended	 31	 March	 2011
17. Available-for-sale financial assets
2011 2010
£000s £000s
Group
Unlisted investment – 729
During	the	year,	the	investment	in	unlisted	equity	securities	for	£729, 000	was	impaired	(see	note	4).	
2011 2010
£000s £000s
Company
Unlisted investment – 732
During	the	year,	the	investment	in	unlisted	equity	securities	for	£729, 000	was	impaired	(see	note	4).
The	remaining	balance	of	£3,000	in	relation	to	the	investment	in	Sirius	 Exploration	Balkan	DOOEL,	has	been	impaired	(see	
note 4). 
18.  Share capital
2011 2010
£000s £000s
Allotted and called up
1,032,578,000	(2010:	663,300,000)	ordinary	shares	of	0.25p	each 2,581 1,658
On 27 August 2010, the Company issued 2,000,000 new ordinary shares of 0.25p each to CIC Mining Resources Limited for the 
provision	of	services	under	the	Services	Framework	Agreement	dated 	5	May	2010.	The	market	price	of	a	share	in	the	Company	on	
this date was 4.125p.
On 17 September 2010, the Company issued 50,000,000 new ordinary shares of 0.25p each at a price of 6p per share, realising 
£3,000,000.	Costs	in	relation	to	the	share	issue	were	£91,000.
On	22	September	2010,	the	Company	issued	306,000	new	ordinary	shares	of	0.25p	each	at	a	price	of	4.5p	per	share,	realising	
£14,000,	following	the	exercise	of	share	options.
On 16 December 2010, the Company issued 12,500,000 new ordinary shares of 0.25p each at a price of 10.4p per share to 
Scrimshaw	Nominees	Pty	Limited,	realising	£1,300,000.	Scrimshaw	No minees	Pty	Limited	acts	as	trustee	for	the	Scrimshaw	
Family	Trust,	which	is	related	to	RJ	Scrimshaw.
On	16	January	2011,	the	Company	issued	150,000,000	new	ordinary	shares	of	0.25p	each	to	the	shareholders	of	York	Potash	
Limited	as	consideration	for	100%	of	the	issued	share	capital	of	York	 Potash	Limited.	112,501,000	shares	were	issued	to	C&J	
Fraser	Investments	Pty	Limited	as	trustee	of	The	Fraser	Family	Trust,	 which	is	related	to	CN	Fraser,	and	4,200,000	shares	were	
issued	to	PJE	Woods.	Costs	in	relation	to	the	share	issue	were	£121,000.
On	10	March	2011,	the	Company	issued	153,846,000	new	ordinary	shares	of	0.25p	each	at	a	price	of	13p	per	share,	realising	
£20,000,000.	Costs	in	relation	to	the	share	issue	were	£715,000.
On 17 March 2011, the Company issued 625,000 new ordinary shares of 0.25p each at a price of 4.5p per share, realising 
£28,000,	following	the	exercise	of	share	options. Sirius Minerals Plc Report and Consolidated Accounts 2011 48
Notes to the Consolidated Accounts continued
for	 the	 year	 ended	 31	 March	 2011
19. Share based payments
The Company issued warrants in relation to its flotation on AIM in August 2005. Each warrant was convertible into one ordinary 
share	at	an	exercise	price	of	5p	per	share,	from	the	date	of	issue.	2,293,000	warrants	expired	on	1	August	2006.	The	remaining	
200,000 warrants expired on 1 August 2010.
During the year, the movement in warrants was as follows:
Number of
warrants
Weighted
average
exercise
price
000s £
At	31	March	2010 200 0.05
Expired during the year (200) 0.05
At	31	March	2011 – –
The	fair	value	at	the	date	of	grant,	of	the	warrants	that	expired	during	the	year	was	£1,000.	
