REG - Strategic Minerals - Half-Year Report 2025
30/09/2025 07:00
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RNS Number : 2940B Strategic Minerals PLC 30 September 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.
30 September 2025
Strategic Minerals plc
("Strategic Minerals", the "Group" or the "Company")
Half-Year Report 2025
Strategic Minerals plc (AIM: SML; USOTC: SMCDY), an international mineral
exploration and production company, is pleased to announce its unaudited
interim results for the half year ended 30 June 2025 ("H1 2025" or the
"Period").
Financial Highlights
· Revenues: US$2,001,000 (H1 2024: US$2,136,000)
o 10-day shutdown of Cobre operations due to New Mexico wildfires caused a
slight reduction in revenues, which are expected to be more than offset in H2
2025
· Pre-tax profit: US$568,000 (H1 2024: US$950,000)
· Post-tax profit: US$151,000 (H1 2024: US$667,000)
o Profit impacted by one-off costs associated with Board restructuring,
settling in full overdue US tax liabilities from the prior year, and increased
investment in exploration activities as the Company entered a new operational
phase at the Redmoor Project
· Investments in development projects: US$480,000
o Redmoor Project: US$378,000
o Leigh Creek Copper Mine US$38,000
o Southern Minerals Group US$64,000
· Unrestricted cash at 30 June 2025: US$1,532,000 (31 Dec 2024:
US$621,000)
· Oversubscribed £1.0 million placing in April 2025 to advance the
Redmoor Project
Operational Highlights (By Subsidiary)
Cornwall Resources
Redmoor Tungsten-Tin-Copper Project, Cornwall, UK
· Significant upscaling of headcount and facilities as drilling
commenced for the first time since 2018
· Awarded c.£764,000 UK Government grant funding - together with funds
from the Company's April 2025 placing, this fully funds the ongoing
exploration programme to accelerate Redmoor towards pre-feasibility
· Re-analysis of historical samples confirmed previous underreporting
of certain samples and higher tungsten grades - already Europe's highest
grade undeveloped tungsten deposit
· Drilling and sampling of nine boreholes progressing on schedule
o Completion of first three boreholes announced post Period-end with all
intersecting the full thickness of the sheeted vein system with assay results
currently pending
Southern Minerals Group
Cobre Magnetite Stockpile, New Mexico, USA
· Continued strong operational performance in H1 2025 despite 10-day
shutdown due to wildfires
o Sales volumes: 28,467 tons (H1 2024: 31,327 tons)
· Strong Q3 sales expected to more than offset lost sales during the
10-day shutdown
Leigh Creek Copper Mine
Leigh Creek Copper Project, South Australia
· Granted a six-month call option in April 2025 for A$100,000 to a
potential purchaser of Leigh Creek Copper Mine
o If exercised, the transaction would deliver up to A$5.9 million in cash
payments and shares equivalent to 19.9% in the acquiring company
Board Changes
· Philip Haydn-Slater was appointed as independent Non-Executive
Director in January 2025
· Peter Wale stepped down as Executive Director in March 2025
Charles Manners, Executive Chair, commented:
"Strategic Minerals entered a new phase in H1 2025. The turnaround of the
Cobre magnetite operation in New Mexico last year provided a springboard for
the Company to accelerate development of the Redmoor Tungsten-Tin-Copper
Project in Cornwall. We have in Redmoor the opportunity to develop a leading
source of critical and strategic minerals to provide resilience to western
world supply chains. Now that the Cobre magnetite operation is performing
strongly, we are focused on accelerating the development of Redmoor to unlock
its true value."
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: @StrategicMnrls (https://x.com/StrategicMnrls)
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
Zeus Capital Limited +44 (0) 203 829 5000
Joint Broker
Harry Ansell/Katy Mitchell
Vigo Consulting +44 (0) 207 390 0234
Investor Relations
Ben Simons/Peter Jacob/Anna Sutton
Email: strategicminerals@vigoconsulting.com
(mailto:strategicminerals@vigoconsulting.com)
Notes to Editors
About Strategic Minerals Plc
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 2019, the Company completed the 100% acquisition of Cornwall Resources
Limited and the Redmoor Tungsten-Tin-Copper Project.
The Redmoor Project is situated within the historically significant Tamar
Valley Mining District in Cornwall, United Kingdom, with a JORC (2012)
Compliant Inferred Mineral Resource Estimate published 14 February 2019:
Cut-off (SnEq%) Tonnage (Mt) WO(3) Sn Cu Sn Eq(1) WO(3) Eq
% % % % %
>0.45 <0.65 1.50 0.18 0.21 0.30 0.58 0.41
>0.65 10.20 0.62 0.16 0.53 1.26 0.88
Total Inferred Resource 11.70 0.56 0.16 0.50 1.17 0.82
1 Equivalent metal calculation notes; Sn(Eq)% = Sn% x 1 + WO3% x 1.43 + Cu% x
0.40. WO(3)(EQ)% = Sn% x 0.7 + WO(3) + Cu% x 0.28. Commodity price
assumptions: WO3 US$ 33,000/t, Sn US$ 22,000/t, Cu US$ 7,000/t. Recovery
assumptions: total WO3 recovery 72%, total Sn recovery 68% & total Cu
recovery 85% and payability assumptions of 81%, 90% and 90% respectively
More information on Cornwall Resources can be found at:
https://www.cornwallresources.com (https://www.cornwallresources.com)
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. Cobre has been in production since 2012
and continues to provide a sustainable revenue stream for the Company.
