TIDMSML
RNS Number : 1825N
Strategic Minerals PLC
16 January 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.
16 January 2019
Strategic Minerals plc
("Strategic Minerals" or the "Company")
December Quarter 2018 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 31 December 2018 and to
inform the market of cash available at the end of the quarter.
Highlights
-- US$647,000 of cash generated in the quarter
-- Sales increased by 1,500 tons compared to December quarter
2016 (prior to introduction of Cobre's major client)
-- Group cash balance of US$1.840m as at 31 December 2018
-- US$440,000 re-invested into the Company's multi-mineral
exploration and development assets during the quarter
Sales update: Cobre magnetite tailings operations
Sales volumes at Cobre have been maintained at strong levels,
despite the suspension of minimum monthly sales associated with a
major client's contract, as announced on 7 June 2018, with cash
flow being augmented by advance payments received. As a result of
strong sales and the advance payment arrangements with the major
client, the cash flow from the Cobre operation remained robust
during the quarter with US$647,000 in cash generated. Sales for the
December quarter are greater than comparative historical quarterly
sales figures, preceding the introduction of Cobre's major client,
as demonstrated in the comparison of current quarter sales of
10,931 tons to sales of 9,431 tons in the quarter to December
2016.
Sales comparisons on quarterly and annual periods to December
2018, along with associated volume details, are shown in the table
below:
Tonnage Sales (US$'000)
--------------------------- ----------------------------
Year 3 months to 12 months to 3 months to 12 months
Dec Dec Dec to Dec
2018 10,931 54,565 633 3,350
2017 30,730 84,980 2,139 3,883
2016 9,431 25,385 533 1,552
Financials and Operations
At 31 December 2018, the Group's non-restricted cash balance was
US$1.840m (30 September 2018 US$1.773m). During the quarter,
profits and cash were generated by Southern Minerals Group'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, Cornwall Resources Limited (Redmoor) and Central
Australian Rare Earths Pty Ltd (Hanns Camp and Mount Weld),
totalling approximately $440,000, as well as covering corporate
overheads of approximately $140,000.
Commenting, John Peters, Managing Director of Strategic
Minerals, said:
"The December quarter saw the Company's long-term prospects
benefitting in both volume and grade from receipt of assay results
identifying bonanza style tin equivalent deposits at Redmoor and
additional deposits and higher Copper grades likely to expand the
existing JORC copper resource at Leigh Creek.
"The increased Group cash balance at 31 December, compared to 30
September, places the Company in a robust financial position for a
strategically important year ahead. Strong ongoing sales at Cobre
and the early rollover of access to the tailings stockpile
announced earlier this week ensures that SML is in great financial
shape as 2019 begins. Funds generated are being focused on
developing the Company's three other projects. This reflects the
Board's desire to grow the Company organically and progress our
projects to points where markets can begin to fully appreciate
their potential value, while exercising strict financial and
technical discipline.
"Undoubtedly, the primary focus of 2019 will be the
re-commencement of operations at Leigh Creek Copper Mine, where the
Board is increasingly excited by the growing prospects for the life
and scope of the project, as well as the positive impact a second
long-term cash flow generating asset will have on the Company.
"I believe 2019 will be a busy and eventful year for Strategic
Minerals and look forward to keeping the market apprised of further
project developments."
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 its development projects.
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 that are prospective for cobalt,
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 sold certain CARE tenements that had
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 2018 drill programme has
almost complete and has provided the best assay results to
date.
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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