What Strategic Minerals owns
Cobre (iron ore): In 2011, subsidiary Southern Minerals acquired the rights to process the Cobre magnetite stockpile in New Mexico where currently there are six years of tailings reserves.
Central Australian Rare Earths (nickel sulphide, cobalt): CARE holds tenements and has access to mining rights for cobalt, nickel, and rare earth elements in these tenements in Western Australia.
Leigh Creek (copper): Strategic acquired the rights to the old copper mine situated in the North Flinders Ranges of South Australia, 500km north of Adelaide in 2018. The project comprises three sites: Mountain of Light; Paltridge and Rosmann East.
Redmoor (tin tungsten): Located 25km from Plymouth, and 40km from the Drakelands (Hemerdon) tungsten mine and processing plant.
How it's doing
In May 2020 the company delivered underlying sales revenue growth of 8.8% year on year in first quarter results.
The coronavirus caused some disruption to the magnetite operation, but sales activity is continuing nonetheless.
Meanwhile, the arbitration verdict for the dispute with the major client is expected no later than 30 May 2020.
As at 31 March, the company had unrestricted cash of US$351,000 as at 31 March 2020.
What the chief executive says
"During this period, the company greatly appreciates both the continuity of activity at Cobre, due to its identification as an essential service provider, and the organic growth seen in sales over the past year. We expect this growth trend to continue in 2020 despite the unusual market conditions. Operations at Cobre have always provided the highest level of safety for employees and these efforts have been lifted again to ensure all employees are safe in this work environment.
Our arbitration process remains on track and we expect a favourable outcome for the Company to be confirmed later in May.
Efforts continue to move our projects forward and, whilst the current environment has slowed the pace of some engagements, the board and management remain confident of future progress."
- In January, the company said it is in 'active discussions' over the finance options to develop Leigh Creek as a second source of revenue
- In November, the firm received £248,155 in R&D tax relief from HMRC relating to exploration work at its Redmoor tin and tungsten project in Cornwall
- Strategic Minerals now has total ownership of the Redmoor asset
- A recent preliminary assessment of the underground possibilities for Redmoor by consultantWardle Armstrong concluded there is scope to mine 600,000 tonnes of ore a year for the next decade based on a 7.1mln-tonne resource with a 1.09% tin equivalent grade