LThe information contained within
this announcement is deemed by the Company to constitute inside
information as stipulated under the Market Abuse Regulations (EU)
No. 596/2014 ('MAR') which has been incorporated into UK law by the
European Union (Withdrawal) Act 2018.
15 October 2024
Strategic Minerals plc
("Strategic
Minerals" or the "Company")
September Quarter Cobre Sales Update
Highest September Quarter for 7 Years
Strategic Minerals plc (AIM: SML; USOTC:
SMCDY), a producing mineral company, is pleased to provide the
following update on quarterly Cobre sales to 30 September
2024.
Highlights
• September quarter sales
revenue of US$1.273m, up 215% on September quarter 2023
(US$0.404m).
• Very strong sales levels
being maintained.
• Full year sales in 2024 now
expected to exceed US$4.5m.
Cobre Sales
The Company continues to benefit from the
return of Cobre's major client and the addition of a substantial
new client. Not unexpectedly, this represents an impressive 215%
increase on the September 2023 quarter when Cobre's major client
was not purchasing magnetite. However, this is also a 95% increase
on September 2022 sales, when the major client was
active.
The strength of the past two quarters' sales is
shown in the following graph which illustrates the recovery in
performance at Cobre.
Sales
September Quarter
12 Months to
September
__________________
_____________________
|
|
|
$'000
|
|
Volume
|
|
$'000
|
Volume
|
|
2024
|
|
1,273
|
|
19,375
|
|
3,802
|
55,181
|
|
2023
|
|
404
|
|
4,592
|
|
1,649
|
19,126
|
|
2022
|
|
653
|
|
9,322
|
|
2,475
|
37,888
|
With over US$3.4m of sales (50,702 tons) in the
first three quarters of 2024, the Company believes it is on track
to reach and exceed the upgraded 2024 Cobre full year sales
forecasts, with volumes now expected to exceed 60,000 tons (17,965
tons in 2023) resulting in upgraded revenues expected to exceed
US$4.5m (US$1.6m in 2023).
Cash Management
As previously reported, the substantial
reduction in sales during 2023, coupled with the need for working
capital to fund sales growth in early 2024, required careful
financial management. The Company is happy to report that the two
remaining loan facilities totalling AUD$100,000, used to smooth out
cashflow, were repaid during October.
Commenting, John Peters, Managing
Director of Strategic Minerals, said:
"The
quarter's sales have reinforced our confidence in the current
demand at Cobre and our expectation for a continued strong
performance in 2024 with forecasted annual sales now upgraded and
expected to exceed US$4.5m."
For further
information, please contact:
Strategic Minerals plc
+61 (0) 414 727
965
John Peters
Managing Director
Website:
www.strategicminerals.net
Email:
info@strategicminerals.net
Follow Strategic Minerals on:
Vox Markets:
https://www.voxmarkets.co.uk/company/SML/
Twitter:
@SML_Minerals
LinkedIn:
https://www.linkedin.com/company/strategic-minerals-plc
SP Angel Corporate Finance LLP
+44 (0) 20 3470 0470
Nominated Adviser and Broker
Matthew Johnson
Ewan Leggat
Charlie Bouverat
Notes to
Editors
Strategic Minerals plc is an AIM-quoted,
profitable operating minerals company actively developing projects
tailored to materials expected to benefit from strong demand in the
future. It has an operation in the United States of America along
with development projects in the UK and Australia. The Company is
focused on utilising its operating cash flows, along with capital
raisings, to develop high quality projects aimed at supplying the
metals and minerals likely to be highly demanded in the
future.
In September 2011, Strategic Minerals acquired
the distribution rights to the Cobre magnetite tailings dam project
in New Mexico, USA, a cash-generating asset, which it brought into
production in 2012 and which continues to provide a revenue stream
for the Company. This operating revenue stream is utilised to cover
company overheads and invest in development projects aimed at
supplying the metals and minerals likely to be highly demanded in
the future. The access to this stockpile has been extended until 31
March 2027 and is likely to be rolled over again at that
time.
In May 2016, the Company entered into an
agreement with New Age Exploration Limited and, in
February 2017, acquired 50% of Cornwall
Resources Limited (CRL) which holds the Redmoor Tin/Tungsten
project in Cornwall, UK. The bulk of the funds from the Company's
investment were utilised to complete a drilling programme that
year. The drilling programme resulted in a significant upgrade of
the resource. This was followed in 2018 with a 12-hole 2018
drilling programme has now been completed and the resource update
that resulted was announced in February 2019. In March 2019, the
Company entered arrangements to acquire the balance of CRL which
was settled on 24 July 2019 by way of a vendor loan, subsequently
fully repaid on 26 September 2020. Since this time, CRL has
been progressing the development of the Redmoor Tin/Tungsten
project through its involvement in the EU funded Deep Digital
Cornwall exercise and the placement of Tin and Tungsten on the
Critical Minerals List of both the UK and USA.
In March 2018, the Company completed the
acquisition of the Leigh Creek Copper Mine situated in the copper
rich belt of South Australia and brought the project temporarily
into production in April 2019. In July 2021, the project was
granted a conditional approval by the South Australian Government
for a Program for Environmental Protection and Rehabilitation
(PEPR) in relation to mining of its Paltridge
North deposit and processing at the Mountain of
Light installation. In late September 2022, an updated PEPR,
addressing the conditions associated with the July 2021 approval,
was approved. The Company continues seeking capital to
commence operations.