Strategic Minerals Plc (LON:SML) saw its shares rise today after the firm said it is looking to increase its core projects further and increase its market cap to £100mln in the near future, it said, reporting a successful first half.
Cash flow from the Cobre tailings operation is expected to accelerate in the second half after substantial contract was won in June.
WATCH: Strategic Minerals eyeing profitability and transactions in the second half
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Operating profit at the site in New Mexico rose to US$690,000 in the six months compared to US$62,000 a year ago, leading to a profit before tax for the group of US$158,000 compared to a loss last year.
The period also saw an investment of £843,649 (US$1.068mln) into Cornwall Resources Limited (CRL), the owner of the Redmoor tin/tungsten project, increasing Strategic's interest to 50%.
Cash as at the end of June was US$1.259mln against US$1.105mln at the end of 2016, the company said in a statement.
WATCH: Strategic Minerals encouraged by early drill results at Redmoor
Managing director John Peters said: "As Cobre sales have increased, the resultant underlying profitability has transformed the company and provided it the luxury of being able to self-fund value adding exploration programmes, without diluting shareholders."
He added: "We continue to look to further expand our three core projects through exploration, development and corporate activities as part of our primary focus on providing shareholder returns with the ambition of increasing market capitalisation to £100m in the near-term."
The firm's current market cap is around £27.4mln.
In afternoon trading, Strategic Mineral shares were up 12.66%, at 2.225p.
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