Strategic Minerals PLC Q3 Cobre Sales (US $2.036M) Sets New Record (1125T)
10 October 2017 - 5:00PM
UK Regulatory
TIDMSML
RNS Number : 1125T
Strategic Minerals PLC
10 October 2017
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.
10 October 2017
Strategic Minerals plc
("Strategic Minerals" or the "Company")
Q3 Cobre Sales (US $2.036M) Sets New Record
Strategic Minerals plc (AIM: SML; USOTC: SMCDY), the diversified
mineral development and production company, is pleased to provide
the following update on magnetite ore sales at the Company's Cobre
operations in New Mexico, USA, for the three months to September
2017, and to inform the market of cash available at the end of
quarter.
The Board has reviewed both the previous quarterly reports and
the timely manner in which it has reported on project specific
developments and has taken the view not to revisit previous
progress in the quarterly report but to instead comment on the two
key pieces of information that require updating (Cobre sales and
cash balances). In this manner, the reports can be produced more
efficiently.
Sales update Cobre magnetite tailings operations
The spectacular September 2017 quarter sales at Cobre of US
$2.036m (29,539 tons) have set a new quarterly record, partly
reflecting clearance of prepaid June tonnage for our new client.
Accordingly, the figures for this September quarter are
approximately 15% higher than current underlying sales.
Notwithstanding, these sales levels represent over a 300% increase
on last September's sales of US $0.462m (7,686 tons). On the back
of this performance, the Board anticipates that 2017 will see the
company record its first profit in excess of US $1m.
The September 2017 quarter sales set a record for quarterly
domestic sales with sales and volumes details as follows:
Tonnage Sales (US $'000)
--------------------- ---------------------
Year 3 months 12 months 3 months 12 months
to Sept to Sept to Sept to Sept
2017 29,539 63,681 2,036 4,032
2016 7,686 23,477 462 1,533
2015 3,583 13,960 250 946
The management at Cobre has not only been able to increase sales
but also increase profit margins at Cobre to in excess of 60% for
the September 2017 quarter. The Board and Management considers
that, on the basis of current sales, this profit margin can be
maintained throughout 2018 and that annual sales are likely to
exceed US $5m.
Financials and Operations
Over the period, the parent entity continued to maintain a tight
control on overheads which remain, on an annualised basis, under
US$1 million (excluding variable project review costs, foreign
currency movements and non-cash adjustments).
With sizeable cash flows, and after meeting exploration costs
associated with both Redmoor and Hanns Camp, the Company has a
healthy cash balance, which at 30 September 2017 was US $1.627m (30
June 2017: US $1.359m).
Commenting, John Peters, Managing Director of Strategic
Minerals, said:
"The September quarter has seen the expectation of profits and
cash flow from our Cobre operations begin to materialise. As the
Company is now cash generative, we look forward to being able to
leverage this comfortable financial position to further improve
shareholder value through self-funded drilling programmes and
acquisitions via joint ventures and corporate activities.
"This year has marked a substantial turnaround in the Company's
fortunes and, with the continued support of our very loyal
shareholders, the Board and Management look forward to driving the
Company onto its capitalisation (GBP100m) and share price (5.75+
pence) targets."
For further information, please contact:
+61 (0) 414
Strategic Minerals plc 727 965
John Peters
Managing Director
www.strategicminerals.net
Follow Strategic Minerals on:
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Twitter: @SML_Minerals
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+44 (0)20 3470
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+44 (0) 7825
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Financial PR
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Notes to Editors
Strategic Minerals Plc is an AIM-quoted, diversified mineral
development and production company with projects in the United
States of America, the UK and Australia. The Company is focused on
acquiring and developing cash generative, high quality projects
which meet local market demand for commodities and utilising this
cash flow to undertake value added exploration.
In September 2011, Strategic Minerals purchased its first
cash-generating asset; the Cobre magnetite tailings dam project in
New Mexico, USA which it brought into production in 2012 and which
continues to provide a revenue stream for the Company. The
portfolio was expanded in January 2016 with the acquisition of
shares in Central Australian Rare Earths Pty Ltd, which holds
tenements in Western Australia and the Northern Territory that are
prospective for cobalt, gold, nickel sulphides and rare earth
elements. The Company has since acquired all shares in Central
Australian Rare Earths Pty Ltd. In May 2016, an additional
exploration asset was acquired when the Company entered into an
agreement with New Age Exploration Limited to acquire up to 50% of
the Redmoor Tin/Tungsten project in Cornwall, UK. This 50%
acquisition has now been completed and drilling at the project has
commenced.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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