During the year, the movement in share options was as follows:
Number of
 options
Weighted
average
exercise
price
000s £
At	31	March	2010 57,981 0.0271
Issued during the year 74,793 0.2560
Exercised during the year (931) 0.0450
Forfeited	during	the	year (1,500) 0.0450
At	31	March	2011 130,343 0.1706
Exercisable	at	31	March	2011 113,550 0.1664 Sirius Minerals Plc Report and Consolidated Accounts 2011 49
Notes to the Consolidated Accounts continued
for	 the	 year	 ended	 31	 March	 2011
Details of the options issued during the year are as follows: 
Tranche 1 Tranche 2 Tranche 3
Purpose Consultants RJ	Scrimshaw RJ	Scrimshaw
Grant date 27 August 2010 16 December 2010 16 December 2010
Number of options (000s) 8,500 12,500 12,500
Exercise	price	(£) 0.0450 0.2500 0.3500
Share	price	at	date	of	grant	(£) 0.0412 0.1300 0.1300
Fair	value	of	options	at	date	of	grant	(£000s) £249 £1,198 £1,130
Expiry date 26 August 2015 15 December 2015 15 December 2015
Exit rate 0.00% 0.00% 0.00%
Risk free rate 3.98% 2.46% 2.46%
Volatility rate 83.44% 113.52% 113.52%
Dividend yield 0.00% 0.00% 0.00%
Tranche 4 Tranche 5 Tranche 6
Purpose RJ	Scrimshaw CN	Fraser AM Lindsay
Grant date 16 December 2010 17	January	2011 17	January	2011
Number of options (000s) 12,500 10,000 4,000
Exercise	price	(£) 0.4500 0.1970 0.1970
Share	price	at	date	of	grant	(£) 0.1300 0.1675 0.1675
Fair	value	of	option	at	date	of	grant	(£000s) £1,077 £955 £305
Expiry date 15 December 2015 31	December	2013 31	December	2013
Exit rate 0.00% 0.00% 0.00%
Risk free rate 2.46% 2.56% 2.56%
Volatility rate 113.52% 94.70% 94.70%
Dividend yield 0.00% 0.00% 0.00%
Tranche 7 Tranche 8 Tranche 9
Purpose Senior Manager Senior Manager AM Lindsay
Grant date 17	January	2011 10 March 2011 30	March	2011
Number of options (000s) 2,000 2,000 1,747
Exercise	price	(£) 0.1970 0.1970 0.2000
Share	price	at	date	of	grant	(£) 0.1675 0.1378 0.1300
Fair	value	of	option	at	date	of	grant	(£000s) £152 £136 £108
Expiry date 31	December	2013 28	February	2014 29 Mar 2014
Exit rate 0.00% 0.00% 0.00%
Risk free rate 2.56% 2.61% 2.60%
Volatility rate 94.70% 88.75% 88.75%
Dividend yield 0.00% 0.00% 0.00%
Tranche 10 Tranche 11
Purpose Senior Managers Consultants
Grant date 30	March	2011 30	March	2011
Number of options (000s) 8,397 649
Exercise	price	(£) 0.2000 0.2000
Share	price	at	date	of	grant	(£) 0.1300 0.1300
Fair	value	of	option	at	date	of	grant	(£000s) £520 £40
Expiry date 29 Mar 2014 29 Mar 2014
Exit rate 0.00% 0.00%
Risk free rate 2.60% 2.60%
Volatility rate 88.75% 88.75%
Dividend yield 0.00% 0.00% Sirius Minerals Plc Report and Consolidated Accounts 2011 50
Notes to the Consolidated Accounts continued
for	 the	 year	 ended	 31	 March	 2011
All	of	the	options	except	tranches	6,	7,	9,	10	and	11	were	fully	vested	on	the	date	of	issue.	Tranches	6	and	7	vest	on	17	January	
2012	and	tranches	9,	10	and	11	vest	on	30	March	2012.
The	fair	value	of	the	options	is	measured	by	use	of	the	Black	Scholes	model.	The	inputs	into	the	model	are	noted	in	the	tables	
above. Expected volatility was determined by calculating the historical volatility of the share price of similar potash companies 
over the previous 5 years. 
The	options	outstanding	at	31	March	2011	had	a	weighted	average	remaining	contractual	life	of	4.5	years	(2010:	4	years).	The	
weighted	average	price	of	options	exercised	during	the	year	is	4.5p	(201 0:	3.79p).
The	aggregate	of	the	fair	values	of	the	options	granted	during	the	year	is	£4,865,000	(2010:	£1,841,000).	The	fair	value	of	the	
options	that	were	exercised	during	the	year	is	£41,000	(2010:	£267,000)	and	the	fair	value	of	the	options	that	were	forfeited	
during	the	year	is	£56,000	(2010:	£nil).	
The	total	expense	recognised	within	the	income	statement	in	relation 	to	share	options	in	the	year	is	£4,768,000	(2010:	
£1,659,000).
At the year-end, the share based payment reserve was made up as follows:
2011 2010
£000s £000s
Equity settled share based payments – warrants – 1
Equity settled share based payments – directors 5,662 1,224
Equity settled share based payments – senior managers 178 –
Equity settled share based payments – consultants 193 –
Equity settled share based payments – professional advisers 128 167
Equity settled share based payments – asset acquisition 182 183
Total share based payment reserve 6,343 1,575
20.  Deferred tax liabilities – Group
2011 2010
£000s £000s
At 1 April 3,233 –
Additions 6,644 3,233
Credit to income statement (536) –
Foreign	exchange	movement	 360 –
At	31	March 9,701 3,233
As a result of the acquisition of York Potash Limited, it was required to recognise a deferred tax liability calculated on the 
difference between the provisional fair value of the assets and liabilities acquired and their related tax basis (see note 12). The 
deferred	tax	liability	recognised	in	relation	to	York	Potash	Limited	wa s	£6,644,000.	
During the year, the deferred tax liability on the acquisition of Auspotash Corporation brought forward from 2010 was adjusted to 
reflect	a	change	in	the	rate	of	tax	in	Canada	from	33.5%	to	28.5%	(see	note	8).	
