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.
9 July 2024
Strategic Minerals plc
("Strategic
Minerals" or the "Company")
Cobre June Quarter Sales Update
Highest on Record, Forecasts Upgraded
Strategic Minerals plc (AIM: SML; USOTC:
SMCDY), a producing mineral company, is pleased to provide the
following update on quarterly Cobre sales to 30 June
2024.
Highlights
• June quarter sales revenue of
US$1.296m, up over c.250% on June quarter 2023
(US$367k).
• Highest June quarter sales on
record.
• Full year sales in 2024 now
upgraded and expected to exceed US$4.0m.
• All outstanding creditors,
excluding Directors and Management, are up to
date.
Cobre Sales
The return of Cobre's major client and the
addition of a substantial new client have resulted in the best June
quarter on record. Not unexpectedly, this is an impressive 250%+
increase on the June 2023 quarter when Cobre's major client was not
purchasing magnetite. However, this is also an impressive 95%
increase on June 2022 sales, when the major client was
active.
Just how remarkable the past quarter's sales
are is illustrated in the following graph which shows the
spectacular performance at Cobre, further illustrating the Board's
view that the market undervalues the Company. Note, the December
2019 quarter sales have excluded a one-off payment of $750,000
relating to the termination of the CV Investments
contract.
|
Sales
|
June Quarter
|
|
12 Months To June
|
|
|
|
$'000
|
|
Volume
|
|
$'000
|
Volume
|
|
2024
|
|
1,296
|
|
18,935
|
|
2,933
|
40,598
|
|
2023
|
|
367
|
|
4,162
|
|
1,898
|
23,856
|
|
2022
|
|
666
|
|
10,711
|
|
2,429
|
38,825
|
With over US$2m of sales (31,327 tons) in the
first half of 2024, the Company considers it appropriate to upgrade
the 2024 Cobre full year sales forecasts as volumes are now
expected to exceed 60,000 tons (17,965 tons in 2023) resulting in
upgraded revenues expected to exceed US$4.0m (US$1.6m in
2023).
Cash Management
As previously reported, the substantial
reduction in sales during 2023 required careful financial
management. The Company is happy to report that, with Cobre's
excellent first half sales performance, creditor arrangements,
excluding the Board and Management, are now up to date with one of
the short-term funding facilities (AUD $50,000) now having been
repaid. This leaves a further two facilities totalling AUD
$100,000 expected to be repaid from Cobre sales by their maturity
date in October.
The Annual Report noted that, as of 31 December
2023, a substantial amount (US$360,000) was outstanding to the
Board and Management in relation to 2023 remuneration and this has
now increased, as of 30 June 2024, to US$518,000. Payment of
deferred remuneration is likely to commence later this year and not
be completed until the first half of 2025.
Commenting, John Peters, Managing
Director of Strategic Minerals, said:
"The
quarter's sales have exceeded our expectations and bode well for a
strong performance at Cobre in 2024 with forecasted annual sales
now upgraded and expected to exceed US$4.0m.
"Management
continues to progress negotiations with potential investors on both
its Redmoor and Leigh Creek projects as well as seeing cautious
signs of more widespread renewed investor interest. Until such time
as a project related liquidity event occurs, the Company will
continue to closely monitor short term cash flow and remains
committed to avoiding the need for a dilutive capital raise,
currently considered unnecessary."
For further
information, please contact:
Strategic Minerals plc
+61 (0) 414 727
965
John Peters
Managing Director
Website:
www.strategicminerals.net
Email:
info@strategicminerals.net
Follow Strategic Minerals on:
Vox Markets:
https://www.voxmarkets.co.uk/company/SML/
Twitter:
@SML_Minerals
LinkedIn:
https://www.linkedin.com/company/strategic-minerals-plc
SP Angel Corporate Finance LLP
+44 (0) 20 3470 0470
Nominated Adviser and Broker
Matthew Johnson
Ewan Leggat
Charlie Bouverat
Notes to
Editors
Strategic Minerals plc is an AIM-quoted,
profitable operating minerals company actively developing projects
tailored to materials expected to benefit from strong demand in the
future. It has an operation in the United States of America along
with development projects in the UK and Australia. The Company is
focused on utilising its operating cash flows, along with capital
raisings, to develop high quality projects aimed at supplying the
metals and minerals likely to be highly demanded in the
future.
In September 2011, Strategic Minerals acquired
the distribution rights to the Cobre magnetite tailings dam project
in New Mexico, USA, a cash-generating asset, which it brought into
production in 2012 and which continues to provide a revenue stream
for the Company. This operating revenue stream is utilised to cover
company overheads and invest in development projects aimed at
supplying the metals and minerals likely to be highly demanded in
the future. The access to this stockpile has been extended until 31
March 2027 and is likely to be rolled over again at that
time.
In May 2016, the Company entered into an
agreement with New Age Exploration Limited and, in
February 2017, acquired 50% of Cornwall
Resources Limited (CRL) which holds the Redmoor Tin/Tungsten
project in Cornwall, UK. The bulk of the funds from the Company's
investment were utilised to complete a drilling programme that
year. The drilling programme resulted in a significant upgrade of
the resource. This was followed in 2018 with a 12-hole 2018
drilling programme has now been completed and the resource update
that resulted was announced in February 2019. In March 2019, the
Company entered arrangements to acquire the balance of CRL which
was settled on 24 July 2019 by way of a vendor loan, subsequently
fully repaid on 26 September 2020. Since this time, CRL has
been progressing the development of the Redmoor Tin/Tungsten
project through its involvement in the EU funded Deep Digital
Cornwall exercise and the placement of Tin and Tungsten on the
Critical Minerals List of both the UK and USA.
In March 2018, the Company completed the
acquisition of the Leigh Creek Copper Mine situated in the copper
rich belt of South Australia and brought the project temporarily
into production in April 2019. In July 2021, the project was
granted a conditional approval by the South Australian Government
for a Program for Environmental Protection and Rehabilitation
(PEPR) in relation to mining of its Paltridge
North deposit and processing at the Mountain of
Light installation. In late September 2022, an updated PEPR,
addressing the conditions associated with the July 2021 approval,
was approved. The Company continues seeking capital to
commence operations.