Strategic Minerals Corporation PLC (LON:SML) remains on track to produce around 17,000 tons of iron ore this year.
The company has a tailings processing licence at Cobre in New Mexico and produced 3,427 (4,707) tonnes of iron in the three months to March.
Revenues were US$0.23mln (US$0.32mln) in the quarter, which was consistent with annual patterns. Sales prices have stabilised around the US$66 per ton level despite the weakness global iron ore prices.
Two large orders currently under discussion would involve price discounts and not impact sales until the second half of the year. SML remains in discussions on extending its tenure at Cobre for a longer period.
Strategic recently acquired a 50% interest in Aussie explorer Central Australian Rare Earth (CARE). The nickel group started drilling its keenly anticipated Hanns Camp prospect at Laverton in Australia this week.
Over the quarter, the company pulled out of two coal projects at Tatu and Wanbao. Cash at the end of the year was of US$0.64mln.
John Peters, Strategic Minerals’s managing director, said production from the Cobre mine continues to underpin its operating costs, which are being reduced.
"The company is looking for new projects with either tied offtake arrangements or ones based on exploration for minerals/metals expected to have strong demand/price upside in a three to five year time horizon.
"The board continues to focus on securing additional sales in Cobre, progressing legal claims associated with the rail upgrades undertaken at Cobre, monitoring the drill programme at the Laverton project and progressing its current negotiations seeking an additional project opportunity."