21. Loans from subsidiaries – Company
2011 2010
£000s £000s
1,104 –
All loans are interest free and repayable on demand. The Directors consider that the carrying amount of borrowings approximates 
to their fair values. Sirius Minerals Plc Report and Consolidated Accounts 2011 51
Notes to the Consolidated Accounts continued
for	 the	 year	 ended	 31	 March	 2011
22  Trade and other payables
Group
2011
£000s
2010
£000s
Trade payables 1,891 284
Other payables 79 33
Accruals 264 155
2,234 472
Company
2011
£000s
2010 
£000s
Trade payables 162 124
Accruals 109 130
271 254
The Directors consider that the trade and other payables carrying amount approximates to their fair values.
23. Cash outflow from operating activities – Group
2011 2010
£000s £000s
Loss before tax (7,668) (3,839)
Depreciation 2 5
Finance	income (45) (1)
Impairment 732 462
Share based payments – share options 4,768 1,659
Share based payments – equity settled transactions 83 –
Operating cash flow before changes in working capital (2,128) (1,714)
(Increase)/decrease in receivables (167) 86
Decrease/(increase) in payables 1,673 (351)
Net cash outflow from operating activities (622) (1,979)
Cash outflow from operating activities – Company 2011 2010
£000s £000s
Loss before tax (5,975) (3,169)
Depreciation – 3
Finance	income (42) (4)
Impairment 3 439
Share based payments 4,768 1,659
Share based payments – equity settled transactions 83 –
Operating cash flow before changes in working capital (1,163) (1,072)
(Increase)/decrease in receivables (53) 59
Decrease/(increase) in payables 16 (258)
Net cash outflow from operating activities (1,200) (1,271) Sirius Minerals Plc Report and Consolidated Accounts 2011 52
Notes to the Consolidated Accounts continued
for	 the	 year	 ended	 31	 March	 2011
24. Related party transactions
On 16 December 2010, the Company issued 12,500,000 new ordinary shares of 0.25p each at a price of 10.4p per share to 
Scrimshaw	Nominees	Pty	Limited,	realising	£1,300,000	(see	note	18).	Scrimshaw	Nominees	Pty	Limited	acts	as	trustee	for	the	
Scrimshaw	Family	Trust,	which	is	a	related	party	to	RJ	Scrimshaw.
Also on 16 December 2010, the Company issued 12,500,000 share options at an exercise price of 25p per share, 12,500,000 
share	options	at	an	exercise	price	of	35p	per	share	and,	12,500,000	share	options	at	an	exercise	price	of	45p	per	share	to	
Scrimshaw	Nominees	Pty	Limited	(see	note	19).	Scrimshaw	Nominee s	Pty	Limited	acts	as	trustee	of	The	Scrimshaw	Family	Trust,	
which	is	a	related	party	to	RJ	Scrimshaw.
On	16	January	2011,	the	Company	issued	112,501,000	new	ordinary	shares	of	0.25p	each	to	C&J	Fraser	Investments	Pty	Limited	
as	trustee	of	The	Fraser	Family	Trust,	which	is	a	related	party	to	CN	F raser	and,	4,200,000	new	ordinary	shares	of	0.25p	each	
to	PJE	Woods.	The	shares	were	issued	to	C&J	Fraser	Investments	Pty	Limited,	PJE	Woods	and	other	shareholders	of	York	Potash	
Limited as consideration for 100% of the issued share capital of York Potash Limited (see note 12).
On the same date, the Company repaid a loan to York Potash Limited from Sigiriya Capital Pty Limited, which is a related party to 
CN	Fraser,	for	£176,000.
On	17	January	2011,	the	Company	issued	10,000,000	share	options	at	an	exercise	price	of	19.7p	per	share	to	CN	Fraser	(see	
note 19).
Also	on	17	January	2011,	the	Company	issued	4,000,000	share	options	at	an	exercise	price	of	19.7p	per	share	to	AM	Lindsay	(see	
note 19).
On	18	January	2011,	AM	Lindsay	purchased	582,000	ordinary	shares	of	0.25p	each	in	the	market,	at	an	average	price	of	17p	per	
share.
On	30	March	2011,	the	Company	issued	1,747,000	share	options	at	an	exercise	price	of	20p	per	share	to	AM	Lindsay	(see	
note 19).
During	the	year,	the	Company	was	charged	£29,000	(2010:	nil)	by	Broadscope	Pty	Limited	for	the	services	of	CJ	Catlow	(see	
note 7).
During	the	year,	the	Company	was	charged	£60,000	(2010:	£120,000)	by	Pacific	Corporate	Management	Limited	for	the	services	
of RO’D Poulden (see note 7).
During	the	year,	the	Company	was	charged	£52,000	(2010:	£60,000)	by	Easy	Business	Consulting	Limited	for	the	services	of	
JC	Harrison	(see	note	7).	JC	Harrison	resigned	as	a	director	on	17	January	2011.
During	the	year,	the	Company	was	charged	£10,000	(2010:	£10,000)	by	Z/Yen	Group	Limited	for	the	services	of	Prof	
MR Mainelli (see note 7).
During	the	year,	the	Company	was	charged	£10,000	(2010:	£10,000)	by	Derek	Stonley	Consulting	for	the	services	of	DCW	
Stonley (see note 7).
