Business
Q4 Magnetite Sales and Cash Balances
Q4 Magnetite Sales and Cash Balances.
About this update from Strategic Minerals Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 6965Z\n Strategic Minerals PLC\n 26 January 2022\n \n \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 26 January 2022\n \n \n Strategic Minerals plc\n \n \n (\"Strategic Minerals\" or the \"Company\")\n \n \n December Quarter 2021 Magnetite Sales and Cash Balances\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 31 December 2021.\n \n \n Highlights\n \n \n · The 2021 annual sales revenue from Cobre was US$2.611m (2020: US$3.025m)\n \n · CV Investments LLC (\"CVI\") Receiver has formally requested all trade creditors and investors to again submit their claims to the Receiver, indicating an intention to distribute\n \n · After tax profit expected in 2021, subject to audit\n \n · \n Group cash balance of US$0.609m as at 31 December 2021\n \n \n · \n Commencement of operations at Leigh Creek Copper Mine expected first half of 2022 subject to receipt of required funding\n \n \n \n \n \n Sales update: Cobre magnetite tailings operations\n \n \n 2021 saw a gentle decline in sales over the first three quarters and a significant fall in the December quarter of 2021. While initial declines had been thought to reflect increased demand in 2020 associated with the wall between the USA and Mexico, the last quarter has seen a significant drop in demand from the Company's largest client. \n \n \n The major client has indicated that they wish to rundown a significant magnetite stockpile, established at their plant. As this point, it is not clear when previous demand levels will be restored. To some degree, this fall in demand has been mitigated by the change in the associated sales price mix and additional demand from existing clients. Overall, sales volumes were in line with 2019 and changes in pricing mixes have resulted in a higher sales revenue than the underlying 2019 adjusted performance.\n \n \n Despite the reduction in sales at Cobre...