Strategic Minerals PLC (AIM:SML) said sales from its Cobre magnetite operation in New Mexico reduced last year but it expects operations at Australia's Leigh Creek copper mine to begin in the first half of 2022, subject to receipt of required funding.
The AIM-listed company said in a statement that it expects to report a profit for 2021, subject to audit, with annual sales revenue from Cobre of US$2.61mln.
A gentle decline in sales from Cobre over the first three quarters was followed by a significant fall in the fourth quarter as the company's largest client indicated they wished to run down a significant magnetite stockpile at their plant.
Group cash balances at the end of the year were US$609,000.
Managing director John Peters said: "While Cobre sales have reduced over 2021, the expectation of revenue from Leigh Creek in 2022 subject to receipt of project funding, places the company in a strong position to realise its promise to develop a second income stream and significantly improve after-tax operational profits.
"Copper and tin prices continue to favour both the Leigh Creek and Redmoor operations and the board believes 2022 will see exploration for both projects, in conjunction with external partners."
With an updated Programme for Environmental Protection and Rehabilitation lodged with the Department of Energy and Mining of South Australia, SML said it is confident that regulatory approvals will allow for operations to begin, subject to finance, late in the first quarter/early in the second quarter 2022.
Discussions with potential funders continue and site inspections in February are currently expected, subject to travel restrictions.
The company also noted that the receiver of CV Investments LLC has indicated an intention to distribute, with a formal request for all creditors and investors to submit their claims.
Peters said the company is looking forward to a positive resolution on the CV claim this year.