GCIStrategic Minerals posts results for year to December 2023
Strategic Minerals PLC () booked a loss of US$9.08m in the year to 31 December 2023, although most of that loss was accounted for by an impairment charge on the LCCM copper asset in Australia.
The company has to date been unable to secure the financing it needs for the development of LCCM and, accordingly, it was felt appropriate to take a “conservative” view in regard to valuation.
A small operating loss was also booked in relation to the long-established Cobre magnetite operation in the USA, as revenue fell to just under US$870,000 as a major buyer remained off the scene.
However, post the period end, a former major buyer re-commenced purchases, and these have continued into the year.
In 2022 Strategic Minerals was able to book a profit of US$372,000 on the strength of operations at Cobre.
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Overall, chairman Alan Broome characterised the year as “very difficult”, but he pointed to the potential strengths of the company going forward.
These include the potential for further value uplift from the company’s Redmoor tin project in the UK, and the likely improved sales revenue from Cobre.
There’s also been something of a recovery in sentiment towards junior miners in general, as commodity prices have strengthened. Whether any value can be clawed back at LCCM remains to be seen, but Strategic Minerals has shown its ability to endure the tough times. Let’s see how it does when things improve.
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