In March 2018, the Company acquired the Leigh Creek Copper Mine situated in
the copper rich belt of South Australia. The Company has entered into an
exclusive Call Option with South Pacific Mineral Investments Pty Ltd trading
as Cuprum Metals to acquire 100% of the project.
CHAIRMAN'S STATEMENT
Introduction
Strategic Minerals entered a new phase in H1 2025. The turnaround of the Cobre
magnetite operation in New Mexico last year, and associated 200% revenue
increase, provided a springboard for the Company to accelerate development of
the Redmoor Tungsten-Tin-Copper Project in Cornwall ("Redmoor"). With match
grant funding and strong investor demand to support the opportunity, Strategic
Minerals was able to commission a £1.5 million, 12-month exploration
programme including the first borehole drilling since 2018. This programme is
in full swing.
Financial Results
The Cobre magnetite operation in New Mexico is the sole revenue generating
engine of the Group. It sustains Strategic Minerals and its main operating
subsidiary, Cornwall Resources. The strong recovery in magnetite sales which
drove the 200% revenue increase in FY 2024 held firm in H1 2025. A 10-day
shutdown due to wildfires caused a slight reduction in sales of 6% in the
Period to US$2,001,000 (H1 2024: US$2,136,000) which would otherwise have been
consistent with the first half of 2024. We are confident of more than
offsetting that lost revenue in the second half of this year, with Q3 2025
sales already looking very healthy.
Moving into an intense operating phase at Redmoor, upscaling headcount and
facilities, naturally resulted in an increase in costs which impacted
profitability in the Period. Furthermore, a number of one-off costs were
incurred in the Period in connection with the restructuring of the Company's
Board and the settlement in full of historical taxation due to the IRS in the
USA. Pre-tax profit for H1 2025 was therefore US$568,000 (H1 2024: US$950,000)
and post-tax profit was US$151,000 (H1 2024: US$667,000). This is a new
regime, with a transformed Cobre operation and an accelerated development
programme at Redmoor in motion. While the Company is appropriately deploying
more investment into Redmoor, we remain committed to keeping Board costs lean.
Bolstered by an oversubscribed placing to raise gross proceeds of c.£1.0
million which completed in May 2025, the Company ended the Period with
US$1,532,000 of cash as at 30 June 2025 (31 Dec 2024: US$621,000). The strong
investor demand reflects growing recognition of Redmoor's potential.
Cornwall Resources Limited ("CRL")
Redmoor Tungsten-Tin-Copper Project, Cornwall, UK ("Redmoor")
In April 2025, the Company announced that CRL was awarded c.£764,000 in match
funding from the UK Shared Prosperity Fund under the Cornwall & Isles of
Scilly Good Growth Programme. Together with the Company's oversubscribed
placing, this has provided the c.£1.5m budget for a 12-month exploration
project titled: "Exploration Drilling and Associated Activities to Enable
Accelerated Development of the Redmoor Critical Minerals Project". Within the
12-month Project timeframe which began in April 2025, the Company aims to:
· Undertake c.5,000m of new diamond core drilling and other associated
activities
· Complete the ongoing relogging programme of historical CRL core
· Combine the results of new drilling and relogging with the aim to
produce a new, upgraded and enlarged Mineral Resource Estimate ("MRE")
· Update the economic model, using the updated MRE and incorporating
the significantly increased commodity prices since the 2020 Redmoor Scoping
Study was produced
· Formulate an investment-ready business case and delivery plan, before
the end of March 2026, for moving Redmoor into prefeasibility
By May 2025, drilling pre-commencement and enabling activities were well
advanced, with drilling starting just before the end of the Period in late
June 2025 - the first since 2018.
Nine new boreholes were planned for a total of approximately 5,300 metres of
diamond core drilling over six months. Post-Period end, in September 2025, the
first three boreholes were completed at Pad 1, intersecting the full thickness
of the Redmoor sheeted vein system and confirming visible wolframite and
chalcopyrite consistent with historic mineralisation. A second drill rig was
mobilised to site, accelerating the programme with multiple boreholes planned
from Pads 2 and 3. Analytical results from these boreholes, together with
ongoing relogging and sampling work, will feed into the planned MRE update
expected in Q1 2026.
In parallel with the drilling, the historical core relogging and sampling
programme is ongoing, with additional drillcore and soil samples being
analysed to strengthen the geological dataset. Results from re-analysis of
historical tungsten samples confirmed an average 9.2% increase in tungsten
grades, validating upside potential within the existing 2019 MRE, reported in
accordance with the JORC Code (2012 Edition). Additional re-analysis of
historical drillcore identified significant silver mineralisation associated
with copper within the sheeted vein system, further enhancing Redmoor's
economic and strategic value.
In support of the accelerated development programme at Redmoor, Strategic
Minerals is investing in upgrading CRL's facilities and expanding its
technical team. Since the initiation of the match grant funded activities, the
team at Redmoor has increased to nine full time, permanent staff, with seven
geologists, ensuring the smooth delivery of the exploration drilling programme
and other exploration activities. To further support the effective and
high-quality delivery of the programme, site upgrades include a significant
improvement in core logging facilities and equipment available to the
geological team, as well as new long term storage facilities for the existing
exploration drill core with capacity for future programmes.
