Strategic Minerals' (LON:SML) first half was transformational and saw it move into profitability at the Cobre operation in New Mexico and buy a stake in the Tatu coal project in New Zealand, it revealed, adding that the momentum was continuing into the second half.
Strategic acquired 51% of Tatu at the end of May and has an option to buy the remainder.
The six months to June 30 also saw the raising of £1 million, the establishment of the JORC resource for Tatu at 6.7 Mt and the addition of seasoned mining executive Alan Broome as chairman.
John Peters, the managing director, told investors: "This momentum has been carried forward into the second half of the year with the commencement of the extraction of the bulk sample for the Tatu mine, approval from the New Zealand government to the change of control in the Tatu mining licence, continued development of the feasibility study of the Tatu mine covering the sales, costs of production and funding alternatives available, release of the Australian exploration tenements, on-going negotiations with buyers and transport companies to ensure domestic sales at the Cobre mine and the continued development of the potential project at Wanbao, Jilin province, China."
Cobre made a profit of US$162,000 for the period compared to a loss of US$2.44mln in the same period of 2014, while the overall group loss was £320,000, down from a loss of £2.6mln in the first half , 2014.
Cash and equivalents as at June 30 were US$1.090mln (31 Dec 2014: US$946,000) with a further US$792,000 received in July 2015 from the second tranche of the capital raising.
Investors hailed the report and shares added 20% to 0.3p