Strategic Minerals PLC on Thursday said price increases in July had boosted quarterly revenue, as it hoped for government funding for its Redmoor project.

In the three months that ended September 30, at the Cobre magnetite operation in New Mexico, the London-based exploration and production company recorded an increase in quarterly revenue to $653,000 from $607,000 last year. This was the result of price increases in July.

Strategic Minerals said ‘there appears to be no adverse effect on sales volumes from the price increase’.

Annual sales in the twelve months to the end of September were weaker, at $2.5 million compared to $2.9 million last year, reflecting lower revenue prior to pricing increases.

Strategic Minerals said that ‘elevated transportation costs’ continued to restrict sales expansion.

The company also noted that the UK government included tungsten and tin in its Critical Minerals list, raising the possibility that the company’s Redmoor project can benefit from government funding.

Current plans for Redmoor, which is in Cornwall, south west England, have been built around the company’s limited drill plans, although these may be rapidly expanded should additional funding be forthcoming.

Managing Director John Peters said: ‘Sales revenue levels continue to provide operational support, despite price increases...We are studiously preparing submissions for possible government funding of the Redmoor mine and believe that this project aligns well with the UK government’s plans for the Critical Minerals sector.’

Shares in Strategic Minerals closed 11% lower at 0.27 pence in London on Friday. The stock is down 38% over the past 12 months.

Copyright 2022 Alliance News Limited. All Rights Reserved.