Strategic Minerals PLC (LON:SML)(USOTC:SMCDY) confirmed the rollover of access to the magnetite stockpile in New Mexico.
This is the ninth yearly rollover of access to the Cobre magnetite stockpile and ensures continuity of profitable operations for the year ahead, it said.
Despite the pandemic, sales in 2020 grew (excluding sales relating to CV Investments LLC) by 21.6% to US $3.025mlm, and the company expects it will maintain, if not increase, this level in 2021.
Meanwhile, at the Leigh Creek copper mine in Australia, the impact of higher copper prices is being assessed.
The recent surge in copper prices has had a significant impact on the forecasted profitability associated with current plans to monetise the Paltridge North and Lynda/Lorna Doone deposits within the Leigh Creek project, the company said.
The impact on the company's internally projected financials, employing the same model used in the previous statements, indicates that the implied project value is around three times that assessed at the time of acquisition
"The company continues to differentiate itself from other junior AIM listed mining stocks through its access to a regular cash flow that covers overheads and contributes to funding project developments,” said John Peters, managing director of Strategic Minerals.
"Recent significant rises in the copper price to over US$4.00 per pound from a low of near US$2.00 in March 2020, have greatly increased the potential valuation of LCCM. This has occurred at a time when the company is closing in on the regulatory approval for accessing the Paltridge North deposit.”