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Strategic Minerals generates US$203,000 in free cash during the second quarter, looks to second revenue source from Leigh Creek soon

Strategic Minerals' balance sheet remains in good shape

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Magnetite from Cobre

Strategic Minerals PLC (LON:SML)(USOTC:SMCDY) generated US$203,000 of free cash in the three months to June 2019 from magnetite production from Cobre.

Additionally, the company raised £820,000 on 25 June and received the money in early July.

WATCH: Strategic Minerals raises £890,000 to help close Redmoor purchase

The company continues to face issues of payment from a major client of Cobre, with legal proceedings expected to commence soon should payment not be forthcoming.

As it stands the client continues to express its intention to make payment.

During the period Strategic Minerals invested over US$1mln into its projects, with over US$900,000 earmarked for the Leigh Creek copper project.

It also received its first revenue receipts from Leigh Creek.

Cash at the end of the period stood at US$319,225, prior to the receipt of the balance of the recent equity issue.

"The June quarter was a busy and productive period for SML, which saw the company not only make its maiden sale of copper cement concentrate from Leigh Creek but also sign binding contracts for the acquisition of the remaining 50% of Redmoor and complete a crucial equity fundraise,” said managing director John Peters.

"Sales volumes at Cobre have remained lower but this quarter's sales margin was bolstered by the recognition of a payment previously made by its major client, now forfeited. While the board is confident that a satisfactory resolution can be reached with the major client at Cobre, we remain focussed on developing the company's broad multi-mineral portfolio and steering SML towards its goal of commencing a second, major income stream, expected in the second quarter of 2020.”

 

Quick facts: Strategic Minerals PLC

Price: 0.6 GBX

AIM:SML
Market: AIM
Market Cap: £8.81 m
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