Strategic Minerals PLC (AIM:SML) said its access to the magnetite stockpile in Cobre, New Mexico has been extended until March 2027.
The extension provides long-term cashflow and a way for Strategic Minerals to seek additional sales “more aggressively” through long-term certainty of supply, the company said on Monday.
“This extension should underpin the company’s future profitability and provides scope to broaden Cobre’s clientele, which is expected to lead to higher sales in the future,” said John Peters, managing director at Strategic Minerals.
Sales at Cobre have recovered to previous levels after a dip between October and January and a marketing campaign is expected to provide growth in the second half of the year, the company said.
Strategic Minerals also said it would lodge a claim for US$21.9mln following a court order obtained by the receiver of CV Investments LLC in February.