Strong Q1 Magnetite Sales Maintained at Cobre
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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.
12 April 2018
Strategic Minerals plc
("Strategic Minerals" or the "Company")
Strong Q1 Magnetite Sales Maintained at Cobre
Strategic Minerals plc (AIM: SML; USOTC: SMCDY), a producing mineral company actively developing projects prospective for battery materials, is pleased to provide the following update on magnetite ore sales at the Company's Cobre magnetite operations in New Mexico, USA for the three months to March 2018, and to inform the market of cash available at the end of quarter.
Sales update: Cobre magnetite tailings operations
Strong sales volumes continued at Cobre with March 2018 quarter sales of US $1.424m (21,635 tonnes). Given the seasonality associated with January and February traditionally being low sales months, this is a pleasing result and in line with management expectations. This represents an increase of over 60% on last year's March quarter sales of US $0.884m (14,264 tonnes).
The sharp increase in sales and cash flow from Cobre, can be seen in the year-on-year comparisons. Despite the March quarter sales being lower than those for the December quarter, the year on year performance (sales of US $6.228m on 92,351 tonnes) represents a 288% increase in revenue for the same period in 2017 (sales of US $2.158m on 36,221 tonnes).
Sales comparisons on comparable quarters and annual periods to March 2018, along with associated volume details, are as below:
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Tonnage |
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Sales (US $'000) |
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Year |
3 months to March |
12 months to March |
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3 months to March |
12 months to March |
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2018 |
21,635 |
92,351 |
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1,424 |
6,228 |
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2017 |
14,264 |
36,221 |
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884 |
2,158 |
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2016 |
3,427 |
17,175 |
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227 |
1,160 |
Financials and Operations
Despite having settled the cash component of the Leigh Creek Copper Mine acquisition (circa US $1.079m), the Company has maintained a strong cash balance, which at 31 March 2018 was US $3.110m (31 December 2017 US $3.806m). This healthy cash position places the Company in a strong position to internally fund the restart of Leigh Creek, the imminent CARE 2018 drilling programme and the Company's expected share of 2018 Redmoor exploration expenses.
Commenting, John Peters, Managing Director of Strategic Minerals, said:
"Sales remain strong at Cobre and Management continues to focus on this operation whilst looking to reinvest the proceeds into projects that will provide the Company further cash flow, most notably, the recent Leigh Creek Copper Mine acquisition.
"The Board and Management is establishing its growth strategy within the context of the expected performance at Cobre and has an exciting, and potentially lucrative, development programme planned which should see the Company in a strengthened position in 2019."
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For further information, please contact:
Strategic Minerals plc |
+61 (0) 414 727 965 |
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John Peters |
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Managing Director |
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Follow Strategic Minerals on: |
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Facebook: |
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SP Angel Corporate Finance LLP |
+44 (0)20 3470 0470 |
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Nominated Adviser and Broker |
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Ewan Leggat |
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Yellow Jersey PR |
+44 (0)20 3735 8825 |
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Financial PR |
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Charles Goodwin |
+44 (0)7747 788 221 |
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Joe Burgess |
+44 (0)7769 325 254 |
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Henry Wilkinson |
+44 (0)7951 402 336 |
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Notes to Editors
Strategic Minerals Plc is an AIM-quoted, operating minerals company actively developing projects prospective for battery materials. It has an operation in the United States of America and 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 being sought in the burgeoning electric vehicle/battery market.
In September 2011, Strategic Minerals acquired 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 orientated to supplying the burgeoning electric vehicle/battery market.
In January 2016, the portfolio was expanded 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 was completed in February 2017 and a drilling programme completed in 2017 resulted in a significant upgrade of the resource.
In March 2018, the Company completed the acquisition of the Leigh Creek Copper Mine situated in the copper rich belt of South Australia and is currently working to bring this into operation in 2019.
This information is provided by RNS
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