In its results for the year to December 31, the AIM-listed firm reported a pre-tax profit of US$0.45mln, swinging from a loss of US$0.85mln in 2019. Meanwhile, the firm said its unrestricted cash position at the end of the period was US$0.83mln, up from US$0.52mln a year ago.
The swing to profit came amid what the company said was a 20% increase in sales at Cobre over the year to US$3.03mln, adding that its access to the Cobre magnetite stockpile has been rolled over once again.
Looking ahead, the firm said it is focused on restarting production at its Leigh Creek project in South Australia in 2021, as well as securing and expanding Cobre's domestic sales and developing the Redmoor Tin and Tungsten mine in Cornwall.
The group added that its outlook is “encouraging” as it had “weathered testing times in 2020 and has seen a significant improvement in early 2021”.
“The start of 2021 has provided some optimism for the Company with commodity prices for both Copper and Tin performing strongly, significantly improving underlying valuations on the company's assets. While Covid-19 continues to impact our developmental operations, the board considers that the impact is likely to dissipate over the second half of 2021”, the company said.
Shares in Strategic Minerals were 5.3% lower at 0.45p in late morning trading on Tuesday.