Southern Minerals Group LLC ("SMG")
Cobre magnetite stockpile, New Mexico, USA
Cobre continued to deliver a strong operational performance in H1 2025 with
sales volumes of 28,467 tons (H1 2024: 31,327tons). With the benefit new and
returning customers last year, and an extension of access to the Cobre
magnetite operation's stockpile through to 31 March 2029, this
revenue-generating subsidiary of the Company is in very good health. Revenues
in H1 2025 were only marginally below H1 2024 as a result of a 10-day shutdown
due to wildfires and we expect SMG to make this back up in the second half of
this year.
Leigh Creek Copper Mine Pty Ltd ("LCCM")
Leigh Creek Copper Project
In April 2025, Strategic Minerals signed a non-binding Heads of Agreement
granting an exclusive call option for A$100,000 to Axis Mining & Minerals
Pty Ltd (subsequently novated to South Pacific Mineral Investments Pty Ltd
trading as Cuprum Metals ("Cuprum")) to acquire 100% of LCCM. Under the terms
of the option, Cuprum may acquire LCCM for an initial cash payment of A$1.9
million and the issue of shares in Cuprum equivalent to 19.9% ownership up to
a maximum value of A$3 million. Cuprum intends to list on the Australian
Securities Exchange. Additionally, Cuprum will pay a cash earn-out of A$4.0
million from future production. In the event of the share issuance to
Strategic Minerals being less than A$3 million as a result of the 19.9% limit,
the Earn-Out Consideration shall be adjusted to a higher level to reflect the
difference in value from the A$3 million maximum limit.
If the option is exercised, this deal structure will enable Strategic Minerals
to divest a non-core asset, direct further non-dilutive funds toward the
development of Redmoor, and retain the upside of a potential future copper
development through a substantial shareholding in Cuprum.
Board Changes
In January 2025, Philip Haydn-Slater was appointed as an independent
Non-Executive Director. Philip brings over 35 years of City experience,
primarily in institutional sales and corporate broking. He co-founded HD
Capital Partners and previously led Corporate Broking at WH Ireland in London,
managing IPOs and secondary placings for resource-focused companies. Shortly
after, in March 2025, Executive Director Peter Wale retired from the Board.
Post-Period end in August 2025, I transitioned from Non-Executive Chair to
Executive Chair, reflecting my ongoing contributions to rationalising the
Group and refocusing its strategy.
Safety
The Company maintains a strong safety culture across all operations. I am
pleased to report that no significant safety incidents were recorded during
the reporting period.
Outlook
Our overarching strategy is to grow the Company's value by unlocking the
potential of the Redmoor Project, utilising sustainable cash flows from the
Cobre operation to advance the project. We have in Redmoor the opportunity to
develop a leading source of critical and strategic minerals to provide
resilience to western world supply chains. Redmoor is already the
highest-grade tungsten deposit in Europe and the second highest globally, with
the potential to supply approximately 30% of Europe's tungsten needs before
considering future upside from a potential upgrading of the MRE. The price of
tungsten is soaring, reflecting ongoing shifts in the market, such as the
closure of some previously subsidised Chinese operations and a growing
emphasis on supply security for defence and high-technology applications.
Having got the Cobre magnetite operation into sustainably good health last
year, we are focused on accelerating the development of Redmoor to unlock its
true value.
Charles Manners
Executive Chair
29 September 2025
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
6 months to 6 months to Year to
30 June 30 June 31 December
2025 2024 2024
(Unaudited) (Unaudited) (Audited)
$'000 $'000 $'000
Continuing operations
Revenue 2,001 2,136 4,745
Raw materials and consumables used. (278) (393) (846)
_________ _________ _________
Gross profit 1,723 1,743 3,899
Other income 36 - -
Overhead expenses (949) (583) (1,406)
Amortisation (194) (158) (334)
Depreciation (12) (8) (18)
Impairment - (25) -
Share based payment - - -
Foreign exchange gain/(loss) (13) (10) (13)
_________ _________ _________
Profit from operations 591 959 2,128
Lease Interest (23) (9) (19)
_________ _________ _________
Profit before taxation 568 950 2,109
Income tax (expense)/credit (379) (283) (691)
_________ _________ _________
Profit from continuing operations 189 667 1,418
_________ _________ _________
Loss from discontinued operations (38) - (113)
_________ _________ _________
Profit for the period attributable to:
Owners of the parent 151 667 1,305
_________ _________ _________
Other comprehensive income
Exchange gains/(losses) arising on translation of foreign operations 431 (205) (71)
_________ _________ _________
_________ _________ _________
Total comprehensive (loss)/income attributable to:
Owners of the parent 582 462 1,234
_________ _________ _________
Profit/ (loss) per share attributable to the ordinary equity holders of the
parent:
Basic and diluted - total operations ¢0.007 ¢0.033 ¢0.064
Basic and diluted - continuing operations ¢0.009 ¢0.033 ¢0.070
Basic and diluted - discontinued operations (¢0.002) - (¢0.006)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
6 months to Year to
30 June 6 months to 31 December
2025 30 June 2024
(Unaudited) 2024 (Audited)
(Unaudited)
$'000 $'000 $'000
Assets
Non-current assets
Intangible Asset - - -
Deferred Exploration and evaluation costs 6,757 5,592 5,901
Other Receivables - 133 -
Property, plant and equipment 107 72 60
Right of Use Assets 852 594 1,053
