Strategic Minerals - Half-year Report
RNS Number : 2471WStrategic Minerals PLC25 September 2026
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.
25 September 2026
Strategic Minerals plc
(“Strategic Minerals”, the “Group” or the “Company”)
Half-Year Report 2026
Strategic Minerals plc (AIM: SML; USOTC: SMCDF), an international mineral exploration and production company, is pleased to announce its unaudited interim results for the half year ended 30 June 2026 (“H1 2026” or the “Period”).
Financial Highlights
• Revenues: US$1,594,000 (H1 2025: US$2,001,000)
o Cobre gross margin held at 86% (H1 2025: 86%)
o The revenue decline was driven by a temporary fall in purchase volumes from the largest buyer in January and February, which have subsequently reverted to long-term average levels
• Loss before tax: US$712,000 (H1 2025: profit before tax: US$568,000)
o Includes a non-cash share-based payment charge of US$812,000 (H1 2025: nil) relating to options granted in February 2026. Excluding this charge, profit before tax would have been US$100,000
• Loss after tax: US$995,000 (H1 2025: profit of US$151,000)
o Basic and diluted loss per share: US¢0.037 (H1 2025: earnings of US¢0.007)
• Investments in development projects: US$1,208,000
o Redmoor Project: US$1,119,000
o Leigh Creek Copper Mine: US$63,000
o Southern Minerals Group: US$26,000
• Unrestricted cash at 30 June 2026: US$10,026,000 (31 Dec 2025: US$777,000)
• Net assets at 30 June 2026: US$17,549,000 (31 Dec 2025: US$7,104,000)
• Gross proceeds of £8.7m raised in two equity fundraisings in January and March 2026 to advance the Redmoor Project through a Pre-Feasibility Study
Operational Highlights (By Subsidiary)
Cornwall Resources ("CRL")
Redmoor Tungsten-Copper-Tin Project, Cornwall, UK
• Updated JORC (2012) Inferred Mineral Resource Estimate of 17.4Mt @ 0.65% WO₃Eq – a 49% increase in tonnage and Europe’s highest-grade undeveloped tungsten project
o Contained metal up 31% for tungsten (85.8kt WO₃), 30% for copper (76.3kt Cu), 55% for tin (29.0kt Sn), and with 3.2Moz of contained silver
o Potential mine life increased from 12 to 29 years at the 2020 Scoping Study production rate of 600,000 tons per year
• Updated Economic Sensitivity Analysis indicates a Base Case after-tax NPV(8%) of US$1.54 billion and IRR of 40% (US$1,200/mtu APT), on indicative pre-production capital cost of US$109.7m – preliminary in nature and based on a 100% Inferred Resource
• Metallurgical study increased overall tungsten recovery from 72.0% to 85.8% and confirmed silver recovery of 58.7% to copper concentrate
• Ultra-high-grade drill results from the 2025 programme, including 0.60m @ 18.96% WO₃ (22.09% WO₃Eq) – the highest tungsten-equivalent sample interval ever drilled at Redmoor – and 1.52m @ 7.45% Sn, the highest-grade tin intersection to date
• Discovery of a new mineralised structure, the “North Tin Zone”, outside the existing deposit
• Resource infill drilling commenced in March 2026; three holes (CRD042–CRD044) completed in the Period, each intersecting the full thickness of the Sheeted Vein System
o Post-Period end, planning permission granted for the largest continuous diamond drilling programme undertaken from surface in Cornwall this century: 22,500m, with three rigs now operating and completion targeted for Q2 2027
o First infill results confirm high-grade continuity, including 1.03m @ 5.90% WO₃ (6.54% WO₃Eq) and a previously unmodelled style of copper-tin mineralisation in the granite roof zone; 5,000m drilled to date, on time and on budget
Southern Minerals Group ("SMG")
Cobre Magnetite Stockpile, New Mexico, USA
• Revenues of US$1,594,000 (H1 2025: US$2,001,000), generating segment profit before tax of US$701,000
• The revenue decline was driven by a temporary fall in purchase volumes from the largest buyer in January and February, which has subsequently reverted to long-term average levels
• Investment in new equipment, including a Caterpillar D6 bulldozer, to support infrastructure works and reduce reliance on equipment rentals
• Post-Period end, access to the Cobre stockpile extended by a further two years to 31 March 2031
Leigh Creek Copper Mine ("LCCM")
Leigh Creek Copper Project, South Australia
• Call option exercised by Cuprum Metals in December 2025
• Post-Period end, Definitive Agreement signed in September 2026 for the sale of Leigh Creek Copper Mine, subject to conditions including Australian FIRB approval. Consideration comprises:
o A$750,000 in cash (of which A$500,000 is held in escrow pending FIRB approval)
o Shares equivalent to up to 19.9% of a new entity intended to be listed, targeting a value of A$3.0m
o A 2% Net Smelter Royalty on the first 24,900 tonnes of copper production (subject to a 1% buy-out option for A$1.5m)
o Earn-out of 20% of half-yearly Operating Cash Flows, up to A$4.0m, from commencement of commercial production
Corporate
• Luke Rogers was appointed as an independent Non-Executive Director in June 2026
• Awarded “Exploration Discovery of the Year” and “Finance Deal of the Year” at the UK Mining Conference in June 2026
Charles Manners, Executive Chair, commented:
“In H1 2026 Strategic Minerals moved the Redmoor project decisively into its next phase. An updated Inferred Mineral Resource Estimate 49% larger than before, materially improved metallurgy and a base case NPV of US$1.54 billion have now put Redmoor firmly on the map as Europe’s highest-grade undeveloped tungsten project. With £8.7m of cash raised in the first quarter, the Company is now fully funded to deliver the largest drilling programme in Cornwall this century and substantially funded to take Redmoor through pre-feasibility, backed by the cash flow from Cobre and the sale of Leigh Creek. Against a backdrop of record tungsten prices and with growing emphasis on security of supply, our strategy is focused on delivering Redmoor into production as quickly as possible.”
