TIDMSML
RNS Number : 3486V
Strategic Minerals PLC
14 April 2021
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
14 April 2021
Strategic Minerals plc
("Strategic Minerals" or the "Company")
March Quarter 2021 Magnetite Sales and Cash Balances
Strong Cobre Sales Continue
Strategic Minerals plc (AIM: SML; USOTC: SMCDY), a profitable
producing mineral company , is pleased to provide the following
update on the Company's cash position and ore sales at the Cobre
magnetite operation in New Mexico, USA ("Cobre") for the quarter
ended 31 March 2021.
Highlights
-- Annual Cobre sales continue to exceed US$3m
-- Revenue growth of over 12% year on year at Cobre
-- Group cash balance of US$0.686m as at 31 March 2021
Sales update: Cobre magnetite tailings operations
The 2021 March quarter saw sales at Cobre continue to grow, with
revenues rising by over 12% year on year. Sales remained robust and
the positive annual growth highlights both the strong underlying
demand and the Southern Minerals Group ("SMG") team's ability to
maintain "contactless" operations, therein protecting both our
personnel and clients.
Sales comparisons on quarterly and annual periods to 31 March
2021, along with associated volume details, are shown in the table
below:
Tonnage Sales (US$'000)
---------------------------- -----------------------------
Year 3 months to 12 months to 3 months to 12 months to
March March March March
2021 13,002 51,567 771 3,032
2020 12,953 45,998* 764 2,698*
2019 9,471 42,401 553 2,480
* For comparison purposes, the US$0.75m of deposits forfeited by
CV Investments LLC ("CV") has been excluded.
The Company's wholly owned subsidiary, SMG, continues to remain
in contact with the Receiver appointed by the US Securities
Exchange Commission in relation to the previously notified US$21.9m
arbitration claim against CV Investments LLC. The Receiver is
currently in the process of identifying and validating assets
applicable to this claim. The Company will update the market with
details as and when they are provided by the Receiver.
Financials and Operations
At 31 March 2021, the Group's non-restricted cash balance was
US$0.686m (31 December 2021: US$0.833m).
Generally, cash flows have been consistent with budgets and the
Company continues discussions relating to the funding of both Leigh
Creek Copper Mine ("Leigh Creek") and the Redmoor Tin and Tungsten
project ("Redmoor"). Interest in Leigh Creek has risen, in line
with increased copper prices. Subject to funding, finalisation of
arrangements to recommence production are anticipated in
conjunction with the issuance of the approval of the Paltridge
North Programme for Environmental Protection and Rehabilitation
("PEPR").
Cornwall Resources Limited ("CRL"), the holder of the Redmoor
Tin and Tungsten project, continues to work with NRG Capital and
those parties that have expressed an interest in being involved
with Redmoor. To date, the Company considers that the proposals it
has received do not adequately reflect the project's value;
particularly given project enhancements and the supportive
commodity price environment. While the Company will continue
dialogue with interested parties, its 2021 focus is now on the
works associated with both the Redmoor West exploration program and
the Deep Digital programme (as detailed in the Company's
announcement of 15 February 2021) in Cornwall for which CRL is to
receive significant grant funding for its role.
Commenting, John Peters, Managing Director of Strategic
Minerals, said:
"The Company has been fortunate that its Cobre operation has
been able to continue "contactless" during the pandemic, which has
maintained this important income stream for the Company.
"The Board considers that the current copper price, of circa US
$4/lb, is likely to endure and is also encouraged by feedback from
the Company's recent meeting with the South Australian Minister for
Energy and Mining on the Leigh Creek Copper Mine project.
Accordingly, the Company is confident that 2021 will begin to
unlock the substantial value inherent in the Leigh Creek Copper
Mine project and provide a valuable, significant second income
stream before the end of the year."
For further information, please contact:
+61 (0) 414 727
Strategic Minerals plc 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
+44 (0) 20 3470
SP Angel Corporate Finance LLP 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 orientated to
supplying the burgeoning electric vehicle/battery market.
In May 2016, the Company entered into an agreement with New Age
Exploration Limited and, in February 2017, acquired 50% of 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 into arrangements to acquire the
balance of the Redmoor Tin/Tungsten project which was settled on 24
July 2019 by way of a vendor loan which was fully repaid on 26 June
2020.
In March 2018, the Company completed the acquisition of the
Leigh Creek Copper Mine situated in the copper rich belt of South
Austra lia and brought the project temporarily into production in
April 2019. The project currently awaits clearance from the South
Australian Government of its lodged Program for Environmental
Protection and Rehabilitation (PEPR).
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