Strategic Minerals PLC (LON:SML)

Strategic Minerals PLC (LON:SML)


Share Price
1.68 p
Change
-0.0245 (-1.44 %)
Market Cap
£23.53 m
Proactive Investors - Run By Investors For Investors

Strategic Minerals PLC

Strategic Minerals plc is a AIM listed (AIM: SML) minerals production and development company focused on developing projects prospective for battery materials.

EPIC: SML
Market: AIM:SML
52-week High/Low: 2.080p / 1.100p
Sector: General Mining - Iron Ore and Bauxite
Market Cap: £23.53 m
Website: www.strategicminerals.net
col 3
col 4
col 5
col 6

Big Picture – A Deep Dive Examination of Strategic Minerals PLC


Strategic Minerals PLC Snapshot

Maintain a balance of cash, near term cash and explorations assets and grow the Company’s value and share price by levering off base cash flows from producing assets to develop resources projects that relate to metals and advanced materials expected to increase in demand and price as a result of the expected bourgeoning of the batteries and electric vehicle markets. This is to be achieved through:

Operating Strategy  -  Self sufficient

As a operator of a magnetite tailings business in the US, the Company, unlike many of its compatriots, has an underlying cash flow. The SML Board has committed to ensuring that corporate overheads, required for a listed company, are maintained within this cash flow and that any share issues are raised for project investment.

Investment Strategy– Three pronged approach to diversified minerals

1.Coal and Bulk Materials- focused on potential projects in this sector that are tied to current contracts and further offtake
                                           arrangements at attractive prices.

 
2.Advanced Materials-       considering project opportunities in materials where it expects demand to increase over the coming years
                                           (such as Cobalt, Rare Earths, Lithium and Graphite).

 
3.Metals-                            identify those projects exposed to metals that it expects to have price improvements over the next three
                                           to five years such as Nickel, Copper and Tin/Tungsten.  

 

This approach has been commenced and is reflected in the Company’s current project portfolio, shown below:

pyramidn

 

Leigh Creek Copper Mine

In 2018, the Company acquired Leigh Creek Copper Mine (“LCCM”) situated in the North Flinders Ranges of South Australia, 500km north of Adelaide. It covers 935 km2 of exploration leases (575.1 hectacres mining leases) and consists of three sites:

ML 5467 Mountain of Light (MOL Project or MOL) is 3km south east of the township of Copley and 5km north east of Leigh Creek. The Paltridge North copper oxide deposit and the previously mined Rosmann East and Paltridge South deposits are located at this site. A processing plant including existing heap leach pads and a copper extraction process utilising Kennecott Cones to produce a copper cement (+70% Cu) is located within the Licence area.

ML 5498 Lorna Doone (Lyndhurst Project), situated approximately 31km north east of the township of Lyndhurst and 55km north-north-east of Leigh Creek. The mining lease covers the Lorna Doone and Lynda copper oxide deposits.

ML 5741 Mount Coffin, located 11km east north east of the township of Copley and 15km north east of the Mountain of Light processing facility. This includes the  Elsie Adair and West Jubilee copper deposits.
The project is located northern limited of an extensive copper region of the Flinders Ranges.  South Australia has an extensive history of copper production with the state currently producing 27% of Australia’s copper and has 68% of Australia’s economic demonstrated copper resources.  Other significant deposits in South Australia include BHP’s Olympic Dam (80million tonnes of contained copper), and Oz Minerals’ Prominent Hill (2.3mt of contained copper). Click here for more details.

Cobre Magnetite Stockpile

The Cobre operation currently sells magnetite from a treated stockpile through the Company’s wholly owned subsidiary Southern Minerals Group LLC. Cobre is a reliable high-capacity supplier of magnetite to industries throughout North America, in markets such as:

Cement - Ballast
Fertilizer - Magnets
Landscaping - Coal cleaning
Paint pigment - Dense media/medium

Click here for more details.

Redmoor Tin Tungsten

The Redmoor Project (“Redmoor”) is located between the village of Kelly Bray and the small town of Callington in southeast Cornwall, United Kingdom, approximately 25 km by road from the city and port of Plymouth, and 40 km from the recently commissioned Drakelands (Hemerdon) tungsten mine and processing plant. The area has well-established infrastructure and is located in the historically significant Cornish tin – tungsten – copper mining district.

Click here for more details.

CARE Nickel

Central Australian Rare Earths Pty Ltd (“CARE”) Nickel Sulphide


In 2016, the Company funded a drilling programme at the highly prospective Hanns Camp located within CARE's Laverton Project. In doing so, it acquired 50% of the ownership of CARE from Rarus Limited ("Rarus"). Subsequently, in May 2017, the Company acquired the balance of the ownership of CARE, which is now wholly owned by the Company.

CARE holds tenements and has access to mining rights for cobalt, nickel, and rare earth elements in these tenements in Western Australia.

The Laverton Project is located in the 'Eastern Yilgarn Craton Nickel Sulphide Province' in Western Australia that is most notable for hosting the Mount Windarra and South Windarra nickel sulphide deposits located 12km west of the Laverton Project which together produced 8.1 million metric tonnes (Mt) at 1.51% nickel (Ni) between 1974 and 1992.

