Strategic Minerals enters cash generative phase, shares jump

Alexander Bueso Sharecast | 21 Apr, 2017 13:02 | | |

strategic minerals

Strategic Minerals

2.03

17:18 22/09/17
1.25%
0.03
  • 11,584.37
  • 0.93%106.82
  • Max: 11,593.12
  • Min: 11,368.51
  • Volume: 0
  • MM 200 : n/a
17:30 22/09/17
  • 994.67
  • 0.30%2.94
  • Max: 995.03
  • Min: 989.98
  • Volume: 0
  • MM 200 : n/a
17:25 22/09/17

Shares in Strategic Minerals leaped higher after the company said it had entered a cash generative phase and was considering new projects.

Key to the company's outlook, sales of magnetite from its New Mexico, US Cobre tailings operations more than tripled during the first three months of 2017 to hit 14,264 tonnes for $834,000 of proceeds, versus a tally of -$227 for the same period of the previous year.

The company also announced it had secured a new client for that same magnetite sale operation with an agreed minimum off-take of 4,000 tonnes a month starting from 1 June.

"That indicates that the remainder of 2017 may provide further strong sales figures which would positively impact Strategic Minerals’ bottom line," the company said in a statement.

House broker SP Angel estimated that alone might provide a further $820,000 of revenues.

During the reporting period, Strategic also kicked-off drilling at its 50%-owned Cornwall Resources Redmoor tin tungsten project.

Furthermore, the outfit identified the potential for a significant cobalt deposit after re-assaying samples from the 2016 drilling programme at its 75%-owned Central Australian Rare Earths (CARE) project at Hanns Camp.

Having entered the cash-generation phase the firm was now in a position to utilise it cash reserves for seld funded exploration at Redmoor and Hanns Camp, as well as actively considering new projects.

The cash balance stood at $695,014 as of 31 March.

"We look forward to the drilling results from Redmoor, more details of the cobalt potential of Nanns Camp and, in due course to the outcome of the company’s efforts to identify new projects", SP Angel added.

As of 1258 GMT shares in the outfit were up by 20.55% to 2.20p.

More news

22 Sep Europe close: Stocks finish higher on strong PMI readings

Stocks on the Continent finished mostly higher on the back of strong survey readings on the euro area's manufacturing and services sector and ahead of the German general elections at the weekend, although fresh barbs from Pyongyang were a drag on sentiment.

22 Sep Thousands of steel workers protest ThyssenKrupp merger in Germany

Thousands of steel workers gathered in Western Germany on Friday to protest the proposed merger of ThyssenKrupp and Tata Steel's European operations which was expected to result in approximately 4,000 job losses.

22 Sep London Close: FTSE firmer as pound losses ground after May speech

London stocks had reversed earlier losses to trade a little higher by Friday's close, helped along by a weaker pound as investors weighed up a key speech by Prime Minister Theresa May.

22 Sep JP Morgan Chase to establish global headquarters in Warsaw

Polish Deputy Prime Minister Mateusz Morawiecki announced on Friday that US bank JP Morgan Chase had picked Warsaw to play host to its new global operations centre, bringing thousands of jobs to the region from the beginning of 2018.

22 Sep FTSE 250 movers: Pets at Home dashes higher, oilers also lifted

The FTSE 250 index was on the front foot on Friday, led by retailer Pets at Home and a group of oil-related companies.

22 Sep Theresa May calls for post-Brexit transition period, new security treaty

In a speech in Florence on Friday, Prime Minister Theresa May confirmed that she wanted a two-year "implementation period" post-Brexit and a new treaty with the European Union on security and justice.

22 Sep FTSE 100 movers: Johnson Matthey rallies again but Smiths drops on results

London's FTSE 100 was up 0.6% to 7,305.66 in afternoon trade on Friday as investors mulled over PM Theresa May's Brexit speech in Florence.

22 Sep Results round-up

Saga, the specialist provider of products and services for those over 50, reported solid growth of 5.5% in underlying profits before tax for the first half as it ordered a second new cruise ship amid high demand.

22 Sep US economy shows resilience in face of hurricanes - Markit

Business activity in the US picked up in September despite hurricanes Harvey and Irma, as growth in the manufacturing sector helped to offset an easing in services, according to preliminary data released on Friday.

22 Sep Thalassa suspends share buyback as FairfieldNodal commences due diligence

Thalassa Holdings confirmed the suspension of its share buyback programme on Friday, as a suitor continued to circle the marine geoscience and subsea robotics company.