Strategic Minerals PLC on Tuesday upgraded guidance following strong sales from the Cobre magnetite stockpile operation.

The London-based mining and exploration company said in the second quarter that ended June 30, sales from the New Mexico, US operation multiplied to $1.3 million from $367,00 the previous year.

Strategic Minerals shares were up 20% to 0.18 pence each in London on Tuesday morning.

These figures mark the highest sales on record for the company during the aforementioned period.

In light of this performance with the sale of 31,327 tonnes at $2 million occurring in the first half of 2024, the company has raised its forecasts. Strategic Minerals now expects to see sales exceed 60,000 tonnes compared with 17,965 last year and upgraded revenue guidance to $4.0 million compared with $1.6 million reported in 2023.

‘the substantial reduction in sales during 2023 required careful financial management. The company is happy to report that, with Cobre’s excellent first half sales performance, creditor arrangements, excluding the board and management, are now up to date,’ Strategic Minerals said.

One short-term funding facility worth A$50,000, approximately £26,291, has been repaid with two further facilities totaling A$100,000 remaining. These are expected to be repaid by their maturity date in October using revenue from Cobre sales.

As noted in December, $360,000 was outstanding to the board and management in relation to 2023 remuneration. This has now increased, as of June 30, to $518,000 with the payment of deferred remuneration expected later this year through to the first half of 2025.

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