Strategic Minerals PLC (AIM:SML, OTC:SMCDF) said it expects revenues from its Cobre tailings subsidiary to double this year after it landed a second sizeable contract.
After its major customer restarted orders last month, a new client has now signed up and is expected to take 5,000-7,000 tons (t) of iron ore a year, the company added.
As a result, 2024 revenues incorporating the new and major client should exceed US$3.5 million, it added, against US$1.6 million in 2023.
Talks are still ongoing with another potential client, said the statement, but due to the two recent deals already signed it might not have the capacity to meet its requirements.
Deliveries have started on the 30,000t a year contract signed in January, it added, with payment on a 14-day billing cycle.
To tide it over until payments start to be received, Strategic said it has taken out a short-term A$100,000 loan (plus warrants) repayable in October.
John Peters, Strategic Mineral’s managing director, said: "Encouraging sales trends at our Cobre operation have continued with the addition of a further new client, amid a clearly positive backdrop for the renewed demand for magnetite.
“There may yet be scope to further augment the existing sales expectations, either during 2024 or beyond.
"The Leigh Creek Copper Mine is currently subject to potential interest from a new group who are based in the same region as the project and have access to sufficient funds to get the project into operations.
“Meanwhile, the team at Cornwall Resources continues to advance the project on several fronts, including progressing its application for grant funding from the Shared Prosperity Fund.”