RNS Number : 8749F
Strategic Minerals PLC
07 March 2024

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ('MAR') which has been incorporated into UK law by the European Union (Withdrawal) Act 2018.

7 March 2024

Strategic Minerals plc

("Strategic Minerals" or the "Company")

Cobre 6-Year February Sales High and Excavator Purchase

Strategic Minerals plc (AIM: SML; USOTC: SMCDY), a profitable producing mineral company, is pleased to announce that the February sales tonnage recorded at Cobre was a 6-year high for February sales and Southern Minerals Group LLC ("SMG"), the Company's wholly owned subsidiary and operator of the Cobre magnetite stockpile, is acquiring a Caterpillar Excavator (Trackhoe 320) to assist with expected volume increases.


·   February sales tonnage of 4,898 tons represents a 6 year high for February sales

·   February was also the highest monthly sales tonnage since March 2021

·   Current expectations are for sales of circa 13,000 tons per quarter after March 2024

·   Revenue from Cobre for 2024 expected to be circa US$3.5m

·   Acquiring a Caterpillar Excavator (Trackhoe 320) to assist year-round operations


Cobre Sales

February 2024 saw the sale of 4,898 tons of magnetite which represented a 6 year high for February sales.  As a portion of SMG's clients are fertilizer companies, who seasonally increase demand in February and March, the 6 year high tonnage sales augurs well for the remainder of the year.  As shown in the following chart, the tonnage sales for the past three years show how lean 2023 was and how the Company believes that sales are now on track to be maintained at significantly higher levels than over the past three years.


Based on February 2024 sales and expectations based on the major client's purchase order, the Company anticipates sales tonnages of circa 13,000 tons per quarter after March 2024.  This is expected to result in 2024 revenues of circa US$3.5m.

Cobre Equipment Purchase

In line with increases in sales, SMG is acquiring a new Caterpillar 320 Trackhoe with delivery expected in early March 2024.  This equipment is being acquired to ensure production, at these renewed higher levels, can continue during difficult weather conditions, particularly around the Winter/Spring period.

The purchase is being fully funded by Caterpillar Finance on a four year loan facility at an interest rate of 4.99% pa.

Commenting, John Peters, Managing Director of Strategic Minerals, said:

"Encouraging sales in February 2024 and expectations of returning to quarterly sales of circa 13,000 tons are providing a robust cash flow outlook for the end of 2024, after resolving creditor payments arising from 2023.

"Cobre's revamped management line up has risen to the challenge and recently sought the addition of a Trackhoe 320 to ensure continuation of higher volume operations in difficult weather conditions. Not only was this sourced locally but the acquisition was wholly financed, with repayments spread in line with future cash flow expectations.   

"Discussions continue with another potentially large client at Cobre but, due to recent increases in activity, such discussions are now focussed on future years supply.

"At present, we anticipate further news flow from projects this month and beyond."


For further information, please contact:


Strategic Minerals plc

+61 (0) 414 727 965

John Peters

Managing Director





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SP Angel Corporate Finance LLP



+44 (0) 20 3470 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 aimed at supplying the metals and minerals likely to be highly demanded in the future. The access to this stockpile has been extended until 31 March 2027 and is likely to be rolled over again at that time.

In May 2016, the Company entered into an agreement with New Age Exploration Limited and, in February 2017, acquired 50% of Cornwall Resources Limited (CRL) which holds 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 arrangements to acquire the balance of CRL which was settled on 24 July 2019 by way of a vendor loan, subsequently fully repaid on 26 September 2020.  Since this time, CRL has been progressing the development of the Redmoor Tin/Tungsten project through its involvement in the EU funded Deep Digital Cornwall exercise and the placement of Tin and Tungsten on the Critical Minerals List of both the UK and USA.

In March 2018, the Company completed the acquisition of the Leigh Creek Copper Mine situated in the copper rich belt of South Australia and brought the project temporarily into production in April 2019. In July 2021, the project was granted a conditional approval by the South Australian Government for a Program for Environmental Protection and Rehabilitation (PEPR) in relation to mining of its Paltridge North deposit and processing at the Mountain of Light installation. In late September 2022, an updated PEPR, addressing the conditions associated with the July 2021 approval, was approved.  The Company continues seeking capital to commence operations.



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