What Strategic Minerals owns
Cobre (iron ore): In 2011, subsidiary Southern Minerals acquired the rights to process the Cobre magnetite stockpile in New Mexico where currently there are six years of tailings reserves.
Central Australian Rare Earths (nickel sulphide, cobalt): CARE holds tenements and has access to mining rights for cobalt, nickel, and rare earth elements in these tenements in Western Australia.
Leigh Creek (copper): Strategic acquired the rights to the old copper mine situated in the North Flinders Ranges of South Australia, 500km north of Adelaide in 2018. The project comprises three sites: Mountain of Light; Paltridge and Rosmann East.
Redmoor (tin tungsten): Located 25km from Plymouth, and 40km from the Drakelands (Hemerdon) tungsten mine and processing plant.
How it's doing
In October, SML said sales from the Cobre magnetite stockpile in New Mexico were up 26% at £1.1mln while tonnage rose 23% to 12,704 in the quarter to September,
Strategic, though, is in dispute with one of its main customers there and third-quarter revenue included a US$375,000 forfeit.
The AIM-listed company is currently pursuing US$21mln plus damages in an arbitration claim against Cobre’s main customer, whose name has not been disclosed.
The bill includes at least US$2.3mln sought in relation to payments still outstanding, and US$19mln for lost profits for the balance of the contract.
On a running basis, twelve-month revenue fell to £3.2mln, almost half of the 2018 figure,
What the boss says: John Peters, managing director
"The progression of a formal claim against the major client at Cobre has resulted in the board having to reconsider the pace at which it can progress planned projects.”
- Strategic Minerals now has total ownership of the Redmoor asset.
- A recent preliminary assessment of the underground possibilities for Redmoor by consultantWardle Armstrong concluded there is scope to mine 600,000 tonnes of ore a year for the next decade based on a 7.1mln-tonne resource with a 1.09% tin equivalent grade.
- Legal action taken against Cobre client
- Leigh Creek cashflow starts to pick up