21st Jun 2024 13:16
(Alliance News) - Strategic Minerals PLC on Friday reported weaker financial performance as the company contends with falling sales and a lack of funding.
The London-based mining and exploration company said in 2023 pretax loss widened to USD9.1 million, USD0.2 million prior to non-cash adjustment for impairment, from USD0.4 million the year prior.
Revenue fell 36% to USD1.6 million from USD2.4 million, reflecting the suspension of orders from the Cobre magnetite operation's major client in late 2022.
Cash and cash equivalents held by Strategic Mineral decreased 67% to USD112,000 from USD341,000.
Throughout the year, the company was marketing and following up on potential co-investors in the Leigh Creek Copper Mine project which has suffered from a lack of funding since 2022. Failure to secure finance led management to impairing the asset at an USD8.9 million expense.
Looking ahead, management said the company is actively pursuing non-dilutive funding approaches, both joint venture and debt style, to progress both LCCM and Redmoor tin and tungsten project.
Strategic Minerals shares were up 5.6% to 0.19 pence each in London on Friday afternoon.
By Elijah Dale, Alliance News reporter
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