For further information, please contact:
Strategic Minerals plc
+44 (0) 207 389 7067
Mark Burnett
Executive Director
Website:
Email:
Follow Strategic Minerals on:
X:
LinkedIn:
SP Angel Corporate Finance LLP
+44 (0) 20 3470 0470
Nominated Adviser and Broker
Matthew Johnson/Charlie Bouverat/Grant Barker
Zeus Capital Limited
Joint Broker
Harry Ansell/Katy Mitchell
+44 (0) 203 829 5000
Vigo Consulting
+44 (0) 207 390 0234
Investor Relations
Ben Simons/George Pope
Email:
Notes to Editors
About Strategic Minerals plc and Cornwall Resources Limited
Strategic Minerals plc (AIM: SML; USOTC: SMCDY) is an AIM-quoted, producing minerals company, actively developing strategic projects in the UK, United States and Australia.
In 2019, the Company completed the 100% acquisition of Cornwall Resources Limited and the Redmoor Tungsten-Copper-Tin Project.
The Redmoor Project is situated within the historically significant Tamar Valley Mining District in Cornwall, United Kingdom, with a JORC (2012) Compliant Inferred Mineral Resource Estimate published 26 March 2026:
Resource category
Domain
Tonnage
(Mt)NSR
(US$/t)WO3 Eq grade
(%)WO3 grade
(%)Sn grade
(%)Cu grade
(%)Ag grade
(g/t)Inferred
Tungsten HGDs
7.30
499
0.98
0.83
0.12
0.53
7.0
Tin HGDs
1.95
208
0.44
0.14
0.50
0.50
7.6
Cu Domain SVS
8.02
196
0.40
0.28
0.13
0.34
4.3
Low Grade SVS
0.12
125
0.25
0.17
0.10
0.16
2.7
Total Inferred
17.40
324
0.65
0.49
0.17
0.44
5.8
Total Mineral Resources
17.40
324
0.65
0.49
0.17
0.44
5.8
The preceding statement of Mineral Resources conforms to the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code) 2012 Edition. All tonnages reported are dry metric tonnes. Minor discrepancies may occur due to rounding to appropriate significant figures.
More information on Cornwall Resources can be found at: 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 completed the acquisition of the Leigh Creek Copper Mine situated in the copper rich belt of South Australia. In September 2026, the Company agreed a final sale of Leigh Creek Copper Mine to South Pacific Mineral Investments Pty Ltd trading as Cuprum Metals providing upfront cash with ongoing copper exposure through layered consideration comprising shares, royalties and earn-out. Proceeds will be utilised to further advance the flagship Redmoor Project.
CHAIRMAN’S STATEMENT
Introduction
In H1 2026 Strategic Minerals moved the Redmoor Tungsten-Copper-Tin Project in Cornwall (“Redmoor”) from a successful first drilling campaign into the pre-feasibility phase. The results of the drilling programme, which completed in March 2026, produced an updated Inferred Mineral Resource Estimate 49% larger than its predecessor and an Economic Sensitivity Analysis with a Base Case after-tax NPV(8%) of US$1.54 billion. Strong investor demand, including a subscription led by a prominent international investor, enabled the Company to raise £8.7m in the first quarter, funding a 22,500m infill and upgrade drilling programme that is now the largest of its kind in Cornwall this century. The Cobre magnetite operation in New Mexico continues to provide a very valuable and reliable cash-generating base for the Group.
Financial Results
The Cobre magnetite operation in New Mexico is the current revenue generator in the Group. Revenues in the Period were US$1,594,000 (H1 2025: US$2,001,000), a decrease of 20%, The revenue decline was driven by a temporary fall in purchase volumes from the largest buyer in January and February, which have subsequently reverted to long-term average levels.
Gross margin was maintained at 86% and Cobre contributed a segment profit before tax of US$701,000.
The Group moved into a substantially larger operating phase at Redmoor, with an expanded technical team and site facilities, and Group overhead expenses increased to US$1,189,000 (H1 2025: US$949,000). In addition, a non-cash share-based payment charge of US$812,000 was recognised in respect of the 88,675,000 options granted in February 2026 to Cornwall Resources employees, Directors and advisers, which vest over two years.
