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General mining & base metals

Strategic Minerals books profit for six months to June, as Cobre operations shine

Strategic Minerals also has a copper asset in Australia

Strategic Minerals PLC (LON:SML) turned in a pre-tax profit of US$261,000 for the six months to June 30, 2020, with after-tax profits ringing in at US$77,000 versus losses for the corresponding period a year ago of US$1mln.

The profits were due to a strong performance from the Cobre magnetite operation in the USA.

WATCH: Strategic Minerals' John Peters expects market to pick up on underlying value of its assets

The group's unrestricted cash and cash equivalents at June 30, 2020, were US$533,000.

During the period the company maintained uninterrupted operations at Cobre despite the impact of the coronavirus pandemic. It also completed an arbitration process which confirmed a US$21.9mln claim against CV investments. CV Investments has since had a receiver appointed by the US Securities Exchange Commission.

"The first half of 2020 has been globally trying,” Strategic's managing director John Peters said in the results statement. “However, through prudent management, the company has been able to maintain and improve underlying operations and has raised funds, in a difficult environment, to complete payment for the acquisition of the balance of the Redmoor project.”

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