TIDMSML
RNS Number : 8165V
Strategic Minerals PLC
11 April 2019
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.
11 April 2019
Strategic Minerals plc
("Strategic Minerals" or the "Company")
March Quarter 2019 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
ore sales at the Company's Cobre magnetite operations in New
Mexico, USA for the three months to 31 March 2019 and to inform the
market of cash available at the end of the quarter.
Highlights
-- US$206,000 of cash generated by Cobre in the quarter
-- Routine client plant maintenance resulted in reduced quarterly sales
-- Drone survey indicates stockpile inventory of 711,000 tons
-- Major Cobre client currently overdue with latest payment
-- Group cash balance of US$1.240m as at 31 March 2019
-- US$535,000 re-invested into the Company's projects during the quarter
Sales update: Cobre magnetite tailings operations
Sales volumes at Cobre, while robust, were impacted by clients
undertaking plant maintenance during the US winter and continue to
reflect the suspension of minimum monthly sales associated with a
major client's contract, as announced on 7 June 2018.
Sales comparisons on quarterly and annual periods to 31 March
2019, along with associated volume details, are shown in the table
below:
Tonnage Sales (US$'000)
--------------------------- ---------------------------
Year 3 months to 12 months to 3 months to 12 months to
March March March March
2019 9,472 42,401 554 2,480
2018 21,636 92,351 1,424 6,228
2017 14,264 36,221 834 2,158
During the quarter, a drone survey of the existing stockpile was
undertaken and indicated that 711,000 short wet tons of material
remains. This ensures that, subject to the mine owner's expected
continuation of arrangements, operations at Cobre will continue for
a minimum of 7 years. A report on the drone survey can be found on
our website under the presentations tab at the following address:
www.strategicminerals.net/investors/presentations.html.
Net cash flow from Cobre was $0.206m and was impacted by the
major client not having made the $0.375m payment due in the
quarter. While discussions with the major client have occurred and
continue to be held on extending the suspension of minimum sales of
4,000 tons in lieu of a quarterly cash payment, no variation has
been signed off and the original, long term contract has been
reactivated.
Demand for payment from the major client has been issued and
Southern Minerals Group, LLC ("SMG") will be looking to enforce its
rights under its contractual arrangements. SML will keep the market
informed as matters develop.
Financials and Operations
At 31 March 2019, the Group's non-restricted cash balance was
US$1.240m (31 December 2018: US$1.840m). During the quarter,
profits and cash were again generated by SMG's Cobre operations and
were re-invested into the Company's multi-mineral project
portfolio, including works conducted by Leigh Creek Copper Mine Pty
Ltd (Leigh Creek), Cornwall Resources Limited (Redmoor) and Central
Australian Rare Earths Pty Ltd (Hanns Camp and Mount Weld),
totalling approximately US$535,000, as well as covering corporate
overheads of approximately US$271,000.
Commenting, John Peters, Managing Director of Strategic
Minerals, said:
"The March quarter saw the Company utilising its cash reserves
to activate both Leigh Creek's heap leach programme and progress
regulatory approval processes for Paltridge North/Rosmann East.
"Sales volumes at Cobre were impacted in the March quarter as a
result of two of SMG's clients suspending their operations for
between 4 and 6 weeks, for routine maintenance purposes. It is
anticipated that the reduced sales volumes will largely impact
sales in the March quarter and that the June quarter will see a
resumption of normal sales volumes to these clients.
"The June quarter is expected to be another pivotal time for the
Company, with the expected resumption of copper production from the
existing heaps at Leigh Creek and the acquisition of the other half
of the Redmoor Tin/Tungsten project. Additionally, this period
should see further progress in bringing Leigh Creek into production
and providing SML with a second on-going income stream, in line
with its 2020 target."
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 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 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 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. The 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 in Cornwall, UK.
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
TSTFMGMDKGRGLZM
(END) Dow Jones Newswires
April 11, 2019 02:00 ET (06:00 GMT)
Strategic Minerals (LSE:SML)
Historical Stock Chart
From Apr 2024 to May 2024
Strategic Minerals (LSE:SML)
Historical Stock Chart
From May 2023 to May 2024