Strategic Minerals announces strong magnetite sales and cash generation
, a mineral production company focused on battery materials, announced today that in Q4 of 2018 the company generated $647,000 in cash.
Strong cash flow can be attributed to the company’s robust Cobre magnetite tailings operations. The 12 months to December 2018 saw the company sell 54,565 tons of magnetite.
Based in New Mexico, USA, Strategic Minerals’ Cobre operations maintained strong levels-- with sales still rising. Q4 2018 saw 10,931 tons sold, a steady increase from the 9,431 tons sold in the same quarter in 2016.
Strong sales volumes, combined with cash flow being augmented by advance payments received, allowed for the substantial $647,000 cash generation.
The news comes only days after Strategic Minerals announces that they had been granted an early extension contract, granting them access to the Cobre magnetite stockpile until March 31st 2020. The contract states that annual access can automatically rollover on March 31st of each year thereafter unless written notice is provided at least a month in advance.
Strategic Minerals’ Managing Director, John Peters argues this news demonstrates the company’s advantageous long-term positioning:
“The increased Group cash balance at 31 December, compared to 30 September, places the Company in a robust financial position for a strategically important year ahead. Strong ongoing sales at Cobre and the early rollover of access to the tailings stockpile announced earlier this week ensures that SML is in great financial shape as 2019 begins.”
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