Strategic Minerals says makes progress in H2

Strategic Minerals said it made great strides in the second half of 2016 in obtaining a rail settlement and the acquisition of a substantial client for the Cobre operations.

Non-executive chairman Alan Broome continued that the company had now settled the consideration due for its share of the Redmoor joint venture.

It was in a cash-generative phase, utilising its cash reserves for self-funded exploration at both Redmoor and Hanns Camp, as well as actively considering new projects.

"In the March quarter, the addition and subsequent replacement of a new client for our Cobre operations points towards a profitable 2017," said Broome.

"The Board and Management consider the Company is in a strong position and are constantly reviewing both internal and external opportunities to ensure that cash resources are utilised most effectively in order to deliver value to our shareholders.

"With these positive developments in mind, we look forward to continuing to update the market on our progress, in a year we believe Strategic Minerals is set to perform strongly."

HIGHLIGHTS:

- Record domestic sales of 14,264 tons for March quarter at Cobre magnetite tailings operation ('Cobre'), New Mexico, USA;

- Profit margin for March quarter at Cobre exceeded 50% of sales;

- Significant new client secured - looking to at least double future Cobre sales;

- Major component of rail settlement payment (US $400,000) received;

- Option exercised (£843,649) and interest in Cornwall Resources Limited, Redmoor tin-tungsten project, UK ('Redmoor') taken up to 50%;

- 13 hole Phase 1 drilling programme commenced at Redmoor to confirm and extend the high grade tin-tungsten resource at Redmoor;

- Significant Cobalt findings in re-examined Hanns Camp core drilling samples at CARE Nickel Sulphide project in Australia;

- First research note on Company by broker SP Angel issued;

- Share options issued to Directors and Management vesting at 1.5p and 3.0p in line with existing Board and Management options;

- Corporate overheads continue to be tightly controlled; and

- Cash of US$0.695m as at 31 March 2017.

At 9:38am: (LON:SML) Strategic Minerals PLC share price was +0.23p at 2.05p