John Peters, managing director of Strategic Minerals (LON:SML, OTC:SMCDY), says a key component of the company’s strategy is limiting overheads. The aim is to reduce expenditure to below the operating profit that may be achieved from the Cobre tailings project in New Mexico.
Peters has tightened management fees, taken a pay cut himself and is being prudent with the company’s almost US$1mln cash by stopping activity at the Tatu coal project in New Zealand and putting on hold discussions relating to the Wanbao coal mine in China.
“If we need money at any point in time it’s project specific. I’m not going to go out and raise funds to cover overheads. That’s not what we’re about.”