_________ _________ _________
7,716 6,391 7,014
_________ _________ _________
Current assets
Inventories 4 4 4
Trade and other receivables 308 519 295
Income Tax prepaid - - 31
Assets held for sale 134 - 127
Prepayments 46 - 36
Cash and cash equivalents 1,532 280 621
_________ _________ _________
2,024 803 1,083
_________ _________ _________
Total Assets 9,740 7,194 8,097
_________ _________ _________
Equity and liabilities
Share capital 3,362 2,916 2,916
Share premium reserve 50,172 49,387 49,387
Share options reserve 5 5 5
Merger reserve 21,300 21,300 21,300
Warrant Reserve - - -
Foreign exchange reserve (785) (1,312) (1,216)
Other reserves (23,023) (23,023) (23,023)
Accumulated loss (44,252) (44,925) (44,403)
_________ _________ _________
Total Equity 6,779 4,310 4,966
_________ _________ _________
Liabilities
Non-Current Liabilities
Lease Liabilities 630 375 737
Provisions 270 1,171 270
_________ _________ _________
900 1,546 1,007
_________ _________ _________
Current liabilities
Liabilities held for sale 1,156 1,098
Income Tax Payable 319 333 415
Trade and other payables 318 714 242
Loans and Borrowings - 68 -
Lease Liabilities 268 223 369
_________ _________ _________
2,061 1.338 2,124
_________ _________ _________
Total Liabilities 2,961 2,884 3,131
_________ _________ _________
Total Equity and Liabilities 9,740 7,194 8,097
_________ _________ _________
CONSOLIDATED STATEMENT OF CASH FLOW
6 months to 6 months to Year to
30 June 30 June 31 December
2025 2024 2024
(Unaudited) (Unaudited) (Audited)
$'000 $'000 $'000
Cash flows from operating activities
Profit/ (loss) after tax 151 667 1,305
Adjustments for:
Depreciation of property, plant, and equipment 12 8 18
Amortisation of Right of Use asset 194 158 334
Impairment charge 38 25 113
Income Tax expense 379 283 691
Lease Interest 23 9 19
(Increase) / decrease in inventory - - -
(Increase) / decrease in trade and other receivables (13) (300) (76)
(Increase) / decrease in prepayments (10) - (36)
Increase / (decrease) in trade and other payables 76 (258) (721)
Increase /(decrease) in prepaid income tax - - -
Income tax paid (475) (20) (223)
Share based payment expense - - -
Foreign exchange movements 13 - -
_________ _________ _________
Net cash flows from operating activities 388 572 1,424
_________ _________ _________
Investing activities
Increase in PPE Development Asset (38) (25) (113)
Increase in PPE (64) - -
Increase in deferred exploration and evaluation asset (378) (233) (418)
_________ _________ _________
Net cash used in investing activities (480) (258) (569)
_________ _________ _________
Financing activities
Net proceeds from issue of equity share capital 1,231 - -
Proceeds from borrowings - 67 62
Repayment of borrowings - (39) (104)
Lease Payments (231) (174) (343)
_________ _________ _________
Net cash from financing activities 1,000 (146) (385)
_________ _________ _________
Net increase / (decrease) in cash and cash equivalents 908 168 508
Cash and cash equivalents at beginning of period 621 112 112
Exchange gains / (losses) on cash and cash equivalents 3 - 1
_________ _________ _________
Cash and cash equivalents at end of period 1,532 280 621
_________ _________ _________
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share capital Share premium reserve Merger Reserve Warrant Share options reserve Initial Re-structure Foreign Exch. Retained earnings Total equity
Warrant Reserve Reserve reserve
$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
Balance at 2,916 49,387 21,300 5 - (23,023) (1,145) (45,708) 3,732
1 January 2024
_______ _______ _______ _______ _______ _______ _______ _______ _______
Profit for the year - - - - - - - 1,305 1,305
Foreign exchange translation - - - - - - (71) - (71)
_______ _______ _______
Total comprehensive income/(loss) for the year - - - - (71) 1,305 1,234
- -
_______ _______ _______ _______ _______ _______ _______ _______ _______
Balance at 2,916 49,387 21,300 5 - (23,023) (1,216) (44,403) 4,966
31 December 2024
Profit for the period - - - - - - - 151 151
Foreign exchange translation - - - - - - 431 - 431
_______ _______ _______
Total comprehensive income for the year - - - - 431 151 582
- -
Shares issued in the period 446 891 - - - - - - 1,337
Share issue costs - (106) - - - - - - (106)
_______ _______ _______ _______ _______ _______ _______ _______ _______
Balance at 30 June 2025 3,362 50,172 21,300 5 - (23,023) (785) (44,252) 6,779
_______ _______ _______ _______ _______ _______ _______ _______ _______
All comprehensive income is attributable to the owners of the parent Company.
NOTES FORMING PART OF THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
1. General Information
Strategic Minerals Plc ("the Company") is a public company incorporated in
England and Wales. The consolidated interim financial statements of the
Company for the six months ended 30 June 2025 comprise the Company and its
subsidiaries (together referred to as the "Group").
2. Significant accounting policies
Basis of preparation
In preparing these financial statements the presentational currency is US
dollars. As the entire group's revenues and majority of its costs, assets
and liabilities are denominated in US dollars it is considered appropriate to
report in this currency.
The principal accounting policies adopted in the preparation of the financial
statements are set out below. The policies have been consistently applied to
all the years presented, unless otherwise stated.
These financial statements have been prepared in accordance with International
Financial Standards and UK adopted international accounting standards in
conformity with the requirements of the Companies Act 2006.
