Strategic Minerals enters cash generative phase, shares jump

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

strategic minerals

Strategic Minerals


10:30 21/07/17
  • 12,021.50
  • 0.18%22.03
  • Max: 12,051.26
  • Min: 11,942.06
  • Volume: 0
  • MM 200 : n/a
13:25 21/07/17
  • 971.37
  • 0.39%3.78
  • Max: 972.57
  • Min: 967.34
  • Volume: 0
  • MM 200 : n/a
13:25 21/07/17

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

12:40 Ebay shares fall after company lowers third quarter guidance

Online marketplace Ebay saw its shares fall overnight after despite posting second quarter earnings that were in-line with consensus estimates, as it warned that analysts' forecasts for the following quarter were slightly too high.

12:39 MasterCard wins UK class action fight, appeal may be on the cards

A class action lawsuit against Mastercard to claim for £14bn of collective damages in the UK has been rejected by a Competition Appeal Tribunal, though an appeal is being mulled.

12:32 Friday broker round-up

Paddy Power: Investec downgrades to Sell with a target price of 6970p.

12:19 London midday: Stocks hug the flatline as investors mull borrowing figures

London stocks continued to crawl slothlike along the flatline by midday on Friday as investors sifted through some corporate news, digested the latest government borrowing figures and a stronger pound offset gains for miners from improving commodities prices.

11:39 US pre-open: Shares seen flat as investors eye more earnings; eBay under pressure

US futures pointed to a muted open on Wall Street on Friday ahead of earnings from the likes of General Electric and Honeywell.

10:44 Acacia Mining cash shrinks in first half, staff arrested in Tanzania

Acacia Mining has unsurprisingly shelved its dividend and may have to pause production one mine after seeing its cash balance shrink 45% in the five months since the Tanzanian government banned the company from exporting gold concentrate from two of its three mines in the country.

10:30 Bonds: ECB gives 'green light' to summer carry trades, BofA says

These were the movements in some of the most widely-followed 10-year sovereign bond yields: US: 2.25% (-2bp)UK: 1.21% (+1bp)Germany: 0.53% (-1bp)France: 0.78% (-3bp)Spain: 1.49% (-7bp)Italy: 2.11% (-8bp)Portugal: 3.01% (-6bp)Greece: 5.26% (+0bp)Japan: 0.08% (+0bp)

10:23 Government borrowing rises more than expected in June

Public sector net borrowing rose more than expected in June as inflation meant the government was forced to pay more interest on its debt, according to data from the Office for National Statistics.

10:19 Wednesday broker round-up

Direct Line: Credit Suisse upgrades to Outperform with a target price of 410p.

10:09 UK property transactions fall again - HMRC

The number of homes being sold in the UK has shrunk for the third month in a row, according to official figures released on Friday.