As a result, the Group recorded a loss before tax of US$712,000 (H1 2025: profit of US$568,000) and a loss after tax of US$995,000 (H1 2025: profit of US$151,000). Excluding the non-cash share-based payment charge, the Group would have reported a profit before tax of US$100,000. We remain committed to keeping Board costs lean while deploying capital into Redmoor, evidenced by an 18% reduction in head office overhead versus H1 2025.
Bolstered by two equity fundraisings – £4.0m raised at 1.3 pence per share in January and £4.7m raised at 3.5 pence per share in March – the Company ended the Period with US$10,026,000 of cash (31 December 2025: US$777,000) and net assets of US$17,549,000 (31 December 2025: US$7,104,000). During the Period US$1,119,000 was invested in exploration and evaluation at Redmoor (H1 2025: US$378,000).
The Directors consider the Group to be fully funded for all planned activities for more than 12 months from the date of this report, including the Redmoor infill drilling programme and substantially through the Prefeasibility Study.
Cornwall Resources Limited (“CRL”)
Redmoor Tungsten-Copper-Tin Project, Cornwall, UK (“Redmoor”)
Results from the 2025 drilling programme - The 5,048.7m drilled at Redmoor between June and December 2025 continued to deliver in the Period. Assay results from Pads 2 and 3 confirmed Sheeted Vein System (“SVS”) mineralisation within the previously untested Exploration Target. In March, hole CRD039 returned 0.60m @ 18.96% WO₃, 2.76% Sn and 3.19% Cu (22.09% WO₃Eq), the highest tungsten-equivalent sample interval ever drilled at Redmoor, together with 1.52m @ 7.45% Sn, the highest-grade tin intersection at the project. In February, the Company confirmed the discovery of a new, laterally continuous tin-dominant structure north of the SVS, the North Tin Zone. Re-analysis of 428 historical pulp samples using a more appropriate method for tin in cassiterite showed higher tin grades in 78% of samples, and further analysis of CRD041 core in June identified additional tin-rich structures outside the modelled resource, including 1.00m @ 0.67% Sn.
Metallurgy - In March, a metallurgical study increased overall tungsten recovery from 72.0% to 85.8%, a 19.2% relative improvement, and demonstrated for the first time that silver is recoverable to the copper concentrate (58.7% recovery at 270g/t). Tin and copper recoveries were broadly unchanged at 67.2% and 82.4% respectively, with further improvements identified for the Pre-Feasibility Study.
Mineral Resource Estimate and economics - On 26 March 2026 the Company published an updated JORC (2012) Inferred Mineral Resource Estimate of 17.4Mt @ 0.65% WO₃Eq (0.49% WO₃, 0.17% Sn, 0.44% Cu, 5.8g/t Ag), representing a 49% increase in tonnage compared with the 2019 estimate. Contained metal increased by 31% for tungsten, 55% for tin and 30% for copper, and the potential mine life at the 2020 Scoping Study production rate increased from 12 to 29 years. An Exploration Target of 1.8–3.4Mt has also been identified outside the current resource. At 0.49% WO₃, Redmoor is Europe’s highest-grade undeveloped tungsten project compared with other CRIRSCO-compliant projects.
The accompanying Economic Sensitivity Analysis, prepared by Snowden Optiro, updates the 2020 Scoping Study for the new resource, metallurgy, cost inflation and metal prices. Indicative pre-production capital cost is US$109.7m. After-tax results by scenario were:
• Base Case (US$1,200/mtu APT): NPV(8%) of US$1.54 billion, IRR 40%
• Upside Case (US$1,800/mtu APT): NPV(8%) of US$2.71 billion, IRR 55%
Cautionary Note on updated Economic Sensitivity Analysis:
The economic sensitivity analysis is based on the 2020 Scoping Study and updated inputs and is preliminary in nature. It is based on a Mineral Resource that is 100% Inferred and is insufficient to support the estimation of Ore Reserves or to demonstrate economic viability or provide assurance of an economic development case at this stage. There is no certainty that the results of the Economic Sensitivity Analysis will be realised.
Infill drilling for pre-feasibility - Following the January fundraising, CRL signed a drilling contract with Priority Drilling UK Ltd in March and commenced resource infill drilling on 28 March. The programme is designed to convert Inferred Mineral Resources to Indicated, and to underpin a maiden Ore Reserve for Redmoor, subject to completion of the Pre-Feasibility Study. Three holes were completed in the Period: CRD042 (464.4m, completed 6 May), CRD043 (approximately 500m, completed 2 June) and CRD044 (526.1m, completed 25 June), each of which intersected the full thickness of the SVS. CRD044 also intersected the Kit Hill granite at depth, with a mineralised granite roof zone. Historical core relogging and sampling continued throughout the Period, supported by the purchase of a core saw to accelerate sample preparation, and ore sorting amenability testwork was carried out with TOMRA.