The preparation of financial statements in compliance with adopted IFRS
requires the use of certain critical accounting estimates. It also requires
Group management to exercise judgment in applying the Group's accounting
policies. The areas where significant judgments and estimates have been made
in preparing the financial statements and their effect are disclosed in note
2.
The financial statements have been prepared on a historical cost basis, except
for the acquisition of LCCM and the valuation of certain investments which
have been measured at fair value, not historical cost.
Going concern basis
The Directors have considered the Group and Parent Company's (together "the
Group") ability to continue as a going concern through review of cash flow
forecasts prepared by management for the period to 31 December 2026 and a
review of the key assumptions on which these are based and sensitivity
analysis.
The Company forecasts that to have sufficient funds to meet all operating
costs until December 2026, the Group is reliant on cash being generated from
the Cobre asset in line with forecast.
As outlined by the Board, it is intended that any funds required to progress
either the Redmoor project or Cobre will be sourced either at the asset or
Group level. Management are actively pursuing such funding.
The Directors have reasonable expectation that the Group will have access to
sufficient resources by way of debt or equity markets should the need arise.
Consequently, the consolidated financial statements have been prepared on a
going concern basis.
The financial report does not include adjustments relating to the
recoverability and classification of recorded asset amounts or to the amounts
and classification of liabilities that might be necessary should the Group not
continue as a going concern.
New standards, interpretations, and amendments effective 1 July 2025:
There are a number of standards, amendments to standards, and interpretations
which have been issued by the IASB that are effective in future accounting
periods and which have not been adopted early.
Investment in joint arrangements
The Group is a party to a joint arrangement when there is a contractual
arrangement that confers joint control over the relevant activities of the
arrangement to the group and at least one other party. Joint control is
assessed under the same principles as control over subsidiaries.
The group classifies its interests in joint arrangements as either:
· Joint ventures: where the group has rights to only the net assets
of the joint arrangement.
· Joint operations: where the group has both the rights to assets
and obligations for the liabilities of the joint arrangement.
In assessing the classification of interests in joint arrangements, the Group
considers:
· The structure of the joint arrangement
· The legal form of joint arrangements structured through a
separate vehicle
· The contractual terms of the joint arrangement agreement
· Any other facts and circumstances (in any other contractual
arrangements).
The Group accounts for its interests in joint ventures initially at cost in
the consolidated statement of financial position. Subsequently joint ventures
are accounted for using the equity method where the Group's share of
post-acquisition profits and losses and other comprehensive income is
recognised in the consolidated statement of profit and loss and other
comprehensive income (except for losses in excess of the Group's investment in
the associate unless there is an obligation to make good those losses).
Profits and losses arising on transactions between the Group and its joint
ventures are recognised only to the extent of unrelated investors' interests
in the joint venture. The investor's share in the joint ventures' profits and
losses resulting from these transactions is eliminated against the carrying
value of the joint venture.
Any premium paid for an investment in a joint venture above the fair value of
the Group's share of the identifiable assets, liabilities and contingent
liabilities acquired is capitalised and included in the carrying amount of the
investment in joint venture. Where there is objective evidence that the
investment in a joint venture has been impaired the carrying amount of the
investment is tested for impairment in the same way as other non-financial
assets.
The Group accounts for its interests in joint operations by recognising its
share of assets, liabilities, revenues, and expenses in accordance with its
contractually conferred rights and obligations. In accordance with IFRS 11
Joint Arrangements, the Group is required to apply all of the principles of
IFRS 3 Business Combinations when it acquires an interest in a joint operation
that constitutes a business as defined by IFRS 3.Where there is an increase in
the stake of the joint venture entity from an associate to a subsidiary and
the acquisition is considered as an asset acquisition and not a business
combination in accordance with IFRS3, this step up transaction is accounted
for as the purchase of a single asset and the cost of the transaction is
allocated in its entirety to that asset with no gain or loss recognised in the
income statement. The step-up acquisition of CRL in 2019 has been accounted
for as a purchase of a single asset and the cost of the transaction is
allocated in its entirety to that balance sheet.
3. Critical accounting estimates and judgements
The Group makes certain estimates and assumptions regarding the future.
Estimates and judgements are continually evaluated based on historical
experience and other factors, including expectations of future events that are
believed to be reasonable under the circumstances. In the future, actual
experience may differ from these estimates and assumptions. The estimates and
assumptions that have a significant risk of causing a material adjustment to
the carrying amounts of assets and liabilities within the next financial year
are discussed below.
Estimates
(a) Carrying value of intangible assets
Management assesses the carrying value of the exploration and evaluation
assets for indicators of impairment based on the requirements of IFRS 6 which
are inherently judgemental. This includes ensuring the Group maintains legal
title, assessment regarding the commerciality of reserves and the clear
intention to move the asset forward to development.
The Redmoor projects are early-stage exploration projects and therefore
Management have applied judgement in the period as to whether the results from
exploration activity provide sufficient evidence to continue to move the asset
forward to development. There are no indicators of impairment for the
Redmoor project in the period to 30 June 2025.
(b) Share based payments
The fair value of share-based payments recognised in the statement of
comprehensive income is measured by use of the Black Scholes model after
taking into account market-based vesting conditions and conditions attached to
the vesting and exercise of the equity instruments. The expected life used in
the model is adjusted based on management's best estimate, for the effects of
non-transferability, exercise restrictions and behavioural considerations. The
share price volatility percentage factor used in the calculation is based on
management's best estimate of future share price behaviour based on past
experience.
