TIDMSML
RNS Number : 4320D
Strategic Minerals PLC
09 October 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.
9 October 2018
Strategic Minerals plc
("Strategic Minerals" or the "Company")
September Quarter Magnetite Sales and Cash Balances
Strategic Minerals plc (AIM: SML; USOTC: SMCDY), a producing
mineral company actively developing projects prospective for
battery materials, is pleased to provide the following update on
magnetite ore sales at the Company's Cobre magnetite operations in
New Mexico, USA for the three months to 30 September 2018, and to
inform the market of cash available at the end of quarter.
Sales update: Cobre magnetite tailings operations
Sales volumes at Cobre continue to remain strong, despite the
suspension of minimum monthly sales associated with a major
client's contract, as announced on 7 June 2018. Due to the strong
sales and the arrangements put in place with Cobre's major client,
the cash flow for the Cobre operation remained strong during the
quarter with US$927,000 in cash generated from the assets. The
sales figures for the quarter are above comparative historical
sales figures that exclude Cobre's major customer as demonstrated
in the comparison of current quarter sales of 10,304 tons as
opposed to September 2016 sales of 7,686 tons.
Sales comparisons on comparable quarters and annual periods to
September 2018, along with associated volume details, are as
below:
Tonnage Sales (US $'000)
--------------------------- ---------------------------
Year 3 months to 12 months to 3 months to 12 months to
Sept Sept Sept Sept
2018 10,304 74,364 598 4,856
2017 25,539 57,279 1,744 3,707
2016 7,686 23,477 462 1,533
Financials and Operations
At 30 September 2018, the Group's non-restricted cash balance
was US $1.773m (30 June 2018 US $1.988m). While, during the
quarter, profits and cash were generated by Southern Minerals
Group's Cobre operations, these were reinvested into works
conducted by Central Australian Rare Earths Pty Ltd, Leigh Creek
Copper Mine Pty Ltd and Cornwall Resources Limited (totalling
approximately $800,000), as well as covering corporate overheads
(approximately $340,000).
Currently, the Company expects it will fund the remainder of its
2018 development expansion plans from internally generated funds
and have significant surplus funds at the year end.
Commenting, John Peters, Managing Director of Strategic
Minerals, said:
"The management of sales at Cobre has continued to provide the
Company with significant after tax
cash which it has reinvested into progressing the Company's
three other projects. This reflects the Board's desire to
organically grow the Company, as much as possible, while
progressing projects to points where markets can begin to fully
appreciate their potential value.
"With production expected to be re-started at Leigh Creek Copper
Mine next year and work expected
to commence on a Pre-Feasibility Study for Redmoor, the Board
feels confident that recognition of this underlying value is
near-at-hand.
"The Board maintains its expectation for these activities to be
fully funded from internal cash flows in 2018 and for there to be a
healthy cash balance as at year end."
For further information, please contact:
+61 (0) 414 727
Strategic Minerals plc 965
John Peters
Managing Director
www.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
Facebook: https://www.facebook.com/search/top/?q=strategic%20minerals%20plc
+44 (0)20 3470
SP Angel Corporate Finance LLP 0470
Nominated Adviser and Broker
Ewan Leggat
Laura Harrison
Notes to Editors
Strategic Minerals Plc is an AIM-quoted, operating minerals
company actively developing projects prospective for battery
materials. It has an operation in the United States of America and
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 being sought in the burgeoning electric
vehicle/battery market.
In September 2011, Strategic Minerals acquired 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 January 2016, the portfolio was expanded 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 September 2018, the Company
entered contracts for the sale of certain CARE tenements that have
been identified as gold targets.
In May 2016, the Company entered into an agreement with New Age
Exploration Limited ("NAE") and, in February 2017, acquired 50% of
Cornwall Resources Limited ("CRL"), the joint venture vehicle which
owns the Redmoor Tin/Tungsten project in Cornwall, UK. In June
2018, CRL began its 2018 Phase 1 drilling programme aimed at
further increasing the tonnage and grade of the high-grade
tin-tungsten-copper resource, which presently stands at an Inferred
resource of 4.5Mt @ 1.0% SnEq (as reported in the announcement
"Redmoor 2018 Resource Update" dated 20 March 2018). Based on the
encouraging Phase 1 results to date, SML and NAE, have approved
additional drilling to further expand the size of the resource and
upgrade a portion of it to an indicated, as opposed to inferred,
status. These are prerequisites to commencing an investment quality
pre-feasibility study in 2019.
In March 2018, the Company completed the acquisition of the
Leigh Creek Copper Mine situated in the copper rich belt of South
Australia and is currently working to bring this into operation in
2019.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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