Business
Q2 2022 Cobre Magnetite Sales and Cash Balances
Q2 2022 Cobre Magnetite Sales and Cash Balances.
About this update from Strategic Minerals Plc
[{"type":"text","content":"\n \n \n The 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.\n \n \n \n 20 July 2022\n \n \n \n \n Strategic Minerals plc\n \n \n \n (\"Strategic Minerals\" or the \"Company\")\n \n \n \n June Quarter 2022 Magnetite Sales and Cash Balances\n \n \n \n \n \nStrategic Minerals plc (AIM: SML; USOTC: SMCDY),\n a profitable producing mineral company\n , is pleased to provide the following update on the Company's cash position and ore sales at the Cobre magnetite operation in New Mexico, USA (\"Cobre\") for the quarter ended 30 June 2022.\n \n \n \n Highlights\n \n \n \n ·\n Cobre's largest client maintains historical demand levels and confirms intention to do so\n \n \n ·\n June quarter and annual sales of US$0.7m and US$2.4m respectively, slightly weaker than in previous years\n \n \n ·\n Customers notified of a 20% sales price increase being progressively phased in from 1 July 2022\n \n \n ·\n Initial July sales do not appear to be impacted by product price increases\n \n \n ·\n Elevated transportation costs currently impacting sales expansion progress\n \n \n ·\n Group cash balance of US$0.430m as at 30 June 2022\n \n \n ·\n Programme for Environmental Planning and Rehabilitation (\"PEPR\") received for Paltridge North\n \n \n ·\n Results of Deep Digital Cornwall (\"DDC\") survey work being finalised\n \n \n \n \n \n \n Sales update: Cobre magnetite tailings operations\n \n \n \n In the June quarter, the Company's wholly owned subsidiary, Southern Minerals Group (\"SMG\"), and the Company's Managing Director, met with Cobre's largest client, in New Mexico, to discuss expected demand. The client indicated that there was not likely to be a repeat of the reduced demand experienced from October 2021 through to January 2022 (inclusive) and that their expectations for the rest of the year and beyond was in line with previous demand\n \n \n During June, SMG's clients were notified of a planned 20% increase in prices to be phased in over the next six months. Given that it had been over four years since prices were increased and the high inflation rate currently being experienced in the US, this was understood...