(c) Carrying value of amounts owed by subsidiary undertakings.
IFRS9 requires the parent company to make certain assumptions when
implementing the forward- looking expected credit loss model. This model is
required to be used to assess the intercompany loan receivables from its
subsidiaries for impairment. Arriving at an expected credit loss allowance
involved considering different scenarios for the recovery of the intercompany
loan receivables, the possible credit losses that could arise and
probabilities for these scenarios.
The following were considered: the exploration project risk, the future
sales potential of product, value of potential reserves and the resulting
expected economic outcomes of the project.
(d) Carrying Value of Development Assets
Management assesses the carrying value of development assets for indicators of
impairment based on the requirements of IAS36 which are inherently
judgemental.
The following are the key assumptions used in this assessment of Carrying
value.
i) Mineable reserves over life of project
ii) Forecasted Copper pricing
iii) Capital and operating cost assumptions to deliver the mining schedule
iv) Foreign exchange rates
v) Discount rate
vi) Estimated project commencement date.
If the carrying amount of the Development asset exceeds the recoverable
amount, the asset is impaired. The Group will reduce the carrying amount of
the asset to its recoverable amount and recognise an impairment loss. The
assessment is carried out twice per year - end of half year reporting period
and end of annual reporting period.
(e) Determination of incremental borrowing rate for leases
Under IFRS 16, where the interest rate implicit in the lease cannot be readily
determined the incremental borrowing rate is used. The incremental borrowing
rate is defined as the rate of interest that a lessee would have to pay to
borrow, over a similar term and with a similar security, the funds necessary
to obtain an asset of a similar value to the cost of the right-of-use asset in
a similar economic environment.
Judgements
(b) Investments in subsidiaries
Investment in subsidiaries comprises of the cost of acquiring the shares in
subsidiaries.
If an impairment trigger is identified and investments in subsidiaries are
tested for impairment, estimates are used to determine the expected net return
on investment. The estimated return on investment takes into account the
underlying economic factors in the business of the Company's subsidiaries
including estimated recoverable reserves, resources prices, capital investment
requirements, and discount rates among other things.
(c) Contingent consideration as part of Asset acquisition
Judgement was required in determining the accounting for the contingent
consideration payable as per of the CRL acquisition. The group has an
obligation to pay A$1m on net smelter sales arising from CRL production
reaching A$50m and a further A$1m on net smelter sales arising from CRL
production reaching A$100m.
Whilst a possible obligation exists in relation to the consideration payable,
given the early stage of the project it was concluded that at reporting date
it is not probable that an outflow of resources embodying economic benefits
will be required to settle the obligation
4. Segment information
The Group has four main segments during the period:
· Southern Minerals Group LLC (SMG) - This segment is involved in
the sale of magnetite to both the US domestic market and historically
transported magnetite to port for onward export sale.
· Head Office - This segment incurs all the administrative costs of
central operations and finances the Group's operations. A management fee is
charged for completing this service and other certain services and expenses.
· Development Asset - This segment holds the Leigh Creek Copper
Mine Development Asset in Australia and incurs all related operating costs.
· United Kingdom - The investment in the Redmoor project in
Cornwall, United Kingdom is held by this segment.
Factors that management used to identify the Group's reportable segments.
The Group's reportable segments are strategic business units that carry out
different functions and operations and operate in different jurisdictions.
Operating segments are reported in a manner consistent with the internal
reporting provided to the chief operating decision-maker. The chief operating
decision maker has been identified as the board and management team which
includes the Board and the Chief Financial Officer.
Measurement of operating segment profit or loss, assets, and liabilities
The Group evaluates segmental performance on the basis of profit or loss from
operations calculated in accordance with International Accounting Standards.
Segment assets exclude tax assets and assets used primarily for corporate
purposes. Segment liabilities exclude tax liabilities. Loans and borrowings
are allocated to the segments in which the borrowings are held. Details are
provided in the reconciliation from segment assets and liabilities to the
Group's statement of financial position.
