17th Jan 2017 10:50
LONDON (Alliance News) - Strategic Minerals PLC said Tuesday it increased sales from its Cobre magnetite mine in New Mexico, USA, in the last quarter of 2016 and intends to increase its holding in a Cornwall tin and tungsten project.
AIM-listed Strategic Minerals said for the three months to the end of 2016 it sold USD533,000 worth of magnetite, up from USD513,000 for the same period in 2015.
This quarterly performance contributed to an increase over 2016 as a whole to USD1.6 million worth of magnetite sales from USD1.3 million the previous year.
Strategic Minerals noted its net per ton profitability decreased in 2016 due to offering a bulk discount to a large new customer, but total profits were up 70%.
The company also said it has received USD400,000 from a settlement with its rail provider at the Cobre mine. Strategic Minerals said it intends to use those funds to exercise the option to increase its holding in the Redmoor Tin/Tungsten project in Cornwall to 50% and fund the 2017 drilling programme there. Strategic Minerals initially took a 9% stake in the project in May 2016.
"We are delighted to report that during 2016 we achieved record sales at our Cobre magnetite mine and, based on unaudited management accounts, we expect the company will be in a position to report a maiden profit for the 12 months ended 31 December 2016," said John Peters, managing director of Strategic Minerals.
"With active development programmes underway across our three core projects, Cobre magnetite in New Mexico, CARE nickel in Australia and Redmoor Tin/Tungsten project in Cornwall, the board is pleased with the recent progress made by the company and is confident about its prospects for 2017," added Peters.
Shares in Strategic Minerals were up 11% at 0.582 pence Tuesday morning.
By Adam Clark; [email protected]
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