Following the March subscription, the planned programme was expanded to 22,500m across at least 44 drillholes, including infill of the entire resource and upgrade drilling of the Exploration Target. Post-Period end, in July, Cornwall Council granted planning permission for the expanded programme – which the Company believes is the largest continuous diamond drilling programme undertaken from surface in Cornwall, and in Great Britain, this century – and by August two additional rigs from Priority Drilling had been mobilised, giving a three-rig programme across seven permitted drill pads with completion targeted in Q2 2027. On 14 September the Company reported the first infill results, which confirmed the structural and grade continuity of the SVS, including 1.03m @ 5.90% WO₃ (6.54% WO₃Eq) in CRD042 and 1.00m @ 6.00% WO₃ (6.39% WO₃Eq) in CRD043, and identified a previously unmodelled style of copper-tin mineralisation in aplitic bodies within the granite roof zone. By 17 September more than 5,000m had been drilled across nine drillholes, on time and within budget, with more than 17,500m remaining.
Alfred H Knight has been contracted to deliver the feasibility-stage metallurgical testwork programme, supported by TOMRA for ore sorting trials, and geotechnical testwork and downhole geophysical surveys have been procured.
CRL now has 16 staff on site, with additional warehouse space acquired for core storage. In June, CRL won “Exploration Discovery of the Year” and “Finance Deal of the Year” at the UK Mining Conference, and in March CRL hosted the Minister for Small Business and Economic Transformation at Redmoor.
Southern Minerals Group LLC (“SMG”)
Cobre magnetite stockpile, New Mexico, USA
Cobre continued to generate positive cash flow, with revenues of US$1,594,000 in H1 2026 (H1 2025: US$2,001,000). The revenue decline was driven by a temporary fall in purchase volumes from the single largest buyer in January and February, which have subsequently reverted to long-term average levels.
In June, the Company announced a substantial investment in new equipment, including a Caterpillar D6 bulldozer, reinforcing its long-term commitment to the site while improving year-round capability and reducing reliance on rented equipment. Post-Period end, SMG agreed a further two-year extension of its access to the Cobre stockpile, from 31 March 2029 to 31 March 2031, providing greater certainty over an important source of internal cash flow.
Leigh Creek Copper Mine Pty Ltd (“LCCM”)
Leigh Creek Copper Project
In December 2025, Cuprum Metals (“Cuprum”) exercised its call option to acquire 100% of LCCM, and A$250,000 had been received by the Company in respect of the option and first instalment. The transaction timetable was extended by three months in June while Cuprum progressed funding. On 3 September 2026, following the Period end, the parties signed a Definitive Agreement, with completion subject to conditions including Australian Foreign Investment Review Board approval. With copper prices at all-time highs and forecast project economics improving, the Company agreed a lower upfront cash payment in return for a Net Smelter Royalty, giving continued exposure to future cash flows. Final consideration comprises A$750,000 in cash (A$500,000 of which is held in escrow pending FIRB approval); shares equivalent to up to 19.9% of a new entity intended to be listed, targeting a value of A$3.0m (any shortfall to be added to the earn-out); a 2% Net Smelter Royalty on the first 24,900 tonnes of copper production, with a 1% buy-out option for Cuprum on payment of A$1.5m; and an earn-out equal to 20% of half-yearly Operating Cash Flows, up to A$4.0m, from commencement of commercial production. All proceeds will be used to support Redmoor. The result of LCCM continues to be presented as a discontinued operation, with a loss of US$53,000 in the Period (H1 2025: US$38,000).
Board Changes and Share Options
In June 2026, Luke Rogers was appointed as an independent Non-Executive Director. Luke has over 15 years’ experience as a mining executive and engineer focused on critical and strategic minerals, is Technical Director at Balta SA, has held senior positions at Aterian PLC and TechMet Ltd, and is an elected Cornwall Councillor. The Board believes his combination of technical experience and local knowledge is well suited to the next phase at Redmoor, and appropriate arrangements are in place to manage any potential conflicts arising from his Council role. All resolutions were passed at the Annual General Meeting on 24 June 2026.
In February 2026 the Company granted 88,675,000 options at an exercise price of 3.5 pence, and post-Period end, in August 2026, granted a further 13,150,000 options at 4 pence, in each case to key CRL employees, Directors and (in February) advisers, vesting over two years, in recognition of progress and to support retention of key personnel as Redmoor advances towards development.
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 significant potential of the Redmoor Project, using sustainable cash flows from Cobre and non-dilutive proceeds from the sale of Leigh Creek. With Redmoor now funded through the Pre-Feasibility Study, the priorities for the remainder of 2026 and into 2027 are the delivery of the 22,500m drilling programme, the associated metallurgical, geotechnical and hydrogeological testwork, and the completion of a further Mineral Resource Estimate update, aimed at Indicated classification. The market backdrop supports this focus: in its update of 17 September the Company noted that the six- and twelve-month average APT prices of US$2,960/mtu and US$1,930/mtu respectively were both above the US$1,800/mtu Upside Case in our Economic Sensitivity Analysis. With continued supply constraints, Chinese export restrictions and a growing emphasis on security of supply for defence and high-technology applications, the strategic value of a high-grade tungsten source in the UK is reinforced. Redmoor has the potential to become a leading source of critical and strategic minerals for western world supply chains, and we remain very focused on accelerating its development to unlock its true value.
