Strategic Minerals reports solid production at Cobre operation

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Strategic Minerals PLC (LON:SML) said sales continued to be healthy at its New Mexico-based Cobre iron ore tailings business.


In the three months to June, its second quarter, tonnage was 12,130 (14,733), with sales of US$740,000 (US$881,000).


Revenues over a running twelve months basis were US$2.89mln, down slightly on the US$3.1mln in the preceding year, which was boosted by a spike in demand for iron-reinforced concrete but well up on 2019’s US$2.25mln over the same period.


Cash balances at the year-end were US$734,000, up from US$686,000 a year earlier, which SML said was consistent with budgets and reflected reduced investment in projects, notably in the Leigh Creek Copper Mine in Australia as it waited for an environmental permit (PEPR) that has now been conditionally granted.


John Peters, managing director, said: “Cobre sales remain strong with its cash flows providing a valuable revenue stream for the company.


“Currently, it is not believed that the conditions associated with LCCM’s PEPR approval will have a significant effect on timing of planned production and the company intends providing clarification on this at the beginning of August.


“The company continues seeking debt style funding for the LCCM project and believes its economic attractiveness will result in securing such funding.”

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