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Strategic Minerals reports progress on many fronts during a strong second quarter

Strategic Minerals has assets in the US, the UK and Australia

Strategic Minerals PLC -

Strategic Minerals PLC (LON:SML) has boosted sales at the Cobre magnetite project in the US, despite the disruption of the coronavirus pandemic.

Quarterly sales were up 89% on quarter-end June 2019 and ahead 38% year-on-year.

Despite the suspension of mining activities at the adjacent copper mine, operations at Cobre continue to operate under protocols established to ensure contactless sales and have been successful in safeguarding employees and clients to date.

Meanwhile, the outcome of the long-running arbitration that Strategic was forced to undergo has confirmed that it is owed US$21.9mln plus interest by CV Investments, although whether the money will actually be paid remains open to question.

Group cash stood at U$533,000 as at June 30, 2020.

The company also reported a noticeable increase in interest in the Leigh Creek copper project in Australia, as the copper price has recovered to above pre-pandemic levels.  Not only do these higher prices support the long-term economic attractiveness of the project but they also highlight the economic potential for the project to enter into production within a year.  This makes the Leigh Creek Copper Mine one of the quickest, if not the quickest, near production copper project in the world.

Meanwhiule, in the June quarter at Redmoor in Cornwall, the team continued to work on processing and analysing historical data. This is designed to strengthen its understanding of the resource and further develop the conclusions of the last Scoping Study to improve the robustness of the expected project economics to be used at the corporate level in discussions with potential joint venture partners.

“The encouraging performance at Cobre during the June 2020 quarter, particularly given the more challenging global overlay, has underwritten both operations and minimised funding required to repay the loan associated with taking full ownership of Redmoor,” Strategic Minerals' managing director John Peters said in a statement.

“The company's key focus is on moving both the Leigh Creek and Redmoor projects forward in a manner that avoids dilution at the parent level. The strong copper price rebound, and sustained positive commodities outlook, bodes well for Leigh Creek's potential economic returns and strengthens its attractiveness to potential joint venture partners.

"Work by the Cornwall Resources team, during the quarter to June 2020, has helped to further emphasise that the Redmoor project is world-class and the Board is in discussions with organizations to assist the Company secure a suitable joint venture partner to take the project forward to a Pre-Feasibility Study and beyond, while also confirming the credentials of and the inherent value of the Redmoor project," he added.

 

Quick facts: Strategic Minerals PLC

Price: 0.465 GBX

AIM:SML
Market: AIM
Market Cap: £8.06 m
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