During	the	year,	the	Company	loaned	£2,747,000	(2010:	£1,038,000)	to	its	subsidiaries	for	working	capital	purposes	(see	 
note	15).	At	the	year-end,	the	Company	had	a	loan	receivable	balance	of	£3,785,000	due	from	its	subsidiaries	(2010:	
£1,038,000).
During the year, Sirius Minerals (Australia) Pty Limited, a subsidiary of the Company, elected to purchase fixtures and furniture 
from	and	to	reimburse	certain	employee	costs	of	Sigiriya	Capital	Pty	L imited,	totalling	£83,000	(2010:	£nil).	Sigiriya	Capital	Pty	
Limited	is	a	related	party	to	CN	Fraser.	At	the	year-end,	Sirius	Mineral s	(Australia)	Pty	Limited	had	a	payable	balance	of	£83,000	
(2010:	£nil)	due	to	Sigiriya	Capital	Pty	Limited.
During	the	year,	Auspotash	Corporation,	a	subsidiary	of	the	Company,	loaned	£1,104,000	(2010:	£Nil)	to	the	Company	for	
distribution to other subsidiaries for working capital purposes (see note 21). At the year-end, the Company had a payable balance 
of	£1,104,000	(2010:	£nil)	due	to	Auspotash	Corporation.
Details of short term employee benefits to the Directors, the key management personnel of the Company, are given in note 7. Sirius Minerals Plc Report and Consolidated Accounts 2011 53
Notes to the Consolidated Accounts continued
for	 the	 year	 ended	 31	 March	 2011
25. Financial instruments 
The Group’s financial instruments comprise cash and cash equivalents, loans and items such as trade payables and trade 
receivables which arise directly from its operations. The main purpose of these financial instruments is to provide finance for the 
Group’s operations.
The Group’s operations expose it to a variety of financial risks including credit risk, liquidity risk, interest rate risk and foreign 
currency	exchange	rate	risk.	The	Directors	believe	the	Group	is	not	exp osed	to	any	material	equity	price	risk.	Given	the	size	of	the	
Group, the Directors have not delegated the responsibility of monitoring financial risk management to a sub-committee of the 
Board.	The	policies	set	by	the	Board	are	implemented	by	the	Company’s	finance	department.	
Classification of financial instruments
With the exception of investments held by the Company, which are held at cost, all other Group and Company financial assets as 
disclosed in notes 14 to 17 are classified as loans and receivables and their carrying values approximate to their fair values. All of 
the Group and Company’s financial liabilities are held at amortised cost.
Capital management
The Group’s and Company’s objectives when managing capital are to safeguard the Group’s and Company’s ability to continue 
as a going concern, to provide returns for shareholders and to maintain an optimal capital structure to reduce the cost of capital. 
The	Group	and	Company	defines	capital	as	being	share	capital	plus	reserv es.	The	Board	of	Directors	monitor	the	level	of	capital	
as compared to the Group’s and Company’s commitments and adjusts the level of capital as if is determined to be necessary, by 
issuing new shares. The Group and Company are not subject to any externally imposed capital requirements.
Credit risk
The Group’s credit risk is primarily attributable to its other receivables and cash and cash equivalents. The Group has implemented 
policies that require appropriate credit checks. The amount of exposure to any individual counterparty is subject to a limit, which is 
reassessed annually by the board.
The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk at the 
year-end date was:
2011 2010
£000s £000s
Group
Other receivables 260 21
Cash and cash equivalents 21,010 1,782
Available-for-sale financial assets – 729
21,270 2,532
The	total	of	other	receivables	and	cash	and	cash	equivalents	constitutes	 all	of	the	financial	assets	within	the	IAS	39	category	loan	
and receivables held by the Group.
2011 2010
£000s £000s
Company
Other receivables 56 16
Cash and cash equivalents 20,871 455
Loans to subsidiaries 3,785 1,038
Available-for-sale financial assets – 732
24,712 2,241
The total of other receivables, cash and cash equivalents and loans to subsidiaries constitutes all of the financial assets within the 
IAS	39	category	loans	and	receivables	held	by	the	Company. Sirius Minerals Plc Report and Consolidated Accounts 2011 54
Notes to the Consolidated Accounts continued
for	 the	 year	 ended	 31	 March	 2011
Interest rate risk
The Group’s interest bearing assets comprise only cash and cash equivalents and earn interest at a variable rate. The Group 
borrowing	at	the	year-end	was	£nil	(2010:	£nil)	and	the	Company	borrowing	at	the	year-end	was	£1,104,000	(2010:	£nil).	
The Group has not entered into any derivative transactions during the period under review.
