A new customer helped boost sales during the September quarter from Strategic Minerals plc's (LON:SML) Cobre iron tailings operation in New Mexico.
Shipments to the new client began in mid-August and have carried through into the December quarter, the AIM firm said.
Sales in the three months came in at US$462,000 on the back of 7,686 tonnes produced. That compares to sales of US$250,000 in the same three months of 2015 on the back of 3,684 tonnes generated.
Due to a bulk discount for the customer, average sales prices reduced, but overall net profitability is expected to be maintained at the historical average level of 45% of sales, Strategic said.
The group continues to work with other customers trying to increase sales as it believes existing infrastructure could support a significant growth in volumes.
WATCH: Strategic chief John Peters speaks to Proactive's Andrew Scott
It came in a wide ranging update on the quarter, which also saw the firm settle its claim against the rail provider to the Cobre mine for US$675,000 to be paid in instalments with the final payment being made by the end of June next year.
Strategic also raised £600,000 in a placing last month, and combined with the rail settlement and improved Cobre revenue, means it's in a good position to post a maiden profit; fully exercise its option taking its share in the Redmoor project to 50%; and undertake further drilling/exploration within the CARE tenements in Western Australia.
At the end of the September 2016, Strategic had US$506,399 in cash versus US$837,814 as at the end of June this year.