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Share Name Share Symbol Market Type Share ISIN Share Description
Strategic Minerals Plc LSE:SML London Ordinary Share GB00B4W8PD74 ORD 0.1P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.0% 0.40 0.35 0.45 0.42 0.40 0.40 394,808 08:00:24
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Mining 2.2 0.3 0.1 4.0 8

Strategic Minerals PLC Q1 Cobre Magnetite Sales and Cash Balance Update

14/04/2021 7:00am

UK Regulatory (RNS & others)


Strategic Minerals (LSE:SML)
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RNS Number : 3486V

Strategic Minerals PLC

14 April 2021

Market Abuse Regulation (MAR) Disclosure

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.

14 April 2021

Strategic Minerals plc

("Strategic Minerals" or the "Company")

March Quarter 2021 Magnetite Sales and Cash Balances

Strong Cobre Sales Continue

Strategic Minerals plc (AIM: SML; USOTC: SMCDY), a profitable producing mineral company , is pleased to provide the following update on the Company's cash position and ore sales at the Cobre magnetite operation in New Mexico, USA ("Cobre") for the quarter ended 31 March 2021.

Highlights

   --   Annual Cobre sales continue to exceed US$3m 
   --   Revenue growth of over 12% year on year at Cobre 
   --   Group cash balance of US$0.686m as at 31 March 2021 

Sales update: Cobre magnetite tailings operations

The 2021 March quarter saw sales at Cobre continue to grow, with revenues rising by over 12% year on year. Sales remained robust and the positive annual growth highlights both the strong underlying demand and the Southern Minerals Group ("SMG") team's ability to maintain "contactless" operations, therein protecting both our personnel and clients.

Sales comparisons on quarterly and annual periods to 31 March 2021, along with associated volume details, are shown in the table below:

 
                   Tonnage                    Sales (US$'000) 
        ----------------------------   ----------------------------- 
 Year    3 months to   12 months to     3 months to     12 months to 
            March          March           March            March 
 2021         13,002      51,567            771            3,032 
 2020         12,953      45,998*           764            2,698* 
 2019          9,471      42,401            553             2,480 
 
 

* For comparison purposes, the US$0.75m of deposits forfeited by CV Investments LLC ("CV") has been excluded.

The Company's wholly owned subsidiary, SMG, continues to remain in contact with the Receiver appointed by the US Securities Exchange Commission in relation to the previously notified US$21.9m arbitration claim against CV Investments LLC. The Receiver is currently in the process of identifying and validating assets applicable to this claim. The Company will update the market with details as and when they are provided by the Receiver.

Financials and Operations

At 31 March 2021, the Group's non-restricted cash balance was US$0.686m (31 December 2021: US$0.833m).

Generally, cash flows have been consistent with budgets and the Company continues discussions relating to the funding of both Leigh Creek Copper Mine ("Leigh Creek") and the Redmoor Tin and Tungsten project ("Redmoor"). Interest in Leigh Creek has risen, in line with increased copper prices. Subject to funding, finalisation of arrangements to recommence production are anticipated in conjunction with the issuance of the approval of the Paltridge North Programme for Environmental Protection and Rehabilitation ("PEPR").

Cornwall Resources Limited ("CRL"), the holder of the Redmoor Tin and Tungsten project, continues to work with NRG Capital and those parties that have expressed an interest in being involved with Redmoor. To date, the Company considers that the proposals it has received do not adequately reflect the project's value; particularly given project enhancements and the supportive commodity price environment. While the Company will continue dialogue with interested parties, its 2021 focus is now on the works associated with both the Redmoor West exploration program and the Deep Digital programme (as detailed in the Company's announcement of 15 February 2021) in Cornwall for which CRL is to receive significant grant funding for its role.

Commenting, John Peters, Managing Director of Strategic Minerals, said:

"The Company has been fortunate that its Cobre operation has been able to continue "contactless" during the pandemic, which has maintained this important income stream for the Company.

"The Board considers that the current copper price, of circa US $4/lb, is likely to endure and is also encouraged by feedback from the Company's recent meeting with the South Australian Minister for Energy and Mining on the Leigh Creek Copper Mine project. Accordingly, the Company is confident that 2021 will begin to unlock the substantial value inherent in the Leigh Creek Copper Mine project and provide a valuable, significant second income stream before the end of the year."

 
For further information, please contact: 
 
                                                        +61 (0) 414 727 
Strategic Minerals plc                                   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 
 
                                                          +44 (0) 20 3470 
  SP Angel Corporate Finance LLP                          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 orientated to supplying the burgeoning electric vehicle/battery market.

In May 2016, the Company entered into an agreement with New Age Exploration Limited and, in February 2017, acquired 50% of 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 into arrangements to acquire the balance of the Redmoor Tin/Tungsten project which was settled on 24 July 2019 by way of a vendor loan which was fully repaid on 26 June 2020.

In March 2018, the Company completed the acquisition of the Leigh Creek Copper Mine situated in the copper rich belt of South Austra lia and brought the project temporarily into production in April 2019. The project currently awaits clearance from the South Australian Government of its lodged Program for Environmental Protection and Rehabilitation (PEPR).

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April 14, 2021 02:00 ET (06:00 GMT)

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