Sign up UNITED KINGDOM
Proactive Investors - Run By Investors For Investors

Strategic Minerals expects it will continue to fund expansion with internal money

Magnetite sales figures up to June 30 did not include the impact of suspended sales to a major client
us dollars
It had US$2.43mln at the end of June

Strategic Minerals Plc (LON:SML) has released a quarterly update on its sales performance, for the Cobre magnetite tailings operations, which shows it had “maintained and improved” underlying volumes.

The figures, for the three months ended June 30, however, don’t include the impacts of a suspension of transactions with a major client as they are due to be reflected in the numbers for the current quarter.

WATCH: Leigh Creek represents 'the next stage' for Strategic Minerals

Nonetheless, the company told investor that recent arrangements with the client mean there will be a “net minimal impact” on cash flow and highlighted that its full year figures will reflect the additional sales arising from the major client during the September and December 2017 quarters.

In terms of the numbers themselves, Strategic Minerals said that it had sold 11,694 tonnes in the quarter, compared to 10,446 tonnes in the 2017 comparative, which translates to US$695,000 for the three months against a comparative figure of US$602,000.

Over the year to June 30, some 89,599 tonnes were sold for just over US$6mln in aggregate, up from 41,828 tonnes and US$2.43mln.

The company said it had a US$2.08mln cash balance at the end of June.

In early July, the company received a US$375,000 payment from the major client which, according to Strategic Minerals, reinforces its expectation that it will fund its 2018 development expansion plans from internally generated funds.

"Underlying Cobre sales continue to underpin the company's operations and existing resources are being reinvested to progress the company's other exploration and development projects, most notably the reinstating of the Leigh Creek Copper Mine which is expected to return to production and deliver substantial cash flows for the company in the second half of 2019,” said John Peters, Strategic Minerals managing director.

Proceeds from Cobre sales were reinvested into works at other projects - namely, the operations conducted by Central Australian Rare Earths, Leigh Creek Copper Mine and Cornwall Resources.

Net cash decreased by US$1.02mln, partly reflecting a US$978,000 payment to US Tax authorities for income tax in 2017 and quarterly instalments for 2018.

View full SML profile View Profile

Strategic Minerals Plc Timeline

Related Articles

picture of steel mill
November 30 2017
Bushveld will have 59.1% of Vametco once it completes the buy-out of partner Yellow Dragon.
copper tubes
May 30 2018
The latest economic study at Parys Mountain has delivered some encouraging numbers against a backdrop of rising base metals prices
copper wires
April 12 2018
Leigh Creek will add to the cash being generated by New Mexico-based iron ore business Cobre to fund exploration and development opportunities elsewhere.

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use