Strategic Minerals extends Cobre access for two more years
Strategic Minerals
0.24p
16:55 28/11/24
Strategic Minerals announced a two-year extension to its access agreement for the Cobre magnetite stockpile in New Mexico on Thursday, pushing the expiration date from 31 March 2027 to 31 March 2029.
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The AIM-traded company said the extension came on the back of continued operational success by its wholly-owned subsidiary Southern Minerals Group (SMG), adding that it would ensure a stable revenue stream over the long term.
In addition, SMG had secured a significant new purchase order for up to 30,000 tonnes of magnetite for 2025 from one of its major clients.
The order strengthened the firm’s forward revenue profile, complementing strong sales performance at Cobre, where full-year sales were expected to exceed $4.5m.
Strategic Minerals highlighted the strategic timing of the extension and purchase order, which positioned it to optimise revenue and cash flow in the coming years.
Further updates on sales and operational performance would be provided in its next quarterly report in the first quarter of 2025.
“The extension of access at Cobre to 31 March 2029 is a huge achievement by the excellent SMG team on the ground,” said executive director Mark Burnett.
“Combined with a significant new purchase order, this should underpin the revenue profile for SML into 2025 and beyond and provide scope to expand operations across the portfolio of SML assets.”
At 1050 GMT, shares in Strategic Minerals were up 2.73% at 0.23p.
Reporting by Josh White for Sharecast.com.