Proactive Investors - Strategic Minerals (LON:SMLP) managing director John Peters told investors that the company retains tight reins as it continues to respond to weaker growth in the US which has impacted sales at its Cobre magnetite operations.
“The company has maintained a tight control on overheads and is looking to source short term funding to ensure adequate cash balances are available for planned operations, thus avoiding unnecessary dilution,” Peters said.
He added: "The recent significant investment secured by Cornish Lithium has focused attention on the revival in Cornish mining and helps to highlight the underlying value of the Redmoor project.
"Despite the disappointment of not achieving grant funding on the first attempt, the CRL [Cornwall Resources Limited] team made a significant, credible submission which has provided valuable experience for its subsequent application.
“Engagement continues with both Cornwall Council and other local stakeholders.
“Recent encouraging discussions with various parties leave us confident of progress.”
Peters said the Strategic Minerals board is looking forward to “a more active period of news flow during the final quarter of 2023".
In terms of financial results, the company reported a pre-tax profit of US$54,000 in the half year ended 30 June 2023., down from US$248,000 in H1 2022.
To ensure financial stability, the board is considering a short-term working capital facility.
Sales at Cobre for the June quarter were reported at US$367,000, a decline from US$666,000 in 2022.
The company noted that its subsidiary, Cornwall Resources Limited (CRL), lodged claims with the Deep Digital Cornwall project amounting to US$114,000, receiving US$45,000 in early July.
Additionally, investments of US$347,000 were made in development projects, including the Leigh Creek Copper Mine and Redmoor Tin and Tungsten Mine.