said it has seen an “encouraging performance” at the Cobre magnetite operation in New Mexico for the three month period to June 2020 despite the COVID-19 market impact.
It said volumes have continued to grow strongly in the June 2020 quarter - up sequentially 15% on the March 2020 quarter - which itself showed a 7% improvement on the December 2019 quarter.
The battery-focused mineral company has described organic sales growth for the quarter as ‘excellent’ with quarterly sales up 89% during June and sales up 38% year-on-year.
In the three months to 30 June 2020, Strategic raised $1.422m, paying off the balance of the NAE loan associated with acquiring total control of the UK-based tin/tungsten Redmoor project of AUD1.821m (principal AUD1.800m and interest of AUD0.021m) or US$1.253m.
As at 30 June 2020, the group's non-restricted cash balance was US$0.533m up from US$0.351m as at 31 March 2020.
Shares in Strategic Minerals opened flat at 0.425p following publication of the quarterly results.
"The encouraging performance at Cobre during the June 2020 quarter, particularly given the more challenging global overlay, has underwritten both operations and minimised funding required to repay the loan associated with taking full ownership of Redmoor,” said John Peters, Managing Director of Strategic Minerals.
Meanwhile, the company said it has seen a noticeable increase in interest in the Leigh Creek project as the price of copper has recovered to above pre-pandemic levels.
It said higher prices support the long-term economic attractiveness of the project but also highlight the economic potential for the project to enter into production within a year.
‘This makes the Leigh Creek Copper Mine one of the quickest, if not the quickest, near production copper project in the world,’ the company detailed in this morning’s statement.
“The Company's key focus is on moving both the Leigh Creek and Redmoor projects forward in a manner that avoids dilution at the parent level,” said Peters.
Peters added, "The strong copper price rebound, and sustained positive commodities outlook, bodes well for Leigh Creek's potential economic returns and strengthens its attractiveness to potential joint venture partners.
Work by the Cornwall Resources team, during the quarter to June 2020, has helped to further emphasise that the Redmoor project is world class and the Board is in discussions with organizations to assist the Company secure a suitable joint venture partner to take the project forward to a Pre-Feasibility Study and beyond, while also confirming the credentials of and the inherent value of the Redmoor project."
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