Q4 Cobre Sales (US $2.139M) Sets New Record
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Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.
09 January 2018
Strategic Minerals plc
("Strategic Minerals" or "the Company")
Q4 Cobre Sales (US $2.139M) Sets New Record
Strategic Minerals plc (AIM: SML; USOTC: SMCDY), the diversified mineral development and production company, is pleased to provide the following update on magnetite ore sales at the Company's Cobre operations for the three months to December 2017, and to inform the market of cash available at the end of quarter.
Sales update on Cobre magnetite tailings operations
The Company reports that it achieved sales of US $2.139m (30,730 tons) during the December 2017 quarter, marginally up on the September quarter (US $2.036m / 29,539 tons) and again setting a new quarterly record. Given that the September quarter partly reflected clearance of prepaid June tonnage, this is a strong result.
The 2017 annual sales of US $5.638m (84,980 tons) represents over a 300% increase on 2016 sales of US $1.552m (25,385 tons). Subject to audit review, the Board anticipates 2017 will see the Company record its first before tax profit in excess of US $1m.
The record breaking domestic sales for the December 2017 quarter and volume details are as follows:
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Tonnage |
Sales (US $'000) |
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|
Year |
3 months to Dec |
12 months to Dec |
3 months to Dec |
12 months to Dec |
|
2017 |
30,730 |
84,980 |
2,139 |
5,638 |
|
2016 |
9,432 |
25,385 |
533 |
1,552 |
|
2015 |
7,524 |
18,454 |
514 |
1,252 |
Management at Cobre has ensured that the profit margin on sales has been maintained at in excess of 60% during the December 2017 quarter.
Financials and Operations
The Board and Management have continued to maintain tight control on overheads and with sizeable cash flows, and after meeting exploration costs associated with both Redmoor and Hanns Camp, the Company had a healthy cash balance, which at 31 December 2017 was US $3.806m (30 September 2017: US $1.627m). This strong cash position has enabled the Company to settle the cash component of the Leigh Creek Copper Mine acquisition, internally fund the start up of Leigh Creek, internally fund the CARE 2018 drilling programme and internally fund the expected share of 2018 Redmoor exploration expenses.
Commenting, John Peters, Managing Director of Strategic Minerals, said:
"The December quarter has seen the profits and cash flow from our Cobre operations reach record highs. This has placed the Company in a strategically advantageous position, enabling it to acquire the Leigh Creek Copper Mine and undertake exploration with little dilution to shareholders.
"The Board and Management will continue with the asset development plan to drive revenue higher in order to achieve the Company's targets of a £100m market capitalisation and a share price above £0.0575."
For further information, please contact:
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Notes to Editors
Strategic Minerals Plc is an AIM-quoted, diversified mineral development and production company with projects in the United States of America, the UK and Australia. The Company is focused on acquiring and developing cash generative, high quality projects which meet local market demand for commodities and utilising this cash flow to undertake value added exploration.
In September 2011, Strategic Minerals purchased its first cash-generating asset; the Cobre magnetite tailings dam project in New Mexico, USA which it brought into production in 2012 and which continues to provide a revenue stream for the Company. The portfolio was expanded in January 2016 with the acquisition of shares in Central Australian Rare Earths Pty Ltd, which holds tenements in Western Australia and the Northern Territory that are prospective for cobalt, gold, nickel sulphides and rare earth elements. The Company has since acquired all shares in Central Australian Rare Earths Pty Ltd. In May 2016, an additional exploration asset was acquired when the Company entered into an agreement with New Age Exploration Limited to acquire up to 50% of the Redmoor Tin/Tungsten project in Cornwall, UK. This 50% acquisition has now been completed and drilling at the project has commenced. The Company is also currently in the process of settling the acquisition of the Leigh Creek Copper Mine situated in the copper rich belt of South Australia.
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This information is provided by RNS
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