Strategic Minerals positive after recent price increases

20th Oct 2022 17:24

(Sharecast News) - Strategic Minerals updated the market on its cash position and ore sales at the Cobre magnetite operation in New Mexico for the September quarter on Thursday, reporting that July price increases boosted revenue to $0.653m, up from $0.607m year-on-year.

The AIM-traded firm said annual sales to the end of September of $2.475m were "slightly weaker" than last year's $2.85m, which it put down to lower revenues prior to the agreed price increases.

Elevated transportation costs were continuing to restrict geographical sales expansion, it added, while group cash balances totalled $0.381m as at 30 September.

Strategic Minerals said discussions with both equity and debt funders for the Leigh Creek Copper Mine were continuing.

It also noted that tungsten and tin were named as 'critical minerals', and encompassed within the UK government's strategy, providing the potential for government assistance in developing the Redmoor mine.

"Sales revenue levels continue to provide operational support, despite price increases," said managing director John Peters.

"Efforts continue to secure funding for the Leigh Creek Copper Mine restart but, as yet, no binding commitments have been made.

"We are studiously preparing submissions for possible government funding of the Redmoor mine and believe that this project aligns well with the UK government's plans for the critical minerals sector."

At 1628 BST, shares in Strategic Minerals were flat at 0.3p.

Reporting by Josh White at Sharecast.com.