GCIStrategic Minerals expects full year sales of US4.5m from Cobre, as it extends access
Strategic Minerals PLC () has extended its access to the Cobre magnetite stockpile in New Mexico from 31 March 2027 to 31 March 2029.
The company also announced a major new purchase order for 2025.
From 2017, Strategic Minerals has repeatedly extended its access to the magnetite stockpile at Cobre, New Mexico, through its wholly owned subsidiary Southern Minerals Group (SMG).
Production from Cobre has historically provided a long-term revenue stream for the company.
The timing of the extension also coincides with the receipt of a new purchase order for 2025 of up to 30,000 tonnes from one of SMG's major clients, which contributes substantially to the forward-looking revenue profile.
The company said that sales from Cobre continue to perform well with management confident of exceeding full year sales of US$4.5 million.
"The extension of access at Cobre to 31 March 2029 is a huge achievement by the excellent SMG team on the ground,” said Mark Burnett, executive director of Strategic Minerals.
“Combined with a significant new purchase order, this should underpin the revenue profile for SML into 2025 and beyond and provide scope to expand operations across the portfolio of SML assets."
View from Vox
This is excellent news from Strategic Minerals, as the ongoing revenue stream from Cobre is a key differential that sets the company apart from its junior peers. Markets are tough at the moment, and most companies without a revenue stream are finding it tough to keep going. Strategic Minerals has a significant exploration portfolio in the UK, Australia and elsewhere, which it will be able to support through these revenue streams in a non-dilutory way. The shares ticked up on the news and are now trading at close to a 12-month high.
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