Strategic Minerals PLC on Thursday reported a decline in magnetite sales from its Cobre operation in the US state of New Mexico.
Strategic Minerals is a London-based miner. In addition to the producing Cobre mine, the company has the Leigh Creek copper project in development in Australia. It acquired this in 2018.
Magnetite sales from Cobre in New Mexico in 2022 fell to $2.4 million from $2.6 million in 2021. Cobre magnetite ore tonnage declined 15% to 36,281 from 42,637 in 2021. It is down 30% from 51,518 in 2020.
The company’s revenue in the quarter to December 31 decreased to $464,000 from $493,000 in 2021.
Strategic Minerals noted reduced demand from some customers, as the company said slower US economic growth impacted sales volumes.
Cash balance as at December 31 fell 44% to $341,000 from $609,000 a year ago.
Strategic Minerals added that negotiations on planned funding for restarting production at the Leigh Creek copper mine in South Australia are at an ‘advanced stage’.
Looking ahead, the company expects Cobre ‘to continue to contribute substantial revenues to cover the company’s overall costs in 2023’.
Strategic Minerals shares were down 20% at 0.26 pence each in London on Thursday morning.
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