Charles Manners
Executive Chair
24 September 2026
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
6 months to
30 June
2026
(Unaudited)
6 months to
30 June
2025
(Unaudited)
Year to
31 December
2025
(Audited)
$’000
$’000
$’000
Continuing operations
Revenue
1,594
2,001
4,231
Raw materials and consumables used.
(222)
(278)
(618)
_________
_________
_________
Gross profit
1,372
1,723
3,613
Other income
53
36
-
Overhead expenses
(1,189)
(949)
(2,440)
Amortisation
(116)
(194)
(363)
Depreciation
(20)
(12)
(44)
Interest
-
-
(1)
Share based payment
(812)
-
-
Foreign exchange gain/(loss)
22
(13)
(62)
_________
_________
_________
(Loss)/profit from operations
(690)
591
703
Lease Interest
(22)
(23)
(47)
_________
_________
_________
(Loss)/profit before taxation
(712)
568
656
Income tax (expense)/credit
(230)
(379)
(615)
_________
_________
_________
(Loss)/profit from continuing operations
(942)
189
41
_________
_________
_________
Loss from discontinued operations
(53)
(38)
(189)
_________
_________
_________
(loss)/profit for the period attributable to:
Owners of the parent
(995)
151
(148)
_________
_________
_________
Other comprehensive income
Exchange gains/(losses) arising on translation
of foreign operations
(443)
431
363
_________
_________
_________
Total comprehensive (loss)/income attributable to:
Owners of the parent
(1,483)
582
215
_________
_________
_________
Profit/ (loss) per share attributable to the ordinary equity holders of the parent:
Basic and diluted – total operations
¢0.004
¢0.007
¢0.007
Basic and diluted – continuing operations
¢0.004
¢0.009
¢0.002
Basic and diluted – discontinued operations
(¢0.002)
(¢0.002)
(¢0.008)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
6 months to
30 June
2026
(Unaudited)
6 months to
30 June
2025
(Unaudited)
Year to
31 December
2025
(Audited)
$’000
$’000
$’000
Assets
Non-current assets
Intangible Asset
-
-
-
Deferred Exploration and evaluation costs
8,571
6,757
7,572
Other Receivables
-
-
-
Property, plant and equipment
107
107
101
Right of Use Assets
1,241
852
810
_________
_________
_________
9,919
7,716
8,483
_________
_________
_________
Current assets
Inventories
4
4
4
Trade and other receivables
589
308
384
Assets held for sale
143
134
134
Prepayments
62
46
78
Cash and cash equivalents
10,026
1,532
777
_________
_________
_________
10,824
2,024
1,377
_________
_________
_________
Total Assets
20,743
9,740
9,680
_________
_________
_________
Equity and liabilities
Share capital
3,982
3,362
3,388
Share premium reserve
60,772
50,172
50,283
Share options reserve
1,360
5
560
Merger reserve
21,300
21,300
21,300
Foreign exchange reserve
(1,296)
(785)
(853)
Other reserves
(23,023)
(23,023)
(23,023)
Accumulated loss
(45,546)
(44,252)
(44,551)
_________
_________
_________
Total Equity
17,549
6,779
7,104
_________
_________
_________
Liabilities
Non-Current Liabilities
Lease Liabilities
926
630
627
Provisions
208
270
208
_________
_________
_________
1,134
900
835
_________
_________
_________
Current liabilities
Liabilities held for sale
1,202
1,156
1,169
Income Tax Payable
187
319
124
Trade and other payables
289
318
394
Lease Liabilities
382
268
234
_________
_________
_________
2,060
2,061
1,921
_________
_________
_________
Total Liabilities
3,194
2,961
2,756
_________
_________
_________
Total Equity and Liabilities
20,743
9,740
9,860
_________
_________
_________
CONSOLIDATED STATEMENT OF CASH FLOW
6 months to
30 June
2026
(Unaudited)
6 months to
30 June
2025
(Unaudited)
Year to
31 December
2025
(Audited)
$’000
$’000
$’000
Cash flows from operating activities
Profit/ (loss) after tax
(994)
151
(148)
Adjustments for:
Depreciation of property, plant, and equipment
20
12
22
Amortisation of Right of Use asset
116
194
381
Impairment charge
53
38
189
Income Tax expense
230
379
615
Lease Interest
22
23
47
(Increase) / decrease in trade and other receivables
(175)
(13)
(89)
(Increase) / decrease in prepayments
(14)
(10)
(42)
Decrease / (increase) in trade and other payables
(98)
76
152
Increase /(decrease) in prepaid income tax
-
-
-
Income tax paid
(167)
(475)
(968)
Share based payment expense
812
-
549
Foreign exchange movements
(105)
13
9
_________
_________
_________
Net cash flows from operating activities
(300)
388
717
_________
_________
_________
Investing activities
Net cash used in discontinued operations
(63)
(38)
(189)
Purchase pf plant and equipment
(26)
(64)
(61)
Purchase of exploration and evaluation assets
(1,119)
(378)
(1,289)
_________
_________
_________
Net cash used in investing activities
(1,208)
(480)
(1,539)
_________
_________
_________
Financing activities
Net proceeds from issue of equity share capital
11,083
1,231
1,374
Lease Payments
(122)
(231)
(426)
_________
_________
_________
Net cash from financing activities
10,961
1,000
948
_________
_________
_________
Net increase in cash and cash equivalents
9,453
908
126
Cash and cash equivalents at beginning of period
777
621
621
Exchange (losses) / gains on cash and cash equivalents
(204)
3
30
_________
_________
_________
Cash and cash equivalents at end of period
10,026
1,532
777
_________
_________
_________
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share capital
Share premium reserve
Merger Reserve
Warrant Reserve
Share options reserve
Initial Re-structure
Reserve
Foreign Exch.