6 Months to 30 June 2025 SMG Head United Kingdom Development Asset Intra Total
(Unaudited) Office Segment
Elimination
$'000 $'000 $'000 $'000 $'000 $'000
Revenues 2,001 - - - - 2,001
_______ _______ _______ _______ _______ _______
Gross profit 2,001 - - - - 2,001
Raw materials/consumables (278) - - - - (278)
Overhead expenses (440) (409) (100) - - (949)
Management fee income/(expense) - - - - -
Interest - - - - - -
Share based payments - - - - - -
Amortisation (194) - - - - (194)
Impairment - - (38) - (38)
Depreciation (12) - - - - (12)
Foreign exchange gain/(loss) - (13) - - - (13)
Other income - - 36 36
_______ _______ _______ _______ _______ _______
Segment profit /(loss) from operations 1,077 (422) (64) (38) - 553
_______ _______ _______ _______ _______ _______
Lease Interest (23) - (23)
_______ _______ _______ _______ _______ _______
Segment profit /(loss) before taxation 1,054 (422) (64) (38) - 530
_______ _______ _______ _______ _______ _______
6 Months to 30 June 2024 (Unaudited) SMG Head United Kingdom Development Asset Intra Total
Office Segment
Elimination
$'000 $'000 $'000 $'000 $'000 $'000
Revenues 2,136 - - - - 2,136
_______ _______ _______ _______ _______ _______
Gross profit 2,136 - - - - 2,136
Other Income - - - - - -
Raw materials/consumables (393) - - - - (393)
Overhead expenses (342) (214) (5) - - (561)
Management fee income/(expense) (200) 200 - - -
Interest - (13) (8) - - (21)
Share based payments - - - - - -
Amortisation (158) - - - - (158)
Impairment - - - (25) - (25)
Depreciation (8) - - - - (8)
Foreign exchange gain/(loss) - 227 - - (238) (11)
_______ _______ _______ _______ _______ _______
Segment profit /(loss) from operations 1,035 200 - (25) (238) 959
_______ _______ _______ _______ _______ _______
Lease Interest (9) - - - - (9)
Finance Expense - - - - - -
_______ _______ _______ _______ _______ _______
Segment profit /(loss) before taxation 1,026 200 (13) (25) (238) 950
_______ _______ _______ _______ _______ _______
Year to 31 December 2024 SMG Head United Kingdom Development Asset Intra Total
(Audited) Office Segment
Elimination
$'000 $'000 $'000 $'000 $'000 $'000
4,745 - - - - 4,745
Revenues
_______ _______ _______ _______ _______ _______
Total Revenue 4,745 - - - - 4,745
Othe Revenue - - - - - -
Raw Materials/Consumables (846) - - - - (846)
Overhead expenses (737) (618) (19) - - (1,374)
Management fee income/(expense) (100) 102 - (2) -
Share based payments - - - - - -
Impairment - - - - - -
Amortisation- right of use asset (334) - - - - (334)
Interest - (9) - - - (9)
Depreciation (18) - - - - (18)
(Loss)/ gain on intercompany loans - - - - - -
Foreign exchange gain/(loss) - (933) - - 920 (13)
_______ _______ _______ _______ _______ _______
Segment profit /(loss) from operations 2,710 (1,458) (19) - 918 2,151
_______ _______ _______ _______ _______ _______
Lease Interest (19) - - - - (19)
Finance Expense - (11) (12) - - (23)
_______ _______ _______ _______ _______ _______
2,161 (1,469) (31) - 918 2,109
Segment profit /(loss) before taxation
_______ _______ _______ _______ _______ _______
As at 30 June 2025 SMG Head United Kingdom Development Asset Total
(Unaudited) Office
$'000 $'000 $'000 $'000 $'000
Additions to non-current assets 64 - 378 - 442
_______ _______ _______ ______ _______
Reportable segment assets 1,443 1,321 6,844 132 9,740
_______ _______ _______ ______ _______
Reportable segment liabilities 1,533 142 130 1,156 2,961
_______ _______ _______ _______ _______
As at 30 June 2024 SMG Head United Kingdom Development Asset Total
(Unaudited) Office
$'000 $'000 $'000 $'000 $'000
Additions to non-current assets - - 233 25 258
_______ _______ _______ ______ _______
Reportable segment assets 1,358 56 5,640 140 7,194
_______ _______ _______ ______ _______
Reportable segment liabilities 1,065 495 116 1,208 2,884
_______ _______ _______ _______ _______
As at 31 December 2024 SMG Head United Kingdom Development Asset Total
Office
(Audited)
$'000 $'000 $'000 $'000 $'000
Additions to non-current assets - - 418 113 531
_______ _______ _______ _______ _______
Reportable segment assets 1,649 397 5,924 127 8,097
_______ _______ _______ _______ _______
Reportable segment liabilities 1,854 153 26 1,098 3,131
_______ _______ _______ _______ _______
External revenue by Non-current assets by
location of assets
location of customers
30 June 2025 30 June 2024 30 June 2025 30 June 2024
$'000 $'000 $'000 $'000
United States 2,001 2,136 949 650
United Kingdom - - 6,767 5,608
Australia - - - 133
_______ _______ _______ _______
2,001 2,136 7,716 6,391
_______ _______ _______ _______
Revenues by key customers
Revenues from Customer A totalled $281,740 (2024: $323,163), which represented
14% (2024: 15%) of total domestic sales in the United States, Customer B
totalled $907,679 (2024: $1,022,442) which represented 45% (2024: 48%)
Customer C totalled $633,012 (2023: $ 404,104) which represented 32% (2024:
19%), and Customer D totalled $184,547 (2024: 334,977) which represented 9%
(2024: 16%).