The	Group’s	cash	and	cash	equivalents	earned	interest	at	a	variable	rate	from	3	month	Libor	bond	investments	in	Sterling	and	
Australian Dollars and treasury deposit accounts in Sterling. Cash and cash equivalents of the Group and Company are disclosed 
above under credit risk. The impact of a movement of 5% in the rate of interest on the Group’s and Company’s cash and cash 
equivalents	will	have	no	material	impact	to	the	Group	and	Company’s	results	and	financial	positions	as	at	31	March	2011	and	
31	March	2010.
Liquidity risk
The Group actively maintains cash balances that are designed to ensure that there are sufficient available funds for operations 
and planned expansions. The Group monitors its levels of working capital to ensure that it can meet its debt repayments as they 
fall due. The following table shows the contractual maturities of the Group and Company’s financial liabilities, all of which are 
measured at amortised cost:
Trade &
other
payables Accruals Total
£000s £000s £000s
Group
At 31 March 2011
6 months or less 1,970 264 2,234
Total contractual cash flows 1,970 264 2,234
Total amount of financial liabilities measured at amortised cost 1,970 264 2,234
Trade &
other
payables Accruals Total
Group £000s £000s £000s
At	31	March	2010
6 months or less 317 155 472
Total contractual cash flows 317 155 472
Total amount of financial liabilities measured at amortised cost 317 155 472 Sirius Minerals Plc Report and Consolidated Accounts 2011 55
Notes to the Consolidated Accounts continued
for	 the	 year	 ended	 31	 March	 2011
Trade
 payables Accruals
Loan from
subsidiary Total
£000s £000s £000s £000s
Company
As at 31 March 2011
6 months or less 162 109 1,104 1,375
Total contractual cash flows 162 109 1,104 1,375
Carrying amount of financial liabilities measured at 
amortised cost 162 109 1,104 1,375
Trade
payables Accruals Total
£000s £000s £000s
Company
As	at	31	March	2010
6 months or less 124 130 254
 Total contractual cash flows 124 130 254
Carrying amount of financial liabilities measured at amortised cost 124 130 254
Foreign currency exchange rate risk
The reporting currency of the Group and Company is Sterling. Transactions denominated in a foreign currency are translated into 
Sterling at the rate of exchange ruling at the date of the transaction. At the balance sheet date, monetary assets and liabilities 
denominated in foreign currency are translated at the rate ruling at that date. All exchange differences are charged or credited to 
the income statement as appropriate. 
On consolidation, the assets and liabilities of foreign operations, which have a functional currency other than Sterling, are 
translated into Sterling at foreign exchange rates ruling at the balance sheet date. The revenues and expenses of these subsidiaries 
are translated into Sterling at average rates for the year. All exchange differences are recognised within the balance sheet under 
equity. 
The impact of a movement of 5% in foreign exchange rates when translating the accounts of the foreign subsidiaries into Sterling 
would	be	£43,000	(2010:	£20,000)	to	the	Group’s	results	and	£2,746,000	(2010:	£16,780,000)	to	the	Group’s	financial	position	
as	at	31	March	2011.	
During	the	year,	the	Company	entered	into	a	dual-currency	deposit	transaction	for	£700,000	(2010:	£nil)	expiring	after	the	year-
end. The terms of the transaction were that if the final spot price on the date of expiry was below the strike price, the Company will 
receive	the	principal	amount	of	£700,000	plus	interest.	However,	if	t he	final	spot	price	on	the	date	of	expiry	was	above	the	strike	
price,	the	Company	will	receive	the	principal	amount	of	£700,000	plus	interest,	all	in	US	Dollars,	converted	at	the	strike	price.
If the dual-currency deposit expired at year-end, the difference between the closing rate and the strike price would have resulted 
in	an	increase	in	the	Group	and	Company	loss	for	the	year	of	£12,000.	A	movement	of	5%	in	the	closing	rate	would	have	resulted	
in	an	increase	or	reduction	in	the	Group	and	Company	loss	for	the	year	of	£4,000. Sirius Minerals Plc Report and Consolidated Accounts 2011 56
Notes to the Consolidated Accounts continued
for	 the	 year	 ended	 31	 March	 2011
26. Commitments
In order to maintain current rights of tenure to exploration tenements, the Group is required to perform minimum exploration 
work to meet the minimum expenditure requirements specified by various governments. These obligations are subject to periodic 
renegotiation.	These	obligations	are	not	provided	for	in	the	consolida ted	accounts	as	at	31	March	2011	and	are	payable	as	follows:
2011 2010
£000s £000s
Within one year 542 30
After one year but not more than five years 2,032 110
2,574 140
27. Events after the reporting period
On	23	March	2011	the	Budget	accelerated	the	reduction	in	the	UK	Corporation	Tax	rate	from	1	April	2011	from	1%	to	2%	resulting	
in	the	staggered	reduction	of	1%	in	rates	from	2012	culminating	in	a	ra te	of	23%	for	the	tax	year	ended	2014-2015.
The	deferred	tax	liability	for	2011	is	£6,644,000	and	is	expected	to	unw ind	after	2014.	As	of	31	March	2011	the	1%	changes	
relating	the	tax	years	starting	2012,	2013	and	2014	have	not	been	substantively	enacted.	The	deferred	tax	liability	would	have	
decreased	by	approximately	£767,000	had	the	changes	of	tax	rate	been	substantively	enacted	as	of	31	March	2011. Notice of Annual General Meeting
Sirius Minerals Plc Report and Consolidated Accounts 2011 57
SIRIUS MINERALS PLC 
(Incorporated and registered in England and Wales with registered number 04948435)
NOTICE OF ANNUAL GENERAL MEETING
NOTICE IS HEREBY GIVEN that the annual general meeting of Sirius Minerals Plc (the “Company”) will be held at the Sidney 
Suite, Level 1, Grange Tower Bridge Hotel, 45 Prescot Street, London E1 8GP on Tuesday 20 September 2011 at 10:30 a.m. for 
the following purposes:
To consider and, if thought fit, to pass resolutions 1 to 9, which are proposed as ordinary resolutions:
1. To receive the accounts of the Company for the year ended 31 March 2011 and the reports of the directors and auditors.
