Cobre Sales Update
No summary for this filing – the full text is below.
Select text to share a quote on X · sign in to keep highlights & notes in your SML notes
LThe information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ('MAR') which has been incorporated into UK law by the European Union (Withdrawal) Act 2018.
Strategic Minerals plc
("Strategic Minerals" or the "Company")
September Quarter Cobre Sales Update
Highest September Quarter for 7 Years
Strategic Minerals plc (AIM: SML; USOTC: SMCDY), a producing mineral company, is pleased to provide the following update on quarterly Cobre sales to 30 September 2024.
Highlights
- September quarter sales revenue of US$1.273m, up 215% on September quarter 2023 (US$0.404m).
- Very strong sales levels being maintained.
- Full year sales in 2024 now expected to exceed US$4.5m.
Cobre Sales
The Company continues to benefit from the return of Cobre's major client and the addition of a substantial new client. Not unexpectedly, this represents an impressive 215% increase on the September 2023 quarter when Cobre's major client was not purchasing magnetite. However, this is also a 95% increase on September 2022 sales, when the major client was active.
The strength of the past two quarters' sales is shown in the following graph which illustrates the recovery in performance at Cobre.
Sales September Quarter 12 Months to September
__________________ _____________________
| $'000 | Volume | $'000 | Volume | |
|---|---|---|---|---|
| 2024 | 1,273 | 19,375 | 3,802 | 55,181 |
| 2023 | 404 | 4,592 | 1,649 | 19,126 |
| 2022 | 653 | 9,322 | 2,475 | 37,888 |
With over US$3.4m of sales (50,702 tons) in the first three quarters of 2024, the Company believes it is on track to reach and exceed the upgraded 2024 Cobre full year sales forecasts, with volumes now expected to exceed 60,000 tons (17,965 tons in 2023) resulting in upgraded revenues expected to exceed US$4.5m (US$1.6m in 2023).
Cash Management
As previously reported, the substantial reduction in sales during 2023, coupled with the need for working capital to fund sales growth in early 2024, required careful financial management. The Company is happy to report that the two remaining loan facilities totalling AUD$100,000, used to smooth out cashflow, were repaid during October.
Commenting, John Peters, Managing Director of Strategic Minerals, said:
"The quarter's sales have reinforced our confidence in the current demand at Cobre and our expectation for a continued strong performance in 2024 with forecasted annual sales now upgraded and expected to exceed US$4.5m."
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.