Strategic Minerals upbeat on third quarter progress at Cobre

Strategic Minerals updated the market on its third quarter on Monday, reporting “sustained solid” sales growth in the three months ended 30 September, with a 55% year-on-year rise in sales revenue at the Cobre, New Mexico magnetite operation.

The AIM-traded firm said uninterrupted operations had continued at Cobre, as a result of “effective zero contact” on-site due to processes and policies enacted in response to the Covid-19 pandemic.

During the period, the company appointed NRG Capital to develop options to advance the Redmoor tungsten and tin project.

It also lodged a ‘Program for Environmental Protection and Rehabilitation’ (PEPR) for the Paltridge North deposit at the Leigh Creek Copper Mine.

Tax payments of more than $0.4m (£0.31m) were paid during the quarter, with all tax payments confirmed to be up to date.

Group cash balances stood at $0.264m at period end on 30 September, down from $0.533m year-on-year.

“Sales at Cobre continue to show excellent annual growth providing the company the opportunity to repay outstanding liabilities and benefit from surplus cash generated from operations,” said managing director John Peters.

“Steps have been taken to move both the Leigh Creek and Redmoor projects forward in a manner that avoids dilution at the parent level. With copper prices around $3 per pound, and the recent emphasis on the strategic nature of tungsten, the board is confident that the underlying value in its projects will be realised.”

At 1333 BST, shares in Strategic Minerals were up 374% at 0.44p.