2. To elect RJ Scrimshaw, being a director appointed since the last annual general meeting, as a director of the Company.
3. To elect CN Fraser, being a director appointed since the last annual general meeting, as a director of the Company.
4. To elect AM Lindsay, being a director appointed since the last annual general meeting, as a director of the Company.
5. To elect PJE Woods, being a director appointed since the last annual general meeting, as a director of the Company.
6.  To re-elect DCW Stonley, who retires by rotation in accordance with the Company’s articles of association and who, being 
eligible, offers himself for re-election as a director of the Company.
7.  To re-elect Prof MR Mainelli, who retires by rotation in accordance with the Company’s articles of association and who, being 
eligible, offers himself for re-election as a director of the Company.
8.  To re-appoint Nexia Smith & Williamson as auditors of the Company until the conclusion of the next annual general meeting in 
2012.
9. To authorise the directors to fix the auditors’ remuneration.
By order of the Board Third Floor, Greener House
68 Haymarket, London
SW1Y 4RF
Jas Sembi 
Company Secretary  2 August  2011
Notes: 
Entitlement to attend and vote
(i)  Only those shareholders registered in the register of members of the Company as at 6:00 p.m. on 18 September 2011 or, if this meeting is 
adjourned, 6:00 p.m. on the day two days prior to the adjourned meeting shall be entitled to attend and vote at the annual general meeting in 
respect of the number of shares registered in their name at that time. Changes to entries on the relevant register of member after 6.00 p.m. 
on 18 September 2011 or, if this meeting is adjourned, 6:00 p.m. on the day two days prior to the adjourned meeting, shall be disregarded in 
determining the rights of any person to attend or vote at this annual general meeting.
Appointment of proxies
(ii)  A shareholder entitled to attend and vote at this annual general meeting is entitled to appoint one or more proxies to exercise all or any of his/
her rights to attend, speak and vote at the annual general meeting. You can only appoint a proxy using the procedures set out in these notes 
and the notes to the proxy form. 
(iii)  A proxy does not need to be a shareholder of the Company but must attend the annual general meeting to represent you. Details of how to 
appoint the Chairman of the annual general meeting or another person as your proxy using the proxy form are set out in the notes to the proxy 
form. If you wish your proxy to speak on your behalf at the annual general meeting, you will need to appoint your own choice of proxy (not the 
Chairman) and give your instructions directly to them.
(iv)  A shareholder may appoint more than one proxy provided each proxy is appointed to exercise rights attached to a different share or shares 
held by him. You may not appoint more than one proxy to exercise rights attached to any one share. Details of how to appoint more than one 
proxy are set out in the notes to the proxy form.
(v)  A vote withheld is not a vote in law, which means that the vote will not be counted in the calculation of votes for or against the resolution. If no 
voting indication is given, your proxy will vote or abstain from voting at his or her discretion. Your proxy will vote (or abstain from voting) as he 
or she thinks fit in relation to any other matter which is put before the annual general meeting.  Sirius Minerals Plc Report and Consolidated Accounts 2011 58
Notice of Annual General Meeting continued
(vi) The notes to the proxy form explain how to direct your proxy, how to vote on each resolution or how to withhold their vote.
 To appoint a proxy using the proxy form, the form must be:
	 •	 completed	and	signed;
	 •	 	 sent	or	delivered	to	Neville	Registrars	Limited	Neville	House	18	Laurel	Lane	Halesowen	West	Midlands	B63	3DA;	and
	 •	 	 received	by	Neville	Registrars	Limited	no	later	than	10:30	a.m.	on	18	September	2011	or	if	the	meeting	is	adjourned,	10:30	a.m.	on	the	day	
two days prior to the adjourned meeting.
  In the case of a shareholder which is a company, the proxy form must be executed under its common seal or signed on its behalf by an officer 
of the company or an attorney for the company. The original of any power of attorney or any other authority under which the proxy form is 
signed (or a duly certified copy of such power or authority) must be included with the proxy form.
Instructions for electronic proxy appointment through CREST
(vii)   CREST members who wish to appoint a proxy or proxies by utilising the CREST electronic proxy appointment service may do so for the 
meeting to be held on 20 September 2011 and any adjournments thereof by utilising the procedures described in the CREST manual. CREST 
Personal Members or other CREST Sponsored Members, and those CREST Members who have appointed a voting service provider(s), should 
refer to their CREST sponsor or voting service provider(s), who will be able to take appropriate action on their behalf.
