Strategic Minerals PLC (LON:SML) will post a maiden profit and push ahead with its tin mine plans in Cornwall after its US iron ore business had a record year.
John Peters, Strategic Minerals managing director, said that Cobre’s sales would mean a maiden profit in 2016.
Cobre, in New Mexico, racked up sales of US$1.55mln from 25,385 tons of magnetite, while it also received US$400,000 due from a dispute with the rail operator at the iron ore tailing operation.
SML said it took lower average prices due to a new large customer coming on board, but even with discounting Cobre’s total profits rose by 70%.
The rail payment meanwhile would allow it to take its stake in the Redmoor Tin/Tungsten project in Cornwall up to 50% and fund the proposed 2017 drilling programme focused on increasing the high-grade resource.
"We are also progressing discussions with the Cobre mine owners and have increased the likelihood of longer-term access to the Cobre stockpile.”