Strategic Minerals highlights strong quarterly sales from Cobre project

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Strategic Minerals PLC (LON:SML) has reported what it said were “strong” quarterly sales from its Cobre magnetite operation in New Mexico, USA.

In an update for the quarter to December 31, 2020, the mineral producer reported sales from the project of US$747,000, up from US$713,000 a year ago, while tonnage from the site increased to 12,845 tonnes from 12,202 in 2019. Annual sales, meanwhile, increased to US$3.03mln from US$2.49mln while production rose to 51,518 tonnes from 42,517.

WATCH: Strategic Minerals’ £700k raise ‘clears way for true potential value ahead’

The company said sales from Cobre had “remained robust” and that the sales growth highlighted demand strength which has been maintained despite disruption from the coronavirus pandemic.

Meanwhile, the firm said the approval process for mining at the Paltridge North deposit at its Leigh Creek copper mine in South Australia is continuing, indicating the potential to recommence operations in 2021, while its Cornwall Resources team is continuing to work with NRG Capital to progress the Redmoor project.

The company noted that it has also appointed Karen Williams as chief financial officer to replace Julien McInally, who is leaving to follow alternative employment opportunities, while the firm itself ended 2020 with a cash balance of US$0.83mln.

“Continued strong sales at Cobre, combined with the December capital raise, have placed the company in a solid position to move forward in 2021 with a goal of commencing a second income stream from copper production at Leigh Creek, subject to finance. Concurrently, we continue our endeavours to progress the Redmoor project”, Strategic Minerals managing director John Peters said in a statement.

“On behalf of the board, I would like to thank our outgoing Chief Financial Officer, Julien McInally, for his numerous contributions to the company’s operations and wish him well in his future employ. At the same time, I would like to welcome the company’s new Chief Financial Officer Karen Williams, who has already demonstrated her capacity to be a key member of the management team and provide strategic support to the board”, he added.

The company’s shares were 11.6% lower at 0.4p in early deals on Thursday.

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