Strategic Minerals said its main customer has returned with an order for 30,000 tons of iron ore from the Cobre tailings operation in New Mexico.
This order represents approximately 50% more than the tonnage the client ordered in previous years, SML added.
Shipments for the one-year order have already started and will be billed bi-monthly and paid within 15 days.
Sales volumes in 2023 halved to around 18,000t (36,300t) due largely to the absence of this customer, though SML said higher prices helped limit the impact on revenues to a 35% drop at US$1.57m.
Talks with another potential customer are also at an advanced stage over a similar size contract, SML said.
This customer has purchased around 100 tonnes of ore for calibrating their machinery to ensure that the larger order would fulfil their requirements.
John Peters, Strategic Minerals, Strategic’s managing director added: "The welcome return of Cobre's major client, bigger and better than before, augurs well for cash flow throughout 2024 and could ensure a group-wide operational cash surplus in 2024.
“The potential of another major client would only further enhance the outlook for operational cash flow.”
Cash at the year-end was US$0.1m but the new order should mean an improved cash position throughout 2024, said the statement.