5. Operating Loss
6 months to 6 months to Year to
30 June 30 June 31 December
2025 2024 2024
(Unaudited)
(Unaudited)
(Audited)
$'000 $'000 $'000
Operating gain/loss is stated after charging/(crediting):
Other Income (36) - -
Directors' fees and emoluments 155 39 160
Equipment rental - - 11
Equipment maintenance - 31 60
Fees payable to the company's auditor for the - - 89
audit of the parent company and consolidated financial statements
Non- Audit Services - 6 -
Salaries, wages, and other staff related costs 330 336 686
Legal, professional and consultancy fees 244 53 138
Other Expenses 220 76 230
_______ _______ _______
Overhead Expenses 949 541 1,374
_______ _______ _______
Lease Interest 23 9 19
Interest - 21 9
Finance Fee 23
Foreign exchange 13 10 13
Amortisation of Right of use assets 194 158 334
Depreciation 12 8 18
Share based payments - - -
Discontinued operations - - 113
Impairment 38 25 -
_______ _______ _______
Total 1,229 772 1,903
_______ _______ _______
6. Intangible assets - exploration and evaluation costs
6 months to 6 months to Year to
30 June 30 June 31 December
2025 2024 2024
(Unaudited)
(Unaudited)
(Audited)
$'000 $'000 $'000
Cost
Opening balance for the period 5,901 5,568 5,568
Additions for the period 378 235 444
Grant Reimbursement - - (26)
Foreign exchange difference 478 (211) (85)
_______ _______ _______
Closing balance for period 6,757 5,592 5,901
_______ _______ _______
7. Property, plant and equipment
Development Asset Plant and Machinery Total
$'000 $'000 $'000
Cost
At 1 January 2024 (audited) 8,033 723 8,756
________ ________ ________
Additions 113 - 113
Reclassify to disposal asset (8,146) (328) (8,474)
Foreign exchange difference - 7 7
_______ ________ _______
At 31 December 2024 (audited) - 402 402
________ ________ ________
Additions - 64 64
Foreign exchange difference - (12) (12)
_______ ________ _______
At 30 June 2025 (unaudited) - 454 454
________ ________ ________
Depreciation
At 1 January 2024 (audited) (8,033) (643) (8,676)
________ ________ ________
Charge for the period - impairment (113) - (113)
Charge for the period - depreciation - (18) (18)
Reclassify to disposal asset 8,146 328 8,474
Foreign exchange difference - (9) (9)
________ ________ ________
At 31 December 2024 (audited) - (342) (342)
________ ________ ________
Charge for the period - depreciation - (12) (12)
Foreign exchange difference - 7 7
________ ________ ________
At 31 June 2025 (audited) - (347) (347)
________ ________ ________
Carrying Value
As at 30 June 2025 (unaudited) - 72 72
________ ________ ________
As at 31 December 2024 (audited) - 60 60
________ ________ ________
As at 30 June 2024 (unaudited) - 72 72
________ ________ ________
8. Leases
The Group has leases for an office, plant and machinery and a vehicle. Each
lease is reflected on the balance sheet as a right-of-use asset and a lease
liability. The Group classifies its right-of-use assets in a consistent manner
to its property, plant and equipment.
Plant, Machinery and Vehicles Total
$'000 $'000
Right of Use Assets $'000 $'000
As at 1 January 2024 (audited) 453 453
Additions 302 302
Amortization (161) (161)
________ ________
As at 30 June 2024 (unaudited) 594 594
________ ________
Additions 638 638
Amortization (179) (179)
________ ________
As at 31 Dec 2024 1,053 1,053
(Audited)
________ ________
Additions - -
Amortization (201) (201)
________ ________
As at 30 June 2025 (unaudited) 852 852
________ ________
Plant, Machinery and Vehicles Total
Lease Liabilities
As at 1 January 2024 (audited) 455 455
Additions 300 300
Interest Payments 9 9
Lease Payments (166) (166)
________ ________
As at 30 June 2024 (unaudited) 598 598
________ ________
Additions 675 675
Interest Payments 10 10
Lease Payments (177) (177)
________ ________
As at 31 Dec 2024 (Audited 1,106 1,106
________ ________
Additions - -
Interest Payments 23 23
Lease Payment (231) (231)
________ ________
As at 30 June 2025 (unaudited) 898 898
________ ________
Lease Liability June June December
2025 2024 2024
Current 268 223 369
Non-Current 630 375 737
________ ________ ________
898 598 1,106
________ ________ ________
9. Dividends
No dividend is proposed for the period.
10. Earnings per share
Earnings per ordinary share have been calculated using the weighted average
number of shares in issue during the relevant financial year as provided
below.
6 months to 6 months to Year to
30 June 30 June 31 December
2025 2024 2024
(Unaudited)
(Unaudited)
(Audited)
$'000 $'000 $'000
Weighted average number of shares - Basic 2,117,253,750 2,015,964,616 2,015,964,616
Weighted average number of shares - Diluted 2,117,253,750 2,015,964,616 2,015,964,616
Earnings (loss) for the period $151,000 $667,000 $1,305,000
Earnings per share in the period - Basic ¢0.007 ¢0.033 ¢0.064
Earnings per share in the period - Diluted ¢0.007 ¢0.033 ¢0.064
11. Share capital and premium
30 June 30 June 30 June and 31 December 30 June and 31 December
2025 2025 2024 2024
No $'000 No $'000
Allotted, called up and fully paid
Ordinary shares 2,349,297,949 53,534 2,015,964,616 52,303
____________ ____________ ____________ ____________
During the period, in May 2025 the Company issued 333,333,333 Ordinary shares
of 0.1pence each at a price of 0.3 pence per share to raise gross proceeds of
£1,000,000.
Share options and warrants
The following Warrants were in issue during the period. No Warrants or
Options were issued, lapsed or expired during the period.
Date of Grant Number of warrants Exercise price
Expiry date
10 March 2023 10,000,000 0.50p 31 December 2025
01 April 2024 10,000,000 0.50p 31 December 2025
____________ ____________ ____________
12. Post balance date events
Subsequent to 30 June 2025, on 15 August 2025 options over 145 million new
ordinary shares of £0.001 each in the Company were issued. These Options
have an exercise price of £0.004 per share and expire on 15 August 2035.
The options carry certain vesting rights, with 50% becoming exercisable upon
the share price trading above 0.5p per share for a 30-day VWAP, and 50% become
exercisable upon publication of a new Mineral Resource Estimate.
Copies of this interim report will be made available on the Company's website,
www.strategicminerals.net (http://www.strategicminerals.net) .
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