reserve
Retained earnings
Total equity
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
Balance at 31 December 2024
2,916
49,387
21,300
5
-
(23,023)
(1,216)
(44,403)
4,966
_______
_______
_______
_______
_______
_______
_______
_______
_______
Profit for the year
-
-
-
-
-
-
-
(146)
(146)
Foreign exchange translation
-
-
-
-
-
-
363
-
363
_______
_______
_______
Total comprehensive income/(loss) for the year
-
-
-
-
-
-
363
(146)
215
Issue of share capital
472
891
-
-
-
-
-
-
1,363
Exercise of warrants
-
5
-
(5)
-
-
-
-
-
Issue of options
-
-
-
560
-
-
-
-
560
_______
_______
_______
_______
_______
_______
_______
_______
_______
Balance at 31 December 2025
3,388
50,283
21,300
560
-
(23,023)
(853)
(44,551)
7,104
Profit for the period
-
-
-
-
-
-
-
(995)
(995)
Foreign exchange translation
-
-
-
-
-
-
(443)
-
(443)
_______
_______
_______
Total comprehensive income for the year
-
-
-
-
-
-
(443)
(995)
(1,438)
Shares issued in the period
594
10,489
-
-
-
-
-
-
11,083
Share issue costs
-
-
-
-
-
-
-
-
-
Issue of options
-
-
-
800
-
-
-
-
800
_______
_______
_______
_______
_______
_______
_______
_______
_______
Balance at 30 June 2026
3,982
60,772
21,300
1,360
-
(23,023)
(1,296)
(45,546)
17,549
_______
_______
_______
_______
_______
_______
_______
_______
_______
All comprehensive income is attributable to the owners of the parent Company.
NOTES FORMING PART OF THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
- 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 2026 comprise the Company and its subsidiaries (together referred to as the “Group”).
- 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 Company’s and Group’s ability to continue as a going concern through review of cash flow forecasts prepared by management for a period of 12 months from the date of signing this report and a review of the key assumptions on which these are based and sensitivity analysis.
In January and March 2026, the Company raised gross proceeds of approximately £8.7m (approx. $12.0m) principally to advance the Redmoor Project through a Pre-Feasibility Study. As a result, the Group is fully funded for all planned activities for a period in excess of 12 months from the date of signing this report, and therefore the Directors do not consider there to be any going concern issues. Consequently, the financial statements have been prepared on a going concern basis.
New standards, interpretations, and amendments effective 1 July 2026:
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.
- 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
- 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 and financial ability to move the asset forward to development.
i) The Redmoor Project is an 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 2026.
ii) The intangible asset associated with the offtake agreement for the LCCM project was impaired to nil at 31 December 2023. There has been no change to this assessment in the period to 30 June 2026.
- 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.
- 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.
- 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.
- Mineable reserves over life of project
- Forecasted Copper pricing
- Capital and operating cost assumptions to deliver the mining schedule
- Foreign exchange rates
- Discount rate
- 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.
- 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
- 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.
