Strategic Minerals PLC Q4 Cobre Sales (US $2.139M) Sets New Record (2543B)
09 January 2018 - 6:00PM
UK Regulatory
TIDMSML
RNS Number : 2543B
Strategic Minerals PLC
09 January 2018
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.
09 January 2018
Strategic Minerals plc
("Strategic Minerals" or "the Company")
Q4 Cobre Sales (US $2.139M) 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 for the three months to December 2017, and to inform the
market of cash available at the end of quarter.
Sales update on Cobre magnetite tailings operations
The Company reports that it achieved sales of US $2.139m (30,730
tons) during the December 2017 quarter, marginally up on the
September quarter (US $2.036m / 29,539 tons) and again setting a
new quarterly record. Given that the September quarter partly
reflected clearance of prepaid June tonnage, this is a strong
result.
The 2017 annual sales of US $5.638m (84,980 tons) represents
over a 300% increase on 2016 sales of US $1.552m (25,385 tons).
Subject to audit review, the Board anticipates 2017 will see the
Company record its first before tax profit in excess of US $1m.
The record breaking domestic sales for the December 2017 quarter
and volume details are as follows:
Tonnage Sales (US $'000)
--------------------- -----------------------------
Year 3 months 12 months 3 months 12 months
to Dec to Dec to Dec to Dec
2017 30,730 84,980 2,139 5,638
2016 9,432 25,385 533 1,552
2015 7,524 18,454 514 1,252
Management at Cobre has ensured that the profit margin on sales
has been maintained at in excess of 60% during the December 2017
quarter.
Financials and Operations
The Board and Management have continued to maintain tight
control on overheads and with sizeable cash flows, and after
meeting exploration costs associated with both Redmoor and Hanns
Camp, the Company had a healthy cash balance, which at 31 December
2017 was US $3.806m (30 September 2017: US $1.627m). This strong
cash position has enabled the Company to settle the cash component
of the Leigh Creek Copper Mine acquisition, internally fund the
start up of Leigh Creek, internally fund the CARE 2018 drilling
programme and internally fund the expected share of 2018 Redmoor
exploration expenses.
Commenting, John Peters, Managing Director of Strategic
Minerals, said:
"The December quarter has seen the profits and cash flow from
our Cobre operations reach record highs. This has placed the
Company in a strategically advantageous position, enabling it to
acquire the Leigh Creek Copper Mine and undertake exploration with
little dilution to shareholders.
"The Board and Management will continue with the asset
development plan to drive revenue higher in order to achieve the
Company's targets of a GBP100m market capitalisation and a share
price above GBP0.0575."
For further information, please contact:
+61 (0) 414
Strategic Minerals plc 727 965
John Peters
Managing Director
www.strategicminerals.net
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inerals%20plc
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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. The Company is also currently in
the process of settling the acquisition of the
Leigh Creek Copper Mine situated in the copper
rich belt of South Australia.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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