TIDMSML
RNS Number : 5040F
Strategic Minerals PLC
16 July 2021
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 July 2021
Strategic Minerals plc
("Strategic Minerals" or the "Company")
June Quarter 2021 Magnetite Sales and Cash Balances
Strategic Minerals plc (AIM: SML; USOTC: SMCDY), a profitable
producing mineral company , is pleased to provide the following
update on the Company's cash position and ore sales at the Cobre
magnetite operation in New Mexico, USA ("Cobre") for the quarter
ended 30 June 2021.
Highlights
-- Strong annual Cobre sales continue at US$2.89m for the 12 Months to 30 June 2021
-- Group cash balance of US$0.734m as at 30 June 2021
Sales update: Cobre magnetite tailings operations
Annual Cobre sales for the year to 30 June 2021 continue to be
maintained at around US$3m. The moderate decline is considered to
be mainly attributed to a spike in sales last year linked to an
increased demand for reinforced concrete, for which magnetite is an
input.
Sales comparisons on quarterly and annual periods to 30 June
2021, along with associated volume details, are shown in the table
below:
Tonnage Sales (US$'000)
---------------------------- -----------------------------
Year 3 months to 12 months to 3 months to 12 months to
June June June June
2021 12,130 48,964 740 2,890
2020 14,733 52,593* 881 3,114*
2019 8,139 38,846 466 2,251
* For comparison purposes, the US$0.75m of deposits forfeited by
CV Investments LLC ("CV") has been excluded.
The Company's wholly owned subsidiary, Southern Minerals Group
LLC ("SMG"), is in contact with the Receiver appointed by the US
Securities Exchange Commission in relation to the previously
notified US$21.9m arbitration claim against CV Investments LLC
("CVI"). The Receiver has, to date, identified over US$8m in liquid
assets relating to its receivership of CVI, although there can be
no certainty of what proportion of this could be attributable to
SMG if any at this time. The Company will update the market with
details as and when they are provided by the Receiver.
Financials and Operations
At 30 June 2021, the Group's non-restricted cash balance was
US$0.734m (31 March 2021: US$0.686m).
Cash flows have been consistent with budgets and the moderate
increase in cash at bank over the quarter reflects the reduced
investment in projects, notably in the Leigh Creek Copper Mine
("LCCM"), as the Company awaited the approval of a Programme for
Environmental Protection and Rehabilitation ("PEPR") in relation to
planned mining at LCCM's Paltridge North deposit.
A conditional PEPR approval for the Paltridge North Deposit has
just been received and the Company anticipates updating the market
on project timing at the start of August. In the interim, the
Company continues to seek the funding required to re-commence
operations at LCCM. In anticipation of funding and to ensure that
production is not delayed, John Speck was appointed as LCCM's Mine
Manager and has begun the process of delineating works, tendering
contracts and appointing contractors as well as assisting in
meeting the conditions associated with the PEPR approval.
Commenting, John Peters, Managing Director of Strategic
Minerals, said:
"Cobre sales remain strong with its cash flows providing a
valuable revenue stream for the Company.
"Currently, it is not believed that the conditions associated
with LCCM's PEPR approval will have a significant effect on timing
of planned production and the Company intends providing
clarification on this at the beginning of August.
"The Company continues seeking debt style funding for the LCCM
project and believes its economic attractiveness will result in
securing such funding. "
For further information, please contact:
+61 (0) 414 727
Strategic Minerals plc 965
John Peters
Managing Director
Website: www.strategicminerals.net
Email: info@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
+44 (0) 20 3470
SP Angel Corporate Finance LLP 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.
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. 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 into arrangements to acquire the
balance of the Redmoor Tin/Tungsten project which was settled on 24
July 2019 by way of a vendor loan which was fully repaid on 26 June
2020.
In March 2018, the Company completed the acquisition of the
Leigh Creek Copper Mine situated in the copper rich belt of South
Austra lia and brought the project temporarily into production in
April 2019. The project has been 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.
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