REG - Strategic Minerals - Cobre Sales Update

Strategic MineralsAnnouncement

15/10/2024 07:00

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RNS Number : 1250I  Strategic Minerals PLC  15 October 2024

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
(http://www.strategicminerals.net/) (http://www.strategicminerals.net/)

Email:                       info@strategicminerals.net
 

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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.

 

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