07:00 Mon 01 Mar 2021
Strategic Minerals - Cobre Access Rollover Confirmed & LCCM Update
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Strategic Minerals plc
("Strategic Minerals" or the "Company")
Cobre Access Rollover Confirmed - Update on LCCM Project Financials
Strategic Minerals plc (AIM: SML; USOTC: SMCDY), a profitable, producing mineral company is pleased to confirm the rollover of access to the magnetite stockpile in
Cobre Access Maintained
The 9th yearly rollover of access to the Cobre magnetite stockpile ensures continuity of profitable operations for the year ahead. Despite the pandemic, sales in 2020 grew, excluding sales relating to CV Investments LLC, by 21.6% to US
Southern Minerals Group, the Company's wholly owned subsidiary, is currently undertaking a survey of the existing stockpile, as part of the process of managing the stockpile's dam wall, and the result will be communicated to the market upon receipt.
Leigh Creek Copper Mine Financial Update
The recent surge in copper prices has had a significant impact on the forecasted profitability associated with current plans to monetise the Paltridge North and Lynda/
The following table identifies this significant growth in forecast value since the acquisition of LCCM in
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Acquisition |
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Current Market |
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Copper Price |
USD/lb |
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Exchange Rate |
AUD/USD |
0.7200 |
0.7000 |
0.7900 |
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Pre-Tax Cash Flow |
US $m |
19.2 |
35.4 |
56.5 |
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Pre-Tax NPV @ 8% |
US $m |
9.9 |
26.7 |
42.9 |
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Acquisition |
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Current Market |
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Operating Margin |
% |
39% |
51% |
58% |
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Operating Cost |
per Lb of Cu |
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The commencement of the project remains subject to the receipt from the South Australian Department of Energy and Mining of a Programme for Environmental Protection and Rehabilitation ("PEPR") approval for the Paltridge North deposit and funding of the AUD
The financial analysis provided by the Company is limited to the existing JORC resources and does not take into account additional material within the LCCM tenements or the possibility of processing the Lynda/Lorna Doone deposits as copper sulphate, as opposed to the copper cement product, historically produced. Inclusion of either of these is likely to add further valuation upside.
Commenting, John Peters, Managing Director of Strategic Minerals, said:
"The Company continues to differentiate itself from other junior AIM listed mining stocks through its access to a regular cash flow that covers overheads and contributes to funding project developments.
"Recent significant rises in the copper price to over US
"The increasing interest in copper and projects which offer a quick route to production, due to the continued rise in copper prices, has proven timely as the Company progresses discussions with potential LCCM joint venture partners. Given the material changes in the project economics, this update was deemed appropriate to highlight to the market the impact of the copper price rise ahead of completing any joint venture on LCCM."
For further information, please contact: |
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Strategic Minerals plc |
+61 (0) 414 727 965 |
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John Peters |
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Managing Director |
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Website: |
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Email: |
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Follow Strategic Minerals on: |
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Vox Markets: |
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SP Angel Corporate Finance LLP |
+44 (0) 20 3470 0470 |
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Nominated Adviser and Broker |
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Matthew Johnson |
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Ewan Leggat |
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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.
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