(viii)  In order for a proxy appointment made by means of CREST to be valid, the appropriate CREST message (a “CREST Proxy Instruction”) must 
be properly authenticated in accordance with Euroclear UK & Ireland (“EUI”)’s specifications and must contain the information required for 
such instructions, as described in the CREST manual. The message must be transmitted so as to be received by the issuer’s agent (ID 7RA11) 
by the latest time(s) for receipt of proxy appointments specified above. For this purpose, the time of receipt will be taken to be the time (as 
determined by the time stamp applied to the message by the CREST Applications Host) from which the issuer’s agent is able to retrieve the 
message by enquiry to CREST in the manner prescribed by CREST.
(ix)  CREST members and, where applicable, their CREST sponsors or voting service providers should note that EUI does not make available 
special procedures in CREST for any particular messages. Normal system timings and limitations will therefore apply in relation to the input 
of CREST Proxy Instructions. It is the responsibility of the CREST member concerned to take (or, if the CREST member is a CREST Personal 
Member or CREST Sponsored Member or has appointed a voting service provider(s) to procure that his CREST sponsor or voting service 
provider(s) take(s)) such action as shall be necessary to ensure that a message is transmitted by the CREST system by any particular time. In 
this connection, CREST members and, where applicable, their CREST sponsors or voting service providers are referred, in particular, to those 
sections of the CREST manual concerning practical limitations of the CREST system and timings.
(x) The Company may treat as invalid a CREST Proxy Instruction in the circumstances set out in Regulation 35(5)(a) of the CREST Regulations.
Appointment of proxy by joint shareholders
(xi)  In the case of joint holders, where more than one of the joint holders purports to appoint a proxy, only the appointment submitted by the most 
senior holder will be accepted. Seniority is determined by the order in which the names of the joint holders appear in the Company’s register of 
members in respect of the joint holding (the first-named being the most senior).
Changing proxy instructions
(xii)  To change your proxy appointments simply submit a new proxy appointment using the methods set out above. Note that the cut-off time for 
receipt	of	proxy	appointments	(see	above)	also	applies	in	relation	to	amended	instructions;	any	amended	proxy	appointment	received	after	the	
relevant cut-off time will be disregarded.
  Where you have appointed a proxy using the proxy form and would like to change the instructions using another proxy form, please contact 
Neville Registrars Limited Neville House 18 Laurel Lane Halesowen West Midlands B63 3DA, telephone: 0121 5851131 or fax: 0121 5851132. 
If you submit more than one valid proxy appointment, the appointment received last before the latest time for the receipt of proxies will take 
precedence.
Termination of proxy appointments
(xiii)  In order to revoke a proxy instruction you will need to send a signed hard copy notice clearly stating your intention to revoke your proxy 
appointment to Neville Registrars Limited. In the case of a shareholder which is a company, the revocation notice must be executed under its 
common seal or signed on its behalf by an officer of the company or an attorney for the company. The original of any power of attorney or any 
other authority under which the revocation notice is signed (or a duly certified copy of such power or authority) must be included with the 
revocation notice. The revocation notice must be received by the Company no later than 10:30 a.m. on 18 September 2011 or if the meeting is 
adjourned, 10:30 a.m. on the day two days prior to the adjourned meeting, and a copy must be sent or delivered to Neville Registrars Limited 
Neville House 18 Laurel Lane Halesowen West Midlands B63 3DA.
  Appointment of a proxy does not preclude you from attending the annual general meeting and voting in person. If you have appointed a proxy 
and attend the annual general meeting in person and vote in respect of a particular resolution then your proxy’s vote, if he or she makes one, 
will not be counted.
Communication
(xiv)  Except as provided above, shareholders who have general queries about the annual general meeting should use the following means of 
communication:
	 •	 calling	Neville	Registrars	on	0121	585	1131	(calls	cost	10p	per	minute	plus	network	extras);	or
	 •	 by	email	to	reece@nevilleregistrars.co.uk
  You may not use any electronic address provided in any documentation to communicate with the Company for any purposes other than those 
expressly stated.  Glossary
Sirius Minerals Plc Report and Consolidated Accounts 2011 59
ADR American Depository Receipts
OTCQX The premier tier of the United States over-the-counter securities trading market
Alunite A hydrated aluminium potassium sulphate mineral
Bed The smallest division of a geologic formation
Boree Salt Member A mineral deposit in Queensland, Australia
CAES See Compressed Air Energy Storage
Carbon Sequestration The capture of carbon dioxide
Carnallite/Carnallatic A hydrated potassium magnesium chloride
Competent Person A	legal	definition	for	the	purposes	of	the	Australian	Joint	Ore	Reserves	Committee	(JORC)
Compressed Air Energy
Storage/CAES
A way to store energy generated at one time for use at another time
Esterhazy Member A geological formation containing mineral deposits extending across the Northern United 
States and Saskatchewan in Canada
Evaporite A water-soluble mineral sediment that results from the evaporation from an aqueous 
solution and has been concentrated by evaporation
Halite Commonly known as rock salt. The mineral form of sodium chloride (NaCl).
