REG - Critical Mineral - Commodities Trading Update

Critical Mineral ResourcesAnnouncement

07/01/2025 07:00

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RNS Number : 3165S  Critical Mineral Resources PLC  07 January 2025

Critical Mineral Resources PLC

('CMR' or the 'Company')

Commodities Trading update

Critical Mineral Resources plc ('CMR' or the 'Company'), the developer of
advanced metal mining projects and commodities trading in Morocco is pleased
to provide a summary of recent progress and its proposals to further advance
and develop the commodities trading business unit of the Company during 2025.

Trading update and outlook

CMR has now undertaken several trades since early December in a range of base
and speciality metals. This has led to multiple new trading opportunities and
the Company now intends to expand this profitable business during 2025. The
Joint Venture's focus has been on low-risk and short-term trading
opportunities in order to provide a proof of concept. Whilst a conservative
approach to risk will continue, the near-term objective is now to scale up the
trading business with multiple small mines that have potential for good
tonnage and high-grade products in a range of metals and potentially
industrial minerals. With this is mind the management have commenced
discussions with a number of potential providers for additional working
capital.

 

Charlie Long (CEO) commented:

"We are very encouraged by the achievement of our commodities trading business
in such a short timescale. Given our Moroccan team's metals trading
background, we have known of the potential for some time and always planned to
enter the space. The benefits of having a local JV partner with a long history
of trading in metals and industrial minerals is now very clear. As we continue
to gain traction, we are investigating sources of non-dilutive capital that
would enable a step-change in scale. That said, our organic growth trajectory
is working extremely well and we will not take undue risk. Further details of
our expansion plans will be provided to shareholders in due course".

 

Small-scale mining and our social license

Morocco's artisanal and small-scale operators work alongside larger industrial
scale mines. Our partners have unrivalled knowledge of the cultural practices
of the rural mining economy and a deep understanding of Moroccan commodities
commerce. This gives CMR a distinct competitive advantage.

Despite being the core fabric of the sector, small scale mining in Morocco
remains undercapitalised and will benefit from actors such as CMR with high
EISA standards. The commercial objective is to create an efficient mine to
end-user pathway that is beneficial to all parties by developing a profitable
business while maintaining these high social standards and building long term
relationships.

Background

Due to Morocco's stability and status as a favoured trading partner of the EU,
the US and China, there is extremely good demand for Moroccan-produced exports
including metal concentrates and critical materials.

Morocco is a tier one jurisdiction for metals exploration, development and
mining. In the well respected and most recent 2023 Fraser Institute's latest
mining survey, Morocco ranks 27th in the 'Investment Attractiveness Index'
globally and 2nd in Africa for both overall investment and policy. In the
Fraser 'Policy Perception Index', Morocco's score increased by 6 points and
now ranks 12th (out of 86 jurisdictions), an improvement from 17th (of 62
jurisdictions) in 2022.

Morocco's mining industry includes phosphate (OCP Group), manganese, barite
(chemical and petroleum grades), lead-zinc, copper-silver, gold-silver (Aya
Gold & Silver), oligiste, cobalt and gold. There is also production of
antimony, tungsten and industrial minerals such as feldspar, fluorspar and
gypsum. The map below shows the main mine regions and deep-water ports that
handle the majority of Morocco's exported metals and minerals.

Partnership in Morocco

In recent months the Company has taken a series of initiatives to create a
self-sufficient and increasingly profitable commodities trading business.
Central to this has been the creation of a formal profit-sharing partnership
with an established Moroccan trading entity to identify, acquire and trade a
range of metals and industrial minerals. Our partners have over a decade
experience in sourcing and, where necessary, upgrading crude mineral ores and
semi-processed raw materials secured from the small-scale mines, artisanal
miners and aggregators.

 

Fig 1: Morocco mining map

Source: Company

CONTACT:

 Critical Mineral Resources PLC           info@cmrplc.com

 Charles Long, Chief Executive Officer
 Novum Securities                         +44 (0) 20 7399 9425

 Jon Belliss

 

Notes To Editors

Critical Mineral Resources (CMR) PLC is an exploration and development company
focused on developing assets that produce key commodities for the global
economy including those essential for electrification and the clean energy
revolution. Many of these commodities are widely recognised as being at the
start of a supply and demand supercycle.

CMR is building a diversified portfolio of high-quality metals exploration and
development projects in Morocco, focusing on copper, manganese and potentially
other critical minerals and metals. CMR identified Morocco as an ideal
mining-friendly jurisdiction that meets its acquisition and operational
criteria. The country is perfectly located to supply raw materials to Europe
and possesses excellent prospective geology, good infrastructure and
attractive permitting, tax and royalty conditions. In 2023, the Company
acquired an 80% stake in leading Moroccan exploration and geological services
company Atlantic Research Minerals SARL.

Since taking over the CMR in 2022, the current management has completed a
comprehensive strategic review and restructuring of the business and
implemented its clear strategy to maximise exploration and resource
development opportunities for the benefit of all stakeholders. The Company is
listed on the London Stock Exchange (CMRS.L). More information regarding the
Company can be found at www.cmrplc.com (http://www.cmrplc.com/)

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