REG - Strategic Minerals - FY & Q4 2024 Magnetite Sales and Cash Balances

Strategic MineralsAnnouncement

20/01/2025 07:00

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RNS Number : 9240T  Strategic Minerals PLC  20 January 2025

The 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.

20 January 2025

Strategic Minerals plc

("Strategic Minerals" or the "Company")

December Quarter 2024 and Full Year 2024 Sales and Cash Balances

Strategic Minerals plc (AIM: SML; USOTC: SMCDY), a producing mineral company,
is pleased to provide the following update on the Company's ore sales at the
Cobre magnetite operation in New Mexico, USA ("Cobre") for the quarter ended
31 December 2024 and the full year 2024.

Highlights

·   December quarter sales volumes of 19,952 tonnes (December quarter 2023:
4,478 tonnes).

·   Full year sales volumes of 70,658 tonnes (Full year 2023: 17,965)
exceeding prior management guidance.

·   December quarter revenue of US$1.33m (December 2023: US$0.39m).

·   Full year revenue US$4.7m (Full year 2023: US$1.5m) and exceeding
guidance.

·   Group cash balance of US$0.62m as at 31 December 2024 (US$0.10m as at
31 December 2023).

·   In November the Company announced an extension of its access to the
Cobre Magnetite stockpile from 31 March 2027 to 31 March 2029 and a new
significant purchase order for 2025, underpinning the revenue profile of the
Company going forward.

·   In December, the Company's 100% subsidiary Cornwall Resources Limited
("CRL"), announced relogging and sample of its existing diamond drill core at
the Redmoor, leveraging a positive environment for critical minerals as
designated by the EU Critical Raw Materials Act and the UK 2024 Criticality
Assessment.

 

Sales update: Cobre magnetite tailings operations

The Company posted record sales volumes in the December quarter 2024 at 19,952
tonnes, and the largest annual sales volumes for the full year since 2017 at
70,658 tonnes, equating to US$4.7m of sales revenues, exceeding management
guidance and representing a significant increase relative to 2023 annual sales
revenue.

The Company continues to benefit from the return of Cobre's major client in
the 2024 operational year and the in-country team have consistently delivered
when scaling operations to meet demand.

On 28 November, the Company announced an extension of its access to the Cobre
Magnetite stockpile from 31 March 2027 to 31 March 2029 and a new significant
purchase order of up to 30,000 tonnes from a major client for 2025,
underpinning the revenue profile of the Company going forward.

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

       Tonnage                                       Sales (US$'000)
 Year  3 months to Dec       12 months to Dec        3 months to Dec  12 months to Dec
 2024  19,952                70,658                  1,335            4,741
 2023  4,478                 17,965                  391              1,576
 2022  5,638                 36,281                  464               2,446
 2021  7,245                 42,637                  493               2,611

 

Cash Balances

As at 31 December 2024, the Company's cash balance was US$0.62m (31 December
2023: US$0.1m).

This was due to stellar operational performance for the full year, as well as
early realisation of certain debtors.

In H2 2024, the Company also cleared US$0.49m of liabilities, attributable to
working capital loans & interest (US$0.10m), former Director &
Management fees (US$0.10m) and Director & Management fees (US$0.24m). This
is a significant achievement and leaves the with a clear path to continue to
rationalise the portfolio and increase the focus on CRL and critical minerals
exploration and development.

 

Cornwall Resources Limited

In December, the Company's 100% subsidiary CRL, announced it was continuing to
develop the Redmoor Tungsten-Tin-Copper Project through a process of relogging
and sampling of its existing diamond drill core, and other exploration and
project activities in order to further define drill holes targets and expected
to lead to both an updated geological model and ultimately a revised new
mineral resource.

 Exploration and development work continues within an increasingly favourable
environment for critical minerals, with tungsten and copper being designated
"Strategic Raw Materials" under the EU Critical Raw Materials Act and tungsten
and tin designated under the UK 2024 Criticality Assessment. CRL will now
pursue a number of strategic project applications now open to the Redmoor
Project.

 

Commenting, Mark Burnett, Executive Director of Strategic Minerals, said:

"The Company posted some significant operational and financial results in 2024
which will support the business in 2025 as we continue to rationalise the
portfolio, maintain focus on critical minerals exploration and development at
the Redmoor Tungsten-Tin-Copper Project, and strive to deliver returns to
shareholders. I would like to thank the whole team for their dedication and
determination in 2024."

 

 For further information, please contact:

 Strategic Minerals plc                                   +44 (0) 207 389 7067
 Mark Burnett
 Executive Director
 Website:               www.strategicminerals.net (http://www.strategicminerals.net)
 Email:                 info@strategicminerals.net (mailto:info@strategicminerals.net)

 Follow Strategic Minerals on:
 X (formerly Twitter):  @SML_Minerals (https://twitter.com/SML_Minerals)
 LinkedIn:              https://www.linkedin.com/company/strategic-minerals-plc
                        (https://www.linkedin.com/company/strategic-minerals-plc)

 SP Angel Corporate Finance LLP                           +44 (0) 20 3470 0470
 Nominated Adviser and Broker
 Matthew Johnson
 Charlie Bouverat

 Grant Barker
 Grant Barker

 

Notes to Editors

Strategic Minerals plc (AIM: SML; USOTC: SMCDY) is an AIM-quoted, producing
minerals company, actively developing strategic projects in the UK, United
States and Australia.

In September 2011, Strategic Minerals acquired the distribution rights to the
Cobre magnetite project in New Mexico, USA, through its wholly owned
subsidiary Southern Minerals Group ("SMG"). Cobre has been in production since
2012 and continues to provide a sustainable revenue stream for the Company.

In 2019, the Company completed the 100% acquisition of Cornwall Resources
Limited ("CRL") and the Redmoor Tungsten-Tin-Copper Project, with a 2019 of
JORC-compliant, Inferred Mineral Resource Estimate ("MRE") of 11.7Mt at 1.17%
Tin equivalent, made up of Tungsten, Tin and Copper.

In March 2018, the Company completed the acquisition of the Leigh Creek Copper
Mine ("LCCM") situated in the copper rich belt of South Australia. The Company
continues seek opportunities to monetise the asset.

 

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