- 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
- 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 2026
(Unaudited)
SMG
Head
Office
United Kingdom
Development Asset
Intra
Segment
Elimination
Total
$'000
$'000
$’000
$’000
$’000
$'000
Revenues
1,594
-
-
-
-
1,594
_______
_______
_______
_______
_______
_______
Gross profit
1,594
-
-
-
-
1,594
Raw materials/consumables
(222)
-
-
-
-
(222)
Overhead expenses
(513)
(335)
(289)
-
-
(1,137)
Amortisation
(116)
-
-
-
-
(116)
Impairment
-
-
-
-
-
Depreciation
(20)
-
-
-
-
(20)
Share based payments
(812)
(812)
Foreign exchange gain/(loss)
-
18
4
1
-
23
_______
_______
_______
_______
_______
_______
Segment profit /(loss) from operations
723
(1,129)
(285)
1
-
(690)
_______
_______
_______
_______
_______
_______
Lease Interest
(22)
-
(22)
_______
_______
_______
_______
_______
_______
Segment profit /(loss) before taxation
701
(1,129)
(285)
1
-
(712)
_______
_______
_______
_______
_______
_______
Year to 31 December 2025
(Audited)
SMG
Head
Office
United Kingdom
Development Asset
Intra
Segment
Elimination
Total
$'000
$'000
$’000
$’000
$’000
$'000
Revenues
4,231
-
-
-
-
4,231
_______
_______
_______
_______
_______
_______
Gross profit
4,231
-
-
-
-
4,231
Raw materials/consumables
(618)
-
-
-
-
(618)
Overhead expenses
(901)
(1,485)
(214)
-
-
(2,600)
Management fee income/(expense)
(100)
260
-
-
-
160
Amortisation
(363)
-
-
-
-
(363)
Impairment
-
-
-
-
-
-
Depreciation
(36)
-
(8)
-
-
(44)
Interest
-
-
(1)
-
-
(1)
Foreign exchange gain/(loss)
-
(51)
(5)
(6)
-
(62)
_______
_______
_______
_______
_______
_______
Segment profit /(loss) from operations
2,213
(1,276)
(228)
(6)
-
703
_______
_______
_______
_______
_______
_______
Lease Interest
(47)
-
-
-
-
(47)
_______
_______
_______
_______
_______
_______
Segment profit /(loss) before taxation
2,166
(1,276)
(228)
(6)
-
656
_______
_______
_______
_______
_______
_______
6 months to 30 June 2025
(Unaudited)
SMG
Head
Office
United Kingdom
Development Asset
Intra
Segment
Elimination
Total
$'000
$'000
$’000
$’000
$’000
$'000
Revenues
2,001
-
-
-
-
2,001
_______
_______
_______
_______
_______
_______
Total Revenue
2,001
-
-
-
-
2,001
Other Revenue
-
-
36
-
-
-
Raw Materials/Consumables
(278)
-
-
-
-
(278)
Overhead expenses
(440)
(409)
(100)
-
-
(949)
Amortisation- right of use asset
(194)
-
-
-
-
(194)
Interest
-
-
-
-
-
-
Depreciation
(12)
-
-
-
-
(12)
Foreign exchange gain/(loss)
-
(13)
-
-
-
(13)
_______
_______
_______
_______
_______
_______
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
_______
_______
_______
_______
_______
_______
As at 30 June 2026
(Unaudited)
SMG
Head
Office
United Kingdom
Development Asset
Total
$'000
$'000
$’000
$’000
$'000
Additions to non-current assets
-
-
1,119
-
1,119
_______
_______
_______
______
_______
Reportable segment assets
1,944
9,839
8,817
143
20,743
_______
_______
_______
______
_______
Reportable segment liabilities
1,691
159
142
1,202
3,194
_______
_______
_______
_______
_______
As at 30 June 2025
(Unaudited)
SMG
Head
Office
United Kingdom
Development Asset
Total
$'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 31 December 2025
(Audited)
SMG
Head
OfficeUnited Kingdom
Development Asset
Total
$'000
$'000
$’000
$’000
$'000
Additions to non-current assets
-
-
1,287
-
1,287
_______
_______
_______
_______
_______
Reportable segment assets
1,258
455
8,013
134
9,860
_______
_______
_______
_______
_______
Reportable segment liabilities
1,186
149
252
1,169
2,756
_______
_______
_______
_______
_______
External revenue by
location of customers
Non-current assets by
location of assets
30 June 2026
30 June 2025
30 June 2026
30 June 2025
$'000
$'000
$’000
$’000
United States
1,594
2,001
1,321
949
United Kingdom
-
-
8,598
6,767
Australia
-
-
-
-
_______
_______
_______
_______
1,594
2,001
-
7,716
_______
_______
_______
_______
Revenues by key customers
Revenues from Customer A totalled $257,772 (H1 2025: $281,740 ), which represented 16% (H1 2025: 14%) of total domestic sales in the United States, Customer B totalled $529,743 (H1 2025: $907,679) which represented 33% (H1 2025: 45%) Customer C totalled $474,074 (H1 2025: $633,012 which represented 30% (H1 2025: 32%), and Customer D totalled $301,413 (H1 2025: $184,547) which represented 19% (H1 2025: 9%).
