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Strategic Minerals (LON:SML) has sold $4.8 million worth of ore from its Cobre magnetite tailings operation over the year to date, a 31% improvement over the same period of last year despite the end of a minimum monthly sales clause in a major client’s contract.
Managing director John Peters said “The management of sales at Cobre has continued to provide the Company with significant after tax cash which it has reinvested into progressing the Company’s three other projects. This reflects the Board’s desire to organically grow the Company, as much as possible, while progressing projects to points where markets can begin to fully appreciate their potential value.
With production expected to be re-started at Leigh Creek Copper Mine next year and work expected to commence on a Pre-Feasibility Study for Redmoor, the Board feels confident that recognition of this underlying value is near-at-hand.
The Board maintains its expectation for these activities to be fully funded from internal cash flows in 2018 and for there to be a healthy cash balance as at year end“.
Shares in Strategic Minerals rose by 4.41% to 1.54p (as of 12:25 BST).