Strategic Minerals (LON:SML) intends to acquire more small resource projects with near term cash flows, that supply local markets.
John Peters, managing director, outlined the strategy at the company’s annual meeting, adding the aim is to become a profitable mining company in two to three years.
Since the end of 2014, Strategic has bought a New Zealand coal mine (Tatu) while due diligence is underway on a second coal mine in China.
Peters took over in January after the slump in the iron ore price had taken a toll on its US-based tailings operation Cobre.
The collapse in the export price for iron ore hit Cobre hard, he said, making international sales uneconomic. Mine gate sales continued to be profitable but on much lower volumes.
Cobre is making money, he added, but not enough to cover the group’s overheads, which is why new projects were imperative.
Corporate overheads had already been reduced by 60%, but management controls and procedures are under review to make the group even leaner going forward.