10th Jun 2022 09:24
(Alliance News) - Strategic Minerals PLC on Friday reported a lower profit in 2021, as revenue fell.
For 2021, the company posted a pretax profit of USD257,000, down from USD524,000 in 2020, as revenue shrank to USD2.6 million from USD3.0 million.
Strategic Minerals swung to a total comprehensive loss of USD360,000 from a profit of USD1.1 million, as it suffered a foreign exchange loss of USD516,000, versus a profit of USD876,000 in 2020.
Global commodity prices affect the firm's value of its development properties, it said. That includes "global demand & supply, international economic trends, currency exchange fluctuations, expectations for inflation, speculative activity, consumption patterns and global or regional political events," it explained.
The firm said while the war in Ukraine had a positive impact on resource prices relevant to the company, "there is risk, increased by the Ukrainian developments, that global economic growth may be severely curtailed, and this would, ultimately, have a negative impact on the demand for resources."
Regarding its outlook, Strategic Minerals said "the board is confident that the outlook for the company is encouraging having weathered testing times in both 2020 and 2021".
The company sees reasons for optimism in the performance of commodity prices such as copper and tin. The prices are "significantly improving underlying valuations on the company's assets", it added.
Strategic Minerals didn't propose a dividend.
Strategic Minerals shares were untraded on Friday morning, at 0.36 pence per share.
By Tom Budszus; [email protected]
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