Interbed When layers of one type of rock are interlayered with a different type of rock
JORC Australian	Joint	Ore	Reserves	Committee
Kainite A mineral salt that consists of potassium chloride and magnesium sulphate
Langebeinite A potassium magnesium sulphate mineral
Mallowa Salts A geological formation containing mineral deposits located in the Kimberley region of 
Western Australia
Magnesium hydroxide Milk of magnesia
Member The formal lithostratigraphic unit next in rank below a formation. A member possesses 
properties distinguishing it from adjacent parts
Muriate of Potash/MOP See Potassium Chloride
Polyhalite A hydrated sulphate of potassium, calcium and magnesium – K
2
Ca
2
Mg(SO
4
)
4
·2H
2
O
Potash Any of several compounds containing potassium. Used mainly in fertilisers
Potassium Chloride/ KCl A metal halide salt comprising potassium and chlorine
Potassium Oxide/ K
2
O A compound of potassium and oxygen. Represents the amount of potassium in a fertiliser if 
it was in the form of potassium oxide
Potassium Nitrate/NOP A chemical compound of potassium, nitrogen and oxygen. Used in fertilisers
Prairie Evaporates See	Saskatchewan	Prairie	Evaporite	Formation
Raster data A technique of displaying data, using pixels
Saskatchewan Prairie Evaporite 
Formation
A	geological	formation	in	the	Williston	Basin	in	Saskatchewan,	Canada
Seismic Lines The pattern of lines set out/or a seismic survey
Solution Mining The mining of underground, water-soluble minerals, by dissolving the minerals with water 
and extracting them
SOP/ Sulphate of Potash/ K
2
SO
4
A crystalline salt compound of potassium, sulphur and oxygen, used in fertilisers
Sylvenite A mechanical mixture of sylvite and halite.
Sylvite Potassium chloride (KCl) in natural mineral form.  Directors and Advisers
Sirius Minerals Plc Report and Consolidated Accounts 2011 60
Directors
CJ	Catlow	(Non-Executive	Chairman)
CN	Fraser	(Managing	Director	and	CEO)
AM	Lindsay	(Finance	Director	and	CFO)
R O’D Poulden (Non-Executive Deputy Chairman)
Prof MR Mainelli (Non-Executive Director)
RJ	Scrimshaw	(Non-Executive	Director)
DCW Stonley (Non-Executive Director)
PJE	Woods	(Non-Executive	Director)
Secretary
J	Sembi
Registered Office
Third	Floor,	Greener	House
68	Haymarket
London 
SW1Y	4RF
Tel:	+44	20	3327	3660
Auditors
Nexia Smith & Williamson 
25 Moorgate
London
EC2R 6AY
Bankers
UBS	AG
Postfach
CH-8098	Zurich
Switzerland
The	Royal	Bank	of	Scotland	Plc
9-13	Paternoster	Row
London 
EC4M	7EJ
Nominated Adviser
Beaumont	Cornish	Limited
Second	Floor,	Bowman	House
29 Wilson Street
London
EC2M	2SJ
Brokers
Liberum Capital Limited 
Ropemaker Place, Level 12 
25 Ropemaker Street 
London 
EC2Y 9LY
XCAP Securities Plc
24 Cornhill
London
EC3V	3ND
Lawyers
Pinsent Masons LLP
30	Crown	Place
London 
EC2A 4ES
Registrars
Neville Registrars Limited
Neville	House
18	Laurel	Lane
Halesowen
West Midlands
B63	3DA
Company Registration Number
4948435
Company Information
General Information
info@siriusminerals.com
Investor Information
irdesk@siriusminerals.com
UK
York Potash Limited
2	Langley	House
Wykeham	Business	Centre
Scarborough
YO13	9QP
Tel:	+44	1723	470	010
Australia
Sirius Minerals (Australia) Pty Limited
Level	12,	48	Hunter	Street
Sydney
New South Wales 2000
Australia
Tel:	+61	2	9917	8900
North America
Dakota Salts, LLC
8390	E.	Crescent	Parkway 
Suite 600 
Greenwood	Village,	CO	80111 
United States of America
www.siriusminerals.com Sirius Minerals is a globally diversified potash development company. Its primary 
focus is to bring on stream major potash mining facilities through the acquisition and 
development of projects overlying recognised potash deposits. Its flagship project 
is the York Potash Project in the United Kingdom. It is also progressing earlier stage 
projects in the United States (North Dakota), and Australia (Queensland and Western 
Australia).  
The Company was formed in 2004 and listed on the London Stock Exchange’s AIM 
market in August 2005.  Its shares are also traded in the United States on the OTCQX 
through the use of a sponsored ADR facility.  
“ The world’s potash requirements have never  
been greater and show no sign of slowing in  
the future.”
Sirius Minerals Plc Report and Consolidated Accounts 2011
Canning
Basin
Dakota Salts
York Potash
Adavale Sirius Minerals Plc
Report and Consolidated Accounts
For the year ended
31 March 2011
THE NEW POTASH
POWERHOUSE
SIRIUS MINERALS PLC  ANNUAL REPORT AND ACCOUNTS 2011