Strategic Minerals (SML ) said annual ore sales have remained strong at the group’s Cobre magnetite operation in New Mexico at US$2.865m for the 12 Months to 30 September 2021.
The Company, which operates as a producing mineral company, said annual sales from Cobre for the year to 30 September 2021 continue to be maintained at just under US$3m.
It said the ‘moderate decline’ is considered to be mainly attributed to a spike in sales last year linked to an increased demand for reinforced concrete, for which magnetite is an input.
Overall, annual cobre sales fell marginally to US$2.865m (£2.084m) from US$2.991m in the previous 12 months to 30 September 2020. As at 30 September 2021, the Company’s non-restricted cash balance was US$0.564m compared to US$0.734m as at 30 June 2021.
‘While after tax profitability from Cobre continues to cover corporate overheads and provide a small surplus of circa $0.2m p.a., costs associated with moving forward both the Leigh Creek Copper and Redmoor Tin Tungsten projects result in reducing cash balances,’ it noted.
With the Leigh Creek Copper Mine expected to move into production, and generate revenue, next year, subject to finance, the Group expects that this may not be the case in 2022.
To ensure there is an adequate cash balance in the Company at all times and to move the projects forward until they become self-funding, the Company raised a further £0.4 million in October 2021 which included participation by SML directors Peter Wale and John Peters.
Addressing shareholders, John Peters, Managing Director of Strategic Minerals, commented: “Cobre sales remain strong and the Company continues to move its projects forward.”
He added, “The Company has had significant discussions associated with debt style funding for the LCCM project and believes the rising copper price will result in securing such funding to allow the commencement of production at Leigh Creek which, subject to finance, is expected to commence in the first quarter of 2022.”
Last month, Strategic Minerals reported significant tin results from an auger and trench sampling programme undertaken around 1,000m to the west of the Redmoor resource.
Cornwall Resources, a wholly owned subsidiary of Strategic Minerals, decided to undertake the trenching and auger exploration program with the objective of investigating the possible presence of extensions of mineralisation to the west of the established Redmoor resource.
In September, it was reported that the Company had successfully completed the programme with 117 samples taken in total using a Stihl powered auger, from an average depth of 50cm.
Addressing shareholders, Strategic said its subsidiary had successfully identified new drill target areas which are anticipated to offer “significant upside” for the Redmoor project.
Globally, the price of tin has reached new highs with the commodity nearly doubling in value over the past year. Following these results, the Company believes its strategy of investing in assets with the potential for long term commodity price appreciation has been reinforced.
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