- Operating Loss
6 months to
30 June
2026
(Unaudited)6 months to
30 June
2025
(Unaudited)Year to
31 December
2025
(Audited)
$'000
$'000
$’000
Operating gain/loss is stated after charging/(crediting):
Directors’ fees and emoluments
114
155
301
Equipment rental
37
-
2
Equipment maintenance
28
-
106
Fees payable to the company’s auditor for the
-
-
99
audit of the parent company and consolidated financial statements
Non- Audit Services
-
-
-
Salaries, wages, and other staff related costs
300
330
525
Legal, professional and consultancy fees
259
244
456
Travel and related costs
13
-
43
Other Expenses
438
220
359
_______
_______
_______
Overhead Expenses
1,189
949
1,891
_______
_______
_______
Lease Interest
22
23
47
Interest
-
-
1
Finance Fee
-
Foreign exchange
(22)
13
62
Amortisation of Right of use assets
116
194
363
Depreciation
20
12
44
Share based payments
812
-
549
Discontinued operations
53
38
189
_______
_______
_______
Total
1,190
1,229
3,146
_______
_______
_______
- Intangible assets – exploration and evaluation costs
6 months to
30 June
2026
(Unaudited)6 months to
30 June
2025
(Unaudited)Year to
31 December
2025
(Audited)
$'000
$'000
$’000
Cost
Opening balance for the period
8,694
5,901
7,023
Additions for the period
1,119
378
2,101
Grant Reimbursement
-
-
(791)
Research & development refund
-
-
(23)
Foreign exchange difference
(120)
478
(384
_______
_______
_______
Closing balance for period
9,693
6,757
8,694
_______
_______
_______
- Property, plant and equipment
Development Asset
Plant and Machinery
Total
$'000
$'000
$’000
Cost
At 1 January 2025 (audited)
-
402
402
Additions
-
63
63
Foreign exchange difference
-
(11)
(11)
_______
________
________
At 31 December 2025 (audited)
-
454
454
_______
________
________
Additions
-
26
26
Foreign exchange difference
-
1
1
_______
________
________
At 30 June 2026 (unaudited)
-
481
481
________
________
________
Depreciation
At 1 January 2025 (audited)
-
(342)
(342)
________
________
________
Charge for the period - depreciation
-
(22)
(22)
Foreign exchange difference
-
11
11
________
________
________
At 31 December 2025 (audited)
-
(353)
(353)
________
________
________
Charge for the period - depreciation
-
(19)
(19)
Foreign exchange difference
-
(2)
(2)
________
________
________
At 31 June 2026 (unaudited)
-
(374)
(374)
________
________
________
Carrying Value
As at 30 June 2026 (audited)
-
107
107
________
________
________
As at 31 December 2025 (audited)
-
101
101
________
________
________
As at 30 June 2025 (unaudited)
-
72
72
________
________
________
- 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 2025 (audited)
1,053
1,053
Additions
142
302
Amortisation (capitalised)
(4)
(4)
Amortisation
(381)
(381)
________
________
As at 31 Dec 2025 (Audited)
810
810
________
________
Additions
546
546
Amortisation (capitalised)
(1)
(1)
Amortisation
(114)
(114)
________
________
As at 30 June 2026 (unaudited)
1,241
1,241
________
________
Plant, Machinery and Vehicles
Total
$'000
$’000
Lease Liabilities
As at 1 January 2025 (audited)
1,106
1,106
Additions
132
132
Interest Payments
49
49
Lease Payments
(426)
(426)
________
________
As at 31 Dec 2025 (audited)
861
861
________
________
Additions
557
557
Interest Payments
22
22
Lease Payments
(132)
(132)
________
________
As at 30 June 2026 (unaudited)
1,308
1,308
________
________
Lease Liability
June
2026
June
2025
December
2025
Current
382
268
234
Non-Current
926
630
627
________
________
________
1,308
898
861
________
________
________
- Dividends
No dividend is proposed for the period.
- 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
30 June
2026
(Unaudited)6 months to
30 June
2025
(Unaudited)Year to
31 December
2025
(Audited)
$'000
$'000
$’000
Weighted average number of shares - Basic
2,811,275,969
2,117,253,750
2,237,498,862
Weighted average number of shares – Diluted
2,811,275,969
2,117,253,750
2,237,498,862
Earnings (loss) for the period
$995,000
$151,000
$148,000
Earnings per share in the period - Basic
¢0.037
¢0.007
¢0.007
Earnings per share in the period - Diluted
¢0.037
¢0.007
¢0.007
- Share capital and premium
30 June
2026
30 June
2026
30 June and 31 December
2025
30 June and 31 December
2025
No
$'000
No
$'000
Allotted, called up and fully paid
Ordinary shares
2,811,275,969
60,772
2,369,297,949
50,283
____________
____________
____________
____________
In January 2026 the Company issued 307,692,308 Ordinary shares of 0.1pence each at a price of 1.3 pence per share to raise gross proceeds of approximately £4,000,000.
In March 2026 the Company issued 134,285,712 Ordinary shares of 0.1pence each at a price of 3.5 pence per share to raise gross proceeds of approximately £4,700,000.
Share options and warrants
The following Options were in issue during the period:
Date of Grant
Number of Options
Exercise price
Expiry date
12 February 2026
88,675,000
3.5p
12 February 2031
____________
____________
____________
These options vested in two tranches, 50% vesting 12 months after the date of issue and 50% vesting 24 months after the date of issue. The company recognises an expense in relation to the issue of these options over the vesting period, with $812,000 being recognised during the period from issue date to 30 June 2026.
- Post balance date events
On 3 September 2026 the Group entered into a Definitive Agreement relating to the sale of LCCM, with completion subject to certain conditions. At the date of this report the proposed transaction has yet to be completed. The Directors consider that the entering into of the Definitive Agreement does not constitute an adjusting event for the purposes of IAS 10 and as such no adjustments have been made in these interim financial statements in relation to the carrying value of the Groups investment in LCCM which remain classified as assets and liabilities held for sale, with the development asset in LCCM remaining fully impaired.
Copies of this interim report will be made available on the Company’s website, www.strategicminerals.net.
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