Click here for more details.


 

Alan Broome

Alan Broome

Non-Executive Chairman

Alan Broome, AM (I.Eng, F AusIMM, FAICD, FICME, MInstD (NZ)) is a metallurgist with over 40 years' experience in mining and metals. A well-known figure in the Australian mining industry,

Alan has extensive board experience, both as a director and chairman of a number of listed and unlisted mining and mining technology companies.

Alan commenced his career in the Port Kembla Steelworks before joining the Australian Coal Industry Research Laboratories, which he ran for over a decade. Over the past 20 years, Alan has had in-depth experience in coal mining, mining technology, equipment, services and research sectors internationally.

John Peters

John Peters

Managing Director

John Peters FCPA, FFINSIA, is a CEO with over 30 years corporate finance experience at senior levels, whose expertise crosses a number of industries including natural resources. John is experienced in publicly listed companies on the AIM and ASX stock markets and was the CEO of Ebony Iron Pty Ltd, which negotiated the acquisition of the rights to the Cobre magnetite stockpile.

From his experience managing over £7bn for the Commonwealth Bank of Australia, he understands capital raisings, mergers and acquisitions and how they are perceived by professional investors. He is experienced in acquisition strategies, mining project evaluation, commercial arrangements, statutory and management reporting and compliance and governance obligations of public companies.

Peter Wale

Peter Wale

Executive Director

Peter Wale holds a BA in Business Economics and Accounting from the University of Reading, UK. He has over 20 years of diverse investing experience across developed and emerging markets.

Peter worked in equities trading for both Japanese and American investment firms, including Fidelity Investments, where he was a Pan-European small and mid-cap equities trader. Prior to joining the Company’s Board, he was a partner and senior equities trader at a global hedge fund, Habrok Capital LLP.

Peter remains an active investor and has regular contact with companies as well as an extensive network of investor contacts. He is based in London, chairs the Company’s Audit Committee and is well aligned with our AIM listing, advisors and investor base.

Jeffrey Harrison

Jeffrey Harrison

Non-Executive Director

Jeffrey Harrison (Member of the Institute of Directors and a Fellow AusIMM) is a highly experienced mining engineer with over 40 years’ experience in mining and minerals processing globally. As such, he brings to the Board a set of skills associated with practical mining operations which is desirous given the stage of development of a number of the Company’s projects.

Amongst his many accomplishments, Jeff was instrumental in establishing Wolf Minerals’ Hemerdon Mine, the first new metal mine in the UK in 45 years and was involved with the Company prior to his Board appointment through consulting on the Redmoor project.

Jeff chairs the Company’s Safety Committee.

Julien McInally

Julien McInally

Chief Financial Officer

Julien McInally holds a CPA and MBA and is a CFO/Company Secretary having over 15 years of resource industry experience with public listed companies on the TSX, AIM and ASX stock exchanges.

Julien has expertise in capital raising, mergers and acquisitions, mining project evaluation, strategy, commercial agreements, statutory and management reporting and compliance and governance obligations of publicly listed companies.

He has held a number of senior positions in private exploration companies and has worked for BHP Billiton, Gladstone Pacific Nickel Limited (AIM and TSX: GPN), Robust Resources Ltd (ASX:ROL) and Reliance Resources Limited (TSX:RI).

Jon Reynolds

Jon Reynolds

Project Manager, Australasia

Jon Reynolds BASc (Geol) is a highly respected operations and exploration geologist with over 30 years’ experience. His career has seen him exposed to exploration for, and processing of, a number of minerals including Nickel, Copper, Uranium, Gold and Tin.

During his career, Jon has built up a reputation as a first-class mining business development manager and has successfully project managed a number of exploration programmes and processing operations.

Jon is directly responsible for managing CARE but also provides a monitoring role on the progress of both Leigh Creek Copper Mine and Redmoor.

Significant Shareholders

The following tables show those shareholders who have a holding of 3% or more of the Company’s issued share capital (except treasury shares) and the shareholdings of the directors of the Company.

           Name

No. Ordinary Shares

Current % of Issued Share Capital

Charles and Alexandra Manners

71,487,885

5.09

John Peters

50,500,000 3.60

Peter V Wale

50,364,000

3.59

James & Kimberley Chisholm held by Lenark Pty Ltd and Kifaco Pty Ltd

44,834,954 

3.20

 

For general and investor enquiries, please contact [email protected]

Press enquiries please contact Yellow Jersey PR

[email protected]

+44 (0)7768 537 739

Advisors

Nominated Adviser and Broker
SP Angel Corporate Finance LLP
Prince Frederick House
35-39 Maddox Street
London
W1S 2PP

Registrar
Share Registrars Limited
Suite E, First Floor
9 Lion and Lamb Yard Farnham
Surrey GU9 7LL

Solicitors
Gowling WLG
4 More London Riverside
London, United Kingdom SE1 2AU

Auditors
BDO LLP
55 Baker Street
London W1U 7EU

Columns Including SML

VIEW ALL

Market Reports Including SML

VIEW ALL
Video RSS

Videos

VIEW ALL VIDEOS

© Proactive Investors 2019

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use