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General mining & base metals

Strategic Minerals delivers record sales from Cobre, anticipates profits of over US$1mln

The cash flow serves to boost exploration activities elsewhere

Sales of US$2.036 mln from the Cobre magnetite tailings project for the three months to September 2017 marked a new record for Strategic Minerals Plc (LON:SML).

Cobre is situated in New Mexico, USA, and has consistently generated cash for Strategic in the past.

READ: Strategic Minerals enjoying profitability and looking to grow core assets

The latest sales record is based around production of 29,539 tonnes.

The sales in dollar terms represent a 300% increase on the sales figure for the corresponding period a year ago.

It should go towards supporting the company’s first profit in excess of US$1mln.

On the basis of current sales, it’s expected that current profit margins can be maintained throughout 2018 and that annual sales are likely to exceed US$5mln.

With sizeable cash flows, and after meeting exploration costs associated with both Redmoor and Hanns Camp, the company has a healthy cash balance, which at 30 September 2017 was US $1.627mln.

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