Cobre June Quarter Sales Update
Highest on Record, Forecasts Upgraded
Strategic Minerals plc (AIM: SML; USOTC: SMCDY), a producing mineral company, is pleased to provide the following update on quarterly Cobre sales to 30 June 2024.
Highlights
• June quarter sales revenue of US$1.296m, up over c.250% on June quarter 2023 (US$367k).
• Highest June quarter sales on record.
• Full year sales in 2024 now upgraded and expected to exceed US$4.0m.
• All outstanding creditors, excluding Directors and Management, are up to date.
Cobre Sales
The return of Cobre’s major client and the addition of a substantial new client have resulted in the best June quarter on record. Not unexpectedly, this is an impressive 250%+ increase on the June 2023 quarter when Cobre’s major client was not purchasing magnetite. However, this is also an impressive 95% increase on June 2022 sales, when the major client was active.
Just how remarkable the past quarter’s sales are is illustrated in the following graph which shows the spectacular performance at Cobre, further illustrating the Board’s view that the market undervalues the Company. Note, the December 2019 quarter sales have excluded a one-off payment of $750,000 relating to the termination of the CV Investments contract.
|
Sales |
June Quarter |
|
12 Months To June |
||||
|
|
$’000 |
Volume |
|
$’000 |
Volume |
||
|
2024 |
1,296 |
18,935 |
2,933 |
40,598 |
|||
|
2023 |
367 |
4,162 |
1,898 |
23,856 |
|||
|
2022 |
666 |
10,711 |
2,429 |
38,825 |
|||
With over US$2m of sales (31,327 tons) in the first half of 2024, the Company considers it appropriate to upgrade the 2024 Cobre full year sales forecasts as volumes are now expected to exceed 60,000 tons (17,965 tons in 2023) resulting in upgraded revenues expected to exceed US$4.0m (US$1.6m in 2023).
Cash Management
As previously reported, the substantial reduction in sales during 2023 required careful financial management. The Company is happy to report that, with Cobre’s excellent first half sales performance, creditor arrangements, excluding the Board and Management, are now up to date with one of the short-term funding facilities (AUD $50,000) now having been repaid. This leaves a further two facilities totalling AUD $100,000 expected to be repaid from Cobre sales by their maturity date in October.
The Annual Report noted that, as of 31 December 2023, a substantial amount (US$360,000) was outstanding to the Board and Management in relation to 2023 remuneration and this has now increased, as of 30 June 2024, to US$518,000. Payment of deferred remuneration is likely to commence later this year and not be completed until the first half of 2025.
Commenting, John Peters, Managing Director of Strategic Minerals, said:
“The quarter’s sales have exceeded our expectations and bode well for a strong performance at Cobre in 2024 with forecasted annual sales now upgraded and expected to exceed US$4.0m.
“Management continues to progress negotiations with potential investors on both its Redmoor and Leigh Creek projects as well as seeing cautious signs of more widespread renewed investor interest. Until such time as a project related liquidity event occurs, the Company will continue to closely monitor short term cash flow and remains committed to avoiding the need for a dilutive capital raise, currently considered unnecessary.”
For further information, please contact:
Strategic Minerals plc +61 (0) 414 727 965
John Peters
Managing Director
Website: www.strategicminerals.net
Email: info@strategicminerals.net
