End of Year Update

RNS Number : 4637A

Strategic Minerals PLC

22 December 2014

 



22 December 2014

Strategic Minerals plc

("Strategic Minerals" or the "Company")

End of Year Update

Cobre Operations

Strategic Minerals advises that year to date sales of domestic magnetite is just above 18,100 Short Wet Tons (SWT), which is higher than the 15,000 SWT of domestic sales in 2013.  Sales started the year well but the later part of the year saw difficultly with obtaining trucks to move product, disruptions at one of our customer's sites, some de-stocking of material that customers had built up and competition from other suppliers. The Company has been working to increase sales and has been in discussions on a potential long term contract basis with customers and will continue to pursue these opportunities. 

During the last six month period, the Company has assessed the potential for conversion of the Cobre magnetite into a heavy dense media (HDM), a market which attracts significant premiums to iron ore.  Some capital expenditure will be required in order to achieve this and presently, the Company is seeking joint venture partners to assist with funding the move into the HDM market.

Financials

The Company will end the year with over US$900,000 cash. The Company notes that there are amounts owing to some creditors which are outside their normal settlement terms but the Company believes these can be disputed or there are counterclaims for a similar or higher value.  These outstanding creditors and counter claims relate to issues that occurred prior to the current management team joining the business.  The Company believes it has good grounds in relation to its potential counterclaims or disputes and therefore is satisfied as to its current working capital position.  The timing of the resolution of these matters is uncertain and should satisfactory resolution not be reached additional working capital may be required, but the directors of Strategic Minerals are confident in the potential to expunge or reach appropriate settlement for these outstanding creditor positions. 

New Projects

The Company has been very busy over the last six months reviewing and seeking to secure new projects to build its portfolio of near term production and producing assets. During that period the Company has been in detailed discussions with potential vendors and has undertaken a number of site visits. Due to technical reasons or price expectations of vendors, and the fact that the Company is seeking primarily earn-out based deals, the Company has not been able to secure an acquisition but is continuing to work on a number of potential opportunities.  The focus in the last six months has generally been in tin, gold, copper, iron ore, and silica sands.

While the Company is continuing its strategy of looking at near term production opportunities it is currently in discussions on a highly prospective copper/gold/silver exploration prospect in the United States of America.

Exploration Portfolio Rationalisation

With reduced revenues and profits at Cobre, and the malaise in the iron ore market, the Board has decided to rationalise iron ore exploration holdings.  The Company has not met the minimum expenditure requirements on the Jotanooka Iron Ore Project in Western Australia and as such, will relinquish the tenements on 15^th January 2015.   

The Iron Glen tenements in Queensland will be retained for the time being and subject to appropriate funding the potential for silver and lead deposits will be reviewed. Historical work conducted on the tenements identified some promising prospects.

The Company looks forward to providing further updates in the new year.

For further information, please contact:

Strategic Minerals plc Julien Mcinally Executive Chairman	[phone]
Allenby Capital Limited Nominated Adviser and broker Jeremy Porter James Reeve	[phone]
Tavistock Communications Financial PR Jos Simson Nuala Gallagher	[phone]

 

END

 

 

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